LONDON (Alliance News) - Byotrol PLC said Thursday an expected shortfall in earnings in the second half of its financial year to end March will be mitigated by research and development tax credits, and said its working capital is "entirely adequate" for its future needs.
The anti-microbial technology company said that its petcare business is performing satisfactorily, but its food business is behind plan. This is due to recent changes in the regulatory environment in relation to limitations on the use of quaternary ammonium compounds.
The new limits led to some product mix issues, but Byotrol said it is addressing these "aggressively", and is testing an alternative formulation.
Elsewhere, its regulatory approval process with the Environmental Protection Agency in the US is on track, and its partnership with Belgian chemical company Solvay SA is "progressing well", Byotrol said.
"The board has never been more positive about the opportunities, and our work load has never been higher. Our executive team have positioned Byotrol to be a completely different company over a period of only two years, whilst overcoming the dislocation to the legacy business from the changing EU regulations," said Chairman Nicholas Martel in a statement.
"Most of our development has been directed towards the consumer market, and we are now engaged, alongside Solvay, with some of the most prominent consumer companies worldwide. We are seen as the experts on long-lasting anti-microbial technology," Martel added.
Shares in Byotrol were up 6.7% at 4.00 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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