KRAKOW, Poland, May 26,
2020 /PRNewswire/ -- Selvita (WSE: SLV), one of the largest
preclinical contract research organizations in Europe, reported today its first quarter 2020
financial results and provided a corporate update.
The company continues its dynamic growth and reports backlog for
2020 of EUR 21,8 million, indicating
a 41% increase to the values reported a year ago. The increase in
the value of signed contracts in the Services segment amounted to
48%.
For the first three months of 2020, Selvita reports consolidated
revenues of EUR 7 million, up by 41%
on a year-on-year basis, thus confirming very good preliminary
estimates published on April 29,
2020. What is quite remarkable, despite the worldwide
COVID-19 pandemic, the company has managed to strengthen its
position in the global CRO market, especially among US customers
considered the largest biotechnology market in the world.
Commercial revenues in the Services Segment amounted to
EUR 5.8 million in 1Q 2020,
indicating a 46% increase as compared to same period previous year.
The Bioinformatics Segment's (Ardigen, where Selvita holds 54,7
percent of votes at the General Meeting of Shareholders) commercial
revenues increased by 33% and amounted to EUR 0.7 million.
Company's EBITDA profit reached EUR 1.7
million and was by 52% higher than in Q1 2019, with a
profitability margin of nearly 24%. The net result increased by 92%
reaching EUR 0.8 million. These
results, demonstrate that Selvita has not only maintained but in
fact exceed its planned rate of growth.
- We're sticking to the plan and not slowing down our pace of
development. We're maintaining high revenue dynamics, at the same
time increasing EBITDA margin, which in Q1 2020 has increased by
nearly 2 p.p. The results we managed to achieve in the past quarter
are particularly satisfying, due to the global economic uncertainty
caused by COVID-19 pandemic. So far, it looks like Selvita
successfully went through this difficult time. We implemented
safety measures in order to secure the health and safety of our
employees and managed to maintain business continuity in all
projects. In this uncertain environment, we were able to strengthen
our position among foreign customers, especially on the U.S.
market. Many pharmaceutical and biotechnology companies have
realized the need for geographical diversification of outsourced
services. Selvita skillfully fits into these changing trends on the
preclinical CRO market - comments Bogusław Sieczkowski,
co-founder, and Chief Executive Officer at Selvita.
External revenues from the services commissioned by US customers
increased in Q1 2020 by 175% and already constitute over 25% of the
entire Services Segment revenues. At the same time, revenues from
the services commissioned by customers from the United Kingdom increased by 74%. Services
contracts from these two largest global biotech & pharma
markets include both drug discovery and regulatory research.
Increasing customer recognition for the high quality of services
and competences offered by Selvita team results in further
contracts. As on May 21, the backlog
in the Service Segment amounted to EUR 18.0
million, i.e. was 48% higher than same time previous year.
Out of which, nearly EUR 14.0 million
concerns the services in the area of drug discovery and
EUR 3.5 million in regulatory
research.
- The continuously growing backlog, demonstrates that during
the pandemic, despite the restrictions placed on international
travel and cancelation of industry events, we are able to acquire
new contracts efficiently. With most of global business activity
going virtual, the geographical barriers have disappeared and we
can build our position on the international market on an equal
level with other providers - emphasizes Bogusław
Sieczkowski.
In addition to increasing revenues, Selvita's new strategy also
assumes 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, which
will be allocated to acquisitions and organic development.
In order to execute the strategy, Selvita plans to raise approx.
EUR 21 million by issuing up to 15%
of the share capital in a Follow-On offering. Approximately 80% of
the proceeds will be allocated for acquisitions. One of the
elements of the strategy execution will be the creation of Selvita
Research Center in order to secure own research space necessary for
further growth. The Company has already made a first step towards
execution of this aim, and signed a preliminary contract for a plot
of land in the neighborhood of its current laboratories. The
initiation of the investment is planned for 2021.
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 ca.
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. 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 US and Europe. Selvita is listed on the Warsaw Stock
Exchange (WSE:SLV). For more information, please see
www.selvita.com.
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.
Contact details:
Investor Relations contact:
ir@selvita.com
Media contact:
Natalia Baranowska
natalia.baranowska@selvita.com
+48-784-069-418
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SOURCE Selvita