RNS Number:5717N
Byotrol PLC
11 December 2006
Byotrol plc
11 December 2006
Byotrol plc
(the 'Company')
Byotrol TM is a patented anti microbial technology which has been shown to be
both versatile and highly effective. Byotrol TM has been extensively tested in
a number of applications and has been shown to safely control or eradicate the
threats caused by micro-organisms, such as MRSA, e-coli and c-difficile. Byotrol
TM is now being actively marketed in both Europe and North America.
Unaudited interim results for the six months ending
30 September 2006
HIGHLIGHTS
* EPA registration of Byotrol Polysphere for use in a large number of
target markets in the USA
* CE mark registration in the EU for the medical use of Byotrol in
hospitals and clinics
* Successful completion of a 6 month NHS study against MRSA at the
Glasgow Royal Infirmary
* Granted a Chinese patent
* Successfully raised #5m gross (#4.6m net) of capital through a share
placing
* Signed a major licensing and distribution agreement with Synergy
Healthcare plc.
Enquiries
Byotrol plc 0161 277 9518
Stephen Falder Deputy Chairman 07767 404629
David McRobbie Chief Executive 07739 549226
Richard Bell Finance Director 07825 204110
Charles Stanley Securities 020 7149 6457
Philip Davies / Anthony Noakes
McCann Erickson PR 01625 822540
Jim Rothnie
CHAIRMAN'S STATEMENT
The six month period has seen continuing satisfactory progress by the Company
that was either in line with or in advance of our planned development for
Byotrol. It is the Board's strategy to make Byotrol a globally trusted brand in
the fields of microbial control. To this end we are highly focussed on ensuring
that our technology is appropriately tested, evaluated, accredited and
certificated in our target markets throughout the world.
Some major achievements were recorded during the period that will all help to
ensure that Byotrol gains the rapid and high level of acceptance and use in the
Company's target markets of Healthcare, Food Processing and Industrial &
Technical. At the same time steady progress was made with the company's sales
plan. Highlights of the period include:
* EPA registration of Byotrol Polysphere for use in a large number of
target markets in the USA
* CE mark registration in the EU for the medical use of Byotrol in
hospitals and clinics
* Successful completion of a 6 month NHS study against MRSA at Glasgow
Royal Infirmary
* Grant of a Chinese patent
Against the background of substantial regulatory and market progress during the
period, the Company has capitalised on such progress with significant actions
announced since the end of period:
* Successfully raised a further #5m gross (#4.6m net) of capital through
a share placing
* Signed a major licensing and distribution agreement with Synergy
Healthcare plc.
* Granted a Singapore patent
Financial results for the period
During the period, as anticipated, the company continued to use the resources
provided by the float in July 2005 and recorded a loss of #910,820. Sales for
the period were #116,814 compared with #47,409 for the nine months ended 30
September 2005. The balance sheet shows a net worth of #154,802 at the period
end. The end of period balance sheet does not reflect the recent equity
fundraising completed in November 2006.
Healthcare
During the period two events of major significance occurred in the Healthcare
market. Firstly we completed a highly successful trial in an NHS hospital.
Secondly we gained an ISO approval of our systems that gave the company the
capability of CE marking its medical disinfectant materials.
The NHS trial was supervised by Professor Curtis Gemmell, a highly respected
expert in the field of Methicillin Resistant Staphylococcus Aureus ("MRSA")
infection. He subsequently presented a paper on the trial at an international
infection control conference which showed reductions of over 50% in MRSA in a
hospital ward when compared with a traditional disinfection regime. These
results were more remarkable when it is taken into account that only a small
fraction of the wards surfaces were treated with Byotrol and only once per day.
The Board is very encouraged by this success which, in combination with the safe
and easy use of Byotrol in a working ward environment with no need for capital
outlay or special training, puts the company in a potentially advantageous
position.
Subsequent to the period end a significant licensing deal was signed with a
major UK healthcare group Synergy Healthcare plc. This will quickly put Byotrol
technology within reach of key customers in the NHS and clinical fields and is
fully consistent with our strategy for Byotrol as an active ingredient brand. It
is our intention to partner with major players in our target markets to enable
us to position Byotrol in the market place more quickly than would happen if we
were to develop our own sales force.
Food processing
Food production is an area of significant opportunity for Byotrol where the
technology's combination of efficacy, safety, ease of use and durability provide
prospective customers with attractive benefits.
Several high profile and well publicised incidents and "food scares" have
highlighted further to an already alert market the risks of contamination and
the benefits of high performance sanitisation products.
