Selvita Group publishes its financial results for Q1 2013

During the period Q1 2013, the Capital Group Selvita S.A generated revenues in the amount of PLN 3,961.6k, whereas revenues during the same period in 2012 amounted to PLN 3,212.7k. The dynamics of revenues amounted to 23.3%. This increase was possible thanks to the greater value of contracts realized, winning new customers in all service operating segments and expanding portfolio of innovative projects co-financed by the European Union.

Net revenues from sales (excluding subsidies) amounted to 2,289.1k PLN, which resulted in the dynamics of 11.2% as compared to the first quarter of 2012, when net sales totaled PLN 2,058.9k. Increased revenues from sales were made possible by maintaining the Group’s customer portfolio as well as acquisition of new orders and new key accounts in all service operating segments (Biology, Chemistry and Bioinformatics).

Particular attention needs to be paid to revenues generated by the Capital Group Selvita S.A service segments, which resulted in the growth of 66.5%, from PLN 1,374.6 k during Q1 2012 to PLN 2,289.4 k during the same period in 2013. Due to the fact that in December 2013 Selvita S.A had finished the discovery phase of SEL 103 program in cooperation with Orion Pharma, in Q1 2013 Selvita did not record any commercial revenues from R&D activity, however, generated revenues from subsidies granted for programs of Selvita. The future commercial revenues from R&D activity depend on progress in research on SEL103 program conducted by Orion Pharma (so called “milestones”) and signing partnership agreements for other programs of the Group Selvita.

In 2013, the Capital Group Selvita S.A pursued a consistent strategy of focusing on service projects with greater profitability and intensively allocate its research scientists within its own extended portfolio of R&D projects. Due to this the Group’s order book shows the positive trend that has translated into a greater dynamics of commercial revenues in Q1 2013, which the Group expects to maintain also in the coming quarters. Cost-effective and rapidly increasing service segment shall be a foundation of growth for the Group. An extensive innovative activity of the Group is a major subject of the investment and temporarily affects the financial result, but at the same time systematically creates capability to generate significant future profits and revenues.

In recent months, other agreements have been concluded with large international pharmaceutical companies from Europe and North America, and pursuant to these agreements companies of the Group Selvita commenced implementation of the advanced research, in other words, great value added services and therefore relatively large margin was obtained by the Group.

Revenues on account of subsidies in Q1 2013 increased by 45% from PLN 1,153.7k to PLN 1,672.5k. This increase in revenues from subsidies is a result of the continuation of realizing research projects commenced before 2013 and the continuation of write-offs into revenues of received infrastructural funds included in the settlements of accrued revenues.

The value of revenues arising from the concluded commercial contracts and grant agreements (backlog) as of the publication date of this quarterly report is as follows:

  • For year 2013: PLN 17,119,1 k
  • For year 2014: PLN 8,927.9 k


The value of grant agreements (backlog) does not include the planned revenues from realization of the program entitled “Innovative oncology drugs affecting neoplastic cell metabolism” pursuant to the agreement concluded with the National Centre for Research and Development on March, 2013, due to the fact that works on preparation and approval of the schedule of realization of the program with an implementing authority are still in progress.

During the period Q1 2013 the Capital Group Selvita S.A. suffered a loss in the amount of net PLN 995.9k – this is 18,6% of expenses of the Capital Group Selvita S.A; however, during the same period of the previous year this net loss amounted to PLN 1,658.7k, which shall be defined as 32,7% of expenses of the comparable period of the previous year. The increase is more visible in reference to EBITDA – in Q1 2013 EBITDA of the Group Selvita amounted to PLN -486.4k, whereas during the same period in 2012 amounted to PLN -1,184.3k. In Q1 2013 the Group conducted intensive research and development works as part of the research projects commenced in the previous years, which are recognized directly in the costs under the accounting policy of the Group. Significant decrease of loss was possible due to further increase of profitability in services provided by the Group, as well as due to the fact that the higher level of costs of realization of the innovative projects was covered by the subsidies.

Meaningful information on development of the Group concerns a constantly increasing number of employees, and that number from May 2012 to May 2013 increased from 136 to 150 employees. High expenditures incurred in order to improve the Group’s sales offer as well as sales and marketing translated into an increase of the value of the won contacts. In the period from January to March 2013, the Group won commercial contracts in the total amount of PLN 3,033.6k – this is more than a double increase in comparison to the same period in 2012.

The balance of cash of the Group as of March 31, 2013 was PLN 4,685.3k and was reduced by PLN 720.7k in comparison to the balance of cash as of December 31, 2012, however, the balance of cash as of the date of publication of this report is PLN 4,709.1k and was enhanced by PLN 502.3k as compared to the date of publication of the previous quarterly report.

The complete Quarterly Report is available at:

consolidated quarterly report selvita group sa 2013 q1_en

Other Quarterly Reports of Selvita Group is available on the Company’s website in Polish at:

Additional Information:
Tomasz Nocuń
+48 12 297 47 00
+48 784 024 025

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