September 23, 2008 / 9:54 AM / 10 years ago

UPDATE 1-Cryo-Save warns on fy profit, shares fall

(Adds company comments, share price)

By Ben Deighton

LONDON, Sept 23 (Reuters) - Stem cell storage company Cryo-Save Group Plc CRYG.L warned on Tuesday that its full-year results will come in below its previous expectations, prompting a 31.8 percent fall in its share price.

Chief Executive Rob Koremans told Reuters in a telephone interview that the change in forecasts was because acquisitions in Spain and Hungary had taken longer than expected, meaning that the company had to delay price increases.

“We could only increase the prices immediately after the acquisitions and the acquisitions have taken longer than anticipated ... that results in both a lower revenue and also falls to the bottom line,” he said.

He also pointed out that the company was poised to enter France and India, which represent two major new markets.

“We’ll be the first company to enter into France, and France really is the largest potential stem cell storage market in Europe,” he said, adding that he expected to start operating in India by the end of October.

The company reported pretax profits of 1.8 million euros ($2.64 million) for the six months ended June 30 compared with 1.7 million in the same period last year.

Revenues in the period were 12.2 million euros, up by 70 percent compared with 7.2 million last time.

During the period, the company also reported that the number of samples stored increased by 40 percent.

By 0924 GMT, shares were down by 31.84 percent to 84 pence per share. (Reporting by Ben Deighton; editing by Andy Bruce)

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