TIDMBYOT
RNS Number : 9269V
Byotrol PLC
07 December 2023
Byotrol Plc
("Byotrol" or the "Company")
Interim results
Byotrol Plc (AIM: BYOT), the specialist infection prevention and
control company, is pleased to announce its unaudited interim
results for the six months ended 30 September 2023. The results are
in line with the trading update of mid-November.
Highlights
-- Headline product sales of GBP2.02m, flat versus the
comparable period (H1, FYE March 2023), reflecting the impact of
discontinued items. No new IP sales, versus GBP0.22m in the
comparable period.
-- Substantial increase (17%) in like-for-like product sales
after allowing for discontinuations.
-- Increasing concentration of activities in our chosen primary
market of animal health (65.0% of product sales versus 47.5% in the
previous year and 38.5% pre-pandemic FYE2020).
-- Underlying gross margin of 44.5% on product sales, versus
42.6% for the year ended 31 March 2023.
-- EBITDA loss of GBP0.45m versus GBP0.3m in the comparable period.
-- Cash in bank of GBP0.51m, versus GBP0.68m at 31 March 2023.
-- Operational KPIs all improving, including OTIF (On Time In
Full delivery) now consistently exceeding 90%.
Projected returns from existing IP agreements remain
encouraging, supported by recent or upcoming product launches of
long-lasting sanitisers in the US, UK and EU. Commission and
royalties are now expected to be material to our finances from FYE
March 2024.
Dr Trevor Francis, Non-Executive Chairman of Byotrol
commented:
"The Directors are pleased with Byotrol's recent progress,
despite the continued difficult economic and market background and
the need to make senior management changes. Byotrol's products are
all now fit for purpose with regulators in our targeted markets and
our product sales efforts are benefiting from the increased focus
and operational efficiencies ."
For further information contact:
Byotrol Plc
Dr Trevor Francis, Non Executive Chairman +44 (0)1925 742 000
David Traynor, Interim Chief Executive
Officer
Chris Sedwell, Chief Financial Officer
finnCap Limited (Nominated Adviser and
Broker) +44 (0)20 7220 0500
Geoff Nash/George Dollemore - Corporate
Finance
Nigel Birks/Harriet Ward - ECM
Flagstaff Strategic and Investor Communications +44 (0)20 7129 1474
Tim Thompson/Andrea Seymour/Fergus Mellon byotrol@flagstaffcomms.com
This announcement is released by Byotrol Plc and, prior to
publication, the information contained herein was deemed to
constitute inside information under the Market Abuse Regulations
(EU) No. 596/2014. Such information is disclosed in accordance with
the Company's obligations under Article 17 of MAR. The person who
arranged for the release of this announcement on behalf of Byotrol
Plc was Chris Sedwell, CFO.
* Adjusted EBITDA is defined as Earnings before Interest, Tax,
Depreciation and Amortisation and exceptional items, share-based
payments, non-trading items such as profit or loss on disposal of
assets, plus revenue recognised as interest under IFRS 15
Notes to editors
Byotrol plc (BYOT.L), quoted on AIM, is a specialist infection
prevention and control company that develops and commercialises
high performance, broad spectrum, low toxicity biocidal
technologies for animal and human healthcare markets. Our products
are designed for domestic and international uses, with regulatory
approval for each market that we operate in, including under the EU
Biocide Products Regulation regime.
Byotrol technologies can be used as stand-alone products or as
ingredients within existing products, especially in surface care,
personal care and odour control uses.
Byotrol develops and commercialises technologies that create
easier, safer and cleaner lives for everyone.
For more information, go to byotrol.com
Chairman's Review
I have been Chairman of Byotrol now for 7 months, having been
with the Company originally in 2008 and then in various roles since
late 2013, which included seven years as Chief Technology Officer
and two as an NED.
In the last year it feels as though we have been through a
lengthy period of turbulence, including raw material inflation,
energy price hikes, political uncertainty, as well as some internal
difficulties. Despite these challenges, we are continuing to make
good progress in positioning our Company for the future.
In my time as Chairman, along with my co-directors, I have
reviewed our strategy, positioning and management team, and we have
reached the following conclusions:
-- Our science and regulatory-led strategy is on-point in a
valuable, global, growing market and we are building a company of
value in both product sales and underlying IP.
