Microsaic Systems profits in line with expectations

Microsaic Systems, an AIM listed developer of chip-based mass spectrometry instruments, has provided a trading update saying that it expects earnings before interest, tax, depreciation and amortisation (EBITDA) and pre-tax profit for 2016 to be broadly in line with market expectations.

The board has reshaped its business strategy to focus on the Pharma market where opportunities exist for the company’s products and for strengthening customer relationships.

Challenging trading conditions especially in the second half are expected to influence the rate of growth in 2017.

Sales in 2016 are expected to be worth over £0.8m, which is around 8% over the previous year, and are expected to be ‘substantially’ ahead in 2017.

The company’s cash position is forecast to be around £5.7m at 31 December, in line with expectations.

The group’s chairman Colin Nicholl will also be retiring at the end of January 2017. The company is currently on the look for a successor.

Chief executive Jim Ramage said: "Despite slower than anticipated revenue growth I am pleased to say that EBITDA and pre-tax profit in 2016 are forecast to improve over 2015 results and to be broadly in line with market expectations.

“The company continues to focus on signing up one additional OEM each year to grow our business, increase sales and move forwards towards profitability. Our strategy is now focused on the pharma sector and we will continue to refine this strategy through 2017."

The share price fell 23.50% at the close on Tuesday.