Back in December towards the end of the last financial year, the AIM-quoted group described market conditions as “challenging”.
Trading has continued to be difficult in its existing markets for small-molecule detection and Microsaic isn’t holding out much hope for a sudden turnaround in 2017.
The projected shortfall in first half and full-year revenues is expected to be offset by lower overheads following the cost reduction plans implemented earlier this year.
As a result, the full-year loss before tax is expected to broadly in line with the £3.4mln loss posted last year.
In late afternoon trading, Microsaic's shares were down 21.9%, or 0.58p at 2.05p.
At the end of May, the firm’s cash position was £4.2mln and it is looking to “extend its cash runway through prudent financial management, co-development income and grants”.
New biopharma strategy
Given the challenging markets in small-molecule detection, Microsaic has been working on the detection of larger molecules during biopharmaceutical manufacturing, or bioprocessing.
The company thinks there is more opportunity and money in this particular sector and is focusing its technical resources and working with partners in order to target the bioprocessing space., bioprocessing
“Despite 2017 proving to be a difficult year in our traditional markets, we are very encouraged with the progress since our 21 March 2017 update, when we introduced our biopharma strategy, specifically around bioprocessing,” said interim non-executive chairman Eric Yeatman.
“We are engaging with several of the leading players in the global market for bioprocessing equipment, and are confident that the new strategic emphasis is opening significant opportunities for our unique technology.
“We do recognise, however, that it will take time to deliver revenue from these opportunities due to the lead time in developing and marketing new products.”
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