-- Historically, we have been strong at commercialising IP, but
less so at selling our own products. We have learned at first-hand
how hard it is to build a product trading business from scratch,
but with the recent increase in focus we are now improving
radically across all functions including sales (where we still need
to do a lot more), customer services and supporting functions,
especially supply chain and quality. I urge stakeholders to review
the detail of the CEO's report, which I believe shows real
development of the Company.
-- Our leadership over the last 12 months has faced some
challenges, with one specifically enforced on us by some serious
(and thankfully in the end temporary) health issues within the
senior team. I am glad to say the changes are now behind us and we
have a very focused and experienced management team.
-- Such issues have been addressed against a highly volatile
economic environment and in our experience an almost complete
disappearance of AIM as a funding solution for micro caps, except
for tax-based investment in new issues. Byotrol has no further
capacity for EIS or VCT investment fund raising, having exhausted
the tax efficient capacity in earlier years. Over recent years we
have needed to finance our development almost completely from
internally generated sources, especially via existing IP
agreements, which has stifled growth and increased our risk
profile.
In spite of these challenges like-for-like product sales over
this review period are up by 17%, underlying product gross margin
is now above 44% despite a 100% outsourced manufacturing model and
our IP agreements are slowly coming to fruition. We now need to
solidify and accelerate these positive developments.
The Board regularly reviews whether we can achieve our targets
as an independent, listed company and has concluded for the time
being that we can. We are now keeping this conclusion under
frequent review and will not hesitate to take a different route if
it will lead to better returns for shareholders.
Dr Trevor Francis
Non-Executive Chairman
Interim CEO's report and financial review
Byotrol's long-term strategy has been to build an IP-based
biocide technology company, founded on strong science, regulatory
approvals and segmental expertise, generating sustainable profits
from its own product sales and from monetizing IP.
Our roots are very much in R&D. Pre-pandemic we used IP
activities to generate cashflow, together with support from
shareholders by way of occasional equity issuance. During this
period we also invested significant resources into building a
product trading business with products that would meet the
challenging regulatory requirements of the EU Biocides Products
Regulations and that would reduce volatility in earnings
projections. This led to us buying Medimark Scientific Limited,
completed in January 2020, which instantly provided a presence in
animal health product sales in the UK and also in some niche human
health categories. The plan at the time was to upgrade Medimark
products using Byotrol technologies and then to expand into Europe
and adjacent product areas.
Covid put those plans on hold for two years, firstly due to the
short period of extraordinary demand for all sanitising products in
all markets, and then due to the extreme oversupply that followed.
Since FYE2022 we have modified the pre-Covid plan as post pandemic
a number of our markets had changed, with a continued clear intent
of upgrading across all areas of the business but now frustratingly
against a backdrop of political and economic turmoil, not least in
financing markets.
Byotrol is now taking the shape that we have been working
towards for many years and the detail of our results in the period
under review show the progression well:
-- 17% increase in like-for-like product sales after allowing
for regulatory-enforced discontinuations.
-- Increasing concentration of activities in our chosen primary
market of animal health (65.0% of product sales versus 47.5% in the
previous year and 38.5% pre-pandemic FYE2020). Human health remains
an area of focus but is yet to fully benefit from the imminent
launch of Cruise-based technologies.
-- Underlying gross margin of 44.5% on product sales, after
stripping out disposal costs for obsolete and discontinued stocks,
versus 42.6% for the year ended 31 March 2023
-- Operational KPIs all improving, including OTIF (On Time In
Full delivery) now consistently exceeding 90%
We recognise that we are reporting headline numbers below
initial guidance, which included some over-ambition on new product
launches and led to senior management change at the end of the
period. However, that should not obscure the fact that the
refocusing programme is now in its final stages and that business
performance is improving in leaps and bounds.
The upside from continuing on our current path remains
substantial as: (a) all of our products have been designed for
export into Europe, while our sales are currently 90% UK; (b) we
have not yet fully launched our new formulations into human health;
and (c) we have temporarily de-prioritised IP commercialization - a
historic strength - to focus on solidifying the products
business.
Results by segment
Professional
H1 product revenues increased by 8% to GBP1.81m versus GBP1.68m
in the comparable period (6 months of September 2022). No royalty
income was received in H1, compared to GBP0.22m in the comparable
period.
Gross profit on product sales was flat at GBP0.74m.
