Companies: GTX   

Cell biology specialist Genetix proposes a 0.5p-a-share payout after lifting pre-tax profits by 12 per cent to £3.6 million.

The Hampshire-based company, which focuses on cancer diagnosis and pharmaceutical technology, increased turnover by 48 per cent to £22.9 million last year, despite a net £700,000 hit from a weak US dollar, with a £9.9 million contribution from late 2006 acquisition Applied Imaging. AIM-quoted Genetix, which spent £1.75 million on research and development in 2007 and sells to many leading cancer pathology, cytogenic and pharmaceutical concerns and has 48 per cent of sales in the USA, says it has transformed Applied Imaging from a loss maker into ‘a significant source of profitability’.

Adjusted for intangible items and goodwill costs, Genetix’s per-tax profit on a statutory basis shows a 12.5 per fall to £2.8 million, with earnings marginally lower at 3.56p a share. The company ended 2007 with £12.6 million cash, £1.1 million up on a year earlier, and the board is proposing a dividend of 0.5p a share, the first since the company came to AIM in June 2006.

Chief executive Mark Reid says Genetix intends to exploit its ‘competitive strengths’ in cell identification and selection to score by delivering its customers ‘innovative’ cancer diagnosis and drug discovery technologies. The shares halved to 42p between January 2007 and last month, flickered up 4.5p to 46.5p this morning and should improve further, overall stockmarket conditions permitting, if the strategy continues to pay off.

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