Contract manufacturer Probiotec Limited (ASX:PBP) could add $10 million of revenue on an annualised basis from agreements struck with new and existing contract manufacturing customers for additional products.
This new business continues the upward trend and is expected to come on line progressively over the 2017 financial year, toward the second half.
Profit margins are said to be consistent with the company’s existing contract manufacturing business.
Probiotec is a brand owner, manufacturer from four facilities in Australia and also a distributor of a range of prescription and over-the-counter (OTC) pharmaceuticals, complementary medicines and specialty ingredients.
It recently completed for the sale of the ADP Protein Plant in South Australia with Beston Pure Dairies Pty Ltd for $7.0 million, which will be used to reduce debt levels.
The group’s net profit after tax for the half year ended 31 December 2015, from continuing activities attributable to members for the half year was $0.3 million compared to a loss of $1.0 million.
Total interest bearing liabilities, net of cash, as at 31 December 2015 was $9.8 million, a decrease of $5.2 million from $15.0 million as at 30 June 2015.
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