TIDMBYOT
RNS Number : 9634M
Byotrol PLC
03 August 2017
3 August 2017
Byotrol plc
UNAUDITED FINAL RESULTS
FOR THE YEARED 31 MARCH 2017
Byotrol plc ('Byotrol', the 'Company' or the 'Group'), the
specialist antimicrobial technology company, is pleased to announce
its unaudited final results for the 12 months ended 31 March
2017.
Highlights of the year include:
-- Sales up 18% to GBP3,127k versus FYE 2016
-- Gross profit up by 51% to GBP1,751k versus FYE 2016
-- EBITDA positive before share-based payments - first time this has been achieved
-- Cash positive in the second half of the year, with cash at year end of GBP951k
-- Consumer and petcare performing well
-- All three strategic initiatives progressing well
-- US EPA approval received post year end for 24 hour surface
spray, with a unique set of claims for the US consumer market
-- Actizone progressing well alongside our partners Solvay -
active FMCG conversations underway
-- Alcohol-free hand-sanitisers now launched into NHS and
adjacent markets. Purchase of Winch Pharma Consumer Healthcare
gives us direct access to NHS supply chain for the first time.
Commenting on the results and prospects, David Traynor, Chief
Executive of Byotrol, said:
This has been another year of good progress, with greatly
improved operations and finances and our first EBITDA positive
result before share-based payments
Most importantly for us, we can now market three platform
technologies, all patented, all regulatory-compliant in their
targeted markets, all offering substantial revenue opportunities
and all marketable across our different business segments. Our task
now is to turn such opportunities into sustainable
profitability.
As separately notified today, we have announced a placing and
open offer to secure funding for sales and marketing resource to
drive sales in the EU and US following the recent EPA approval. We
believe this will provide us with a solid foundation for future
growth.
Enquiries:
Byotrol plc 01925 742 000
David Traynor - Chief Executive
finnCap Ltd 020 7220 0500
Geoff Nash
Carl Holmes
Notes to Editors:
Byotrol plc (BYOT.L), quoted on AIM, is a specialist developer
of residual antimicrobial technologies, identifying, developing,
formulating and commercialising cutting-edge antimicrobial
solutions.
Our patented suite of technologies deliver powerful
broad-spectrum efficacy with residual performance optimised against
commonly occurring and industry-specific pathogens.
Founded in 2005, the Company has developed the technology that
creates easier, safer and cleaner lives. For more information,
please go to www.byotrol.co.uk
Chief Executive's Report
We have again delivered to plan this year, with further
substantial improvements in the quality of our technologies,
operations, sales, financial performance and outlook.
All three strategic initiatives continue to remain on
target:
-- Post year end we received formal approval from the US EPA of
our 24 hour, long-lasting anti-bacterial spray for hard surfaces.
This is a major step forward for the Company.
-- The joint sales initiative with Solvay of the Actizone
technology continues to progress with global and regional FMCGs. We
are already selling finished products using this technology into EU
petcare markets by way of our licensee Beaphar NA.
-- We have now launched new formulation alcohol-free hand
sanitisers into the UK NHS and into other segments. Initial
customer response is very encouraging at home and abroad.
Financial Overview
We are pleased to report for the first time ever that we have
reached EBITDA break-even for the year, a significant milestone for
the Company. As we have reported before, this is partly-dependent
on large one-off amounts from technical development partners, but
as a technology business now we have a good track record of
securing such payments and expect to carry on doing so in the
future (as well as generating good margin from finished product
sales).
Financial highlights include:
-- Revenue increased by 18% to GBP3,127k from GBP2,648k the previous year
-- Gross profit increased by 51% to GBP1,751k from GBP1,154k the previous year
-- EBITDA before share-based payments amounted to GBP50k versus
a loss of GBP417k the previous year
-- Sharply narrowed loss before tax for the financial year of
GBP91k versus a loss of GBP532k the previous year
-- Cash and cash equivalents of over GBP951k. Cash positive in the second half of the year
Markets
Professional
Year on year revenues fell in the year to GBP1,181k from
GBP1,431k and gross profit to GBP330k from GBP419k.
Our Professional business continues to face challenges in its
legacy markets, particularly in food manufacturing and food
services. As previously reported we have been hit in food by a
combination of (a) regulatory change, making our core products
uncompetitive and (b) by increasing consolidation of competitors'
chemical offers. We are simply too small to compete against
broad-based chemical (and service) suppliers in many of these
markets.
