Tepnel Life Sciences Trading Update
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Tepnel has announced the following trading update for the first half of 2006.
Tepnel’s results for the 6 months ended 30 June 2006 will reflect continued strong top line sales growth and a better than budgeted bottom line.
Sales for the first half of the year were £8.16m (unaudited) compared to £6.89m (unaudited) for the same period in 2005, indicating 18.4% sales growth.
The Molecular Diagnostics group recorded sales of £4.69m (2005: £4.01m) while Research Products & Services reported sales of £3.47m (2005: £2.88m).
These much improved sales resulted in operating profit significantly ahead of previous forecasts when combined with improved margins and cost control.
The overall result for the first half of 2006 will show an operating profit before exceptional items of £45,000 compared to an operating loss of £391,000 for the same period in 2005.
Ben Matzilevich, CEO, stated, "Our strategy has been to identify significant molecular diagnostic and research product niche market opportunities and to take leadership positions in these sectors."
"We are especially gratified to see that sales of our genomic products and services have more than doubled in the first half of this year compared to the same period last year."
"Molecular Diagnostic reagents for organ transplantation monitoring (bone marrow, kidney, liver, heart, etc.) have increased sales by 40% from the same period."
"These are two important markets where we have invested resources and focused our energies and we are now seeing the benefits of those efforts with sales and profit growth."
"In all sectors we are competing with large global players and we have chosen to compete by targeting superior products into selected regional markets focusing on highly specialized applications backed up by strong technical support."
"Our new facilities in Scotland, where we are due to commence construction this month, will give us the laboratories we need to maintain our growth and expand our genomic and proteomic product lines."
"We believe that close attention to the bottom line and expanded sales and marketing efforts into the USA plus our strong product pipeline will help position Tepnel for continued growth and improved profitability."