North East drug production company Quantum Pharmaceutical said it is focussed on growth after seeing a big rise in revenues and profits in its most recent accounts period.
The company - which is based on the Hobson Industrial Estate in Burnopfield, County Durham, with another site at Follingsby Park in Gateshead - has released accounts for 2022 in which revenues reached £118.9m, a growth of 48% on the same period a year earlier. Over the same period, the company’s operating profit more than quadrupled from £1.7m to nearly £7.1m.
Quantum is involved in the manufacture and supply of unlicensed medicines, and said investment in production facilities had helped it increase revenues. After growing its workforce by 10 during the year, it said it expected to create more jobs in 2023 and would aim to grow organically and potentially through acquisitions.
Read more : Survey provides mixed picture of North East economy
The accounts said: “Turnover for the year ended December 31 2022 had grown by 48% to £118.97m (2021: £80.23m). The growth in revenue has been driven by capital investment made in the prior period that increased manufacturing capabilities in the year under review.
“The gross margin percentage generated by the business has remained consistent year on year at 14.5%, however the overheads of the business have been rationalised to generate operating profit of £7.09m (2021: £1.66m). Headcount increased by 5% in the year with 218 employees on December 31 2022 (2021: 208). The forthcoming year the business expects to add further headcount.
“The directors are confident that the capital investment in the year ended December 31 2022 will ensure that the business continues to grow. The directors will continually review opportunities to expand the business organically or through acquisition.”
Established in 2004, Quantum grew quickly with backing from investment group LDC and floated in 2014 in a deal that valued the firm at £130m. Midlands firm Clinigen bought Quantum for £150m in 2017, before it was sold to Target Healthcare, which is based in Glasgow, in 2021.
In its previous accounts - which covered an 18-month period up to the end of 2021 - Quantum had outlined how the Covid pandemic had presented it with “unprecedented challenges”. But it said that a return to more normal NHS activity and the “combined commercial advantages” of its link-up with Target Healthcare had set it on the path for “significant growth”.
READ NEXT:
