Skincare shares remain suspended
Sep 30 2008 by Iain Laing, The Journal
SKINCARE company Dermasalve said yesterday it is not ready to start trading its shares on the stock market again as it has failed to find new funding.
Shares in the Newcastle-based skincream and soap maker were suspended in June after failing to produce its 2007 financial figures and yesterday it told shareholders it was still not ready to publish its half yearly results or its annual accounts and so would continue the suspension.
The company, which had been increasing sales and won international distribution deals, last year said it hoped to post a £1.7m profit on £6.7m sales this year, and had successfully raised nearly £1.5m funds to push its products in the Far East.
But it has failed to find the extra funds it needed and yesterday it said: “The directors have been exploring a number of potential sources of funding, both equity and debt, but these have not, as yet, come to fruition. Market conditions in both the equity and debt markets have contributed to this position. “
The company is in also discussions with Trafalgar Capital Specialised Investment Fund over its failure to make repayments on an outstanding £632,000 loan. And it has hired a corporate financial consulting and advisory firm with offices in the US and Europe to source new funding, which it said could take the form of equity, debt or a combination of the two.
The company headed by Durham GP Dr Mark Randle, who created the creams, which are all free from skin sensitisers and petrochemicals, had looked promising since floating on the Alternative Investment Market in January 2006.
Its last set of results for the six months to the end of June last year said the company had suffered pre-tax losses of £577,000 for the six months to June 30 compared to £1.2m in the same period last year.
Turnover in the first half of 2007 was £742,000 compared to £50,000 in 2006 and Dr Randle had said it had hoped to make its first profits this year.
Dermasalve has high hopes for its SafeCleanse gel, which can be used to kill germs and bugs and is sold as a help in containing bird flu.
Yesterday it said the South African healthcare system had granted it a registration for the sale of the gel and it has won a contract, although it did not reveal the size of the sale.
