DeepVerge annual revenue doubles, posts profit for second half

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DeepVerge PLC on Thursday said the second half of 2021 saw its first profit as full-year revenue more than doubled.

Shares in the Dublin-based environmental and life science group were down 7.0% to 10.00 pence each in London on Thursday morning.

DeepVerge reported that 2021 revenue more than doubled to £9.3 million, from £4.5 million the prior year. Notably, revenue in the second half of the year tripled over the first half with sales of £6.0 million.

The company said that production orders in its main division, Modern Water, were up 39% year-on-year to £5 million. Meanwhile, revenue for Labskin, its microbiome-based skin testing product, increased ten-fold on 2018 levels as it continued to grow ‘exponentially’.

Further, DeepVerge said that its loss before income, tax, depreciation and amortisation narrowed to £17,000, before exceptionals, from £859,000 the year before.

It added that the second half of 2021 saw its first Ebitda profitable half-year before exceptionals.

However, DeepVerge reported that pretax loss widened to £3.7 million from £2.9 million in 2020.

Looking forward, the company said it is ‘prepared’ for an increase in staff, upgraded laboratories, and expanding product lines, following its £10 million fundraise back in June 2021.

It also said it continues to grow, posting that sales in the first quarter of 2022 were up 84% to £2.4 million from £1.3 million year-on-year. The board added that it expects this ‘momentum’ to continue throughout 2022.

Chief Executive Gerry Brandon said: ‘Labskin is thriving and 2021 saw the launch of the Skin Trust Club which has rapidly gained momentum and is firmly cemented as the new era of personalised skin care. Through Modern Water, we expanded our geographic reach and we have been actively involved in multiple government, regional and municipal city infrastructure trials to deliver real-time alerts for the identification of viruses, pathogens and forever chemicals.’

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