Member Article

Wetherby’s cosmetic firm Evocutis reports losses after failed sale process

Wetherby-based Evocutis plc, the cosmetic tester has reported losses of over £62k after a formal sale process was terminated.

For the year ended July 2013, revenue was at £395,000 compared to 2012, which was £457,000.

However, on the bright side, there was a reduced loss for the year of £1,007,000 (2012: £1,519,000)

Formal sales process terminated October 2013 and limited discussions continue.

According to the statement decisions would be “ taken to change focus of the Company to that of managing its intellectual property.“

Discussions ongoing regarding potential sale or licence of the Group’s intellectual property assets

Chairman Tom Bannatyne and CEI Dr. Gwyn Humphreys said: “The past year has been a difficult one for Evocutis.

“ Whilst the Group has achieved sales revenues of £395,000 and a reduced overall loss for the year of £1,007,000, the board agreed that the unpredictability and magnitude of revenue generating contracts was a significant problem.

“During August 2012, we decided that launching our LabSkinTM tissue culture reagent as a separate consumable product might generate sufficient sales revenues to supplement the income from contract services work, in order to sustain the Group whilst other diversification opportunities could be sought.

“In September 2012, we launched LabSkinTM as a product and have generated initial sales of £38,000 over the remainder of the financial year.

“At the same time, considerable effort was made in generating increased contract research work and we announced on 17 January 2013 that we had secured a number of new contracts from major companies worldwide, amounting to over £280,000.

“However, the slow ramp-up in sales, coupled with significant ongoing cash requirements has made it increasingly difficult to establish a secure independent future for the Group. “

The company focused on advanced laboratory and clinical evaluations of skincare products for the health and cosmetic markets

This was posted in Bdaily's Members' News section by Clare Burnett .