During the year under review we nevertheless continued to run
this segment as efficiently as we could, with customer
relationships, particularly in surface care wipes, generally
remaining strong.
As a response to the above challenges, we are gradually
re-focusing our Professional business into markets where (a) our
new technologies show genuine differentiation to the competition
and (b) customers are prepared to pay us prices reflecting the
extra benefit the products bring them. This is particularly the
case in healthcare and especially so in hand hygiene, where we have
made substantial progress, including:
-- The purchase of Winch Pharma Consumer Healthcare ("WPCH") on
13 March 2017, for an initial cash consideration of GBP70k and
potential deferred consideration of up to GBP44k in cash in 2018,
subject to contract renewal by its key customer, the NHS Business
Services Authority ("NHS Supply Chain" or "NHSSC").
-- WPCH is effectively a shell company with one key asset, being
a formal one year (extendable to three) contract to supply the
NHSSC with non-alcohol hand sanitising products, plus certain other
surface disinfection products. The purchase gives us the ability to
directly sell into the NHS and to then use the credibility this
brings to sell into other healthcare and business environments.
Since year end, we have launched hand sanitisers under a new
Byotrol-owned brand - INVIRTU - and are very encouraged by progress
with a steady stream of UK hospitals trusts now agreeing to convert
to our product.
-- A long-standing US partner, Advanced Hygienics Inc, has
signed a licensing agreement with the American Red Cross. Under the
agreement, Advanced Hygienics will be manufacturing and
distributing Byotrol-formulation hand sanitisers as an official
licensed product under the American Red Cross brand in retail and
B2B channels.
-- Development work with Rentokil for its Ultraprotect range of
washroom dispensers is now largely complete and sales now
commencing.
-- Exports to Kyorin Pharmaceutical Co. Ltd in Japan for sale
into hospitals under its 'Noahtect' brand, and Goodlabs Medical Sdn
Mhd Malaysia are also increasing steadily.
In due course and as resources allow we will also start selling
our new surface care formulations into professional markets. We are
particular excited about the opportunities for our new US
formulation in North America, especially in transport, leisure and
janitorial sanitation markets.
Petcare
Year on year revenues increased in the year to GBP794k from
GBP690k and gross profit to GBP269k from GBP207k.
Petcare performed fully to expectations in the year, with
improvements across the segment including in supply chain and
operational efficiency, increasing gross profit margin from 30% to
34% over the year.
Sales into UK retail (via Pets At Home and Petface) remained
stable across pet grooming and pet environment surface care. Export
was particularly strong:
-- Our EU licensee, Beaphar NA launched 4 pet environment
surface care products into the German market, with further EU
territories due to launch in 2017/18 once regulatory registrations
are finalised
-- Our distributor in China, Sunon (via its Carexpro brand),
reported strong growth, with its range now stocked in 2500 stores
across mainland China
The majority of growth for the division has been achieved from
customers in Asia Pacific, which will continue to be a significant
focus for Byotrol in 2017/18
Consumer
Year on year revenues (and gross profit) increased to GBP1,152k
(including a single very significant payment on one specific
development contract with Solvay) from GBP527k in the previous
year.
We are again pleased to report excellent progress in our
consumer segment:
-- We continue to market the Actizone formulation jointly with
our partner Solvay. Our products are now in test with some of the
biggest FMCGs in the world and we are expecting to show good
financial progress in the new (2017/18) financial year as a
result.
-- The completion of the EPA approval process for our
US-targeted household disinfecting/cleaning spray is a very
important step for the Company. We now need to commercialise the
technology, either directly to retailers under our own brand or via
third parties/licensees. This effort will be a key focus for the
Company in the new financial year
-- Sales of Tesco surface sprays (via our strong relationship
with Robert McBride plc) are increasing steadily as Tesco continues
to refocus more effort on own-brand products.
Hand sanitisers are looking an increasingly good opportunity for
the Company with several new launches in process, including in the
US. We are also looking to increase our presence in high street
retail, although sales into Boots were held back in the past year
as we together work through the commercial and supply chain aspects
of introducing our new formulations into the Boots supply
chain.
Technology and Regulatory Environment
The past twelve months has seen real and significant progress
within Byotrol's technical programmes, building on what had been a
very challenging but positive period in the previous years.
-- In just under 12 months we have gone from filing a new patent
in alcohol-free hand sanitisers to launching a fully developed and
consumer-ready formulation into B2B and B2C markets.
