Provexis PLC Pre-Close Update (5443D)
31 March 2014 - 5:00PM
UK Regulatory
TIDMPXS
RNS Number : 5443D
Provexis PLC
31 March 2014
31 March 2014
Provexis plc
PRE-CLOSE UPDATE
Provexis plc ("Provexis" or the "Company"), the business that
develops and licenses the proprietary, scientifically-proven
Fruitflow(R) heart-health functional food ingredient, announces a
pre-close update for the year ended 31 March 2014.
In its preliminary results statement expected in July, the
Company expects to report on a year of substantial change, and
progress. During the year the Science in Sport business was
demerged from Provexis, and the cost base of the legacy Provexis
business was significantly reduced. The Company's Alliance partner
DSM Nutritional Products has continued to develop the market
actively for the Company's novel, patented Fruitflow(R)
heart-health ingredient in all global markets.
Fruitflow(R)
The Company's Alliance partner DSM Nutritional Products has
continued to make good progress marketing Fruitflow(R), with over
24 regional consumer brands worldwide containing our novel,
patented technology having been launched. An increasing number of
further commercial projects have been initiated by DSM with
prospective customers, with good prospects for these projects to be
launched as consumer products. Interest in the technology exists in
all major global markets.
DSM has invested substantial resource into establishing a
commercial scale supply chain for powder manufacturing, which is
required for a wide range of tablet, gel capsule and dietary
supplement products. Cost of goods has been high in this start-up
phase, on a low volume base, which is typical for a new ingredient
launch, and it has resulted in the Company's share of profits for
the year being negated. Under the terms of the Alliance Agreement
cost of goods is deducted ahead of any profit distribution to
either Provexis or DSM. DSM's manufacturing and technical teams
remain highly focused on reducing Fruitflow(R) production costs,
and as manufacturing volume increases unit costs will decrease,
enabling more positive margins and thus profit distributions.
Dawson Buck, Chairman of Provexis, commented:
"The year has seen substantial change, as Science in Sport was
demerged from the business during the first half of the year. We
have continued to reduce costs in the Provexis business and in
parallel, our Alliance partner DSM continues to make good progress
marketing Fruitflow, with over 24 regional consumer brands
worldwide containing our novel, patented technology having been
launched, and an increasing number of further commercial projects
having been initiated with prospective customers.
While DSM's high scale-up related costs of powder manufacturing
negated our share of profits in the year, having capacity in place
for this format is a strategically important milestone, and it
remains our belief that products addressing blood flow and
circulation issues represent a long-term opportunity in the
functional food sector. With DSM making good progress in the
marketplace and the Company having very low operational costs, we
remain positive about the outlook for the Fruitflow business."
ends-
For further information please contact:
Provexis plc Tel: 07917 670260
Dawson Buck, Chairman enquiries@provexis.com
Ian Ford, Finance Director
Cenkos Securities plc Tel: 020 7397 8900
Bobbie Hilliam
This information is provided by RNS
The company news service from the London Stock Exchange
END
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