Thursday May 15, 10:38 AM
Bioganix FY pretax loss widens to 1.06 million pounds vs 65,782 pounds
LONDON (Thomson Financial) - UK smallcap Bioganix Plc (LSE: BGX.L - news) . said its full-year pretax loss widened to 1.06 million pounds
from a restated 65,782 pounds reported last year, even as revenues rose to 2.05 million pounds from 1.6 million pounds.
However, the waste management group said 2008 has started positively and the group is making good progress despite challenges.
Bioganix said losses at its Parham plant in Suffolk were primarily due to a major customer delivering significantly less waste than it had been contracted to provide. It also said costs of upgrade work to the plant in the early part of the year also contributed to the losses.
The company said it expects Parham to perform much better in 2008 than in previous years due to increased volumes processed and a settlement with the customer for approximately 1 million pounds. Of this, about 70,000 pounds, approximately, is reflected in the full-year results. The balance will be reflected in Bioganix's future financial statements in the periods up to September 2010.
It said expects the plant to return to operating at capacity during the year.
The company said the planning, design and building of its new Sharpness plant in Gloucestershire also absorbed a substantial proportion of the group's resources during the year.
It said the volume of material processed there will also increase during this year although it does not expect the plant to be operating at full capacity by the end of the year. No positive financial contribution is expected from Sharpness during 2008, the company said.
The company said later in the year its Wharton plant in Herefordshire will be progressively run down and some of the material currently being processed there will be transferred to Sharpness.
The contribution from the Wharton Plant will diminish to nil by year end.
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