Byotrol maintains strategy amid some revenue struggles
By Josh White
Date: Thursday 07 Sep 2023
(Sharecast News) - Byotrol updated the market on its trading on Thursday, after announcing full-year results in line with expectations in July, reporting that there had been no shift in its approach to its operating strategy going forward.
The AIM-traded firm said the primary elements of the strategy included concentrating on four primary technology platforms, including the promising 'Cruise' platform.
It said it was optimistic about the regulatory approval of the platform across Europe by early 2025.
The company said it had clear plans to generate revenue from the platform through product sales directed towards both animal and human health sectors; and intellectual property sales, especially in areas where market entry costs are steep, such as the US.
It was also seeking a substantial enhancement in its operations and systems, aiming to augment efficiency and further uplift profit margins.
Byotrol said it was making strides in the 2024 financial year, as evidenced by 31% growth in the year-to-date for the Anigene formulation in animal health, which was introduced in November last year.
It also highlighted the August debut of its Chemgene MedLab formulation for human health, marking the UK's second product release based on the 'Cruise' technology platform.
Operational progress was reported through the reinforcement of service standards, adept key account management, and an expanded e-commerce footprint.
That advancement had led to a 1% increase in the gross margin in the current financial year.
Byotrol said it was also concentrating on prudent cost and budget management, ensuring costs remained steady at £2.8m, even amidst rising wage and input costs.
However, Byotrol said it was facing some revenue shortfalls in two crucial domains, with European markets showing subdued product sales growth due to protracted registration timelines and a slow key account uptake.
Although Anigene secured its registration and inaugural sales in France, Byotrol now foresaw the registration of Anigene in Germany and Chemgene in the latter half of 2024.
It was also facing the termination of certain legacy products, including medical devices, which had adversely affected its revenues more than anticipated, although that remained a critical facet of its overarching strategy.
On the intellectual property front, Byotrol said it was seeing an encouraging scenario, as its major licensees and alliance partners were steadily gaining momentum.
Despite the inherent unpredictability of the effect of intellectual property on the year's profits, the company said it remained sanguine about generating roughly £1m in cash from it.
"The combination of slower growth in Europe and prioritising cash from intellectual property means we now expect to be around breakeven this current financial year, with significant profitability in the 2025 financial year," the board said of the company's outlook.
"Based on current projections, the directors remain confident that the company has sufficient cash resources to execute on its current strategy."
At 1247 BST, shares in Byotrol were down 8.57% at 1.6p.
Reporting by Josh White for Sharecast.com.
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