4 Feb 2010 09:42
4 February 2010
Byotrol plc
ByoFresh acquisition
The Board of Byotrol plc ('Byotrol' or the 'Company'), the leading anti-microbial hygiene company, is pleased to announce the acquisition of the business and certain assets of Byofresh Limited (ByoFresh).
ByoFresh is a specialist pet care product business supplying an extensive range of pet grooming and hygiene products to professional and domestic customers, both through direct sale and through retailers. In 2006 ByoFresh became an early adopter of Byotrol's technology and has since been recognised for the quality and effectiveness of its products by industry experts, including being awarded 'Glee Pet Index Highly Commended New Product Of The Year 2006' and 'Pets At Home Supplier Best New Product 2007.'
Paul Foden, Managing Director of ByoFresh, qualified as a Chartered Accountant with Arthur Andersen before joining their management consultancy arm Accenture. Since leaving Accenture Mr Foden has spent the last six years building ByoFresh into a successful supplier of pet products.
The ByoFresh business is a good strategic fit to Byotrol's stated strategy of selling Byotrol based products through specialist distributors into niche markets. The global pet care products market is estimated at £12 billion annually.
Having shown success in the UK markets, ByoFresh will benefit significantly from the additional resources and industry contacts available at Byotrol. Byotrol will add a worldwide marketing capability to the ByoFresh product range which will accelerate the distribution capability considerably.
The unaudited results for ByoFresh for the year ended 30 June 2009 show turnover of £0.657m compared to £0.369m in the year ended 30 June 2008, with gross profit of £0.158m and £0.140m respectively. Operating loss for 2009 was £(0.092)m and £(0.036)m in 2008, resulting in respective operating margins of (13.98)% and (9.78)%. It is anticipated that ByoFresh will make a positive contribution in the next financial year.
The consideration for the acquisition will be satisfied, at completion, by the issue of 400,000 ordinary shares in Byotrol. In addition, an anticipated £31,008 will be paid for certain acquired fixed assets. The modest additional cash requirement incurred in the current financial year following the acquisition will be covered by the payment received from the recently announced US option agreement announced on 21 December 2009. The Company has entered into a service contract with Mr Foden which will permit him, subject to certain profit and revenue targets, to earn bonuses of up to a maximum, in aggregate, £1.75 million, which will only be achieved if ByoFresh achieves a significant uplift in performance both against historic measures and the Board's forecasts in the three years following completion. Payment will be made in shares and/or cash at the Company's election.
Application will be made to the London Stock Exchange for the new ordinary shares to be admitted to trading on AIM. It is expected that Admission will become effective and that trading in the new ordinary shares will commence on AIM at 8.00 a.m. on 10 February 2010. Following the issue of these shares, the Company will have 84,116,411 ordinary shares in issue each share holding one voting right.
The new ordinary shares will, when issued and fully paid, rank pari passu in all respects with the existing ordinary shares, including the right to receive any dividend or other distribution declared, made or paid after the date of their unconditional allotment.
David McRobbie, Chief Executive of Byotrol, commented:
"We have been working closely with ByoFresh for a number of years and have established the significant potential for ByoFresh in the pet care market.
"The pet care industry's recognition of the superior performance and long lasting effectiveness of ByoFresh products is a valuable endorsement. We at Byotrol are keen to ensure that we maximise the opportunity in that market for Byotrol based products."
Enquiries:
David McRobbie, Chief Executive 0161 277 9518
Stephen Falder, Deputy Chairman
Richard Bell, Finance Director
Byotrol plc
Russell Cook / Carl Holmes 020 7149 6000
Charles Stanley Securities
Nominated Adviser
Tom Cooper / Paul Vann 020 3043 4162
Winningtons 0797 122 1972
Notes to Editors:
Byotrol Plc (BYOT.L), quoted on AIM, is a leading microbial technology hygiene company, operating globally in the Health, Food, Leisure, Consumer, Industrial and Agriculture sectors, providing a low toxicity product with a broad-based and long lasting efficacy across all microbial classes; bacteria, viruses, fungi, moulds, microbacteria and algae.
The Byotrol product can be used as a stand alone product or as a complementary biocide additive to existing products to improve their performance in personal hygiene, domestic and industrial disinfection, odour control, food production and food management.
Founded in 2005, the Company has prioritised the development of a technology that creates easier, safer and cleaner lives through partnering with providers of essential goods and services. Byotrol is the catalyst behind the aptly named global 'Hygiene Revolution'.
For more information, please go to www.byotrol.co.uk