Source BioScience Release: Half Year Report for the Six Months Ended 30 June 2013

Published: Aug 29, 2013

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29 August 2013 -- Source BioScience plc (LSE: SBS) the international diagnostics and genetic analysis services business, announces its Half Year Report for the six months ended 30 June 2013.

Financial highlights

- Revenue increased by 4% to £8.8 million (2012: £8.4 million)

- Adjusted EBITDA* increased by 21% to £1.5 million (2012: £1.3 million)

- Adjusted operating profit* increased by 60% to £0.8 million (2012: £0.5 million)

- Profit before tax increased by 42% to £0.6 million (2012: £0.4 million)

- EPS of 0.14p basic (2012: 0.20p basic)

- Cash balance of £2.0 million (31 December 2012: £2.2 million)

*Adjusted results are stated after eliminating the acquisition costs of £0.1 million for Inverclyde Biologicals. The adjusted results have been included to present a fair comparison of the progress in the underlying business.

Operational highlights

- Advancement in the Healthcare business, delivering growth:

- Acquisition of Inverclyde Biologicals for £1.4 million; bringing cross selling opportunities, expertise in designing and manufacturing clinical grade reagents and enabling geographic expansion into Scotland

- Competitive tender won from Kent County and Medway Councils under the National Chlamydia Screening Programme (‘NCSP’); contract worth in excess of £1.0 million over three years

- Renewal of York Teaching Hospital NHS Foundation Trust cervical cancer screening contract together with the implementation of BD FocalPoint™; contract worth £1.3 million over three years

- Further developments in LifeSciences business:

- Launch of Overnight Service for DNA sequencing for the Scottish life science market following Inverclyde Biologicals acquisition

- DNA sequencing has grown by 60% year on year, driven by Overnight Service and expanded laboratory network

- Launch of reSource™ own label products; high quality, cost effective products for life science research, significantly increasing addressable market for the Source BioScience product portfolio

Post period event

- On 7 August 2013 Source BioScience announced a £12.2 million recommended cash offer for Vindon Healthcare plc. The proposed acquisition is expected to bring multiple benefits including extended geographical reach, additional in-house expertise and an enhanced offering of products and services to customers. Detailed information regarding the proposed acquisition can be found on the Group’s website at

Laurie Turnbull, Chairman of Source BioScience, said:

“We have delivered another period of progress across the business with revenue growth, additional products and services and significantly enhanced profitability compared with the first half of last year. We have also demonstrated, through our acquisition of Inverclyde Biologicals, our strategy to identify high quality businesses which we can integrate quickly and effectively into the Group, to generate immediate commercial benefits.

“The encouraging first half of the year represents a continuation of the strong growth and business performance achieved last year and reflects the substantial opportunities we see for further development across both our Healthcare and LifeSciences divisions.”

For further information, please contact:

Source BioScience plc

Dr Nick Ash

Chief Executive Officer

Tel: +44 (0) 115 973 9010

For investor and media enquiries:

N+1 Singer (Financial Advisor, Sponsor and Broker)

Aubrey Powell/Joe Stroud

Tel: +44 (0)207 496 3000

College Hill (PR Agency to Source BioScience)

Melanie Toyne-Sewell/Claire Dickinson

Tel: +44 (0) 207 457 2020

Cautionary statement

This business review may contain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements. Any forward-looking statements made by or on behalf of Source BioScience speak only as at the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Source BioScience does not undertake to update forward-looking statements to reflect any changes in the Group’s expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

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