RNS Number:6677Y
Byotrol PLC
20 June 2007
For release at 07.00 hours 20 June 2007
BYOTROL PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2007
Byotrol plc ("Byotrol" or the "Company"), the anti-microbial technology company,
announces its preliminary results for the year ended 31 March 2007.
Highlights:
* Environmental Protection Agency (EPA) registration successfully gained
in USA
* Fundraising completed in November 2006 - raising #4.6m net of expenses
* Significant licensing deal signed with Synergy Healthcare plc in
November 2006
* Product ranges launched over target markets
Financials:
* Turnover increased to #673,542 (2006: #90,014)
* Year end cash balance #3.55m (2006: #1.21m)
* Pre-tax loss of #1.74m (2006: Loss of #1.99m)
* Loss per share reduced to 4.56 pence (2006: Loss per share 8.59p)
Chairman of Byotrol, Wesley Devoto, said: "We are optimistic that the
foundations created in the last 20 months since flotation have provided the
bedrock for the successful development and growth of the Company. Initial
trading this year supports that assertion and we are confident that the Group
will continue its growth pattern in the current financial year. We will continue
to drive forward in our six target markets, increasing our use of resources to
achieve our objectives."
...Ends...
For further information, please contact:
Byotrol plc Tel: 0161 277 9518
Stephen Falder, Deputy Chairman www.byotrol.com
David McRobbie, Chief Executive
Richard Bell, Finance Director
Rawlings Financial PR Limited Tel: 01756 770 376
Catriona Valentine catriona@rawlingsfinancial.co.uk
www.rawlingsfinancial.co.uk
Charles Stanley Securities Tel: 020 7149 6457
Philip Davies / Anthony Noakes
CHAIRMAN AND CHIEF EXECUTIVE'S REVIEW
It gives us great pleasure to announce the results for the year ended 31 March
2007 - the first full year's trading for Byotrol plc.
The Group has continued to make progress throughout the year and we are pleased
to report broadening and growing interest in our patented anti microbial
technology amongst significant global businesses. In addition to progress in the
Company's original target markets, further recognition of the benefits of
Byotrol's technology was generated in other key market sectors. This initiated
the Board's decision in November 2006 to seek further resources from investors
via a Placing, that raised #4.6 million net of expenses, to ensure that the
opportunities in these markets could be captured. It also broadened our
institutional shareholder base, bringing new investors to the Company. The
Board has used and continues to use the new money carefully and judiciously to
secure further patent protections and prepare the Group for expansion into new
markets.
Financial Results
The Group turnover for the year was #673,542 (2006: #90,014)(, which was in line
with our expectations). The loss after taxation for the year was #1,743,904
(2006: #1,983,750), which was slightly more than that anticipated at the time of
the Placing due to the accelerated incurral of certain patent and marketing
costs and an FRS 20 charge of #94,231 on the granting of share options to
certain directors and staff. Turnover is divided into three forms of sale:
product sales, licence fees and royalties. Product sales were #471,025 (2006:
#90,014) and licence fees #202,517 (2006: #Nil). Cash inflow was #2,339,985
(2006: #1,254,150) and the balance sheet showed a net worth of #4,157,720 (2006:
#1,043,837). The year end cash balance was #3,553,038 (2006: #1,213,053).
Strategy
Byotrol is a combination of polymers and biocides which increases the
effectiveness of the biocides and gives significant residual efficacy. It was
originally developed in the research for an anti-microbial paint but was found
to have a myriad of other applications.
The Company's strategy is to build Byotrol into a globally recognised brand
associated with the highest standards of safe, effective and long lasting
microbial control. Originally three market sectors were identified and pursued -
Healthcare, Food & Beverage and Industrial & Technical. However, progress has
been made in three other major markets - Consumer Products, Hospitality &
Leisure and Agriculture. We intend to move at an accelerating rate into these
key markets through the development of strategic partnerships with major global
players. Our aim is to partner, rather than compete, with organisations whose
financial and marketing muscle and global reach will enable Byotrol, as an
ingredient brand, to achieve worldwide presence rapidly.
We will pursue a variety of partnership styles, as appropriate, either making
direct product sales or licensing the use of Byotrol to generate licence fees
and royalties or through joint ventures.
