Dublin-based pharmaceutical company Alltracel has reported a 61 per cent increase in turnover for 2003, although pre-tax losses at the AIM-listed company rose.

Turnover for the year was up to just over €1 million compared with €628,857 in 2002. Pre-tax losses rose to €2.6 million from €1.7 million in the previous year.

The company specialises in medical devices and clotting agents.

While losses were up, chief executive Mr Gerard Brandon said he was "comfortable" with analysts' predictions of €4.2 million turnover for 2004: "2004 has opened strongly and our revenue expectation is now in excess of €800,000 for the first quarter."

The company's shares have been rising strongly lately. Its product Seal-On, which stops bleeding, is now on sale in the US. Davy Stockbrokers, Alltracel's broker, said future revenue growth would be driven by sales of Seal-On.

"The targets are ambitious given the modest existing revenues generated by the company." It said Seal-On's revenues could grow to €9.3 million by 2006 and a related product, m-doc, could take a larger share of its market, potentially producing revenues for 2006 of €5 million.

But the broker warned that upfront marketing investments would leave Alltracel with losses until about 2006 when it would be capable of a breakeven.

The company listed back in July 2001 at 89p. Since then the stock has been very volatile, dropping below 20p in the second half of 2002. The price recovered somewhat in 2003 and yesterday it stood at 32p. Davy said it believed the stock based on expanded uses of m-doc could "re-approach" its IPO price level over the medium term.