BYOT.L Share News (BYOT)

Anti-microbial technology developer Byotrol reported strong revenue growth in the six months to September 2009 but this rate of growth will be difficult to maintain. Revenues jumped from £388,000 to £2m - more than double the level for the previous 12 months. Publicity about swine flu and other infections has undoubtedly helped and there was one big order from distributor Bunzl for the food sector. The timing of orders is difficult to predict. House broker Charles Stanley is sticking to its full year revenue forecast of £2.7m until there is more indication of second half trading levels. The interim loss was reduced from £1.46m to £590,000. The higher revenues led to an increased working capital requirement. There is still £1.68m in the bank after a £1.19m cash outflow. The working capital should partly unwind in the second half but a further cash outflow is expected. Byotrol hopes that its deal with Synergy Healthcare, which has taken a long time to generate serious sales, is finally getting into gear. Synergy has the distribution rights to Byotrol products in UK hospitals and has been slow off the mark in exploiting them. The latest deal is with Boots which will increase the credibility of the Byotrol brand. This will also help to get the Byotrol name into the minds of consumers although other parts of the business have much more long-term potential.