Healthcare
A major concern, as widely reported in the media, is the risk in hospitals of
patients getting Hospital Acquired Infections. A significant efficacy study,
conducted over a six month period in the Glasgow Royal Infirmary ("GRI"), showed
reductions of over 50 per cent in environmental MRSA in a working test ward when
Byotrol wipes were used once daily on a fraction of the surfaces. The Company
was delighted with the results of this important study, which were presented to
an international professional audience in Holland in October 2006.
A study was also completed by recently opened Monroe Hospital in Indiana, USA,
producing similar results to the GRI study. Monroe is part of a significant
hospital group, so the success of the study bodes well for our US healthcare
development. They are now using Byotrol products as part of their regular
cleaning regime.
A significant licensing deal was completed with Synergy Healthcare plc in
November 2006, which initially granted exclusivity for certain healthcare
markets in the UK. However, this is scalable into global markets subject to
additional licence fees. The arrangement with Synergy healthcare is a clear
example of how we intend to expand the reach of Byotrol's technology quickly
through partnerships with existing successful businesses.
Food and Beverage
A principal issue on production lines is hygiene and the control of diseases,
such as listeria, salmonella and e-coli, against which Byotrol's efficacy is
already proven. A complete suite of products, the Nanosphere range, has been
launched in the UK for commercial food and drink businesses. This sector has a
need for both bespoke and stocked items which the Nanosphere range provides
directly and through our growing network of distribution partners.
In the USA, following Environmental Protection Agency registration in 2006, in
order to capitalise on this progress our sales and marketing team has been
strengthened by the appointment of an experienced industry expert from a major
company within the market place.
Industrial and Technical
We launched products into a number of niche markets in this sector during the
year. Byotrol's technology is principally presented to customers in these
markets as an ingredient brand, which adds value to existing products or creates
new product opportunities. An example includes the Pets at Home grooming and
deodorising range of products, which gained the Pets at Home new product of the
year award.
We concluded very successful trials with one of the world's leading security
printers, giving rise to the availability of anti-microbial currency notes in
the future.
Widespread concern over avian flu resulted in the sale of 20,000 emergency kits
for use in strategic office environments in the last quarter of the financial
year.
Since the year end, Fellowes Inc, a worldwide provider of accessories and
business machines, has announced the launch of Virashield including Byotrol in a
range of wipes and disinfectants for the office workplace.
Consumer Products
Public awareness and concern about the potential threats from micro organisms
provide a strong stimulus for development in this very significant market
sector. The consumer is very concerned about domestic hygiene and this provides
a significant market opportunity.
By ensuring that Byotrol's technology has been carefully positioned into the
pioneer markets, the Board believes that important value can be added to the
Byotrol brand. As this market is vast and contains very material players, the
Board has decided that the optimum solution is to seek an arrangement with an
organisation with specialist expertise in accessing the global leaders in
consumer products. The team is working hard to ensure that, as soon as is
practicable, Byotrol will achieve an association with a major international
consumer brands company to bring the Group's technology within the reach of a
significant mass of the global population.
Hospitality and Leisure
Considerable potential exists in this very large market, which includes hotels
and restaurants as well as cruise ships and sports facilities. On cruise ships,
there have been significant outbreaks of Norovirus and in sports centres a
variety of microbial related infections have been reported. A very successful
field trial on a working German-based cruise ship, part of one of the largest
fleets of international cruise lines, has initiated a focused programme of
testing and product refinement that is on course to produce a range of Byotrol
solutions to combat serious microbial outbreaks that occur in the cruise ship
environment, as well as public transport systems and hotels.
Contec Inc., in the USA, continues to enjoy success with its Athletix range of
wipes products with Byotrol, developed for the hygienic maintenance of gymnasium
and sports equipment.
Agriculture
This is one of the world's largest markets for anti-microbial agents, from fruit
and crop protection to animal welfare and poultry hygiene. The Company believes
that this market will be most effectively satisfied by an existing player in
this sector, using Byotrol's technology where safety, residual efficacy and
broad spectrum action are a highly attractive combination of features.
Early progress has been made to demonstrate the significant advantages of using
Byotrol and, following highly encouraging scoping tests, an eight month crop
trial commenced in February 2007 under the supervision of the Plant Medicine
programme of the University of Florida, headed by Professor Robert J McGovern.
During the year we launched the Agrisphere range, which includes teat wipes, for
farmers in the UK. These wipes improve quality in milk production and results to
date have been encouraging. Another key benefit of the Agrisphere wipes, unlike
other traditional products which are iodine based, is that they do not cause
irritation when used on dairy cows.
