Business
Trading and Company Update
Trading and Company Update.
About this update from Physiomics Plc
[{"type":"text","content":"\n \n 4 April 2023\n \n \n Physiomics plc\n \n \n (\"Physiomics\" or \"the Company\")\n \n \n \n \n \n \n \n \n Trading and company update\n \n \n \n \n \n \n Physiomics plc (AIM: PYC), the oncology consultancy using mathematical models to support the development of cancer treatment regimens and personalised medicine solutions, would like to update the market on current trading and ongoing board restructuring and strategic initiatives.\n \n \n \n \n \n Trading\n \n \n The Company continually monitors the lifescience environment in which it operates and, over the course of the year to date, the Company's revenues have come under pressure at least partly as a result of the ongoing squeeze in biotech funding which is causing companies of all sizes to conserve cash. We comment further on some of the positive and negative drivers of Company revenue growth as follows:\n \n \n ·\n Merck KGaA (\"Merck\") remains a key client with which the Company has a long-established and mutually beneficial relationship, however, Merck publicly confirmed in late January this year that it was streamlining its US operations near Boston. Although Physiomics continues to have active projects with Merck, this internal reorganisation has led to a number of anticipated projects not being commissioned within the current financial year which will lead to a shortfall in revenue compared to that budgeted for this client\n \n \n ·\n Whilst continuing to nurture the Merck relationship, we have been pursuing an active diversification programme to move away from dependence on any single customer such that the proportion of revenue derived from our largest customer has fallen from a high of over 80% in FY19 to less than 40% in H1 FY23\n \n \n ·\n The diversification programme was projected to substantially offset the reduction in Merck revenues in the current financial year, however, in the last few weeks, two large projects (one with an existing and one with a new client) with a value totalling over £200k have been unexpectedly delayed, meaning that the mitigation of reduction of Merck revenues in the current financial year will not be as substantial as anticipated. It is anticipated that at least one of these projects with a value of around £100k will commence in the next financial year while the second of these two large ...