Trading update and Indian operation starts trading
Cryo-Save Group N.V. (AIM: CRYO, “Cryo-Save” or “the Group”), Europe’s leading adult stem cell storage bank, has published a trading update and the start of sample storage in India.
Since the Group published its Q3 sample storage figures on 3 October 2008 (6,511 samples stored), there has been a weakening in Cryo-Save’s markets as a result of the current economic downturn. Whilst samples stored to date for Q4 have held up well, the Group has now reduced its expectations for the remainder of the financial year and the number of samples stored for the second half of 2008 is now expected to be broadly in line with the first half of 2008 (12,537 samples stored).
This will impact on revenues and gross profit. Despite the implementation of a cost control programme, in the light of the current economic environment, the Board now expects that revenues and profitability in 2008 will be below and in 2009 significantly below market expectations.
Separately the Group’s Indian operation, which Cryo-Save built in less than four months during the summer, has now been granted a license and the first sample sales have been completed. The Group will initially target five key cities. The market potential is substantial as currently there are some 200,000 births per year in the middle class customer segment.
Rob Koremans, Chief Executive, commented:
Although over the last few weeks we have seen unprecedented volatility in our business, related to the economic downturn, the operational fundaments of Cryo-Save remain sound – cash generative, growing international markets and rapidly developing stemcell therapies. We also have a sound cash position.
The India market is potentially one of the largest in the world, so we are particularly pleased to have started trading there as the only international operator with an established track record.
For further details
+ 31 (0)575 548998
Rob Koremans, Chief Executive
Arnoud van Tulder, Chief Financial Officer
+ 44 (0) 20 3205 7500
Jos Trusted/Marc Young
+ 44 (0) 20 7457 2020
Adrian Duffield/Jon Davies