TIDMBYOT
RNS Number : 2881D
Byotrol PLC
02 March 2022
2 March 2022
Byotrol plc ("Byotrol" or the "Company")
Trading Update
Our second half performance (six months to 31 March 2022) is
showing a significant improvement in product sales compared to our
first half, and the order book remains strong into year end.
We now expect product sales for the full year of GBP5.2m, below
FYE March 2021 but in line with the previous year, itself inflated
by 3 months of covid-related demand. Such sales, combined with IP
sales already (GBP770k) - or very likely to be - secured, and
continued careful management of our cost base, means we expect a
profitable second half.
Our results for the year to 31 March 2022 are very much
dependent on exactly which IP agreements we are able (and -
dependent on terms - willing) to close in the next four weeks. If
we do not conclude any large IP sales, we would expect overall
revenues to be no less than GBP6m, with positive underlying EBITDA
for the year. If this is indeed the outcome for the year, we would
expect to conclude a number of IP sales in the first half of our
next financial year.
Our balance sheet remains solid and debt-free and we expect our
cash position at year end to be no less than GBP1m without any new
IP agreements. In the year we have absorbed over GBP300k in
restructuring and costs related to new hires.
Underlying market trends are very favourable for long term
growth. Short-term market conditions remain difficult though, with
too much supply still chasing too little consumption, especially in
hand hygiene. This has been easing a little in the last 3 months as
weaker competitors disappear and regulations bite harder, but the
recovery is certainly not smooth, and some suppliers are
discounting very aggressively.
Existing IP agreements continue to perform relatively well,
although they have also been impacted by markets slowing post
pandemic. We remain heavily constrained by NDAs in our reporting of
licensee and IP partner financial performance - as are our partners
by NDAs with their customers. But we believe that Solvay now has
two global multinationals and two large regional players (one in
Asia and one in US) actively marketing the Actizone formulation
under their own brands, with more to follow. We therefore expect to
receive our first 'royalty' payment from Solvay this financial
year. Whilst this is likely to be small given the early stage of
launches so far, the longer-term outlook is excellent and offers us
100% margin with minimal associated costs. We will report with as
much detail as we can at year end on the progress of our licensees
and partners.
Our seaweed antivirals project is advancing encouragingly. We
now have independent verification of the technology's potential in
our own markets but also now in OTC pharmaceuticals, where two
global multinational companies are engaged with us in testing and
analysis. Both are generating very impressive results for speed and
breadth of virus elimination, including in comparison to current
technologies on sale to consumers. We now see potential for the
technology in antiviral products that are 100% natural and can for
instance be inhaled. We continue to invest in this project and of
course are filing patents to protect our position.
We have used the extra resources from the additional
covid-related sales to completely change our organisation in
readiness for the post-covid world, with a full time CFO, three
other new leadership hires, all with excellent and relevant
experience, alongside continued heavy investment in technology.
The new team is focussing on:
-- A review of strategy for the new, post covid market conditions, that will result in
o more resources put into products based on fewer technologies
and sold into fewer market segments, but with greater emphasis on
segmental marketing, sales and export markets.
o Continued monetisation of our technologies by way of IP
agreements into non-core markets, including some non-core
technology sales
o A more nuanced regulatory strategy, to account for increasing
divergence between the UK and the EU post-Brexit. This was an
unexpected development, but we believe the added complexity creates
greater opportunity for us.
-- Completing the pandemic-delayed integration of Medimark, and
finally securing the significant revenue and cost synergies
identified at the time of acquisition.
The Directors continue to believe that our IP rich,
technology-driven and regulatory-focussed approach is the right one
for success in the infection control industry. It builds trust with
our direct customers, and with our corporate customers (that then
in turn allows for IP agreements, which gets us into markets and
products that we cannot access ourselves).
Byotrol is now a financially solid, healthy business. We are now
focusing our efforts on fewer technology platforms and our product
sales in fewer market segments, with a new team that has the
experience and expertise to deliver long-term growth. We remain
excited about the opportunities ahead and will report more fully on
our plans at year end.
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
Enquiries :
Byotrol plc
David Traynor - Chief Executive Officer
Chris Sedwell - Chief Financial Officer 01925 742 000
finnCap
Geoff Nash/ Richard Chambers - Corporate Finance 020 7220
0500
Flagstaff Strategic and Investor Communications 020 7129
1474
Tim Thomson/Andrea Seymour/Fergus Melon
byotrol@flagstaffcomms.com
Notes to Editors:
Byotrol plc (BYOT.L), quoted on AIM, is a leading infection
prevention and control technology company, operating globally in
the Food, Industrial, Healthcare and Consumer sectors, providing
low toxicity products with a broad-based and long-lasting efficacy
across all microbial classes; bacteria, viruses, fungi, moulds,
mycobacteria and algae.
Powerful, long-lasting and gentle, Byotrol's products can be
used stand-alone or as ingredients within existing products, where
Byotrol can significantly improve their performance, especially in
personal hygiene, domestic and industrial disinfection, odour
control, food production and food management.
Founded in 2005, the Company develops technologies that create
easier, safer and cleaner lives for everyone.
For more information, please go to www.byotrol.co.uk
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