Eden Research dips as loss widens despite 'pleasing growth'

Biopesticide products developer Eden Research’s shares dipped on Tuesday after it reported that its annual losses deepened despite an increase in revenue.

For the year ended 31 December, the company's loss before tax was expected to come in at £1.0m, up from £0.8m the year before, while revenue was seen increasing by 48% to approximately £2.8m in what the company called a year of "pleasing growth".

The AIM traded company said that the revenue growth was driven by product sales which doubled in 2018 from £0.8m to around £1.6m, with the balance being made up of upfront, milestone and other payments and royalties.

Meanwhile, Eden said its cash position remains strong with cash at the year-end of around £2.5m, up from £3.7m at the same point the year before.

Sean Smith, chief executive of Eden, said: "We are encouraged by the doubling of Mevalone sales during the year as this reflects the increasing acceptance of Mevalone in the market, the optimised product positioning initiated by our partners and its adoption and continued use by growers."

Mevalone, Eden’s fungicide product, is currently being assessed for regulatory approval in markets such as the US and Australia, while Sustaineä, Eden's patented micro-encapsulation technology, is being evaluated by an increasing number of parties and is believed to represent "significant" potential.

"In addition to the products that Eden has developed and is commercialising through its partners, there are a number of pipeline products which are in the process of being tested by potential partners including several candidate insecticide products which would represent our first entry into the insecticide segment," said Smith.

A note from Shore Capital commended Eden on "a year of good progress" and stated that the company is "very well-placed" for future development and penetration into the market with an expanding and ever-more diverse product development pipeline

"Whilst authorisations need to come through, the length and breadth of activity is genuinely encouraging to our minds and we expect momentum to further build in FY2019, especially if permission comes through in the USA, the largest market for crop protection products in the World," said Shore Capital analysts.

Eden Research’s shares were down 6.12% at 11.50p at 1305 GMT.