Biology research group Avacta reported widening losses on Monday, despite an increase in half year revenues across the business.

Administration costs rose to £4 million over the course of the period, up from £3.50 million previously, a direct result of its Life Sciences division’s attempts to deliver on growth plans.

Operating losses widened to £4.5 million as research and development costs weighed. Half year revenues increased, however, by 16 percent to £1.5 million.

The firm maintained its focus on generating clinical data for its lead Affimer therapeutic programme, saying that its pipeline of assets in its immuno-oncology division could be ‘potentially transformative’ as it heads towards 2020.

“The group has delivered strongly against the objectives set out in 2015 when it raised funds to initiate an Affimer drug development programme and to begin commercialisation of Affimer reagents,” the firm said.

“We will continue to grow the Affimer reagents revenue during this time period, with a focus on long term recurring royalty revenue rather than short term services income, with the objective of creating a potentially stand-alone business unit,'” its chief executive officer, Alastair Smith, commented.

Shares in Avacta (LON:AVCT) are currently trading down 0.17 percent at31.94 (0841GMT).