As has been long planned since the acquisition of Medimark, but
delayed by and to some degree a result of the pandemic, our
Professional division has now undergone a reorientation towards
animal and (niche) human healthcare, with continued tightening of
focus on three core technology platforms, reduced skus, regulatory
acceptance across Europe, and operational excellence.
In the period under review Professional product revenue was
split 73% animal health, 22%% human health, 5% FM and other, versus
56%, 32% and 12% in the previous full year. We are very encouraged
by recent successes in the UK, having secured favoured-supplier
status with some of the UK's best known animal welfare charities as
well as leading wholesalers and corporate vet groups.
We have now completed the upgrade of all our core formulations
in animal health surface care, to chemistries based on our
proprietary Cruise formulation and sold under the brands Anigene
and Processus. Next summer we will be launching a ready-to-use
formulation for smaller customers and will then also be able to
look afresh at consumer markets, where we already have some brand
equity.
Our human health product offerings are due for upgrade to the
Cruise platform, to be sold under Chemgene branding. We have
already launched a Cruise-based surface disinfectant product as a
range extension to Processus instrument decontamination products,
which we are selling into animal and human health markets.
Export sales were behind plan in the period under review and we
are now seeking dedicated international sales resource. There is a
substantial upside here for the Company and its existing products
and technologies, almost all of which have been designed to satisfy
UK and EU regulators.
Consumer
H1 revenues decreased to GBP0.21m from GBP0.34m and gross profit
to GBP0.11m from GBP0.14m, with gross margin increasing to 51.4%
from 41.4%, a result (as in the Professional segment) of focusing
on higher margin product areas.
Consumer remains niche for us in product sales at present,
without a dedicated commercial and/or marketing lead except of
course for longstanding customers Boots (alcohol free hand
sanitisers) and Goodsmile (petcare and human healthcare in
Japan).
We are also gradually increasing our presence on Amazon and we
now expect to launch consumer versions of our new technologies,
especially Cruise, direct to consumers on that platform. Sales on
Amazon have grown very rapidly in the last 6 months and are now a
top 3 consumer customer, and a top 10 Byotrol customer overall,
with new listings to come.
Technology Portfolio
Our portfolio continues to strengthen, having now fixed on three
core platforms that we intend to support through the final
regulatory approvals in the EU:
-- 'Cruise' technology platform is now formulated and in-market
in concentrate form and shortly in ready-to-use format. It is a
high performance, regulatory compliant (UK and EU) surface
disinfectant with low cost-in-use for multiple surfaces and
healthcare environments. We would like to think it is leading edge
compared to most competitive products in the market and in various
iterations is already replacing a number of legacy
formulations.
-- Artemis surface disinfection - natural and sustainable
technology with excellent anti-microbial performance, especially
against viruses, which we are now targeting to surface care
environments including humans, animals and specialist food
environments. This technology fits with market trends towards
sustainability and in the near future we will be working hard to
achieve accelerated UK and EU regulatory approval, with faster
roll-out at a significantly lower cost than normal routes. (For
information: accelerated approval routes require that formal
approval is achieved before products can be put into market, a
12-month process).
-- Invirtu hand sanitisers - alcohol free skin sanitisation with
an upgraded and more robust formulation, but with the same germ
kill and dermatological benefits.
Given the Company's current focus on its trading business, we
have temporarily but substantially reduced investment in developing
new IP. We continue to see substantial value in seaweed-based
antivirals and in other natural anti-microbials, but resource
constraints mean we remain early in the dedicated sales cycle.
Intellectual Property Sales and Licensing
The two most active IP-based projects remain live and are
progressing steadily:
-- Actizone - the long-lasting antimicrobial surface sanitiser
IP that Byotrol co-developed and then sold to Solvay SA in 2018,
with an ongoing sales commission payable to Byotrol on Solvay's
sales. This now has multiple global regulatory approvals. To date,
commissions to Byotrol have been non-material, but recent
projections suggest it will become financially material to Byotrol
by FYE 2025, assuming continued customer traction and further
product launches in both retail and institutional segments.
-- Integrated Resources ("IRI")/Byotrol24 - the EPA registered
long-lasting antimicrobial that Byotrol sold to IRI in 2022. This
sale was conditional on IRI paying to Byotrol US$1.4m over 4 years
to February 2026, plus low single-digit royalties and a material
percentage of the additional sales proceeds should IRI onward sell
the formulation. Since the agreement, IRI has sub-licensed the
formulation to a globally recognised US hygiene brand, which is
currently test-marketing and expecting to proceed to a full US
launch in Autumn 2024. Royalties received from IRI have however
been negligible to date.
