Angel Biotechnology’s wings clipped after contract delays

By PETER RANSCOMBE
Published on 15/09/2012 00:00

Shares in Angel Biotechnology, the Edinburgh-based life sciences company, fell yesterday after the firm warned that delays in signing big contracts with its customers would affect its full-year results.

The Aim-quoted firm said it was relocating staff between its three sites – in Edinburgh, Glasgow and Cramlington, near Newcastle – so that it can respond to opportunities to grow its sales and profits.

Those changes have included moving the base for its planned joint venture with Russian drug maker Materia Medica from Cramlington to its head office in Edinburgh.

But Angel said: “Market conditions remain very difficult, with a number of high-value projects expected to be signed in this period being delayed by many months as clients seek to manage their own cash resources.

“There is likely to be an adverse financial impact in the current year.”

Ahead of its interim results, Angel said some of the impact would be lessened by a maiden contribution from its collagen factory near Glasgow, which it bought from sausage skin maker Devro earlier this year.

Reassuring words on the collagen business were not enough to calm investors, though, with shares in the penny stock dropping 5.7 per cent to close down 0.007p at 0.12p, valuing the company at about £5 million.