Also in the USA, excellent results have been seen in studies supervised by the
United States Department of Agriculture regarding the control of salmonella in
fertilised eggs through the use of Byotrol in the egg washing process.
Intellectual Property and Quality Management
The Company continued its policy of taking active steps to protect its
intellectual property. This important work resulted in the filing of six new
inventions, including two devices and three important use patents. The Company
obtained ISO 13485 approval, which is the medical device quality management
standard. This is expected to expedite the supply of Byotrol products to
healthcare and medical customers worldwide.
During the year, we were also awarded the CE Mark for medical and disinfectant
products and achieved USA Environmental Protection Agency approval.
The Byotrol Team
We have developed our team significantly through the addition of experienced
personnel in the key fields of sales and marketing, research and development,
regulatory approvals and product development. Our UK operation has grown faster
than the US but we expect this trend to change as our US business starts to
increase in size. We also appointed Richard Bell, who joined us as Finance
Director having previously acted as a financial consultant for the Company.
Richard brings solid plc and City experience to the Board.
We would like to express our thanks to all our staff for their hard work and
commitment, which have enabled us to achieve significant goals this year.
Current Trading and Outlook
We are optimistic that the foundations created in the last 20 months since
flotation have provided the bedrock for the successful development and growth of
the Company. Initial trading this year supports that assertion and we are
confident that the Group will continue its growth pattern in the current
financial year. We will continue to drive forward in our six target markets,
increasing our use of resources to achieve our objectives.
Finally, we would like to thank all our shareholders for their support and
enthusiasm.
Wesley Devoto David McRobbie
Chairman Chief Executive
20 June 2007
Unaudited Consolidated Profit and Loss Account
For the year ended 31 March 2007
Year ended Period ended
31 March 31 March
2007 2006
(Restated)
Notes # #
Group turnover 2
Product sales 471,025 90,014
Licence fees & royalties 202,517 -
--------- --------
673,542 90,014
Cost of sales (194,703) (47,902)
--------- --------
Gross profit 478,839 42,112
Administrative expenses (2,215,041) (1,424,793)
Share based payment charge (94,231) (652,774)
--------- --------
Operating loss on ordinary activities before interest and taxation (1,830,433) (2,035,455)
Net interest receivable 86,293 50,215
--------- --------
Loss on ordinary activities before taxation (1,744,140) (1,985,240)
Taxation 3 - -
--------- --------
Loss on ordinary activities after taxation (1,744,140) (1,985,240)
Minority interest 236 1,490
--------- --------
Loss for the period for the Group (1,743,904) (1,983,750)
--------- --------
Loss per ordinary share
Basic and diluted (p) 4 (4.56) (8.59)
--------- --------
The loss for the period arises from the Group's continuing operations.
Unaudited Consolidated Statement of Total Recognised Gains and Losses
for the year ended 31 March 2007
Year ended Period ended
31 March 31 March
2007 2006
(Restated)
# #
Loss for the financial period (1,743,904) (1,983,750)
Currency translation differences on foreign currency net investments 46,678 (42,184)
------------ -----------
Total recognised losses relating to the financial year (1,697,226) (2,025,934)
-----------
Prior year adjustment (652,774)
------------
Total recognised losses since last annual report (2,350,000)
------------
Unaudited Consolidated Balance Sheet
at 31 March 2007
2007 2006
(Restated)
Notes # # # #
Fixed assets
Intangible assets 39,083 9,583
Tangible assets 69,909 50,645
Investments - 5,000
--------------- ---------------
108,992 65,228
Current assets
Stocks 46,173 21,180
Debtors 727,065 118,177
Cash at bank and in hand 3,553,038 1,213,053
--------------- ---------------
4,326,276 1,352,410
Creditors
Amounts falling due within one year (277,548) (373,801)
--------------- ---------------
Net current assets 4,048,728 978,609
--------------- ---------------
Total assets less current liabilities 4,157,720 1,043,837
--------------- ---------------
Capital and reserves
Called up share capital - equity 5 109,073 87,182
Share premium account 6 7,640,752 2,945,529
Merger reserve 6 1,064,712 1,064,712
Profit and loss account 6 (4,657,964) (3,054,969)
--------------- ---------------
