SkinBioTherapeutics on firmer footing after acquisitions boost revenues

Skin health innovator SkinBioTherapeutics is focussing on the launch of a new product in partnership with chemicals firm Croda as it reports a jump in revenue.

The Newcastle-based life sciences firm says it has grown revenues to £1.58m and narrowed losses by 25% to £1.04m in the six months to the end of September, as it made a number of mergers and acquisitions to drive growth. The 10-year-old firm is poised to launch its SkinBiotix lysate product at a major cosmetics show in Amsterdam next month, having carried out successful trials with Croda - which makes ingredients for some of the world's biggest consumer brands.

Shareholders are likely to see the impact of the work with Croda in the firm's full year end results, but bosses say the firm is already in a much stronger financial position thanks to two acquisitions in the past year. SkinBioTherapeutics bought St Ives-based Dermatonics in January last year, followed by Bio-Tech Solutions Ltd (BTS) in October.

Together, the deals have boosted the Newcastle business' expertise and headcount. In the case of BTS, there was said to have been strong revenue increase since the acquisition. Directors say they are continuing the merger and acquisition strategy with an eye out for targets that could bring significant revenue and profit growth.

Stuart Ashman, CEO of SkinBioTherapeutics plc, said: "Last year represented a drive for growth through the original corporate platform plus the acquisition of value-added businesses (the M&A strategy) to bring scale and synergies. The commercialisation by Croda of the SkinBiotix lysate has begun and we look forward to sharing the marketing information with shareholders upon its official launch in April.

"AxisBiotix, targeting symptoms of psoriasis, continues to have a strong customer retention and we are focused on finding the best commercial form for our acne product, which received very positive feedback in the company's consumer study.

"We also completed our second acquisition of the manufacturing and packaging company, BTS. The team's expertise in the health, hygiene and personal care products provides not only new sources of revenue and cash, but also offers an opportunity as a future development platform for our own topical products. With our first acquisition Dermatonics, integration is now complete and we are seeing traction for sales via the Umesh Modi Group partnership.