Anpario Regulatory News (ANP)

27 Sep 2006 07:00

Kiotech International plc27 September 2006 KIOTECH INTERNATIONAL plc Interim Results Kiotech International plc, the innovator of pheromone biotechnology for fishfarming, commercial and sports fishing today announces its interim results forthe six months ended 30 June 2006. Highlights • Commercial pond trials are being followed with interest by a number of fish farming businesses, who are actively involved in the trials. • Rapala introducing its new Ultrabite bait range to selected distributors. • Kiotech cuts administration expenses by nearly 50% compared to last year. Richard Rose, Executive Chairman of Kiotech, said: 'Kiotech in conjunction withCEFAS is undertaking a number of key commercial pond trials in China andThailand. These trials, which are at the half way stage, are showing promisingresults, with the final data awaited at the conclusion of the trials in November2006.' For further information, please contact: Kiotech International plc - Richard Rose, Executive Chairman 07836 250474J.M.Finn & Co Ltd - Matthew Robinson/Charles Cunningham 020 7628 9688Spiro Financial - Anthony Spiro 020 8336 6196 Chairman's statementSix months to 30 June 2006 Kiotech continues to make good progress with its aquaculture developmentprogramme, testing the efficacy of its pheromone feed stimulants on a number ofdifferent species in various parts of the world. The early results are promisingand are being followed with interest by a number of fish farming businesses, whoare involved in the trials. Sports fishing Our Ultrabite pheromone based fish-feeding product is aimed at the global sportsand leisure fishing market. Ultrabite can be used in all forms of sports andleisure fishing with differing formulations for different species. Last year wechanged our distribution arrangements to capitalize on the worldwide potentialof this product. Kiotech appointed Rapala VMC Corp as its exclusive worldwidedistributor for Ultrabite. Rapala, which has its headquarters in Finland, is aleading distributor of sports fishing lures with global distribution. Rapala isdeveloping a range of unique bait products with Ultrabite added, using theKiotech pheromone technology. The new bait products will be sold throughRapala's global distribution network, which hitherto has only sold their worldleading hard and soft lures. We are excited by the opportunities offered to us by Rapala and hopeful thatsales will replicate the significant increase in turnover of one of Kiotech'slong established distributors when they also incorporated the pheromoneattractants in their own range of traditional baits. The bait market is new toRapala and will be an opportunity to tap a growing market and increase theirrange of products to the sports fishing market. Rapala's new bait range wasintroduced to selected distributors at the Efttex Fair in Brussels in early Julyand Rapala have confirmed that these will be test launched in selected regionsin late 2006 and early 2007. Aquaculture Kiotech is conducting a series of tank and commercial pond trials to assess, ina quantifiable and rigorous manner, the efficacy of its pheromone feedstimulants developed in conjunction with CEFAS for the aquaculture market. Theresults of these trials will enable Kiotech, in partnership with CEFAS, toassess the commercial priorities for the project. CEFAS (The Centre forEnvironment, Fisheries and Aquaculture Science) is a UK Government Agency andleader in its field. Results from the tank trials initiated last year weresufficiently encouraging to enable the next stage of testing, commercial pondtrial, to commence. The locations for these commercial pond trials have beenselected in countries that already have well developed aquaculture markets.China is the world's largest producer of farmed fish with current production inthe order of 35million metric tonnes annually and growing rapidly. Thailand hasa rapidly expanding prawn aquaculture industry with a 2005 production of415,000mt. Kiotech continues to conduct a commercial pond trial on whitelegshrimp, which is a large warm water prawn, in Thailand. Commercial pond trialsfor tilapia and carp are being conducted in China. Completion of the trials inboth countries is expected in the coming months and we are encouraged by theperformance of the trials so far. Results Trading for the six months to 30 June 2006 saw sales of £33,447, compared with£104,620 in the equivalent period last year. The drop in sales was caused by thewithdrawal of the original Ultrabite range ahead of the imminent launch byRapala of the new products. The Board remains focused on keeping costs undertight control and I am pleased to report that following the actions announced inthe Annual Report our administrative costs in the first half of 2006 were£167,222 nearly 50 per cent lower than last year's level of £313,939. Investor communications The company is a strong advocate of investor communications and strives toensure that all shareholders are kept informed of Kiotech's progress. Thecompany has recently re-launched its web site www.kiotech.com and includesbackground information on the business and its markets together with investorinformation and presentations. Board changes On 6 July, after the period end, we announced the resignation of Nicholas Scottand David Gyle-Thompson. The Board would like to record the Company'sappreciation of the contribution made by both over the last five years. RichardRose assumed the role of Executive Chairman. Outlook The coming months will start to give an early indication of demand for Ultrabiteas Rapala commences distribution of products listed in its 2007 catalogue. Weexpect the initial rate of take up will be slow, as naturally conservativeanglers begin testing the new