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.

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".

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

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
James Ferguson: How bad data is driving fear of a second wave of Covid-19
UK Economy

James Ferguson: How bad data is driving fear of a second wave of Covid-19

Merryn and John talk to MoneyWeek regular James Ferguson about the rise in infections in coronavirus and what the data is really telling us.
17 Sep 2020