Equity shareholders' funds 4,156,573 1,042,454
Minority interest 6 1,147 1,383
--------------- ---------------
Total capital employed 4,157,720 1,043,837
--------------- ---------------
Unaudited Consolidated Statement of Cash Flows
for the year ended 31 March 2007
Year ended Period ended
31 March 31 March
2007 2006
(Restated)
Notes # #
Net cash (outflow) from operating activities 7(a) (2,387,969) (1,335,945)
----------- -----------
Returns on investments and servicing of finance
Interest paid (1,572) (2,983)
Interest received 87,865 53,198
----------- -----------
Net cash inflow from returns on investments and
servicing of finance 86,293 50,215
----------- -----------
Capital expenditure and financial investment
Payment to acquire tangible fixed assets (45,456) (54,691)
Payment to acquire intangible fixed assets (30,000) -
----------- -----------
Net cash outflow from capital expenditure (75,456) (54,691)
----------- -----------
Acquisitions and disposals
Purchase of investments - -
----------- -----------
Net cash outflow from acquisitions and disposals - -
----------- -----------
Net cash (outflow) before use of liquid resources and financing (2,377,132) (1,340,421)
----------- -----------
Financing
Issue of ordinary share capital 5,107,428 3,119,360
Share issue costs (390,314) (533,875)
Increase in directors' loans - 24,537
Repayment of other loans - (15,451)
----------- -----------
Net cash inflow from financing 4,717,114 2,594,571
----------- -----------
Movement in cash 7(b) 2,339,982 1,254,150
----------- -----------
Reconciliation of net cash flow to movement in net funds
Movement in cash 7(b) 2,339,985 1,254,150
Cash inflow from decrease/(increase) in debt 7(b) 152,262 (9,086)
----------- -----------
Change in Net Debt resulting from cash flows 7(b) 2,492,247 1,245,064
Loans converted into shares 7(b) - 488,811
----------- -----------
Movement in net funds in the period 2,492,247 1,733,875
Net funds/(debt) at 1 April 2006/1 January 2005 1,060,791 (673,084)
----------- -----------
Net funds at 31 March 2007/31 March 2006 7(b) 3,553,038 1,060,791
----------- -----------
Notes to the Preliminary Results
for the year ended 31 March 2007
1. BASIS OF THE ANNOUNCEMENT
The preliminary financial statements for the year ended 31 March 2007 were
approved by the Board of Directors on 20 June 2007. The financial information
set out above does not constitute the Company's statutory accounts for the
financial year ended 31 March 2007 or the financial period ended 31 March 2006
but is derived from those accounts (subject to restatement for the effect of FRS
20). Statutory accounts for the financial period ended 31 March 2006 have been
filed with the Registrar of Companies. The auditors have reported on those
accounts; their report was unqualified and did not contain statements under
section 237(2) or (3) ot the Companies Act 1985. The statutory accounts for the
financial year ended 31 March 2007 will be delivered to the Registrar of
Companies following the Company's Annual General Meeting.
Basis of preparation
The preliminary financial statements are prepared under the historical cost
convention in accordance with applicable accounting standards.
Basis of consolidation
The preliminary group financial statements consolidate the financial statements
of Byotrol plc and all its subsidiary undertakings drawn up to 31 March 2007.
No profit and loss account is presented for Byotrol plc as permitted by section
230 of the Companies Act 1985.
2. TURNOVER AND SEGMENTAL ANALYSIS
The total turnover of the group for the period has been derived from its
principal continuing activity.
Year ended Period ended
31 March 31 March
2007 2006
# #
Analysis by geographical area
The analysis by geographical area of the turnover by destination is set out as below:
United Kingdom 206,157 34,906
Rest of the World 434,712 16,082
North America 32,673 39,026
----------- ----------
Group turnover 673,542 90,014
----------- ----------
The directors consider that the business generates revenues from three distinct
sources: product sales, licence fees and royalties. These revenue streams are
disclosed on the face of the consolidated profit and loss account. The three
revenue streams have a shared, and largely inseparable, cost base and thus the
directors consider that there is only one business segment.
3. TAXATION
a) Tax on loss on ordinary activities
There is no tax charge as the Group has made losses in both the current period
and the previous year.
b) Factors affecting current tax charge
There is no deferred tax charge or credit in either the current or prior year.
