TIDMOHT
RNS Number : 5325A
Ocean Harvest Technology Group PLC
23 January 2024
23 January 2024
Ocean Harvest Technology Group plc
("OHT", the "Company", or the "Group")
Trading Update, Board Changes and New Hires
Ocean Harvest Technology Group Plc (AIM: OHT), a leading
researcher, developer and supplier of proprietary blended seaweed
products as functional additives for the global animal feed
industry, gives a trading update for the year to 31 December 2023
and announces new hires and changes to the Board of Directors.
Highlights
-- The Company continues to lead the way in the
commercialisation of highly functional blended seaweed ingredients
in the global animal nutrition sector
-- OHT expects to report results in line with expectations for
the year ended 31 December 2023, with reported revenues of EUR3.4m
(2022: EUR3.0m). The sales of OHT's proprietary blended seaweed
ingredient, OceanFeed(TM) , is expected to grow circa 29% year on
year.
-- Continued improvement in gross margins in H2 with full year
gross margin expected to be over 37% (2022:31%).
-- Continued high value customer wins in H2 with first
penetration into the Indian market and product registration in
Brazil
-- The outlook for 2024 remains strong with significant sales
growth expected from a number of channels
Trading Update
We are pleased to report that OHT's trading was in line with
expectations for the second half of 2023. The Company made good
progress in H2, delivering first time sales to the very substantial
market of India and achieved successful product registration in
Brazil, which opens further growth opportunities for 2024.
The Company expects to report total revenue in line with
expectations of EUR3.4m. Of this we expect product revenue to be
circa EUR3.0m, with the sales of OHT's proprietary and higher
margin OceanFeed(TM) blended seaweed products growing almost 30%
year on year and the sales of single seaweed species being roughly
flat. As a result, the Company saw a continued improvement in gross
margins in H2. Whilst our focus is on maximizing revenue from the
sales of OceanFeed(TM) , which our trial data shows delivers
superior performance for our customers, single seaweed sales are
helpful in enabling the company to scale its seaweed supply chain
and can be useful in gaining access to new customers for future
blended product sales.
The full year numbers are still subject to audit and the Company
expects to announce its audited full year results in late
March.
Outlook
The Company reiterates its strong outlook for 2024 with revenue
growth to be driven from a number of channels:
-- the solid revenue base provided by long standing, repeat
OceanFeed(TM) customers. The Company is yet to lose a material
OceanFeed(TM) customer due to strength of its product offering
-- growth from 15 customers won in 2023 that are increasing
their usage of OceanFeed(TM) and are expected to use the product
for the full year in 2024
-- growth from existing customers who have trialled or are
trialling OceanFeed(TM) products for additional applications within
their business
-- growth from new customers trialling the product for
applications for which OHT has already demonstrated efficacy.
-- ongoing demand from customers demanding single seaweed products
OHT expects approximately three quarters of 2024 revenue to come
from customers already using its products and that the balance will
come primarily from sales to new customers focused on the swine and
poultry markets where OceanFeed(TM) is most widely used and where
our trial data is strongest. Through its R&D program the
Company is seeking additional data that can help further penetrate
its other markets such as bovine, aqua and pet, but we expect the
growth in these areas to come in 2025 and beyond.
The Company has observed some impacts in shipping schedules and
pricing as a result of the widely reported Red Sea disruption.
However, there was no material impact from this on 2023 trading
and, with under 10% of our raw materials and under 25% of our
finished products usually travelling through the Red Sea, it does
not impact OHT's current outlook for 2024.
With an improved outlook for its seaweed supply chain and more
efficient capacity expansion options, the Company has an improved
outlook for working capital and cash usage which it will detail
with the full year results.
New Hires and Management Changes
Hadden Graham, the group's Chief Commercial Officer, has
communicated his desire to retire during 2024. Hadden will remain
employed by OHT until the end of June to assist with transition
arrangements and will then become a consultant to OHT on an ongoing
basis. Given he will be leaving his full-time executive position he
will not seek re-election as a Director at the next AGM. Hadden has
enjoyed a distinguished career in the animal feed sector for over
30 years and has brought his considerable experience and contacts
to OHT and will continue to help the Company with its development
during the transition period through 2024. We are very grateful for
Hadden's contribution, wish him well in his retirement and thank
him for his ongoing support of OHT.
Nico Stein has been appointed as the Chief Commercial Officer
from 1 February. Nico has over 20 years of experience in sales,
commercial and operational management experience in animal
nutrition, feed & food additives and pet food. He has held
senior commercial roles in leading companies in the industry
including Anpario, Biomin and Nestle.
Chris Scott has, as previously announced, been appointed as CFO
and commenced employment with OHT on 15 January. He joins OHT from
FrieslandCampina, a dairy co-operative and consumer food
manufacturer, where he was the Finance Director for UK &
Ireland. Prior to that he held various senior finance positions
including at the leading multinational Kimberly-Clark UK. Chris has
been appointed as a Director of the Company on 19 January.
Tom Onions, who has been a Non Executive Director of OHT since
2015, will not stand for re-election at the next AGM. Tom has
played a valuable role for OHT as a Director whilst it was a
private company, through the IPO process and during its inaugural
year as a publicly listed company. The Company wishes to thank him
for his contribution to the business and wish him all the best with
his future business endeavours.
Mark Williams, CEO of OHT, commented:
"We are pleased with the resilient trading performance of the
Company in late 2023, in particular that the sales of our
proprietary blended OceanFeed(TM) product grew almost 30%. This has
helped us to grow our gross margin to over 37% for the year.
OHT is well placed for the year ahead and will continue to
deliver on growing its customer base, investing in R&D and
building its supply chain to extend our position as the leading
provider of blended seaweed additives to the animal feed industry.
We look forward to significant progress in 2024 and will provide a
further update with our full year results"
For more information please contact:
Ocean Harvest Technology Group plc Tel: +44 (0) 1737 735018
Mark Williams, CEO
Cavendish Capital Markets Limited (Nominated Adviser and Sole Broker) Tel: +44 020 7220 0500
Geoff Nash / Seamus Fricker / George Dollemore (Corporate Finance)
Tim Redfern / Harriet Ward (ECM)
Camarco (Financial PR Adviser) Tel: +44 (0) 203 757 4991
Tom Huddart / Rosie Driscoll / Letaba Rimell oht@camarco.co.uk
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU No. 596/2014) which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
Notes to Editors
Ocean Harvest Technology Group plc is a global leader in the
development and commercialisation of value adding proprietary
products from blending multiple species of seaweed. The Company
provides a range of natural additives focused on improving animal
performance and the sustainability of the feed chain, through its
unique and proven proprietary seaweed blends. The Company sources
its seaweed globally, utilising sustainable and socially
responsible harvesting of largely wild blooming seaweed species.
Its products are produced in its facility in Vietnam and sold into
the $40bn animal feed additive sector in multiple markets across
the world.
For more information, please visit
www.oceanharvesttechnology.com .
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