SKINCARE specialist Dermasalve is expected to make an announcement to the Stock Exchange next week after its share price dropped to a new low.

The Newcastle plc made its last statement on April 12, when its share price slumped to 5.75p - down from 10.25p at the beginning of March.

At the time, the company said the fall could be linked to a planned shares placing to raise money for future acquisitions.

It said in a statement: "The directors are in the final stages of arranging a placing of shares in the company in order to provide finance for the expansion of the business and confirm that they are not aware of any other reason for the fall in the share price."

This week, the value of its shares sunk to 4.75p on Wednesday, then lifted slightly to 5p on Thursday and closed last night at 5.00p. A company spokesman said yesterday that Dermasalve's fundraising efforts were ongoing.

"There will be a lot more to say by the end of next week. I expect there will be an announcement next week," he said.

Dermasalve was set up in 2003 by County Durham GP Mark Randle, who decided to develop a range of creams for dry and sensitive skin after his son reacted badly to some baby treatments.

The firm, which has also developed a range of patented gels, which are 99.9 per cent effective against the H5N1 avian flu virus and MRSA, wants to expand into Europe and the Far East.

It first said it was considering a share placing to raise money in October.