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Pharmaceutical manufacturer Pharmaron's Cramlington base set for investment despite losses

2025-04-10 19:01:50 By

Pharmaron's Cramlington facility in Northumberland

Losses have narrowed at Cramlington's Pharmaron amid a year of continued investment in the site.

New results for the Chinese-owned business - formerly called Aesica - show operating losses fell from £24.4m to £13.7m in 2023 as revenues rose from £5.09m to £7.48m. Bosses said the Windmill Industrial Estate firm, which specialises in the production of active pharmaceutical ingredients, has the backing of its parent company, Beijing-based life sciences giant Pharmaron, in planned expansion.

The firm has posted operating losses since 2020 when it suffered a temporary shutdown of all production owing to a "significant, unexpected incident". But that has not stopped Pharmaron, which acquired the facility in early 2022, from eyeing development of the site, which employs about 140 people.

In the latest accounts, Pharmaron said it was reviewing plans to develop the Northumberland location and that it had approved £5m of investment into the 177,000 sqft factory, including its technical capabilities. The firm said it has a long term ambition to improve the flexibility of the site meaning it can accommodate shorter production runs as well as long term contracts

Elsewhere in the accounts, directors pointed to a number of exceptional items that made up recent losses but which it said did not reflect underlying performance. Those included £4.3m of costs associated with Pharmaron's acquisition in 2022; a £1.2m hit created by mutual agreement with the firm's largest customer to cancel its contract and stop production, again in 2022; and in 2023, releases of an onerous contract liability totalling £100,000.

During the 2023 year under review, the plant drew the majority of its revenue from the UK market (£3.1m), a change on the previous year when the UK constituted only £1.2m of revenue and the rest of the world made up £2.5m, compared with £1.5m last year.

In documents attached to the accounts, Pharmaron director Stephen Lewinton said: "The long-term strategic plan for the site is to increase operational flexibility, so that both shorter production runs as well as semi-continuous and long-term production can be supported, to service a wider group of clients. This will involve reconfiguration of both operations and infrastructure over a period. The business development team will work closely with the site to maximise the potential revenue streams available.

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Manufacturing2025-04-10 19:01:50

Work starts on multicoloured 'Dream Factory' as Bentley starts paint shop work under £2.5bn electrification plan

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Manufacturing2025-04-10 19:01:50

Stokesley flooring firm Genesis acquired by French vinyl specialist Gerflor

Tile and flooring brand Genesis has been acquired by French group Gerflor in an undisclosed deal. The £16.1m turnover Stokesley firm, which also has offices Columbia and India, has become part of the €1.5bn turnover group which has UK operations in Cheshire. Genesis employs about 55 people and sells products in more than 70 countries, having been established in the late 1980s. Aidan Bruce, the sole shareholder of Genesis, said: “I am delighted with the way the transaction has gone. Gerflor is established in more than 100 countries and is continuously developing its activities in new markets. In acquiring Genesis, Gerflor’s directors saw an opportunity to add further depth to the Gerflor range and at the same time, expand its marketplace. Read more: Siemens Mobility makes pitch for Goole trains to decarbonise UK rail system Read more: Yorkshire business park to be extended for creative industries hub "It has been hard but rewarding work over the last 35 years. I could not have wished for a better team to have supported me throughout this time nor a better outcome for the business and staff who will all be retained by the new owners.” Group financial director at Genesis, Adam Pritchard, added: "This was a major transaction for us, and it was made much easier working with both teams whose experience of working with non-UK firms shone through. They were very professional and proactive throughout, working diligently to hit our timetable." Genesis was supported in the deal by law firm Swinburne Maddison, with corporate and commercial partner Martyn Tennant leading and supported by solicitor Jess Stevens; lead partner in relation to property matters Victoria Walton; Niamh Wilson, and managing associate Sharney Randhawa. Business advisors and accounts Armstrong Watson also provided advice. Meanwhile London-based firm, Travers Smith and financial advisory firm Eight Advisory, advised Gerflor. Mr Tennant said: "The satisfactory and timely completion of the transaction serves to demonstrate the breadth of partner-level expertise that the Swinburne Maddison team can offer clients from our Durham head office.”

Manufacturing2025-04-10 19:01:50

Korean market is latest play for Shield Therapeutics' iron deficiency drug

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Manufacturing2025-04-10 19:01:50

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Manufacturing2025-04-10 19:01:50

South Tyneside's UTS Engineering acquires Scunthorpe specialist pipeline manufacturer

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Manufacturing2025-04-10 19:01:50

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Manufacturing2025-04-10 19:01:50

North East names Barbour and Bedmax regain Royal Warrants

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Manufacturing2025-04-10 19:01:50

AIM-listed manufacturer sees profits dive as demand reduces

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Manufacturing2025-04-10 19:01:50

'Flying the flag for British manufacturing ' - trenchless tech business Brewis Engineering sold

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Manufacturing2025-04-10 19:01:50

Cranswick hails recovery in demand leading to higher earnings

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