As reported in recent trading updates, the team's recent efforts
have been focused more on monetizing current IP agreements than
generating new transactions, to (a) support the Company's
investment in growing a sustainable trading business and (b)
reflect current trading at licensee and alliance partners in their
core markets. One such agreement has been reached since period end,
with Byotrol agreeing to terminate by mutual consent a historic
license with Turtle Wax Europe Limited in return for a cash
payment. This was a 5 year license agreement signed in January 2021
over Byotrol long-lasting anti-microbial surface technology for
in-car use, and sold to EU consumers. Turtle Wax has since
de-listed the product due to a change in strategy and agreed with
us a settlement sum for future guaranteed minimum royalties.
Balance sheet
Our balance sheet at the end of the first half shows net assets
of GBP4.9m, down GBP0.7m from GBP5.6m at the end of FY23. Of this
GBP3.2m is held within our intangible assets, in line with the
previous year-end, and represents assets created on the acquisition
of Medimark combined with the value of our own internally generated
IP.
We have continued to develop our technical and operational
capabilities and have invested GBP0.18m in our IP and associated
regulatory costs in the first six months of FY24 (see Note 7). In
addition, we invested in our finished goods to support the Chemgene
Medlab launch as well as other sales initiatives, with inventory
increasing to GBP632k at the end of September, compared to GBP0.49m
at the end of March 2023. We expect our inventory to fall back
again in the second half of the year as these launches and
initiatives gain momentum.
Our cash balance at the end of September was GBP0.51m, down
GBP0.18m from GBP0.69m at the FY23 year-end, reflecting careful
management of our cash balance, despite the investments noted
above.
Management Changes
Byotrol has announced a series of Board changes in the
period:
-- Dr Trevor Francis was appointed Non-Executive Chairman of the Company on 26 April 2023
-- Ashley Head, serial entrepreneur and long-standing Byotrol
shareholder joined the Board as a Non-Executive Director on 13
September 2023
-- Vivan Pinto, CEO since 22 November 2022 left the Company on
26 September 2023 to pursue other interests. David Traynor, Vivan's
predecessor and still on the Company board stepped in as Interim
CEO, with expectations of handing over to a newly hired CEO by
mid-2024.
Outlook
The Directors remain completely focused on Byotrol moving to
sustainable profits. We recognize this has taken longer than
expected and with a level of operating costs to bring about these
improvements that are undoubtedly hurting, but we have done so
during an exceptionally long duration of market volatility, and no
external equity capital raising since 2018. We are encouraged by
the radical improvements in margins, operational KPIs and by the
delivery of a product range that is future-proofed against EU and
UK regulatory environments.
Our challenge now is to improve sales execution further,
especially in export and in niche human health, and to then
reallocate more resources back to monetise our outstanding IP
portfolio.
David Traynor
Interim CEO
Group statement of comprehensive income
6 months 6 months Year to
to to 31 March
30 September 30 September 2023
2023 2022
Note GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Revenue 2 2,022 2,232 4,592
Cost of sales pre-exceptional
item (1,173) (1,129) (2,475)
_______ _______ _______
Gross profit pre-exceptional
item 849 1,103 2,117
Cost of sales - exceptional
item - - (258)
_______ _______ _______
Gross profit 849 1,103 1,859
Adjusted administrative expenses (1,441) (1,586) (3,383)
_______ _______ _______
Adjusted operating loss (592) (483) (1,524)
Amortisation of acquisition-related
intangibles (114) (169) (300)
Share-based payments (57) (-) (33)
_______ _______ _______
Operating loss (763) (652) (1,857)
Finance income 4 43 50 103
Finance expense 5 (56) (21) (71)
_______ _______ _______
Loss before taxation (776) (623) (1,825)
Income tax credit 34 44 133
_______ _______ _______
Loss for the period (742) (579) (1,692)
Items that may be reclassified
subsequently to profit or loss:
Exchange differences (38) 156 107
_______ _______ _______
Other comprehensive (expense)/income,
net of tax (38) 156 107
Total comprehensive loss for
the period (780) (423) (1,585)
Earnings per share - from
loss for the period
Attributable to the owners
of Byotrol plc (basic) 6 (0.16)p (0.13)p (0.37)p
Attributable to the owners
of Byotrol plc (diluted) 6 (0.16)p (0.13)p (0.37)p
The accompanying notes 1 to 10 are an integral part of these
financial statements.
