Sales for the year ended 31 December 2007 (which includes a full twelve months of results for Applied Imaging) are expected to be £22.9 million (2006: £15.5 million), being an increase of 48% on the previous year. The key growth driver during the year was our cell biology product family which showed excellent sales growth of 44% to £6.5 million. Owing to the strength of sterling versus the dollar throughout 2007, on a constant currency basis sales in the year would have been approximately £23.8 million, being an increase of 54%.
In our first full year of ownership Applied Imaging achieved revenues of £9.9 million and an operating profit of £1.5 million and the integration of this business is now complete. Since acquiring Applied Imaging in November 2006 we have transformed it from a loss making business into one which is a significant source of profitability for the Group as a whole and we are encouraged by the future growth prospects of this operation.
Gross margin in the year has improved by over 3% to 60% reflecting an improved product mix with the key driver being the excellent sales growth in our cell biology products.
We have continued to invest in the business including developing our sales and marketing infrastructure as well as R&D, the latter of which will enable us to launch two new products in Q1 2008, the Cell Reporter and the Chromoscan 120 Slide Loader, which we believe have excellent prospects.
Pre-tax profits before amortisation of acquired intangibles, to 31 December 2007 are expected to be in-line with market expectations and the Board remains confident about the Group’s prospects for 2008.
Mark Reid, Chief Executive, commented:
“2007 was a year of substantial progress for Genetix as we capitalised on the growing market for our cell biology products and completed the integration of Applied Imaging. We are making a number of strategic investments in the sales infrastructure and are launching two exciting new products that will drive further momentum in sales growth in our chosen markets and are optimistic for the year ahead.”
Genetix Group plc Mark Reid, Chief Executive
Andrew Kellett, Finance Director Tel: 01425 624600
Financial Dynamics Deborah Scott Tel: 020 7831 3113
Piper Jaffray
James Steel; Tel 020 3142 8700
The release will be available on the Company’s website: www.genetix.com
About Genetix Group plc
Genetix delivers the competitive edge in cell identification and selection from discovery to diagnosis.
Genetix technologies are bringing new efficiencies to biotherapeutic and biomarker research from target discovery through to clinical diagnosis. We continually deliver technological breakthroughs to increase our customers’ productivity and success
Genetix customer base includes many of the world’s leading biopharmaceutical, cytogenetic and cancer pathology groups.
Genetix is quoted on the AIM (symbol: GTX) and is based in New Milton, Hampshire, UK with offices in the US, UK and Germany.