-- Completion of all the technical (microbiological, safety,
chemistry and environmental) tests required to satisfy the
stringent protocols of the US EPA and secure approval for our
unique 24 hour germ-kill product for US consumer markets. Much
praise must go to the individual scientists who have contributed to
such an exciting commercial opportunity for the Company.
-- The residual surface sanitising test that we developed with
the British Standards Institute (PAS2424) has progressed to the EU
Commission's Test Committee's work plans for consideration as a
European standard protocol for long lasting germ kill (there is
currently no standard test in Europe). This is very good progress
for the Company, but as the work of the Test Committee is
undisclosed, we cannot yet give a view on likelihood or timings for
decision.
-- The team is in very early stage preparation for developing
product dossiers for formal approval of our specific products under
the European Biocidal Product Regulations. Timing for submission
remains unclear but is unlikely to be completed before 2019/20.
Outlook
This was another year of steady improvement and the team is
pleased with progress, though there still remains a lot to do.
Shareholders will have seen in the last few years that Byotrol
has been devoting much of its resources to upgrading technologies,
especially by tailoring them to specific markets (and ensuring they
will then get regulatory approval).
We have also been doing (small, very focused) projects on
blue-sky anti-microbial products, with seaweed becoming a
particular area of excellence.
We have been largely successful in meeting technical objectives,
something validated by continued securing of long-term technical
and commercial partners, with Solvay being the primary example.
The next step is to focus on sales and marketing and generate
more margin from product sales. Our aim is to maximise gross profit
with as simple a business as possible by combining product sale,
licenses and technical development agreements.
Our challenge is that at year end we employed only 17 people,
plus a number of external consultants (to maximise flexibility and
keep costs as variable as possible). Of those 17, 7 were
technical/laboratory based and only 3 were full time sales
people.
We now have to ensure continued excellence in our scientific
work at the same time as complying with the various regulatory
processes in our targeted markets. But it is fair to say that every
extra pound of margin that we generate this coming financial year
will be pushed into marketing and sales, especially in the US,
where the Directors see a very substantial opportunity.
The good news is that (1) most of the core technical work is
complete (2) the team is very enthused by the opportunities it is
uncovering and (3) our shareholders continue to be very supportive
of the approach we are taking and the progress we are making. We
expect to continue this progress in the new financial year.
David Traynor
Chief Executive
3(rd) August 2017
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 March 2017
2017 2016
Notes GBP GBP
REVENUE 2 3,127,182 2,647,923
Cost of sales (1,375,553) (1,494,198)
---------------- ----------------
GROSS PROFIT 1,751,629 1,153,725
Sales and marketing costs (386,032) (429,997)
Research and development costs (388,683) (317,959)
Other administrative costs (926,501) (822,658)
---------------- ----------------
OPERATING PROFIT / (LOSS) BEFORE SHARE-BASED
PAYMENTS, DEPRECIATION AND AMORTISATION 50,413 (416,889)
Share based compensation (57,722) (52,604)
---------------- ----------------
LOSS BEFORE INTEREST, TAXATION, DEPRECIATION
AND AMORTISATION (7,309) (469,493)
Amortisation (117,790) (77,797)
Depreciation (15,504) (39,220)
Finance income 184 1,403
Finance costs (16,443) (84,378)
Research and development (R & D) tax
credits 65,435 136,516
---------------- ----------------
LOSS BEFORE TAX (91,427) (532,969)
Taxation - -
---------------- ----------------
LOSS FOR THE FINANCIAL YEAR (91,427) (532,969)
---------------- ----------------
OTHER COMPREHENSIVE INCOME,NET OF TAX
Other comprehensive income which may
be reclassified to profit or loss in
subsequent periods:
Exchange differences on translation
of foreign operations 20,520 (542)
---------------- ----------------
Other comprehensive expenditure 20,520 (542)
---------------- ----------------
TOTAL COMPREHENSIVE LOSS FOR THE YEAR (70,907) (533,511)
Basic and fully diluted loss per share
- pence 3 (0.03) (0.21)
The loss before income tax arises from the Group's continuing
operations.
