Last checked at 30 Sep 2013 07:00
30 September 2013
Provexis plc
AGM Statement
Provexis plc ("Provexis" or the "Company"), the business that develops and licenses scientifically-proven functional food, will hold its Annual General Meeting in Reading later today.
At the meeting Dawson Buck, the non-executive Chairman of the Company, will give the following update on developments:
"The Company has undergone major change during the last year, with the Science in Sport business being demerged from Provexis and the cost base of the legacy Provexis business being significantly reduced. The demerger resulted in a substantial increase in shareholder value.
DSM Nutritional Products continues to develop the market actively for our novel, patented Fruitflow® heart-health ingredient in all global markets. Currently, over 20 regional consumer healthcare and dietary supplement brands containing the ingredient are now in the market. The heart-healthy dietary supplement segment is highly competitive and in some markets highly regulated, which requires country by country analysis and marketing strategy development and thus time to gain adoption and achieve success.
Much focus has been given to the development of a concentrated, powder version of Fruitflow®, suitable for tablets, gel capsules and other dietary supplements. While manufacturing set up costs of a supply chain to produce this powder will adversely affect cost of goods in the year, this format is regarded as being the required format for brand owners and as such, this investment by DSM is seen as important to the future growth of Fruitflow® revenues in the important dietary supplements sector.
Costs in Provexis have been reduced drastically, and together with a recent drawdown of funds, the company has sufficient cash to fund operations until early 2016.
With this very focused model and low operating costs, the directors believe the Company is in a strong position."
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For further information please contact:
Stephen Moon, Chief Executive
Provexis plc Tel: 01753 861777
Bobbie Hilliam Tel: 020 7397 8900
Cenkos Securities plc