The Company has been planning and undertaking numerous trials and initial
installations at key prospects within the food industry in both the UK and the
USA.
EPA approval has made it possible to commence early stage supply for trials to a
number of important food processors in the USA and the Board is greatly
encouraged by the initial outcomes.
Technical and industrial markets
Control of microbes is not solely concerned with health, safety and healthcare
issues. There are many areas, where it is necessary to control microbes to
prevent damage, deterioration and spoilage, which need a technology such as
Byotrol. The strategy of the company in these areas is to engage with partners
in these fields who are expert in or burdened by microbial problems. These range
from the safe maintenance of sports equipment where progress continues with our
Caddy Care range for golfers and in the USA where Contec Inc continue to serve
the niche of gymnasium equipment to the sanitization to municipal control of
algae and slime on signage and street furniture.
Ongoing negotiations with several large global companies to provide Byotrol
products to industry and the public, whilst at an initial stage, are progressing
satisfactorily. The Board is very mindful of the need to forge the best possible
long term partnerships in these fields as opposed to accepting the first
available opportunities.
Other products
The UK's largest pet retailer Pets At Home launched a range of dog grooming
products in July that was well received by their customers and is available at
approximately 160 stores throughout the UK. This was a result of cooperation
between Byotrol and Byofresh Limited who developed and tested this particular
family of products. The expanding range of pet care materials incorporating
Byotrol was exhibited at the GLEE exhibition in Birmingham, and there was a
strong level of interest both nationally and internationally. At the same
exhibition, the "Stay Clean" brand was launched by Viksol, for both garden and
home use and received an excellent reception and substantial enquiries.
Regulatory and intellectual property
In July the company achieved EPA registration in the USA, and CE mark approval
in Europe. Byotrol's technology uses biocides that are all well placed to be
fully compliant with pending EU regulations (the Biocidal Products Directive
"BPD"). The regulatory climate is undergoing significant change which has a
number of advantages to the Company as it forces a review of products by
virtually all significant users in the European Union.
The company received notice that its technology had received a granted patent in
China, an important market for Byotrol but in particular for potential future
partners of the Company.
The Company has filed a patent for the use of Byotrol as a tissue preservative
where it is a safe alternative to formaldehyde for several niche uses and
recently began sales in trial volumes.
Staffing
During the period the management and staff have worked tirelessly and diligently
to achieve our milestones and goals. New people have joined and quickly become
valued members of the team. I would like to express my personal thanks to all of
them for the hard work and dedication they have shown.
Current trading and outlook
The Board has been very encouraged by the events of the last six months. A
number of significant opportunities and related markets have become accessible
to the Company either sooner or in a more significant manner than had been
forecast. This combination of beneficial events was the catalyst for the
successful fundraising in November 2006 and the signing of a significant
licensing deal with Synergy for certain healthcare markets in the same month.
It is the policy of the Board to remain cautious and conservative in its plans
for revenues, but also to aggressively pursue early penetration of all targeted
markets through strong partnerships, excellent scientific data, and strong brand
and company values.
The Board is confident that shareholders will see a continued strengthening of
the Company, its business and brand.
Wesley Devoto OBE
Chairman, 11 December 2006
Byotrol PLC
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the period ended 30 September 2006
6 Mths 9 Mths 15 Mths
30-Sep-06 30-Sep-05 31-Mar-06
# # #
Group turnover 116,814 47,409 90,014
Cost of Sales (66,798) (26,132) (47,902)
_________ ________ _________
Gross Profit 50,016 21,277 42,112
Administrative expenses (978,531) (498,763) (1,424,793)
_________ ________ _________
Operating loss (928,515) (477,486) (1,382,681)
Net interest receivable 17,558 14,011 50,215
_________ ________ _________
Loss on ordinary activities before taxation (910,957) (463,475) (1,332,466)
Taxation - - -
_________ ________ _________
Loss on ordinary activities after taxation (910,957) (463,475) (1,332,466)
Minority interest 137 667 1,490
_________ ________ _________
Loss on ordinary activities after minority
interest (910,820) (462,808) (1,330,976)
