On November 13, 2020 Selvita (WSE: SLV), one of the largest preclinical contract research organizations in Europe, reported its Q3 2020 estimated financial results and provided a corporate update (Press release, Selvita, NOV 13, 2020, View Source;utm_medium=rss&utm_campaign=selvita-reports-strong-financial-results-for-q3-2020 [SID1234570922]).
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For the nine months ended September 30, 2020, Selvita reports consolidated revenues of EUR 23.7 million, up by 44% on a year-on-year basis. The EBITDA result reached EUR 5.7 million, compared to EUR 3.8 million the corresponding period last year. The backlog** for 2020, as of November 10, amounts to EUR 30.3 million and indicates an increase of 38%, as compared to the value reported a year ago.
The Company consistently strengthens its position on the global market, especially among the U.S. customer base, considered the world’s largest biotechnology market.
Commercial revenues in the Services Segment increased in YTD Q3 2020 period to EUR 19.1 million, showing a 45% increase, as compared to EUR 13.6 million in the corresponding period last year. The EBITDA result of the Services Segment amounted to EUR 4.9 million, indicating a 24% profitability level.
The Company’s net profit in the first three quarters of the year amounted to EUR 3.3 million, compared to EUR 1.9 million for a corresponding period last year.
– The first three quarters of 2020 were a very intensive period for Selvita. During that time, we announced a new development strategy for 2020-2023, and subsequently successfully raised EUR 20 million from the issue of C series shares for the planned investments. Despite the COVID-19 pandemic, we are systematically strengthening our competitive position on the global market. We not only increased employment but also invested in the state-of-the-art equipment, building solid foundations for further organic growth – comments Dariusz Kurdas, Chief Financial Officer at Selvita.
Selvita plans to continue its dynamic development in the coming years. One of the goals as outlined in the strategy is the creation of the Selvita Research Centre to secure a proprietary research space. Selvita has already made the first steps towards executing this goal and signed a contract in August 2020, purchasing a plot of land in the neighborhood of its current laboratories. The Company also received from the Polish Ministry of Development Funds and Regional Policy a grant application recommendation to finance the Selvita Research Centre’s construction. This grant provides Selvita with over EUR 9 million of non-dilutive financing. The project’s total value amounts to EUR 32 million (including the amount of VAT), and is anticipated to be finalized within next three years.
The presented data are estimates, and their calculations have been made in accordance with the current best knowledge of the Company. The Selvita Management Board has decided to postpone the publication of the final financial results for the first three quarters of 2020, which will be published on November 24, 2020.