London-listed Diaceutics (AIM:DXRX)
recorded ‘a strong finish’ to the financial year with a trading update for the year ending 31 December 2019.
The company, which provides services to the global pharmaceutical industry, said a wider client base and a surge in product sales were responsible for a strong trading performance in its final quarter.
As a result, the group has said it expects revenue and adjusted EBITDA to be ahead of market expectations.
The statement recorded revenue at around £13.4 million for 2019 up from £10.4 million in the previous year, whilst EBITDA is expected to exceed £2.1 million compared to £1.5 million in 2018.
“2019 was a key year in expanding our global footprint and deepening our service relationships with key clients and their therapy brands,” said Peter Keeling, Chief Executive of Diaceutics.
Shares in Diaceutics were trading 13.24% at 115.5p on Monday afternoon.
Diaceutics also reported all outstanding debt to be retired from the balance sheet, resulting in net cash of £11.7 million which will enable the group to ‘expand globally’.
A considerable rise from £2 million in the previous year, the net cash sum will also go towards the group’s preparation for the launch of the Nexus platform later this year, the company highlighted.
The group explained how it expects this to strengthen its current market position in global test commercialisation, the statement detailed.
"We are pleased to have delivered on both our operational and financial commitments, exceeding full year guidance, while continuing to invest in the long-term future of the Group,” added Keeling.
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