Group statement of financial position
As at As at As at
30 September 30 September 31 March
2023 2022 2023
Note GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Assets
Non-current assets
Intangible assets 7 3,201 3,433 3,218
Tangible assets 50 76 61
Right-of-use assets 8 9 17 13
Deferred tax assets 163 134 163
Trade receivables 1,356 1,804 1,436
_______ _______ _______
4,779 5,464 4,891
Current assets
Inventories 632 627 494
Trade and other receivables 1,215 1,649 1,669
Cash and cash equivalents 508 1,158 687
_______ _______ _______
2,355 3,434 2,850
Total assets 7,134 8,898 7,741
Liabilities
Non-current liabilities
Lease liabilities 9 - 8 4
Deferred tax liabilities 266 360 299
Convertible loan stock 962 962 962
_______ _______ _______
1,228 1,330 1,265
Current liabilities
Trade and other payables 1,016 827 863
Lease liabilities 9 8 8 8
_______ _______ _______
1,024 835 871
Total liabilities 2,252 2,165 2,136
NET ASSETS 4,882 6,733 5,605
Issued share capital and
reserves
Share capital 1,135 1,135 1,135
Share premium 457 457 457
Other reserves 856 981 932
Retained earnings 2,434 4,160 3,081
_______ _______ _______
TOTAL EQUITY 4,882 6,733 5,605
The accompanying notes 1 to 10 are an integral part of these
financial statements.
Group statement of cash flows
6 months 6 months Year to
to to 31 March
30 September 30 September 2023
2023 2022
GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Cash flows from operating activities
Loss for the period (742) (579) (1,692)
Adjustments for:
Finance income (43) (50) (103)
Finance costs 56 21 71
Depreciation of tangible non-current
assets 15 18 34
Amortisation of intangible non-current
assets 191 275 642
Loss on disposal of assets 6 1 64
Income tax recognised in profit
or loss (34) (44) (100)
Share-based payments 57 - 33
_______ _______ _______
Operating cash flows before movements
in working capital (494) (358) (1,051)
(Increase)/decrease in trade and
other receivables 392 57 421
(Increase)/decrease in inventories (140) (227) (95)
Increase/(decrease) in trade and
other payables 345 (377) (428)
_______ _______ _______
Cash generated/(used in) from
operating activities 103 (905) (1,153)
Income tax refund received - 21 125
_______ _______ _______
Net cash generated/(used in) from
operating activities 103 (884) (1,028)
Cash flows from investing activities
Development of intangible assets (180) (202) (419)
Acquisition of property, plant
and equipment (4) (20) (22)
_______ _______ _______
Net cash used in investing activities (184) (222) (441)
Cash flows from financing activities
Proceeds from issue of convertible
loan stock - 1,000 1,000
Repayments of principal on lease
liabilities (4) (4) (12)
Finance costs (56) (20) (70)
Interest expense on lease liabilities - - (1)
_______ _______ _______
Net cash (used in)/ generated
by financing activities (60) 976 917
Net decrease in cash and cash
equivalents (141) (130) (552)
Net foreign exchange differences (38) 156 107
Cash and equivalent at beginning
of period 687 1,132 1,132
_______ _______ _______
Cash and cash equivalents at end
of period 508 1,158 687
Group statement of changes in equity
Share Share Other Retained Total
capital premium Exchange reserve profits
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 31 March
2022 1,135 457 787 - 4,739 7,118
Loss after taxation
for the period - - - - (579) (579)
Other comprehensive
income:
Exchange differences - - 156 - - 156
Transactions with
owners:
Convertible Loan
Stock Issue - - - 38 - 38
_____ _____ _____ _____ _____ _____
Balance at 30 September
2022 1,135 457 943 38 4,160 6,733
Loss after taxation
for the period - - - - (1,113) (1,113)
Other comprehensive
income:
Exchange differences - - (49) - - (49)
Transactions with
owners:
Share-based payments - - - - 33 33
Deferred tax on
share-based payment
transactions - - - - 1 1
_____ _____ _____ _____ _____ _____
Balance at 31 March
2023 1,135 457 894 38 3,081 5,605
Loss after taxation
for the period - - - - (742) (742)
Other comprehensive
income:
Exchange differences - - (38) - - (38)
Transactions with
owners:
Share-based payments - - - - 57 57
_____ _____ _____ _____ _____ _____
Balance at 30 September
2023 1,135 457 856 38 2,396 4,882
Reserve Description and purpose
Share capital Nominal value of issued shares
Share premium Amount subscribed for share capital in excess
of nominal value less associated costs
Other Reserve Equity component arising from issue of Convertible
Loan Note
Exchange reserve The difference arising on the translation of
foreign operations denominated in currencies
other than UK Sterling into the presentational
currency of the Group
Merger reserve Amounts arising on the consolidation of historic
acquisitions under merger accounting principles
Retained earnings All other net gains and losses not recognised
elsewhere
The accompanying notes 1 to 10 are an integral part of these
financial statements.
