Provexis Regulatory News (PXS)

18 Feb 2005 07:02

Nutrinnovator Holdings PLC18 February 2005 For Immediate Release 18 February 2005 NUTRINNOVATOR HOLDINGS PLC ("Nutrinnovator" or "the Group") Trading Update The Board is updating shareholders on recent trading for the Altu food bar,which continues to be substantially behind expectations for the currentfinancial year. This situation has been further exacerbated by the recent eventsthat resulted in Nutrinnovator's sales agent, Food Brokers Limited, being placedinto administration. The Board is currently assessing contingency plans for thesales operation and expects to implement an alternative plan shortly. The Altufood bar continues to receive support from trade customers and consumers, andextended distribution in a current key multiple grocer account will be in placeduring March. Further progress in wholesale and convenience channels is expectedin April. Continued focus on financial controls will result in end of year cash balancesbeing slightly behind expectations, in view of these trading and operationaldifficulties. Nutrinnovator has continued to make progress in the area of establishingrelationships to develop novel functional foods. The Group has recently agreedin principle a joint venture with a substantial New Zealand research instituteto commercialise a heart health and cognitive development ingredient for which apatent is in the process of being filed, and which would also give Nutrinnovatorpreferential access to the development pipeline from the institute. In addition,a further agreement in principle has been reached with a UK-based researchinstitute to develop a functional food technology which is expected to result inclinically-proven and patented cancer prevention properties. The Nutrinnovator pipeline contains medium and long-term projects which, it isplanned, will result in the development of novel functional food products withintellectual property positions in the areas of heart health and cancerprevention. The Group continues to work alongside Provexis Limited in thedevelopment of its Cardioflow(R) heart-healthy drink with the expectation ofachieving a late summer 2005 launch of the product. In addition, despite theslower than planned sales of the Altu food bar brand, it is felt that as well asproviding a near-term revenue stream, this brand has the potential to provide afuture functional food platform. For further information please contact: Nutrinnovator Holdings plcStephen Moon, Managing Director 07967 564301 Buchanan Communications 020 7466 5000Tim Thompson / Tom Carroll Notes to editors: Nutrinnovator's strategy is to develop and market food and drink productsdesigned to be of overall superior nutritional quality to competing products inspecific product categories, whilst retaining the taste and palatability toappeal to the consumer. Health issues related to diet are significant in worldconsumer markets. Poor diet can lead to obesity which, in turn, can cause suchhealth issues as diabetes, heart disease, and high cholesterol. The founders ofNutrinnovator came together to form the business with the aim of exploiting anopportunity in the food and drink-based wellbeing and functional food sector.The first products of the Group, the Altu food bar range, were launched in themarket in the UK in 2004. The Group's experienced management team are constantlylooking into new ventures to exploit the opportunities in the functional foodsector. The Group successfully floated on AIM in June 2004. This information is provided by RNS The company news service from the London Stock Exchange