Pharma firm Quantum sees big increase in revenues and profits

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.

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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.”