Concepta ‘confident’ of building sustainable growth this year
The UK healthcare group said that pre-tax losses for the period narrowed to £2.49m from £2.85m while revenue increased to £32,000 in 2019 from £4,800 in 2018.
The group told investors that it had started generating revenues in the UK following the receipt of CE Mark certification for its myLotus branded products.
The group condensed production activity to match visible demand over the period as well as reducing operating costs and managing immediate cash flows.
Meanwhile, administration costs, including share-based payments, incurred during the year ended 31 December 2019, fell to £2m from £2.3m in 2018.
Net cash outflow from operating activities was £1.8m in 2019 from £2.2m in 2018 while total expenditure on property, plant and equipment and intangible assets came to £374,350 (FY 2018: £626,654).
Shares in Concepta were trading -3.45% lower at 1.4p on Friday morning.
Penny McCormick, CEO of Concept, said the group remains confident of building sustainable growth as it rolls out its commercial strategy and continually improves its cost base.
Since the year end, the group has successfully raised £1.9m gross via a placing of new shares and disposed of its manufacturing facility in Doncaster for a further £0.3m.
Concepta said it is now well placed to grow its core underlying business and said it expects a number of positive opportunities for the business during the current financial year.
“Underpinned by our increasing focus on the digital marketing and education effort from mid-2020,” said McCormick, “we expect to see good commercial traction of myLotus and take advantage of up-coming connected personal diagnostic technology innovation and industry know-how to drive our growth strategy."
The Board said it is not recommending a dividend and anticipates short-term reductions in revenues in the current year as a result of the Covid-19 pandemic.
However, given the early stage commercialisation, the group said that income from sales is currently a small contributor, and cost control has a greater impact on its financial position.
Follow News & Updates from Concepta here:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.