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Medical device business group Circassi reported wider first-half losses as sales in its Niox business fell by more than a third owing to the pandemic.
For the six months ended 30 June 2020, pre-tax losses widened to £9.4m from £8.2m on-year as revenue fell to £11.4m from £18.6m.
NIOX sales decreased 39% to £11.4m as result of COVID-19 impact, the company said.
Circassi said it had seen signs of a gradual recovery in Niox sales in Q3, but revenues remained well below prior year.
'We anticipate that by the time we enter 2021, the underlying cost base of the ongoing business will [be] no more than £23 million on an annualised basis, excluding depreciation, amortisation and head office costs (expected to be approximately £1.6m in 2021),' the company said.
'While it remains difficult to predict revenues in the current COVID pandemic, with this reduced cost base the group would be expected to be EBITDA positive at 2019 revenue levels of £34.6m,' it added.
At 9:58am: (LON:CIR) Circassia Pharmaceuticals Plc share price was -1.3p at 24.05p