Trading Update and Board Changes
Byotrol Plc (AIM: BYOT), the specialist infection prevention and control company, provides an update on trading for the year ended 31 March 2023.
Subject to audit, it is expected that the results will be in line with market expectations. Key highlights are:
· Sales of £4.6m, comprising £4.3m from product sales and £0.3m from IP sales and royalties;
· Significant improvement in gross margin on product sales - 41% compared to 37% (FY22), reflecting sku rationalisation and multiple improvements in operating processes;
· Adjusted EBITDA of -£0.8m; and
· Cash at year end of £0.7m with a key debtor paid just after year end, taking underlying cash to over £0.8m
The IP side of Byotrol continues to progress encouragingly, particularly in the US. We are hopeful of formal approval this summer from the EPA for Byotrol24 with enhanced long-lasting efficacy claims against viruses, and we are then expecting our previously-announced sub-licensee to commence a market launch in the US under its own branding shortly afterwards. All other IP initiatives including our participation in Solvay's Actizone, remain on plan.
We remain confident in delivering significant growth in the current financial year and returning to profitability.
As is normal, the exact timing of our Final Results will depend on the audit process. We are currently assuming the audit to be completed in August.
To reflect the increasing importance of product sales to the Company's results, the Board structure of Byotrol is evolving further.
· Dr Trevor Francis will with immediate effect become Non-Executive Chairman of Byotrol. Dr Francis was CTO of Byotrol (2014 - 2021), following which he moved to Non-Executive Director. Prior to Byotrol, Dr Francis was at Unilever for 29 years, including 5 years as Global VP R&D Homecare. He is also a Non-Executive Director of Velcro Companies, the privately-owned, global fasteners business.
· David Traynor - Executive Chairman of Byotrol since November 2022 and prior to that CEO for 9 years - remains on the Board full-time as an Executive Director. In his new role David will focus on solidifying, commercialising and developing the Company's IP portfolio, and will seek to build commercial alliances across the Company's business activities.
All other Board positions remain the same. A search is underway to add an additional independent Non-Executive Director to the Board.
Dr Trevor Francis, incoming Non-Executive Chairman of Byotrol commented:
"I am looking forward to overseeing the continued development of Byotrol and supporting the executive team of Vivan Pinto, CEO, Chris Sedwell, CFO, and David Traynor, ED.
Since the acquisition of Medimark Scientific, a lot of good progress has been made within the Company, especially in operating processes and I am convinced we now have the right structure and team to drive the business forward and create value for all stakeholders."