Bioquell profits hit by problematic December

Bioquell, a company which provides specialist bio-decontamination technologies to a range of markets, has admitted it suffered a 'slight shortfall' at the end of the year in orders expected for immediate shipment to Life Sciences customers based in continental Europe.

As a result, full year revenue is now expected to be £41.0m, compared to £41.3m in 2011.

The company also said it decided not to ship a number of orders before the year end from customers in the emerging markets because it was "unable to satisfy ourselves as to the robustness of the associated credit arrangements".

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The group added: "In addition, our defence invoicing in 2012 was held back at the very end of the year on one large defence contract due to slippage on matters unrelated to Bioquell's activities. Our business is highly operationally geared and such a reduction in revenues has a significant effect on our profitability.

"We estimate that the aggregate revenue effect relating to these matters will be approximately £0.9m."

Aside from this, the group has begun 2013 with a 12% increase in its opening order book of £17.2m (2011: £15.4m), with no significant change year-on-year in the defence order book. The Bio-decontamination division order book totalled £12.3m (72% of the total order book) and TRaC represented £4.9m (28%).

In 2012, the group took orders worth £44.6m, up slightly from £44.4m in 2011, with an 'encouraging' performance from TRaC, where orders rose 18%, and revenues climbed 11%. Both orders and revenues hit a monthly record in December.

Investec moved its target price from 137p to 130p and retained its hold rating on the stock.

The share price fell 7.81% to 147.50p by 12:30.

NR