ReNeuron, the biotechnology group with strong links to Scottish research, has seen its loss widen by £1m and cash reduce by £4.8m.

The Surrey-based developer of stem cell therapies has attracted investment from the likes of top fund manager Neil Woodford who has a 20 per cent stake, and is poised to move from Surrey into purpose-built laboratories in Wales early next year.

It said last year's loss was as expected at £4.13m after the previous year's £3.17m, while cash had eroded from £20.9m in March to £16.1m at September 30.

ReNeuron conducted a groundbreaking patient trial for its stroke disability therapy at Glasgow's Southern General Hospital in 2012-13, conducted by a team from Glasgow University led by Professor Keith Muir. It reported that some patients regained movement in their limbs and showed "modest" improvements in condition, despite all having had their strokes between six months and five years earlier. Its success triggered a major investment into the group by biotechnology guru Sir Chris Evans, who joined the board in August last year.

This year ReNeuron began a Phase 1 safety study at Ninewells Hospital in Dundee of its therapy for people with lower limb ischaemia, which can lead to limb amputation.

The group yesterday cited "encouraging long term Phase 1 data" from the stroke study and said Phase II clinical trials for both therapies were planned for next year.

It also plans a clinical trial next year in the US on a stem cell therapy candidate for retinitis pigmentosa, a disease of the retina which causes blindness.

ReNeuron's therapies can be administered "off-the-shelf" without the need for immune-suppressive drug treatments.

It is also advancing a technology to exploit exosomes secreted by stem cells, as potential new drug candidates to treat tissue repair, fibrosis and cancer, and said that was on track for a first clinical study in early 2015.

It recently appointed a new chief executive Olav Hellebo, succeeding Michael Hunt, who headed the company from 2005 and remains chief financial officer.

Chairman Bryan Morton said: "The business benefits from a strong balance sheet and the backing of high calibre institutional investors and a management team focused on the delivery of clinical proof-of-concept data and associated value generation across its programmes over the next two year

The shares, which peaked at 9p four years ago, were unchanged at 3.38p, valuing the business at £60m.