(BYOT) Byotrol

 22 November 2011

Byotrol plc

Interim results for the six months ended 30 September 2011

Byotrol plc ('Byotrol' or the 'Company'), the developer of anti microbial hygiene technologies, is pleased to announce its unaudited Interim results for the six months ended 30 September 2011.

Operational highlights include:

·    Agreement of landmark supply contract with Rentokil Initial plc

·    Total revenues of £923,384 in line with sales in the comparable period in 2010 (£922,270)

·    Underlying product sales increased by 3.2%

·    Change in strategic direction for Healthcare

·    Relocation of all UK activities to Daresbury Science & Innovation Campus

·    Continued focus on overhead cost control

·    Successful placing to raise approximately £2.3m net of expenses post period end

Commenting on the results, Gary Millar, Chief Executive of Byotrol, said:

"Total revenues for the period were in line with the comparable reporting period last year, and reflected growth of 3.2% in underlying product sales. This represents real progress in the execution of our high growth strategy and is coincident with the opening of new distribution channels and the ending of some non performing exclusivity arrangements.

The announcement of a major new agreement with Rentokil Initial plc validates our strategy of partnering with organisations keen to capitalise on the benefits of Byotrol's superior technology. The Rentokil deal is potentially a transformational supply contract for Byotrol and we have started to deliver initial trial orders.  We also continue to make excellent progress in the consumer field with further co-branded product launches with our partners, including the launch of new products, and the continuing development of our important relationship with McBride plc.  The strengthening of the balance sheet through a post-period share placing at a time of significant market uncertainty endorses our belief that Byotrol's re-focused strategy bodes well for the future. We look forward to reporting further progress in the second half of the year."

Enquiries:

Gary Millar - Chief Executive                         01925 742000

Ralph Kugler - Chairman

Richard Bell - Finance Director

Byotrol plc

Geoff Nash                                                       020 7220 0500

Christopher Raggett                                         

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Notes to Editors

Byotrol plc (BYOT.L), quoted on AIM, is a leading microbial technology hygiene company, operating globally in the Healthcare, Food and Consumer sectors, providing a low toxicity product with a broad-based and long lasting efficacy across all microbial classes; bacteria, viruses, fungi, moulds, mycobacteria and algae.

Powerful, long lasting and gentle, Byotrol's products can be used stand alone or as an ingredient brand where, as a complementary addition within existing products, Byotrol can significantly improve their performance in personal hygiene, domestic and industrial disinfection, odour control, food production and food management.

Founded in 2005, the Company has prioritised the development of a technology that creates easier, safer and cleaner lives through partnering with providers of essential goods and services. Byotrol is the catalyst behind the global 'Hygiene Revolution'.

For more information, please go to www.byotrol.co.uk

Chief Executive's Report

I am pleased to present our results for the six months ended 30 September 2011.  Byotrol's refocused strategy has been reflected in real progress in the latest period.  An important supply agreement has been signed with Rentokil plc.  We have continued to achieve the key operational milestones necessary to transform Byotrol into a profitable and cash generative enterprise. These have required a sharpening of focus in our chosen sectors, the establishment of newer routes to market and the cessation of under-performing arrangements. These changes are fundamental to our high growth strategy and will lead to stronger performance in the future.

Overall revenues for the first half year were £923,384 compared with £922,270 in the same period last year.  Revenues in the period under review were almost exclusively derived from product sales whereas in the comparable period licence fees and royalty receipts had represented some 3.4% of total revenues.

Underlying product sales therefore show 3.2% growth from £891,357 to £920,511 compared to the same period last year, on a like-for-like basis.  The reported loss for the period was £1,380,974 (2010: loss of £1,260,304). The balance sheet had cash and cash equivalents of £475,633 (2010: £3,186,887) at 30 September 2011. 

Margins for the period were lower due to a shift in product mix and operational inefficiencies associated with the insolvency of a primary distributor just prior to our last financial year. We continue to eliminate all non-essential cost from the business.

Over the period we have focused on more effective distribution partners, to help maximise the adoption of what we consider to be world class technology.  With the benefit of the unequivocal, evidence-based validation of Byotrol's unique competitive advantage, we have been able to establish new supply relationships with expert product and service providers with truly international reach.

