Pre-tax losses widen to £5.5m at Liverpool city region biotech firm Holiferm amid the loss of a major customer as directors seek £12m funding from multiple sources to shore up its balance sheet. Tony McDonough reports

Wirral biotech firm Holiferm is seeking £12m in debt and equity funding and a £1m grant as it looks to shore up its balance sheet following a year of widening losses.

Holiferm, which employs more than 50 people and operates a 90,000 sq ft facility in Wallasey, has filed its accounts for the 12 months to May 31, 2025, on Companies House.

They reveal a fall in revenues to £1.1m from £1.8m in the previous year. Pre-tax losses totalled £5.5m, widening from losses of £4m in the previous year.

However, directors remain optimistic for the prospects of the company and see a path to profitability. In the annual report managing director Richard Lock said: “We continue to benefit from the support of our committed pool of investors.”

Holiferm is a University of Manchester biotech spin-out. It develops environmentally friendly biosurfactants. They are used in the manufacture of detergents and toiletries.

Originally headquartered at Sci-Tech Daresbury, the business opened its Wallasey facility in March 2023. At the time it said this would give it the capacity to produce 1,100 tonnes of biosurfactants annually for its growing client list of multinationals.

However the firm, which is controlled by majority shareholder Ben Dolman, suffered the loss of a “significant” customer during the accounting period.

Richard Lock added: “This was partially mitigated through the acquisition of a number of smaller, recurring customers, resulting in a more diversified customer base and reduction in reliance on a single customer.”

However, Richard also revealed: “Forecasts indicate that additional funding will be required during this period and the group is currently progressing several initiatives.”

Those initiatives include a £1m grant, which the company expects approval for this month, at least £5m of potential equity funding, and an application for a £5m loan facility.

It also plans to acquire a subsidiary for approximately £4m, although this is dependent on securing the £12m of combined debt and equity funding.

“While good progress has been made these funding arrangements remain incomplete and therefore create uncertainty,” explained Richard.

“However, the group held cash reserves of approximately £3.5m on the date of the signing and the directors consider that the successful receipt of the expected £1m grant and £5m loan facility would enable the group to operate for at least 12 months irrespective of the outcome of the equity funding and acquisition.

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“Accordingly, the directors believe there remains a reasonable expectation that the group will have adequate resources to meet its obligations and the financial statements have been prepared on a going concern basis.”

He also said: “Continued investment in commercial activities is expected to result in increased sales during 2026, supporting progress towards profitability.”