Aim-quoted Angel, which changed its accounting period last year, posted a pre-tax loss of £1.3 million for the 15 months to 31 March after a sharp rise in costs related primarily to the re-opening of a manufacturing base at Cramlington, near Newcastle-upon-Tyne.
The company also bought a collagen facility in Glasgow from sausage skin maker Devro.
As a result, cost of sales at Angel Biotech more than doubled to £2.2m, while operating expenses jumped by more than £800,000 to £2.5m.
That wiped out the previous year’s maiden profit of £193,000, but Cramlington will increase Angel’s manufacturing capacity by a factor of five, allowing it to bid for larger and potentially more profitable contracts.
With Angel’s original facility at Pentlands Science Park now at full capacity, Cramlington is expected to bring in significant additional work after a licensing inspection due later this month.
Executive chairman Paul Harper said: “We will now concentrate on consolidating our business and delivering shareholder value.”
The company has been run by acting chief executive Stewart White since the departure of Gordon Sherriff in early March. Originally hired in December as commercial director, White is expected to take on “a more senior role as the company grows”.
Sales during the 15-month period reached £3.5m, against £2.9m previously.