NetScientific investments lead to annual loss

Commercial healthcare technology group NetScientific PLC (LON:NSCI) have posted a full-year loss, which the company said reflected ongoing investment activity in its portfolio companies, which was part of its business strategy.

NetScientific update summary and comments

The firm posted a pre-tax loss for the full year throigh December, of £4.1 million, which narrowed from £4.4 million on-year.

“Our strategy remains to maximise shareholder value from our portfolio companies”, said Chief Executive Ian Postlethwaite.

“With the disposal of our Vortex and Wanda interests, we can focus using the remaining cash resources on extending the anticipated lifespan of the company.”

“Glycotest and PDS require no further funding at this stage and, whilst ProAxsis does need a small additional injection of £0.1m to meet operational requirements as it nears cashflow breakeven, this will be repayable within 2019.”

“All three companies have continued to make good progress during the year and we remain confident in their prospects.”

“In addition, we have taken measures to reduce our central function costs to extend the company’s cash runway and it is therefore expected that the company has sufficient cash to operate until the end of 2020.”

Portfolio considerations

The company’s shares rallied in morning trading, up 0.22p or 2.38% to 9.47p per share.

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Jamie Gordon
Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.