Alltracel Pharmaceuticals has reported a pre-tax loss of €2.2 million in the first half, up from a loss of €983,000, although turnover nearly quadrupled to €2 million.

Revenue was driven by a co-branding partner agreement across Europe as well as the start of shipments of its Seal-On branded products to the US and Britain, the company said.

However, this also resulted in a sharp increase in the company's distribution expenses which rose to €1.3 million from €303,000 a year earlier.

A higher level of research and development activity also drove administration costs up to €1.3 million from €859,000.

Alltracel was upbeat about its prospects, saying it was on course to meet full-year revenue expectations.

Alltracel, which is listed on London's Alternative Investment Market, also said it had successfully raised €6.8 million, before expenses, in a placing with institutional investors.

The company issued 23 million new shares at 20p each. Proceeds from the fundraising will be used to drive international commercial uptake of Alltracel's existing Seal-On products and its recently launched blotters.

The money will also be used for general working capital purposes and to accelerate the introduction to market of new products under development.