SourceBio International says recent trading significantly ahead of last year

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SourceBio International PLC (LON:SBI) said it has continued to trade well since 31 December 2020 with revenues, earnings and cash generation in the year-to-date significantly ahead of the equivalent period last year.

The group remains focused on expanding its offerings, technologies and routes to market in the COVID-19 testing realm.

READ: SourceBio wins tender with Public Health England, added to UK’s approved list of quarantine COVID-19 tests

It has also pivoted away from the heavy reliance on PCR testing for the Department of Health and Social Care (DHSC) that initially underpinned the Infectious Disease Testing business unit, adding that it now supports a much broader portfolio of customers.

Executive chairman Jay LeCoque said in a statement the board is pleased with progress in the year-to-date but recognises that it expects peak levels of revenue and earnings to be generated from the anticipated high levels of travel-related testing expected in the coming months.

“The indicated demand of such travel-related testing has provided the impetus to further expand the capacity of our Nottingham laboratory,” he said.

“We are also pursuing additional laboratory capacity elsewhere in the UK in order to cope with the anticipated peak in demand. If the forecasted volumes of business materialise, we would expect the 2021 financial results to be materially second-half weighted.”

The laboratory services and products provider said its base business lines have now all returned to pre-pandemic levels of trading.

The Healthcare Diagnostics business unit has seen increases in the volume of Cellular Pathology business returning in recent months as elective surgeries normalise.

“We continue our pursuit of strategically relevant, earnings enhancing acquisitions to augment the growth of our established business units and to further strengthen our capabilities and offerings to customers. The key criteria when exploring potential acquisitions will be how we can integrate these businesses into our current model to achieve accretive earnings,” LeCoque added.

“The group remains well-positioned to support its customers and their requirements and we remain optimistic for the remainder of the year and beyond.”

SourceBio is holding its AGM at 1pm on Monday.

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