Drug testing specialist Cyprotex (CRX:AIM) shoots 9.1% higher to 71.5p on revenues and profits expected to beat guidance this year.
Sales and revenues and earnings before interest, tax, depreciation and amortisation (EBITDA) are ahead of expectations in the nine months to 30 September, according to an update. Analysts are excited and have already revised their forecasts.
‘We upgrade our 2015 forecasts for the second time since the trading update in June,’ says Sheena Berry at N+1 Singer. ‘We believe Cyprotex has the ability to continue to expand its service offering, attract new customers and expand into new end markets.’
Berry has increased EBITDA by 40%, 30% and 5% in 2015, 2016 and 2017, respectively, to £2.5 million, £2.6 million and £2.8 million.
The outperformance is the result of stronger revenues in the UK, which have in part been driven by Cyprotex’s investment in new equipment and services, which have seen it win new customers and move into new markets.
Despite the upbeat update all is not perfect with the company. Management admits that its US business needs attention, but losses are reported to be reducing.