Byotrol is an AIM-listed specialist anti-microbial technology company. It's stock has received a boost from two things, short-term demand for surface cleansers and hand sanitisers due to the Covid-19 pandemic, and stricter regulations worldwide, which have been happening over the past 3 to 5 years. "These structural changes in the industry are weeding out the weaker less-science-based players, favouring those who take a scientific and regulatory approach which we were already doing."
In an interview with London South East, CEO David Traynor explained that "first and foremost Byotrol is a science and technology company with 25% of our staff working in labs. We are about infection control and prevention by eliminating bacteria, algae and viruses from places where you don't want them. We do that through biocides, and have two divisions, Professional which sells into business premises, and Consumer, for hands, bodies, home, pets etc".
We make our money from product sales ie gross margin minus costs, and technical development agreements and licence agreements with major players, and conversations are always ongoing with these. He said: "The market demand for products like ours is in the 10s of billions in US dollar terms, its huge. Demand for active ingredients is also massive, in the billions of dollars, growing at 3/5% per year." "Our revenues to March 2020 were 6 million pounds, and EBITDA of £250,000. We haven't given guidance to 2021 because its moving around quite a lot. In March we did a million quid in revenue, and in April we did a million quid in revenue.
May I'm pretty sure will be at the same level. So we are majorly ahead of where we were this time last year. The question is whether it will endure, which I think it will, and how long it will endure at these levels. Our gross margins are between 20 and 40% across our products. We also licence out our technology and do technology agreements and that is very high margin indeed." "We are a 6 million pound business and our aim is to turn into a 60 million pound business overall, but we can grow quite fast from that base" he added.