_________ ________ _________
Retained loss for the period (910,820) (462,808) (1,330,976)
_________ ________ _________
Loss per share
Basic per share (pence) (2.61) (3.05) (5.76)
Diluted per share (pence) (2.61) (3.05) (5.76)
_________ ________ _________
The loss for the period arises from the group's continuing operations
Byotrol PLC
UNAUDITED CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the period ended 30 September 2006
6 Mths 9 Mths 15 Mths
30-Sep-06 30-Sep-05 31-Mar-06
# # #
Loss for the financial period (910,820) (462,808) (1,330,976)
Currency translation differences on foreign
currency net investments 21,923 (37,822) (42,184)
_________ ________ _________
Total recognised gains and losses relating to
the period (888,897) (500,630) (1,373,160)
_________ ________ _________
Byotrol PLC
UNAUDITED CONSOLIDATED BALANCE SHEET
as at 30 September 2006
30 September 30 September 31 March
2006 2005 2006
# # #
FIXED ASSETS
Intangible assets 9,333 9,833 9,583
Tangible assets 59,017 45,671 50,645
Investments 5,000 5,425 5,000
_________ ________ _________
73,350 60,929 65,228
_________ ________ _________
CURRENT ASSETS
Stock 40,194 48,256 21,180
Debtors 227,371 119,901 118,177
Cash at bank and in hand 256,825 2,187,541 1,213,053
_________ ________ _________
524,390 2,355,698 1,352,410
CREDITORS: Amounts falling due within one year (442,938) (502,310) (373,801)
_________ ________ _________
NET CURRENT ASSETS 81,452 1,853,388 978,609
_________ ________ _________
TOTAL ASSETS LESS CURRENT LIABILITIES 154,802 1,914,317 1,043,837
CREDITORS: Amounts falling due after one year - - -
_________ ________ _________
154,802 1,914,317 1,043,837
_________ ________ _________
CAPITAL AND RESERVES
Share capital 87,182 87,182 87,182
Share premium account 2,945,529 2,945,529 2,945,529
Merger reserve 1,064,712 1,064,712 1,064,712
Minority interest 1,246 (667) 1,383
Profit and loss account (3,943,867) (2,182,439) (3,054,969)
_________ ________ _________
EQUITY SHAREHOLDERS' FUNDS 154,802 1,914,317 1,043,837
_________ ________ _________
Byotrol PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
for the period ended 30 September 2006
30 September 30 September 31 March
2006 2005 2006
# # #
Net cash outflow from operating activities (914,842) (334,435) (1,283,245)
Returns on investments and servicing of finance
Interest received 17,743 17,566 53,198
Interest paid (185) (3,555) (2,983)
__________________________________________
Net cash inflow from returns on investments and
servicing of finance 17,558 14,011 50,215
Taxation - - -
Capital expenditure
Purchase of tangible fixed assets (19,944) (45,509) (54,691)
__________________________________________
Net cash outflow for capital expenditure (19,944) (45,509) (54,691)
__________________________________________
__________________________________________
Net cash outflow before use of liquid resources and
financing (917,228) (365,933) (1,287,721)
__________________________________________
Financing
Issue of ordinary share capital - 3,119,360 3,119,360
Expenses of share issue - (533,875) (533,875)
Repayment of other loans - (15,451) (15,451)
Increase in directors' loans - 24,537 24,537
__________________________________________
Net cash inflow from financing - 2,594,571 2,594,571
__________________________________________
__________________________________________
(Decrease)/increase in cash (917,228) 2,228,638 1,306,850
__________________________________________
1 This interim statement for the period to 30 September 2006 is unaudited
and was approved by the Directors on 11 December 2006. The information
set out does not constitute statutory accounts within the meaning of
Section 240 of the Companies Act 1985.
2 Turnover
Turnover and loss before taxation were all derived from the Group's
principal activities and arose principally in the following geographical
markets:
6 Mths 9 Mths 15 Mths
30-Sep-06 30-Sep-05 31-Mar-06
# # #
UK 43,700 19,012 34,906
North America 13,675 28,397 39,026
Rest of World 59,439 - 16,082
__________________________________________
116,814 47,409 90,014
__________________________________________
The segmental analysis of turnover is:
6 Mths 9 Mths 15 Mths
30-Sep-06 30-Sep-05 31-Mar-06
# # #
Health 53,096 - 934
Industrial 51,613 47,409 76,940
Food 12,105 - 12,140
__________________________________________
116,814 47,409 90,014
__________________________________________
3 The interim financial information contained in this statement does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985.The principal accounting policies of the group are those which will be
adopted in the financial statements for the year ending 31 March 2007,
including the adoption of Financial Reporting Standard No 20 ('FRS20 -
share based payments'). The accounts for the fifteen months ended 31 March
2006, upon which the auditors issued an unqualified opinion and which did
not contain a statement under s237(2) or (3) Companies Act 1985, have been
delivered to the Registrar of Companies.