I am pleased to be able to report continued good progress in each of our core sectors and increasing evidence of our achieving the strategic objective of making Byotrol the leading ingredient brand of choice for anti microbial protection.

Markets

Industrial

During the period we announced the signing of a potentially transformational contract with Rentokil Initial plc ('Rentokil'). This contract will see the Byotrol technology being adopted by the Initial Hygiene division ('Initial') of Rentokil, one of the largest business services companies in the world, providing hygiene services to a range of clients including Government, health, education and commercial organisations.

The four year contract is for the supply of hand hygiene and surface sanitisation products for use in Initial's service offering to washrooms and kitchens across 16 European countries. This contract confirms Byotrol's unique anti-microbial technology as the innovation of choice for companies looking to the next generation of hygiene solutions.

This deal represents not only a landmark commercial milestone for Byotrol, but is a hugely significant validation by a leading service organisation of the unique benefits of Byotrol technology.

The products and services based on Byotrol technology are being rolled out by Initial starting in late Q4 2011, and initial trial supplies have commenced.

Consumer products

We continue to make significant advances in the consumer sector, which we serve via Byotrol Consumer Products (BCP), our joint venture with ?What If! Ventures.  Our strategy of positioning Byotrol as the "Intel of Hygiene" by partnering with some of the world's largest companies and best known brands continues to bear fruit.

Having previously reported the successful launch of products with leading consumer suppliers including P Z Cussons, the Mayborn Group, owners of the Tommee Tippee brand, Boots and Tesco (via the McBride Group), the focus of recent activity has been on rapidly moving our previously announced relationship with a Fortune 150 consumer partner from the developmental to the commercial phase.

I was therefore delighted when a significant joint development contract between our Fortune 150 partner and BCP was announced in May 2011.  The goal of this agreement is to develop a range of products containing Byotrol's unique technology for global consumer markets. Under the development contract BCP will receive up to US$1,000,000 in upfront, milestone-based payments, and offsets.  Both parties have committed extensive resources to the project to bring this development to a successful conclusion at the earliest opportunity.

Food & Beverage

The focus of our activity has been on building more sustainable and repeatable end-user demand, whilst at the same time ensuring our service response is as efficient as possible.

Over the period the ground breaking Campden BRI research, which unequivocally demonstrates Byotrol's competitive advantage, has been translated into a compelling business case for change. This has led to recent successes including the choice of Byotrol as the total hygiene solution for the recently launched Marks & Spencer's Deli pilot programme. We have also made significant progress in gaining share at leading food processors including the Bakkavor group.

Our strategy of partnering with a limited number of distributors has been augmented by a lean supply approach to increase efficiency and reduce costs.  Together this adds clear overall economic benefit onto Byotrol's unique, and superior, performance differentiation.

Healthcare

During the period we formalised our change in strategic direction with the cessation of our exclusive arrangement with Synergy Health plc. This sector remains a significant potential growth platform for Byotrol's technology and our immediate focus has been on the assessment of prospective partners and new routes to market.   

Technology

We continue to strengthen our microbiological and formulation chemistry capability. We have focused these resources on the immediate opportunities in both business and consumer markets but have also ensured that we continue the next generation of technology development.

In addition, we have relocated our sales and marketing team alongside our technology resource at Daresbury Science and Innovation Campus and are already witnessing the benefits of the co-location.

Byotrol team

I wish to thank the Byotrol team for their continued dedication and professionalism as we seek to transform the fortunes of our business. The team has been reshaped in the last 18 months, has relocated to our new site at Daresbury, and has implemented a number of important operational enhancements.  The team has also performed magnificently in rising to the market challenges and opportunities presented.

Outlook

After the period end, the Company successfully strengthened its balance sheet through a limited share placing, which raised £2.46m gross. Associated costs were £0.2m. Despite the difficult business climate, the growing success of our focused strategy, and the new opportunities secured, e.g the Rentokil Initial deal, give confidence in the near term outlook. We look forward to reporting further progress in the second half of the year.

Gary Millar

Chief Executive

22 November 2011

Byotrol plc

UNAUDITED CONSOLIDATED INCOME STATEMENT

for the 6 months ended 30 September 2011

The loss for the period arises from the Group's continuing operations

Byotrol plc

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 September 2011

Byotrol plc

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

for the 6 months ended 30 September 2011

Byotrol plc 

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

as at 30 September 2011