Bank Irel13.375 Regulatory News (BOI)

6 Jan 2005 07:00

Biotrace International PLC06 January 2005 For Immediate Release 6 January 2005 BIOTRACE INTERNATIONAL PLC Trading Update Biotrace International Plc ("Biotrace", "the Group" or "The Company"), a leadingmanufacturer and supplier of industrial microbiology products, is pleased toupdate investors with the following trading statement: As predicted, there has been a strong recovery in margins and profits in thesecond half as the isolated factors that affected first half profits weretackled effectively by management. In addition, Tecra, acquired in June 2004,contributed to sales and profits in the second half and will provide the Groupwith an Asia-Pacific base from which to grow sales in 2005. The acquisition inSeptember 2003 of International BioProducts Inc. ("IBP"), which is based inSeattle, delivered its first full year of contribution in line withexpectations. IBP and Biotrace Inc., based in Cincinnati, have beensuccessfully integrated and, following the termination of third partydistribution of the Company's hygiene products, will form the Group's regionalbase for sales in the whole of the Americas. A regional base has also beenestablished in Bridgend to manage sales in Europe, the Middle East and Africa. A substantial proportion of the sales of hygiene products to customers in NorthAmerica which were formerly serviced by a third party distributor have beensecured in the second half by the region's direct sales force at higher margins.I am also pleased to report that in addition to securing existing business, anumber of major new accounts have been won. The Company's increased visibilityin the North American market will play an important role in expanding sales ofall products in the future. Production of the new hygiene instrument and Air-trace air samplers is nowrunning smoothly with adequate stock in the distribution pipeline. Despite theproduction issues detailed in our interim statement, sales of the new hygieneinstrument were at record levels and sales of Air-trace accelerated in thesecond half culminating in December with the delivery of 24 systems to a majorScandinavian pharmaceutical company. Production issues with the Ruskinn productline continued in the second half, however, sales were on plan and significantlyhigher than the previous year. It is anticipated that the remaining productionproblems will be resolved early in the new year and will not affect sales in2005. Defence sales remained at similar levels to the first half and socontributed little to the substantial increase in profits, which were derivedfrom core products. Recent strong trading and encouraging prospects for 2005 in Biotrace Fred Baker,which was acquired in October 2002, has led the Board to reach agreement inprinciple to settle the deferred consideration still outstanding earlier thananticipated through the payment of £0.85M in loan notes, which may be redeemedduring 2005. The previous earn-out agreement was also due to be settled inOctober 2005 and could have resulted in a maximum payment of up to £1.08M.Early settlement will facilitate further integration and rationalisation in theUK, leading to cost savings and efficiency gains realisable during 2005. It isanticipated that completion of the accelerated payment will take place by theend of January 2005. Ian Johnson, Chief Executive Officer of Biotrace, said: "Despite continuingweakness of the Dollar and a low level of defence sales in the second half ofthe year, I am pleased to announce that the Group's sales and profits for thecurrent year are likely to be in line with market expectations. "Unaudited Group sales have increased by approximately 33% over the audited 2003turnover and the financial performance in the second half demonstrates thatunderlying profitability is returning to former levels, despite an absence of asignificant contribution from the defence business. Overall, Biotrace remains ahighly cash generative, profitable business with significant growth potential.As a result of the transitions made last year, the Group has a more reliable andresilient business with the level of repeat consumable sales approaching 90%,own brands accounting for 82% and direct sales at 87% of turnover. "Excellent progress continues to be made in implementing our strategy and I amconfident that 2005 will yield improved shareholder value in terms of financialperformance and international recognition as a leading manufacturer and supplierof industrial microbiology products." Biotrace will announce its preliminary results for the year to 31 December 2004on 8 March 2005. For further information, please contact:Biotrace InternationalIan Johnson, Chief Executive Officer Tel : +44 (0) 1656 641 400Peter Morgan, Finance Director Buchanan CommunicationsTim Anderson/Mary-Jane Johnson Tel: +44 (0)20 7466 5000 Notes to editors: Biotrace International Plc is a leading manufacturer and supplier ofmicrobiology instrumentation and test reagents to industrial, healthcare anddefence markets. Biotrace is the acknowledged leader in rapid hygiene testingand the continuous real-time detection of airborne biological weapons. Many of the world's leading food manufacturers and catering companies, including19 out of the top 20 world food groups now rely on Biotrace as an essential partof their quality procedures. Industrial customers include many of the world'slargest water treatment chemical multi-nationals. Biotrace also supplies highlyspecialised workstations to hospitals, public health laboratories and medicalresearch institutes for the examination of micro-organisms and diseases. A smallpart of the Company's business is the manufacture and supply of equipment andreagents for the detection of biological weapons, which it supplies to the UKMoD, other foreign governments and large defence contractors,. Formed in 1988 and floated on the London Stock Exchange in 1993, Biotraceintends to continue to broaden its business base through organic growth andacquisition of products and technologies to become a 'one stop shop' for itslarge and growing international customer base. This information is provided by RNS The company news service from the London Stock Exchange