05 July 2001 -
Eurogentec: doubling of operating result in 2000/2001
Turnover up by 17.4 % even better than the objective set at the beginning of the financial year
Sart-Tilman, 5st of July, 2001
Eurogentec develops, produces and distributes high added value research tools in the fields of Genomics and Proteomics and supplies R&D services to the biopharmaceutical sector. At the end of the 2000/2001 financial year1 , the group saw a doubling of its operating result, which reached EUR 1.6 million. Turnover grew by 17.4% to reach EUR 20.8 million. The operational cash flow (EBITDA2) reached EUR 3.4 million, whereas the consolidated profit stood at EUR 1.4 million. The RoE is 18.6%.
Boosted by these excellent results, the Eurogentec group is now looking to the future with strengthened optimism. The sustained growth of the markets, combined with an increasingly wide range of services, recognised expertise and a distribution network which is still expanding, are reinforcing the company in its ambition to be a leading player on a world-wide level.
Over the course of the 2000/2001 financial year Eurogentec adapted its structure to its growth activities. The company now has four Business Units (BU): "Genomics" (57% of turnover), "Proteomics" (19%), - (18%) and "Genomic and Proteomic Systems" (6%).
The "Genomics" BU represents one of Eurogentec's founding activities: the study of DNA and the manufacture of oligonucleotides, an activity in which Eurogentec is the 6th largest producer in the world. The "Proteomics" BU is devoted to the study of protein and the manufacture of peptides, antibodies, etc. The products of these two BU are high added value research tools for life sciences. The market is recording an annual growth of 20% in Europe, and even faster growth in the United States and Japan.
The - BU is developing research and development services for the biopharmaceutical industry. These activities, which correspond to the initial stages in the development and production of new medicines for the pharmaceutical industry, are the subject of demand which is greater than current production capacities. In order to cope with this, Eurogentec is currently building two new 500 m2 "white rooms" on its site on the Sart Tilman Scientific Park (Liege) which, when they come into service in April 2002, will allow Eurogentec to double its production capacity.
Finally, the "Genomic and Proteomic Systems" BU was created in 2000. This BU markets two pieces of hi-tech equipment produced in North America, for which Eurogentec has an exclusive distribution deal in Europe. These are the Eurogridder produced by the Canadian company Virtek and the Smartcycler produced by Cepheid from California. Given that the consumables used by these machines are oligonucleotides, such as those produced by Eurogentec, the marketing of this equipment also allows the group to provide itself with new market opportunities. Eurogentec is expecting a doubling in the "Genomic and Proteomic Systems" BU's turnover in the course of the 2001/2002 financial year.
A state-of-the-art commercial policy
In addition to the quality of its products and services, Eurogentec's success is also due to its carefully thought-out commercial policy. "A high added value service company such as our own", explains Jean-Pierre Delwart, Managing Director, has to stay close to its clients, who are rightly very demanding on such a competitive market."
In order to do this Eurogentec is making increasing use of the Internet. Around 50% of orders already come through this fast-growing medium. Eurogentec is working on a programme that allows to use the data collected via the website to be entered directly into the ordering and production system. This on-line production management will allow Eurogentec to improve the service provided to all those of its clients who need deliveries within a deadline of 48 hours. This programme should be operational within 6 months at the latest.
At the same time, Eurogentec is regularly reinforcing its commercial teams and has just invested in a CRM ("Customer Relationship Management") tool in order to get to know its clients better and thus to allow an optimum approach.
Quality
Over the course of the financial year, Eurogentec obtained ISO 9002 certification for the whole of the "Genomics" and "Proteomics" BU production process. The - BU already had the GMP ("Good Manufacturing Practices") certification required by companies in the sector.
Development prospects
"Today there are hundreds of biotechnology products arriving on the markets", comments Prof. Joseph Martial, Chairman of the Board. Genetic treatments and medicines are becoming a reality. And this is only the start! Since the beginning of the year, the scientific community has had a wonderful new tool: with the decoding of the human genome, scientists can enter new fields of research. Genomics and proteomics are revolutionary techniques. For Eurogentec, the challenge consists of supporting this growth in biotechnology, in continuing to meet the needs of the scientific community and in creating new opportunities for development."
The results which have been achieved up to now show that the Eurogentec group holds a very strong hand with a view to achieving these objectives. For the 2001/2002 financial year, Eurogentec is banking on an organic growth in turnover of 25%.
Founded in 1985 as a spin-off from the university of Liege, Eurogentec is located in the Scientific Park in Sart Tilman (Liege); it has a second infrastructure on the Hauts Sarts Industrial Park and a production site in Southampton. The company also has commercial subsidiaries in France, Germany and the Netherlands, as well as a branch in Switzerland. It employs around 204 (+31) people including 24 doctors of Science.
(1) The 2000/2001 financial year covers the period from 1st April 2000 to 31st March 2001
(2) Earnings before Interests, Taxes, Depreciations and Amortizations.
For further information:
Jean-Pierre Delwart, Managing Director
Till Cussmann, Communication Officer
Parc Scientifique du Sart Tilman
4102 Seraing, Belgium
Tel: 32 (0)4 372 74 00 - Fax: 32 (0)4 365 16 04
E-mail: info@eurogentec.com
Website: http://www.eurogentec.com
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