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
for the year ended 31 March 2017
2017 2016
GBP GBP
ASSETS
Non-current assets
Property, plant and equipment 44,067 22,422
Other intangible assets 690,987 565,078
---------------- ----------------
735,054 587,500
Current assets
Inventories 200,795 220,318
Trade and other receivables 860,236 783,881
Cash and cash equivalents 951,088 1,017,188
---------------- ----------------
2,012,119 2,021,387
---------------- ----------------
2,747,173 2,608,887
LIABILITIES
Current liabilities
Trade and other payables 750,074 590,724
Convertible loan notes - 359,975
---------------- ----------------
750,074 950,699
---------------- ----------------
Non-current liabilities
Convertible loan notes 352,096 -
---------------- ----------------
352,096 -
---------------- ----------------
Equity
Share capital 670,129 670,129
Share premium account 22,849,284 22,849,284
Merger reserve 1,064,712 1,064,712
Translation reserve (25,728) (46,248)
Convertible loan note
reserve 69,301 69,301
Retained deficit (22,982,695) (22,948,990)
---------------- ----------------
TOTAL EQUITY 1,645,003 1,658,188
---------------- ----------------
TOTAL EQUITY AND LIABILITIES 2,747,173 2,608,887
UNAUDITED CONSOLIDATED CHANGES IN EQUITY
for the year ended 31 March 2017
Convertible Retained
Share Merger Translation loan note earnings
capital Share premium reserve reserve reserve reserve Total equity
GBP GBP GBP GBP GBP GBP GBP
At as 1 April
2015 562,587 21,639,595 1,064,712 (45,706) 69,301 (22,468,625) 821,864
Loss for the
year - - - - - (532,969) (532,969)
Exchange
differences
on
translation
of foreign
operations - - - (542) - - (542)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
Total
comprehensive
loss for the
year - - - (542) - (532,969) (533,511)
Share issue 107,542 1,290,504 - - - - 1,398,046
Share issue
costs - (80,815) - - - - (80,815)
Share based
payments - - - - - 52,604 52,604
-------------- -------------- -------------- -------------- -------------- -------------- --------------
Equity as at
31 March 2016 670,129 22,849,284 1,064,712 (46,248) 69,301 (22,948,990) 1,658,188
Loss for the
year - - - - - (91,427) (91,427)
Exchange
differences
on
translation
of foreign
operations - - - 20,520 - - 20,520
-------------- -------------- -------------- -------------- -------------- -------------- --------------
Total
comprehensive
loss for the
year - - - 20,520 - (91427) (70,907)
Share based
payments - - - - - 57,722 57,722
-------------- -------------- -------------- -------------- -------------- -------------- --------------
Equity as at
31 March 2017 670,129 22,849,284 1,064,712 (25,728) 69,301 (22,982,695) 1,645,003
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March 2017
2017 2016
GBP GBP
CASH FLOW FROM OPERATING ACTIVITIES
Loss for the year before tax (91,427) (532,969)
Adjustments for:
Share based payments 57,722 52,604
Depreciation 15,504 39,220
Amortisation 94,205 77,797
Impairment of intangible asset 23,585 7,222
Finance income (184) (1,403)
Finance costs 16,443 84,378
Changes in working capital
Decrease in inventories 19,523 9,704
(Increase) / decrease in trade and other
receivables (76,355) 143,009
Decrease in trade and other payables 159,350 (259,435)
---------------- ----------------
CASH USED IN OPERATING ACTIVITIES 218,366 (379,873)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments to acquire property, plant and
equipment (37,149) (15,278)
Payments to acquire intangible assets (243,699) (139,456)
Interest received 184 1,403
---------------- ----------------
NET CASH USED IN INVESTING ACTIVITIES (280,664) (153,331)
---------------- ----------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds on issue of ordinary shares - 1,398,046
Share issue costs - (80,815)
Interest paid (24,322) (53,028)
---------------- ----------------
NET CASH INFLOW FROM FINANCING (24,322) 1,264,203
---------------- ----------------
Net increase/(decrease) in cash and cash
equivalents (86,620) 730,999
Cash and cash equivalents at the beginning
of the financial year 1,017,188 286,731
Effect of foreign exchange rate changes 20,520 (542)
---------------- ----------------
Cash and cash equivalents at the end of
the financial year 951,088 1,017,188
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
For the year ended 31 March 2017
1 Basis of preparation
The financial statements have been prepared in accordance with
the AIM rules and the basis of accounting policies set out in the
accounts for the year ended 31 March 2016 and on the basis of all
International Financial Reporting Standards ("IFRS") as adopted by
the European Union that are applicable to the Group's statutory
accounts for the year ended 31 March 2017. The information set out
herein is abbreviated and does not constitute statutory accounts
within the meaning of Section 434 of the Companies Act 2006. The
results for the year ended 31 March 2016 are in abbreviated form
and have been extracted from the published financial statements.