product. Sales should then build as theeffectiveness of the product is demonstrated. Our aquaculture business is stillin the development phase and as our testing programme advances we remainencouraged by the results. These positive results, coupled with interest shown by various commercial fishfarms, give us continued encouragement for the future. Richard RoseExecutive Chairman KIOTECH INTERNATIONAL PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT Six months Six months Year ended ended ended 30.06.06 30.06.05 31.12.05 (unaudited) (unaudited) (audited) £000 £000 £000 TURNOVERContinuing operations 33,447 104,620 159,050 Provision for slow-movingstock write off - - (215,376)Cost of sales (19,832) (62,331) (114,358) ----------- --------- -------- GROSS PROFIT/(LOSS) 13,615 42,289 (170,684) Administrative expenses (167,222) (313,939) (565,664)Exceptional administrativeexpenses - (284,745) OPERATING LOSS (153,607) (556,395) (736,348) Net interest received 42,240 4,250 39,177 ----------- --------- -------- LOSS ON ORDINARYACTIVITIES BEFORE TAXATION (111,367) (552,145) (697,171) Taxation - - - ----------- --------- -------- LOSS FOR PERIOD (111,367) (552,145) (697,171) ----------- --------- --------RETAINED LOSSTRANSFERRED TO RESERVES (111,367) (552,145) (697,171) ----------- --------- -------- BASIC LOSS PER SHARE (0.17) (1.58) (1.38) DILUTED LOSS PER SHARE (0.16) - (1.33) CONSOLIDATED BALANCE SHEET Six months Six months Year ended ended ended 31.12.05 30.06.06 30.06.05 (unaudited) (unaudited) (audited) £000 £000 £000 FIXED ASSETS Tangible assets 1,979 2,919 2,140 CURRENT ASSETS Stock 39,415 265,074 30,901 Debtors 37,563 407,066 94,545 Cash at bank and in hand 1,634,650 1,955,165 1,785,290 ----------- --------- --------- 1,711,628 2,627,305 1,910,736 CREDITORS Amounts falling due within one year (58,039) (414,296) (145,941) ----------- --------- --------- NET CURRENT ASSETS 1,653,589 2,213,009 1,764,795 TOTAL ASSETS LESS CURRENT LIABILITIES 1,655,568 2,215,928 1,766,935 ----------- --------- ---------NET ASSETS 1,655,568 2,215,928 1,766,935 ----------- --------- --------- CAPITAL AND RESERVES Called up share capital 2,503,529 2,503,529 2,503,529 Share premium account 6,504,675 6,808,642 6,504,675 Other reserves 147,500 147,500 147,500 Profit and loss account (7,500,136) (7,243,743) (7,388,769) ----------- --------- ---------SHAREHOLDERS' FUNDS 1,655,568 2,215,928 1,766,935 ----------- --------- --------- CONSOLIDATED CASH FLOW STATEMENT Six months ended Year ended 30.06.06 31.12.05 (unaudited) (audited) £000 £000 NET CASH OUTFLOW FROM OPERATING ACTIVITIES (192,618) (541,433) ------------ --------- RETURNS ON INVESTMENT AND SERVICING OF FINANCE Interest received 42,240 39,247 interest paid - (70)NET CASH INFLOW FROM RETURNS ON INVESTMENT AND ------------ ---------SERVICING OF FINANCE 42,240 39,177 ------------ --------- CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT Purchase of tangible fixed assets (262) -NET CASH OUTFLOW FROM CAPITAL EXPENDITURE ------------ ---------AND FINANCIAL INVESTMENT (262) - ------------ ---------FINANCING Issue of shares - 2,215,991 Increase in borrowing (net) - (405,397) ------------ ---------NET CASH INFLOW FROM FINANCING - 1,810,594 ------------ --------- ------------ ---------(DECREASE)/INCREASE IN CASH (150,640) 1,308,338 ------------ --------- Notes 30.06.06 31.12.05 (1) RECONCILIATION OF OPERATING PROFIT TO NET TotalCASH OUTFLOW FROM OPERATING ACTIVITIES £000 £000 Operating loss (153,607) (736,348)Depreciation charge 424 1,620Issue of shares - 35,000(Increase)/decrease in stocks (8,514) 273,051Decrease/(increase) in debtors 56,981 (18,730)(Decrease) in creditors (87,902) (96,026) ------------ ---------Net cash outflow from operating activities (192,618) (541,433) ------------ --------- (2) RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN 30.09.06 31.12.05NET DEBT £000 £000 Increase in cash in the period (150,640) 1,308,338 ------------ ---------Movement of net funds in the period (150,640) 1,308,338 ------------ ---------Net funds at the start of the period 1,785,290 476,952 ------------ ---------Net funds at the end of the period 1,634,650 1,785,290 ------------ --------- (3) RECONCILIATION ANALYSIS OF CHANGES IN NETDEBT At 1.1.06 Cash flow At 30.6.06 £000 £000 £000 Cash at bank and in hand 1,785,290 (150,640) 1,634,650 KIOTECH INTERNATIONAL plc NOTES TO THE INTERIM REPORT The summarised results to the half year to 30 June 2006, which are unaudited,have been prepared in accordance with the accounting policies in the Accountsfor the period ending 31 December 2005. The summary of results for the year ended 31 December 2005 does not constitutefull financial statements within the meaning of Section 240 of the Companies Act1985. The full financial statements for that year have been reported on by thecompany's auditors and delivered to the Registrar of Companies. The audit reportwas unqualified and did not contain a statement under Section 237 (2) or Section237 (3) of the Companies Act 1985. No dividends have been paid or proposed for the period. The calculation of basic earnings per share is based on the loss for the periodand 66,245,362 ordinary shares (2005: 34,938,163) being the weighted number ofshares in issue during the half year. The weighted average number of shares inissue during the year ended 31 December 2005 was 50,546,959. There are currently66,245,362 shares in issue. DIRECTORS Richard Rose (Chairman)& OFFICERS Peter Lawrence (Non-Executive Director) Lawrence plc (Company Secretary) REGISTERED 78 Coombe Road, New Malden, Surrey KT3 4QSOFFICE Tel: 020-8336 6183 Fax:020-8336 0909 Tel: 020-8336-2900 Company Secretary COMPANY 03345857NUMBER This information is provided by RNS The company news service from the London Stock Exchange