Published on 15th November 2013

Bioquell PLC ("Bioquell") (LSE symbol: BQE) - provider of specialist microbiological contamination control and remediation technologies to the international Healthcare, Life Sciences & Defence markets ("Bio"); and specialist testing and regulatory compliance services in the UK via its TRaC division, today announces its Interim Management Statement for the period from 1 July, 2013 to 14 November, 2013.

Financial position and financial performance of the Company

Orders and revenues in the period ending October 2013 were ahead of the same period for last year for both the Bio and TRaC divisions.

The Group has a strong balance sheet.

Life Sciences

Our recently launched QUBE - which comprises a unique, modular aseptic work-station incorporating Bioquell HPV technology - continues to gain momentum with increasing quotation and order levels from overseas customers. Since July we have made significant progress in developing, refining and optimising the production processes for the QUBE, which we are beginning to deliver to customers in the UK and internationally.

In the US we are seeing strong demand for our flagship RBDS (Room Bio-Decontamination Service) which provides our HPV technology to Life Science clients on a service basis. Although enquiries and quotes for our HPV equipment in the Life Sciences sector remain high in Asia, we are continuing to see fluctuating order levels.

We continue to find new applications in the Life Sciences sector for our hydrogen peroxide vapour ("HPV") technology to eradicate - or mitigate the risk of - microbiological contamination. We are also seeing increasing demand for our new range of related consumable products comprising biological indicators, chemical indicators and hydrogen peroxide cartridges. In parallel, many regulators around the world are displaying heightened sensitivity to the adverse consequences of microbial contamination of pharmaceutical products or related production processes.

Healthcare

Since July we have seen increasing levels of interest in our recently launched Infection Control Enclosure service (ICE-pod) from NHS hospitals. Confidence in the ICE-pod among NHS hospitals is growing as we - in partnership with NHS clients - understand better how to use the ICE-pods optimally to reinforce standard infection control measures as well as to improve patient flows and bed-space utilisation within a hospital. We are also receiving positive feedback on two ICE-pods that have been installed and are being evaluated at a hospital in the Middle East. In parallel with the commercial roll out of the ICE-pod, we have been investing significant resources in improving the capacity and efficiency of the bespoke design and manufacturing systems required to support anticipated future demand for the ICE-pod.

In Europe and in the USA we are seeing more demand for our emergency (RBDS) service, in part as resistant Gram-negatives - and particularly Carbapenem-resistant enterobacteriaceae ("CREs") - spread to hospitals in Europe and the USA.

Defence

In the period we have applied significant engineering resources to a development contract relating to the UK Ministry of Defence's new SV vehicle. We have also been working on securing a number of commercial opportunities for our defence division, including a significant contract from the Middle East.

TRaC - Testing, Regulatory and Compliance

Our TRaC division continues to trade well and is generating revenues across a broad range of sectors including the aerospace sector. TRaC is also continuing to expand the range of services it provides - including within its consulting division - and is also examining ways of increasing its international fee income.

Outlook / prospects

In the "Bio" division we are seeing encouraging growth in the new products and services - specifically the QUBE, ICE-pod and the range of HPV-related consumables - in which we have invested significant time and resources developing and bringing to market. These new products have been designed to increase the proportion of our recurring revenues.

Life Sciences equipment sales still represent an important component of our turnover in the "Bio" division and although we are seeing encouraging signs of increased activity in the USA we continue, as indicated at the time of the interims, to face some challenges in forecasting the timing of receipt of equipment orders in Asia.

TRaC continues to trade well.

  • Bioquell PLC interim statement 2013
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