Bio-decontamination specialist Bioquell has posted a healthy set of results, moving into profit for the first time for some 15 years.

On revenue up 74% to £12.2m, the company reported profit before tax of £400,000 compared to a loss of £700,000 for the first half of 2005. With the two businesses acquired in October 2005 stripped out, organic growth remains a sturdy 33% and earnings per share of 1p, from a loss of 1.6p, add to the cheer.

The business is split into two concerns, a bio-decontamination division, which deals with environmental control solutions, and a ‘specialist testing, regulatory and compliance services’ (TRAC) division - strong in the defence and aerospace sectors.

Bio-decontamination, using hydrogen peroxide vapour to 'deactivate' micro-organisms such as bacteria and viruses, showed organic growth of 47% for the half driven by robust equipment sales. Bioquell is now hoping to target further such opportunities in the US.

TRAC reported revenues of £5.2m ahead of broker forecasts of £4.7m, as a result of cost reduction initiatives, which should drive growth more forcefully during the second half.

Bioquell is also conducting ongoing research into the eradication of super bugs and into wound healing technologies – the ‘blockbuster’ part of the company which chief executive Nick Adams assures is underwritten by the more reliable divisions already discussed. Adams says that this makes Bioquell less of a ‘pure punt’, offering exciting opportunities as well as sustainable revenues.

Analysts at broker Investec ‘remain holders’ at this point, with good progress across the board. Moreover, if clinical trials planned to start next month for the wound healing research come to fruition, the potential market will be significant. This is not a certainty and with forecast earning of 2.2p for the year, and 3.9p for 2007, putting the shares on a forward multiples of 49.3 and 27.8, its not the cheapest.

Bioquell does, however, offer a good speculative opportunity, backed by a growing business - uncommon in the sector.

Bioquell	LSE	£48.21m	118.50p	0.00p
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