2 Mar 2009 08:00
Byotrol plc ("the Company")
Update on Trading
As the Company approaches the end of the current financial year to 31 March 2009, the Board is providing an update on current progress and guidance on the likely outcome for the current year.
In line with the Board's stated strategy the Company has been pursuing opportunities in three key markets, being healthcare through our relationship with Synergy Health plc ("Synergy") in Europe and through distributors in the US, secondly food and agriculture, both through distributors and direct sales and thirdly consumer products via our joint venture, Byotrol Consumer Products ("BCP").
The Company, through Synergy, is seeing positive results from the inclusion of the Azo Active range in the Department of Health purchasing catalogue, with NHS Trusts now able to purchase the range. Progress also continues to be made on launching Byotrol based products throughout Europe. Further the trial at Manchester Royal Infirmary, which should conclude during the Spring continues to show excellent results.
The Board is also very encouraged by progress in the food sector where it is in early stage discussions regarding an agreement that has the potential to generate significant ongoing annual revenues. Trials of Byotrol products are also being conducted by several potential customers on which the Board expects to report progress during the course of 2009.
Progress within the Agriculture sector has been slower than anticipated but a full scale trial for the hoof bath product is underway and it is anticipated that approximately 100 farms in North Yorkshire will be buying teat dip by the Spring.
The Board is pleased to announce that BCP has signed its first Joint Development Agreement ("JDA"), for potential Byotrol-based foot care products, with SSL International plc. BCP is also actively pursuing a number of similar agreements with other significant companies in several key markets and aims to secure these during 2009. Typically a JDA will run for 12-18 months, following which time any products developed should move towards full commercial launch.
It remains difficult for the Board to predict with great accuracy the scale and timing of these various revenue opportunities. In that vein, whilst very good progress is being made in the second half of the current financial year, the Board now expects that revenues for the year as whole will be behind anticipated levels. This is mainly due to a number of opportunities that had been expected to contribute to the current financial period falling into the next financial year.
Overall, however, the Board is extremely encouraged by the number of discussions that are actively being pursued across the Company's target sectors and believe that there is the potential for significant revenue opportunities to be secured during 2009 and 2010.
2 March 2009
Enquiries:
| Byotrol Plc | |
| David McRobbie, Chief Executive Richard Bell, Finance Director | Tel 0161 277 9518 |
| Charles Stanley Securities (Nominated Adviser) | |
| Philip Davies / Carl Holmes / Jen Boorer | Tel 020 7149 6000 |