THE Central Science Laboratory (CSL) near York revealed today that it has lost more than a million pounds during a tough trading year.

But chief executive Professor Mike Roberts said he was confident of the future, following investment in new specialist equipment and staff.

The figures emerged in the annual report for the lab, which is situated just off the A64 at Sand Hutton and is an executive agency for the Department for Environment, Food and Rural Affairs.

The report revealed that the CSL, now employing 700 people, had a deficit of £1.1 million on a turnover of £39.4 million in the past year.

Prof Roberts said the loss would be met by Defra, in the same way as surpluses went back to the Government in other years.

He said a surplus had been made last year, when staff from the lab had been deployed to help deal with the foot and mouth disease crisis.

Under the business plan for the current financial year, the lab was set to break even.

Extra work had been created recently following the introduction of an EU ban on imported seafood and chicken containing non-approved antibiotics and other drugs.

The lab was carrying out complex analysis of samples from foods imported from South-East Asia and Brazil.

He said the purchase of an additional high-resolution mass spectrometer for detection of trace contaminants had strengthened the lab's position as a major contractor for the Food Standards Agency in this area. "We have continued to invest in specialist equipment and staff to maintain our science base across the agriculture, environment and food sectors," he said.

Updated: 10:46 Thursday, July 17, 2003