27 Apr 2020 07:30
Byotrol plc ("Byotrol" or the "Group")
Trading Update
Byotrol, the specialist infection prevention and control technology company, is pleased to announce an update on trading.
We continue to experience exceptional demand for our technologies across all our markets due to the covid19 pandemic. We expect this to continue for at least the first quarter of FY2021 and likely beyond, and are now expecting to benefit significantly from a secular shift towards the heightened importance of infection prevention, cleanliness and hygiene, whether personal, institutional or environmental.
Current trading
We entered the new financial year with a strong order book exceeding £2m and expect to generate record sales from products (i.e. excluding licenses, royalties and technical development deals) in the first quarter of the year. There are also many additional orders still being assessed for deliverability against the supply chain constraints being experienced across our whole industry sector.
The management team is also working on a number of longer-term product supply contracts and technology licenses, including for Byotrol24 in the US.
Results for the year ended 31 March 2020
Results for the year ended 31 March 2020 are subject to audit and are expected to show the following highlights:
• Revenues of approximately £6.0m. This excludes a material but delayed new license contract that was eventually closed in mid-April and that will now contribute to FY2021
• Adjusted EBITDA (pre exceptionals) of around £0.25m
• An exceptional gain of approximately £0.4m, as previously announced, resulting from the renegotiation and early closure of the earn-out with the vendors of Medimark Scientific Limited
Gross cash balances at 31 March 2020 were £1.7m. Net of the Group's invoice discount facility of £0.3m, net cash balances were £1.4m. An additional £0.3m cash was received on 2 April, 2020 having been due on 31 March, relating to a stage payment for a previously-announced technology development agreement.
Outlook
Whilst we expect the current very high levels of demand to ease at some stage over the course of FYE 2021, we also expect:
· business and consumers to take more proactive responsibility for protecting individuals against infection risk, leading to sustained demand for anti-microbials
· further acceptance of the role of regulators as opinion leaders on safe and efficacious anti-microbial chemistries, for which we are well-positioned
· international supply chains to improve and reduce the very high current level of unfulfilled orders
Byotrol has been positioning for such trends for many years and expects them to favour technologies like ours, presenting exceptional growth opportunities for the Group.
The Directors believe that Byotrol is very well placed to benefit from current trends. We now expect FY2021 to be one of significant growth in both revenue and EBITDA.
David Traynor, Chief Executive of Byotrol, commented:
"We continue to operate at full capacity, making and selling as much product as we can as quickly as we can in these difficult times.
Our technologies are getting interest from all over the world now. We are increasingly well positioned for further growth post Covid19 and are enthused and optimistic about the opportunities ahead."
Enquiries:
Byotrol plc
David Traynor - Chief Executive Officer
Nic Hellyer - Chief Financial Officer 01925 742 000
finnCap
Geoff Nash/Kate Bannatyne - Corporate Finance 020 7220 0500
Richard Chambers - ECM
This announcement is released by Byotrol plc and, prior to publication, the information contained herein was deemed to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014. Such information is disclosed in accordance with the Company's obligations under Article 17 of MAR.
Financial expectations noted above are preliminary, and subject to year-end financial close and audit review processes.
Notes to Editors:
Byotrol plc (BYOT.L), quoted on AIM, is a specialist infection prevention and control company, operating globally in the Healthcare, Industrial, Food and Consumer sectors, providing low toxicity products with a broad-based and targeted efficacy across all microbial classes; bacteria, viruses, fungi, moulds, mycobacteria and algae.
Byotrol's products can be used stand-alone or as ingredients within existing products, where they can significantly improve their performance, especially in personal hygiene, domestic and industrial disinfection, odour control, food production and food management.
Byotrol develops and commercialises technologies that create easier, safer and cleaner lives for everyone.
For more information, please go to byotrol.co.uk