4 Loss per ordinary share
The loss per ordinary share is based on the losses for the period of
#910,820 (nine months ended 30 September 2005: #462,808 loss; fifteen months
ended 31 March 2006 #1,330,976 loss) and the weighted average number of
ordinary shares in issue during the period of 34,872,849 (nine months ended
30 September 2005: 15,206,662; fifteen months ended 31 March 2006:
23,090,464).
The loss for the period and the weighted average number of ordinary shares
for calculating the diluted earnings per share for the six months ended
30 September 2006 and for the comparative periods are identical to those
used for the basic earnings per share. This is because the outstanding
share options would have the effect of reducing the loss per ordinary share
and would therefore not be dilutive under the terms of Financial Reporting
Standard No 22.
5 Taxation
No liability to UK corporation or overseas income taxes arises for the
period due to losses incurred. The directors have assessed the position in
relation to deferred tax and concluded that no provision or asset should be
created at this stage in respect of deferred tax in view of the timescale
and uncertainty of the recovery of tax losses. This position will be
reviewed again at 31 March 2007.
6 Cashflows
Reconciliation of Operating Loss to Net Cash Outflow from Operating Activities
6 Mths 9 Mths 15 Mths
30-Sep-06 30-Sep-05 31-Mar-06
# # #
Operating loss (928,515) (477,486) (1,382,681)
Depreciation 11,572 1,822 6,217
Amortisation of intangible assets 250 167 417
(Increase)/decrease in stock (19,014) (12,738) 14,338
(Increase)/decrease in debtors (109,194) (104,148) (102,424)
Increase/(decrease) in creditors 108,137 296,008 223,072
Exchange gain or loss 21,922 (38,060) (42,184)
__________________________________________
Net cash outflow from operating activities (914,842) (334,435) (1,283,245)
__________________________________________
Reconciliation of net cash flow to movement in Net Debt
6 Mths 9 Mths 15 Mths
30-Sep-06 30-Sep-05 31-Mar-06
# # #
Increase in cash in the period (917,228) 2,228,638 1,306,850
Cash inflow from increase in debt - (9,086) (9,086)
__________________________________________
Change in net debt resulting from cash flows (917,228) 2,219,552 1,297,764
Loans converted into shares - 488,811 488,811
__________________________________________
Movement in net cash/(debt) in the period (917,228) 2,708,363 1,786.575
Net cash/(debt) at start of period 1,113,491 (673,084) (673,084)
__________________________________________
Net cash at end of period 196,263 2,035,279 1,113,491
__________________________________________
At 1 Apr Cash flow Non cash At 30 Sep
2006 # movement 2006
# # #
Analysis of net debt
Net cash:
Cash at bank and in hand 1,213,053 (956,228) - 256,825
Overdraft - - - -
_______________________________________________________________________
1,213,053 (956,228) - 256,825
Debts falling due within 1
year (99,562) 39,000 - (60,562)
_______________________________________________________________________
Net cash 1,113,491 (917,228) - 196,263
_______________________________________________________________________
7. Post Balance Sheet event
The Company raised #5m, #4.6m net of expenses, by a share placing in
November 2006 of 8,340,000 ordinary shares at 60p each.
8. The interim report was issued to the Stock Exchange and the press on
11 December 2006 and will be posted to shareholders. Further copies of
the interim report are available at the Company's Registered Office and
a copy will be posted on the Company's website.
Introduction
We have been instructed by the company to review the financial information for
the six months ended 30 September 2006, which comprises the Consolidated Profit
and Loss Account, Consolidated Statement of Total Recognised Gains and Losses,
Consolidated Balance Sheet, Consolidated Cash Flow Statement and the related
notes, and we have read the other information in the interim statement and
considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.
This report, including the conclusion, has been prepared for and only for the
company for the purpose of their interim statement and for no other purpose. We
do not, therefore, in producing this report, accept or assume responsibility for
any other purpose or to any other person to whom this report is shown or into
whose hands it may come save where expressly agreed by our prior consent in
writing.
Directors' responsibilities
The Interim Statement, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors are
responsible for preparing the Interim Statement in accordance with the AIM Rules
which require that the accounting policies and presentation applied to the
interim figures must be consistent with those that will be adopted in the
company's annual accounts.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board as if that Bulletin applied. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with Auditing Standards and therefore provides a lower
level of assurance than an audit. Accordingly we do not express an audit opinion
on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2006.
BAKER TILLY
Chartered Accountants
Brazennose House
Lincoln Square
Manchester
M2 5BL
11 December 2006
This information is provided by RNS
The company news service from the London Stock Exchange
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