Contract drugs manufacturer Piramal Healthcare UK saw turnover and profitability curtailed by supply chain disruption and factory challenges during the pandemic.
The Morpeth-based firm, which also runs a Grangemouth facility, saw pre-tax profit fall 6% to £4.25m and turnover fall more than 10% to £72.63m in 2021. In accounts filed at Companies House, directors said the reduced profits were partially offset by a one-off payment relating to the US launch of a product.
Piramal, which employs about 582 people and specialises in making active pharmaceutical ingredients and oral solids at its Northumberland site, said it expected revenues and profits to rise in 2022. The improved outlook was down due to easing of the operating challenges and thanks to an improved order pipeline for antibody drug conjugation - used in cancer treatment - that is made at the Grangemouth plant.
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Writing in a report accompanying the accounts director Christopher Leahy said: "Turnover was down 10% from £80.8m to £73.0m compared to 2020, mainly driven by some supply chain (Covid) related delays for key materials and components plus some plant operational challenges and product deviations.
"As a result of this, the company's profit before tax for the period reduced, however, this was offset by a one-time settlement gain relating to a US product launch. Headcount grew by eight during the year, due to normal operational requirements.
"The directors expect revenues and profit in 2022 to improve over 2021 due to a steady improvement in the above operating challenges, but also due to an improved order pipeline for the Grangemouth site for ADCs. External debt (loans and borrowings less cash at bank and invoice financing facilities) reduced from £12.5m in 2020 to £12.4 in 2021 as a result of the company's cash management process."
During the year, Piramal made use of £3.4m in government grants and subsidies and saw a reduction in its research and development expenditure credit from £568,684 to £403,878.
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