The differences between tax on the Group's loss at the standard rate of
corporation tax and the actual charge are reconciled below:
Year ended Period ended
31 March 31 March
2007 2006
(Restated)
# #
Loss on ordinary activities before tax (1,744,140) (1,985,240)
--------------- ---------------
Loss on ordinary activities multiplied by standard rate of corporation tax
in the UK of 30% (2004: 30%) (523,242) (595,572)
Effect of:
Expenses not deductible for tax purposes 44,746 204,069
Capital allowance (less than)/in excess of depreciation (8,963) 1,829
Unrelieved tax losses 487,459 389,674
--------------- ---------------
Total current tax - -
--------------- ---------------
c) Deferred taxation and factors that may affect future tax charges
There is no provision for deferred taxation.
At 31 March 2007 the Group had unutilised trading losses and other timing
differences of #879,133 (2006: #389,674).
The deferred tax impact of these losses has not been recognised in the financial
statements on the basis that there is insufficient evidence at the current time
that the assets will be recoverable.
Trading losses and other timing differences will only be available to offset
against future interest income, income from activities as a holding Company and
trading profits of Byotrol Technology Limited.
4. LOSS PER ORDINARY SHARE
The loss per ordinary share is based on the losses for the period of #1,743,904
(2006: losses of #1,983,750). The loss per share is calculated by reference to
the average number of ordinary shares in issue of 38,242,833 (2006: 23,090,464).
There is no difference between basic and diluted loss per share, as the
outstanding warrants would have had the effect of reducing the loss per ordinary
share and would therefore not be dilutive under the terms of FRS22.
5. SHARE CAPITAL
Authorised
Year ended Period ended Year ended Period ended
31 March 31 March 31 March 31 March
2007 2006 2007 2006
No. No. # #
Ordinary shares of 0.25p each 50,000,000 50,000,000 125,000 125,000
Allotted, called up and fully paid
Year ended Period ended Year ended Period ended
31 March 31 March 31 March 31 March
2007 2006 2007 2006
No. No. # #
Ordinary shares of 0.25p each 43,629,277 34,872,849 109,073 87,182
On 6 November 2006 the Company issued 8,340,000 ordinary shares by way of a
placing in the market at 60p per share. On 9 January 2007 the Company issued
17,000 shares to consultants in lieu of fees. During the period 1 January 2007
to 31 March 2007, warrant holders subscribed for 399,428 shares at 23p per
share. At 31 March there were 5,012,633 warrants, each convertible into one
ordinary share at an exercise price of 23p, still outstanding.
6. SHARE CAPITAL AND RESERVES
Share Share Merger Minority Profit & Share-
capital premium reserve interest loss holders
account account funds
# # # # # #
At 31 March 2006 87,182 2,945,529 1,064,712 1,383 (3,054,969) 1,043,837
Issue of shares in placing 20,850 4,983,150 - - - 5,004,000
Placing costs - (390,314) - - - (390,314)
Conversion of warrants 1,041 102,387 - - - 103,428
Loss for the period - - - - (1,743,904) (1,743,904)
Share based payment credit - - - - 94,231 94,231
Exchange difference - - - - 46,678 46,678
Minority interest - - - (236) - (236)
_______ _______ _______ _______ _______ _______
At 31 March 2007 109,073 7,640,752 1,064,712 1,147 (4,657,964) 4,157,720
_______ _______ _______ _______ _______ _______
7. CASH FLOW STATEMENT NOTES
(a) Reconciliation of operating loss to net cash outflow from operating
activities before exceptional items:
Year ended Period ended
31 March 31 March
2007 2006
(Restated)
# #
Group operating loss (1,830,433) (2,035,455)
Share based payment charge 94,231 652,744
Depreciation 26,192 6,217
Amortisation 500 417
(Increase)/decrease in stocks (24,993) 14,338
(Increase) in debtors (608,888) (102,424)
(Decrease)/increase in creditors and provisions (96,253) 170,372
Provision against investment 5,000 -
Exchange gain or loss 46,678 (42,184)
___________ ___________
Net cash outflow from operating activities (2,387,966) (1,335,945)
___________ ___________
(b) Analysis of net funds
Period ended Year ended
31 March Non-cash 31 March
2006 Cash flow movement 2007
# # # #
Cash at bank and in hand 1,213,053 2,339,985 - 3,553,038
Debts less than 1 year (152,262) 152,262 - -
--------- --------- --------- ---------
Net cash 1,060,791 2,492,247 - 3,553,038
--------- --------- --------- ---------
8. REPORT AND FINANCIAL INFORMATION
Copies of the financial statements for the Group for the year ended 31 March
2007 will be available from the Company's registered office and will be posted
to shareholders in due course.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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