Byotrol cuts losses and sees sales momentum

BYOTROL, the company behind the anti-microcrobial cleaning technology of the same name, has reported solid progress with a sharp fall in annual losses.

The AIM-listed Daresbury company grew sales 12% in the year to the end of March from £1.9m to £2.2m and cut bottome-line losses from £2.7m to £1.7m.

It announced that it had raised nearly £500,000 in a placing of 6 million shares to boost its balance sheet and allow it to deliver a major supply deal with retailer Marks & Spencer and exploit opportunities in sub-Saharan Africa and in the UK food market.

Chief executive Gary Millar said: “”This year has seen Byotrol achieve a number of key strategic goals in addition to performance improvements across the business.  Byotrol’s technology is now at the core of our clients’ products and operations, increasingly demonstrating the value proposition that complements the superior efficacy of the technology.

“With the support of our major shareholders we have strengthened our balance sheet in preparation for the next phase of development.  This important step enables the Board to confidently pursue Byotrol’s growth agenda.”  

While it is beyond doubt that the results show that Byotrol is making progress – margins were up 7% to 29%, and administrative expenses were down 28% – there was less than positive news on the company’s partnership with US giant Kimberly-Clark Corp.

Byotrol said the Kimberly-Clark had “unfortunately decided to adopt a new strategic direction”, which has affected a deal agreed last year with subsidiary Byotrol Consumer Products.

The company said it is now seeking a new partner for the US: “The release from our exclusive agreement with Kimberly-Clark means that BCP is now free to pursue other opportunities in the US and elsewhere.  BCP is already in discussions with several companies to that end.”

Chairman Ralph Kugler said progress had been made in the last 12 months, noting: “The adoption of Byotrol’s technology by Marks & Spencer across all their UK stores for their in-store cleaning is particularly noteworthy, both for the potential revenue generation and for the important Marks & Spencer endorsement of Byotrol.

“The group is actively developing other business opportunities with new partners, which are expected to come to fruition in 2013/14.”