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Restructuring at ICP Biotechnology has better positioned the company to turn loss into sustainable profit, says the NZX-listed biological products maker.
Chairman Roger Gower, speaking at the annual meeting yesterday, said there was some distance to go before the company fulfilled its potential.
"However, we are optimistic that the company is now better placed to build a sustainable and profitable business as an added value exporter."
In August the company, which makes products for use in biopharmaceutical manufacturing, diagnostics and animal reproduction, posted a net loss of $13.5 million for the year ending June 30 - a turnaround from an earlier prediction for $6.1 million of trading profit.
An impending loss was first signalled in May and was followed soon after by the resignation of chief executive Earl Stevens.
The company had undertaken investments including a new production facility in Henderson.
"Unfortunately, the investments and increased expense levels were not offset by growth in revenue," Gower said. "As a result a substantial corrective response was required."
The strategy included restructuring, recapitalising, reducing liabilities and costs, and matching production to sales targets. ICPbio raised $10 million this year through a capital rights issue to help pay bills from building facilities and to provide working capital.
Manufacturing and sales complexity had been reduced, with the company focusing on large established markets. Labour and purchase spending had been reduced by a quarter and liabilities had been halved, with a capital gain of $2.7 million. Shares closed yesterday at 5c, having traded as high as 21c during the previous year.
