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(Sharecast News) - Medical diagnostics company Cambridge Nutritional Sciences said on Tuesday that it had made a marked turnaround in the year ended 31 March, with operational improvements and cost discipline helping offset a decline in headline revenues.
Cambridge Nutritional said total income rose 12.7% to £11.1m, boosted by a £2.5m settlement with the Department of Health and Social Care. However, revenue fell 14.8% to £8.3m, largely due to distributor losses and prior-year overstocking.
Despite this, Cambridge Nutritional said gross margins improved from 61.9% to 65.3%, driven by a 41% reduction in scrap costs and increased automation.
Adjusted underlying earnings more than doubled, rising 115.4% to £400,000, while pre-tax profits swung from a £700,000 loss to a £1.6m gain - a 310% year-on-year increase. Cash and deposits declined 10.6% to £4.9m, reflecting investment in fixed assets and legal settlements.
Cambridge Nutritional also said operational highlights included a 9% rise in UK lab sales, the deployment of its MyHealthTracker app, and the resolution of all outstanding legal cases. Looking forward, the AIM-listed group stated it was now well-positioned to expand internationally and capitalise on growing demand for gut health diagnostics.
As of 1020 BST, Cambridge Nutritional shares were down 5.71% at 3.30p.
Reporting by Iain Gilbert at Sharecast.com
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