Provexis shares fall after company puts Liverpool R&D facility on the block
Shares in Provexis (LON:PXS) took a tumble in early deals after the group announced a restructuring to cut costs by nearly £1 million per annum, which will include the closure of its Liverpool research and development facility with the loss of 7 jobs.
The group has decided to focus its efforts on developing its patented Fruitflow blood-thinning product and the Science in Sport (SiS) nutrition brand it acquired in June this year.
This will mean the winding-down of its collaboration with the University of Liverpool, closure of the facility there, ending development of the NSP#3G plantain extract technology and putting its cardiovascular inflammation projects under review.
At 9.30 am, the functional food and sports nutrition group's stock was down more than 13 percent at 1.97 pence.
The restructuring news was included in the group's interim results statement for the six months to end-September 2011, which saw revenue rise to £1.53 million from a restated £7,163 a year earlier. The rise is due almost entirely to the contribution of SiS during the period.
Pretax loss has widened to £1.5 million from £1.06 million a year earlier.
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