Source BioScience Release: Preliminary Results for the Year Ended 31 December 2012

Published: Mar 19, 2013

March 19, 2013 -- Source BioScience plc (LSE: SBS), the international diagnostic and genetic analysis services business announces its unaudited preliminary results for the year ended 31 December 2012.

Financial highlights

• Revenue increased by 8% to £16.4 million (2011: £15.2 million)

• Operating profit more than doubled to £1.2 million (2011: £0.5 million adjusted*)

• Profit before tax of £1.0 million (2011: £0.4 million adjusted*)

• EBITDA increased by 43% to £2.7 million (2011: £1.9 million adjusted*)

• Profit after tax of £3.5 million (2011: loss of £2.8 million)

• EPS 1.70 pence (2011: loss per share 1.37 pence)

• Cash generated from operating activities of £3.3 million (2011: £0.6 million)

• Cash balance of £2.2 million (2011: £1.1 million) and net debt of £0.9 million (2011: £2.3 million)

*Adjusted results for the year ended 31 December 2011 are stated after eliminating non-recurring restructuring costs of £0.6 million and the £2.8 million charge to reflect the fair value of the Head Office premises following their purchase during 2011. The adjusted results for 2011 have been included to present a fair comparison of the progress in the underlying business.

Operational highlights

• Rapid roll out of the BD FocalPoint™ automated imaging platform for cervical cancer screening; contracts signed with NHS worth at least £0.6 million per annum over three years

• Access to BD FocalPoint™ was instrumental in winning the University Hospital of North Staffordshire NHS Trust’s liquid based cytology (‘LBC’) contract, the first time that an NHS Trust has switched LBC technology provider

• Launch of the Illumina MiSeq™ next generation sequencing platform; Source BioScience is the only commercial provider of this new technology in the UK

• Consolidation of operations and infrastructure to deliver enhanced gross margin and operating profitability across the Group

Post-period event

• Renewal of York Teaching Hospital NHS Foundation Trust LBC contract together with the implementation of BD FocalPoint™ automated imaging; contract worth £1.3 million over three years • Launch of reSource™ own label products; high quality, cost effective products for life science research, significantly increasing the addressable market for our product portfolio

Laurie Turnbull, Chairman of Source BioScience, said:

“2012 was a year of consolidation and improvement of the business and its infrastructure. Revenue and operating profits have increased again and the Group is in a robust financial and structural position to accelerate the organic growth of the business.

“Significant opportunities are apparent across all areas of the Group, with customers seeking faster access to more efficient and more accurate molecular diagnostic testing, and to high quality genomic products and services. We are also proactively exploring opportunities that are complementary to our existing activities and will further enhance the Company’s portfolio and reputation.”

For further information, please contact:

Source BioScience plc

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 3155

College Hill (PR Agency to Source BioScience)

Melanie Toyne-Sewell/Stefanie Bacher

Tel: +44 (0)207 457 2020

Mob: +44 (0)7792 693760


Cautionary statement

This Business Review contains certain forward-looking statements with respect to the financial condition, results, operations and businesses of Source BioScience plc. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Nothing in this Business Review should be construed as a profit forecast.

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