These were audited and reported upon without qualification by
Mazars LLP and did not contain a statement under Section 498(2) or
(3) of the Companies Act 2006. Statutory accounts for the financial
year ended 31 March 2016 have been filed with the Registrar of
Companies.
The financial statements for the year ended 31 March 2017 will
be finalised on the basis of the financial information presented by
the Directors in the preliminary announcement and will be delivered
to the Registrar of Companies following the Company's Annual
General Meeting. The results are unaudited, however, the Directors
do not expect there to be any difference between the numbers
presented and those within the annual report.
The company is a limited liability company incorporated and
domiciled in England & Wales and whose shares are quoted on
AIM, a market operated by The London Stock Exchange. The
consolidated financial information of Byotrol plc is presented in
Pounds Sterling (GBP), which is also the functional currency of the
parent.
2 Segmental information
The Group has three reportable segments, being Professional
(including food service, food manufacturing, industrial and
health), Consumer and Pet. This disclosure correlates with the
information which is presented to the Group's Chief Decision Maker,
the Board. The Group's revenue, result before taxation and net
assets were all derived from its principal activities.
The first segment concerns the Professional sector incorporating
business to business sales into food and beverage, healthcare and
facilities management. The second segment concerns the consumer
sector and primarily revenue generated from licence agreements with
third parties for the manufacture and sale of products
incorporating Byotrol technology. The third segment concerns the
Pet sector, where finished goods are manufactured and sold into the
companion animal sector.
The Group operates in different geographic locations. The
revenue generated from the different geographic locations is
analysed separately in the information below.
The Group's centrally incurred administrative expenses,
incorporating the ongoing research and development work, operating
income and assets and liabilities cannot be allocated to individual
segments.
Continuing operations
Professional Consumer Pet Total
Year ended 31 March 2017 GBP GBP GBP GBP
REVENUE
United Kingdom 1,151,840 1,146,956 408,408 2,707,204
North America 25,228 5,402 - 30,630
Rest of World 3,763 - 385,585 389,348
---------------- ---------------- ---------------- ----------------
Total revenue 1,180,831 1,152,358 793,993 3,127,182
Cost of sales (850,699) - (524,854) (1,375,553)
---------------- ---------------- ---------------- ----------------
Gross profit 330,132 1,152,358 269,139 1,751,629
Centrally incurred income and expenditure not attributable to individual segments:
Sales and marketing costs (386,032)
Research and development
costs (388,683)
Other administrative
costs (926,501)
Depreciation and
amortisation (133,294)
Share-based payments (57,722)
Finance income 184
Finance costs (16,443)
Research and development
(R & D) tax credits 65,435
----------------
Loss before tax (91,427)
2 Segmental information (continued)
Continuing operations
Professional Consumer Pet Total
Year ended 31 March 2016 GBP GBP GBP GBP
REVENUE
United Kingdom 1,356,233 102,155 402,294 1,860,682
North America 16,241 375,000 - 391,241
Rest of World 58,096 50,366 287,538 396,000
---------------- ---------------- ---------------- ----------------
Total revenue 1,430,570 527,521 689,832 2,647,923
Cost of sales (1,011,313) - (482,885) (1,494,198)
---------------- ---------------- ---------------- ----------------
Gross Profit 419,257 527,521 206,947 1,153,725
Central income and expenditure not attributable to individual segments:
Administrative costs (429,997)
Research and development costs (317,959)
Other administrative costs (822,658)
Depreciation and amortisation (117,018)
Share-based payments (52,604)
Finance income 1,403
Finance costs (84,378)
Research and development (R & D) tax
credits 136,517
----------------
Loss before tax (532,969)
3 Loss per ordinary share
The loss per ordinary share attributable to the owners of the
parent is based on the losses for the year ended of GBP91,427
(2016:
GBP532,969) and the weighted average number of ordinary shares
in issue during the year of 268,051,565 ( 2016:250,699,942).
The loss for the period and the weighted average number of
ordinary shares for calculating the diluted earnings per share for
the year ended 31 March 2017 and for the comparative periods are
identical to those used for the basic earnings per share. This is
because the outstanding share options and convertible loan notes
would have the effect of reducing the loss per ordinary share and
would therefore not be dilutive.
4 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 30
September 2017.
5 Report and Financial Information
It is intended that copies of the financial statements for the
Group for the year ended 31 March 2017 will be posted to
shareholders and on the Company's website during the course of
August.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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August 03, 2017 02:01 ET (06:01 GMT)
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