Alltracel, the Dublin-based pharmaceutical company specialising in wound care, made its first profit last year, an achievement its chief executive described as a "watershed". Claire Shoesmithreports.

The company, which is listed on London's Alternative Investment Market, reported earnings before interest, taxation, depreciation and amortisation of €2.1 million last year, compared with a loss for such figures of €1.1 million in 2005.

Operating profit, meanwhile, came in at €315,000, compared with a loss of €1.1 million a year earlier.

The company attributed the improved performance to higher margins, the finalisation of the first technology license revenue and tighter cost control.

Tony Richardson, the group's chief executive, welcomed the performance, saying 2006 had been a very important year not only in terms of financial performance, but also because of technology breakthroughs and significant commercial developments.

Analysts, however, were mixed on the results, with Ian Hunter at Goodbody initially describing them as disappointing. However, he said that following discussions with management, he will still be pulling back his 2007 numbers marginally, but is positive on the new business model focused on technology licencing rather than pure product development.

The shares slipped 2.5 per cent to 11.5 pence in London.