Laurie Turnbull, Chairman of Source BioScience, will be making the following comments at the 2012 Annual General Meeting to be held today at 10.30am:
“Since our last AGM twelve months ago, we have seen another year of improvements to the business and strategic progression for Source BioScience. Our strong business foundations have enabled us to introduce additional technology platforms and access new markets, increasing the capability and geographic reach of the Group.
The recently issued Interim Management Statement reported a strong start to the current financial year, with revenue demonstrating double digit growth compared with the same period in 2011.
In LifeSciences we have forged a leading position in the UK and Continental Europe for the provision of DNA sequencing services, including both conventional and next generation sequencing technologies.
The launch of the Overnight Service for DNA sequencing was a key initiative for our LifeSciences division. As a direct result, sequencing volumes have increased by over 50% in the year to date, compared with 2011, and Source BioScience is now the only company offering a UK-based sequencing service.
GenomeCube®, our proprietary search engine and bioinformatics tool, continues to deliver commercial advantage for the Group and our customers. The enhanced functionality that the platform provides enabled us to appoint the first franchise distributor for our genomics products portfolio, supported by a local language version of GenomeCube® for the Japanese research market which we announced in May.
As the next step in accelerating the globalisation of our products business, we appointed our second franchise distributor to address the expanding life sciences research community in Korea and South East Asia.
The robust performance of our Healthcare division continues to be underpinned by our Cytology business which provides vital systems for the preparation and analysis of cervical smear samples in support of the NHS Cervical Cancer Screening Programme.
Demand for smear tests during early 2012 has been exceptionally strong due, in part, to the scheduled three year recall of women who underwent tests in the same period of 2009. Throughout the remainder of the year, we would expect demand to return to more normal levels.
The implementation of the BD FocalPoint™, the only NHS-approved, automated imaging solution for cervical cancer screening, has been an important focus for the Group. Access to this technology was the determining factor in winning the liquid based cytology supply contract for the University of North Staffordshire NHS Trust. This was a significant win for the Group and it represented the first time that an NHS Trust has switched liquid based cytology technology provider.
Molecular diagnostic testing continues to gain momentum within the NHS and especially gene-based companion diagnostic testing. One of the most widely utilised tests is the K-RAS gene test for colorectal cancer and demand during 2012 to date has increased by over 80% compared with 2011.
Results for the year ended 31 December 2011 demonstrated another year of improvements for the business. Revenue and operating profit, before the impact of non-recurring items, increased again and the Group is in a strong financial position.
The encouraging start to the current financial year represents a continuation of the strong growth and business performance achieved last year and we believe the performance during the year to date reflects the substantial opportunities we see for growth and development across both our LifeSciences and Healthcare divisions.
We look forward to updating shareholders further following the publication of our half yearly report for the six months ending 30 June 2012, anticipated to be released later in August in line with previous years.”