Microsaic Systems PLC on Friday said revenue plummeted in 2023, following the insolvency of customer DeepVerge PLC.

The York-based developer of real-time mass spectrometers, serving the chemical and biological markets, said pretax loss for the year that ended December 31 widened to £2.6 million from £2.5 million in 2022. Revenue dropped 69% to £492,000 from £1.6 million.

The fall in revenue was partly offset by cost of sales also dropping 69% to £193,000 from £618,000 year-on-year, whilst total operating costs were reduced by 12% to £2.9 million from £3.3 million.

Chair Bob Moore said: ‘The year 2023 commenced with the company continuing its transition from a research & development focused instrument business to a more commercially focused service business, but the company ran into significant financial difficulties arising from the cessation of trading with the company’s largest related business party, DeepVerge. The unexpected failure of this major customer had a serious and material financial impact on the business during 2023 and its ability to then operate as a going concern, which inevitably resulted in a suspension of the company’s shares from trading on AIM in June 2023.’

DeepVerge was a Dublin-based environmental and life sciences firm that suspended share trading in June last year. In January 2024, Microsaic systems acquired DeepVerge’s Modern Water business for £100,000.

Microsaic Systems underwent a ‘major’ restructuring programme in the second half of the year, which led to a return of share trading on AIM in January 2024. The shares were suspended again on July 1 due to a delay in publishing its annual accounts, and the company expects its shares to return to trading ‘immediately’ following the publication of its 2023 accounts, which now has occurred, and interim results to June 30, 2024.

Completing the audit for its 2023 results took longer than expected due to ‘unforeseen difficulties’ in the handover of prior year information between the former and current finance teams.

Its interim results for 2024 have not yet been published.

Excluding sales to DeepVerge, the company said its resulting sales to customers in 2023 were up 34% to £430,000 from £320,000 last year. Microsaic Systems expects the acquired Modern Water business to produce most of the company’s revenue in 2024, and said it is ‘positioned to move forward successfully’.

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