KRAKOW, Poland, Sept. 10,
2020 /PRNewswire/ -- Selvita (WSE: SLV), one of the
largest preclinical contract research organizations in Europe, reported today its H1 2020 financial
results and provided a corporate update.
For the H1 2020, Selvita reports consolidated revenues of
EUR 15.2 million, up by 47% on a
year-on-year basis. The EBITDA result reached EUR 3.6 million, compared to EUR 2.4 million a year earlier. The backlog for
2020, as of September 7, amounts to
EUR 27.6 million and indicates an
increase of 39%, as compared to the values reported a year ago.
The Company consistently develops its business activities and
strengthens its position on the global preclinical CRO market,
especially among the U.S. customer base, considered the world's
largest biotechnology market.
Commercial revenues in the Services Segment increased in H1 2020
to EUR 12.5 million, showing a 51%
increase, compared to EUR 8.6 million
in the corresponding period last year. The EBITDA result of the
Services Segment amounted to EUR 3.2
million, which indicates a 23.8% profitability.
Revenues in the Bioinformatics segment (Selvita's subsidiary –
Ardigen S.A.) amounted to EUR 2.0
million in 1H 2020, indicating a 43% increase compared to
the same period last year. The EBITDA result increased by 217% and
amounted to EUR 0.4 million, with a
margin of 20,1%.
The Company's net profit in the first half of the year amounted
to EUR 2.1 million, compared to
EUR 1.1 million for a corresponding
period last year.
The first half of 2020 was a very intensive period for Selvita
in terms of corporate and business development. The Company
announced a new development strategy for 2020-2023, successfully
raised over EUR 20 million from the
issue of C series shares, and consequently increased its scale of
business.
- We're consistently implementing the assumptions of
the development strategy, which directly translate into
strengthening of our market position, as well as a solid
operational and financial result. The first half of 2020 confirms
that the global preclinical CRO market continues to grow and
diversify, despite the uncertainties caused by the COVID-19
pandemic. For Selvita, it was a very strong half-year, as, despite
the global situation and instabilities, we managed to strengthen
our position on international markets, especially among U.S. based
customers - comments Boguslaw
Sieczkowski, Chief Executive Officer at Selvita.
Revenues from the services commissioned by U.S. customers
increased almost three times by 279% y/y, and already constitute
nearly 28% of the entire Services Segment revenues. At the same
time, revenues from the services commissioned by customers from the
United Kingdom increased by 63%
y/y. Increasing customer recognition is related to the high quality
of services offered and highly competent teams of specialists,
which results in further contracts.
Continuity of our business operations has been assured with
numerous preventive measures across our entire organization that
have been taken in order to keep our scientists safe and the
Company fully operational. Despite the restrictions placed on
international travel, we are keeping our sales and networking
activities going, which has successfully translated into the
signature of numerous new contracts, as evidenced by our
record-breaking backlog - adds Boguslaw
Sieczkowski.
At the end of April 2020, Selvita
announced its new development strategy for 2020 – 2023, which
assumes increasing revenues, maintaining a stable EBITDA
margin, and over EUR 230 million of
market cap in 2023. For this purpose, in 2020-2023, the Company
intends to execute investments worth up to EUR 75-90 million, allocated to acquisitions and
organic development. In order to complete the strategy, Selvita
raised over EUR 20 million in its
Follow-On public offering from the issue of C series shares.
Approximately 80% of the proceeds will be allocated to
acquisitions, on which the Company is currently intensively working
on. One of the elements of the strategy execution will be the
creation of the Selvita Research Center in order to secure its own
research space necessary for further growth. The Company has
already made the first step towards executing this goal and signed
a contract to purchase a plot of land in the neighborhood of its
current laboratories in August 2020
for the value of EUR 2,3 million.
* Percentage changes in the press release are
calculated based on functional currency [PLN].
About Selvita
Selvita is a CRO (Contract Research
Organization) Company providing multidisciplinary support in
resolving the unique challenges of research within area of drug
discovery, regulatory studies, as well as research and
development.
The Company was established in 2007 and currently employs over
500 professionals, of which over 1/3 hold PhD title. Selvita is
headquartered in Krakow,
Poland, with a second research
site in Poznan, Poland and foreign
offices located in Cambridge, MA
and South San Francisco, in the U.S., as well as in Cambridge, UK. Selvita is a major shareholder
in Ardigen – bioinformatics company harnessing advanced Artificial
Intelligence methods for novel precision medicine.
The Company has a proven track record of successfully completed
projects and customers in 40 countries. Majority of Company
revenues come from pharma, biotech, chemical and agrochemical
companies from the U.S. and Europe. Selvita is listed on the Warsaw Stock
Exchange (WSE:SLV).
For more information, please see www.selvita.com.
Contact details:
Investor Relations contact:
ir@selvita.com
Media contact:
Natalia Baranowska
natalia.baranowska@selvita.com
+48 784 069 418
Forward-Looking Statements
This release may contain
forward-looking statements, including, among other things,
statements regarding the guidance from management and financial
results. Selvita cautions the reader that forward-looking
statements are not guarantees of future performance.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which might cause the actual
results, financial conditions, performance or achievements of
Selvita, or industry results, to be materially different from any
historic or future results, financial conditions, performance or
achievements expressed or implied by such forward-looking
statements. In addition, even if Selvita's results, performance,
financial conditions, and the development of the industry in which
it operates are consistent with such forward-looking statements,
they may not be predictive of results or developments in future
periods. Given these uncertainties, the reader is advised not to
place any undue reliance on such forward-looking statements. These
forward-looking statements speak only as of the date of publication
of this document. Selvita expressly disclaims any obligation to
update any such forward-looking statements in this document to
reflect any change in its expectations with regard thereto or any
change in events, conditions or circumstances on which any such
statement is based or that may affect the likelihood that actual
results will differ from those set forth in the forward-looking
statements, unless specifically required by law or regulation.
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SOURCE Selvita