Notes to the Group financial statements
1 Basis of preparation
The Group has prepared its interim financial statements for the
6 months ended 30 September 2023 (the "interim results") in
accordance with the recognition and measurement principles of
International Financial Reporting Standards ("IFRS") as adopted by
the European Union and also in accordance with the recognition and
measurement principles of IFRS issued by the International
Accounting Standards Board, but do not include all the disclosures
that would otherwise be required. They have been prepared under the
historical cost convention as modified to include the revaluation
of certain non-current assets. The accounting policies adopted in
the interim financial statements are consistent with those adopted
in the Group's Annual Report and Financial Statements for the year
ended 31 March 2023 and those which will be adopted in the
preparation of the Annual Report for the year ending 31 March
2024.
As permitted, the interim results have been prepared in
accordance with the AIM Rules of the London Stock Exchange and not
in accordance with IAS34 Interim Financial Reporting. They do not
constitute full statutory accounts within the meaning of section
434 of the Companies Act 2006 and are unaudited.
Going concern
The Directors have considered trading and cash flow forecasts
prepared for the Group, assuming a continued marginal increase in
product sales and some further reasonable reductions in costs.
Based on these, and a continued confidence in being able to
accelerate cash from existing IP agreements or potentially a modest
fundraise, the Directors are satisfied that the Group will continue
to be able to meet its liabilities as they fall due for at least
twelve months from the date of these results. On this basis, they
consider it appropriate to have adopted the going concern basis in
the preparation of the interim results, which were approved by the
Board of Directors on 5 December 2023.
Comparative financial information
The comparative financial information presented herein for the
year ended 31 March 2023 constitute full statutory accounts for
that period. The statutory accounts for the year ended 31 March
2023 carried an unqualified Auditor's Report, did not draw
attention to any matters by way of emphasis and did not contain a
statement under Section 498(2) or 498(3) of the Companies Act
2006.
2 Segmental analysis
Revenue and gross profit by segment
6 months ended 30 September Continuing Total
2023 operations
Professional Consumer
GBP'000 GBP'000 GBP'000
Revenue
Product sales 1,810 212 2,022
Royalty and licensing income - - -
_______ _______ _______
Total revenue 1,810 212 2,022
Gross profit
Product sales 740 109 849
Royalty and licensing income - - -
_______ _______ _______
Total gross profit 740 109 849
6 months ended 30 September Continuing Total
2022 operations
Professional Consumer
GBP'000 GBP'000 GBP'000
Revenue
Product sales 1,678 336 2,014
Royalty and licensing income 218 - 218
_______ _______ _______
Total revenue 1,896 336 2,232
Gross profit
Product sales 746 139 885
Royalty and licensing income 218 - 218
_______ _______ _______
Total gross profit 964 139 1,103
Revenue by geography
The Group recognises revenue in three geographical regions based
on the location of customers, as follows:
6 months ended 30 September Professional Consumer Total
2023
GBP'000 GBP'000 GBP'000
United Kingdom 1,674 88 1,762
North America 15 - 15
Rest of World 121 124 245
_______ _______ _______
Total revenue 1,810 212 2,022
6 months ended 30 September Professional Consumer Total
2022
GBP'000 GBP'000 GBP'000
United Kingdom 1,575 140 1,715
North America 43 - 43
Rest of World 278 196 474
_______ _______ _______
Total revenue 1,896 336 2,232
Management makes no allocation of costs, assets or liabilities
between these segments since all trading activities are operated as
a single business unit.
License revenue and finance income
License contracts (and certain other contracts relating to the
sale of IP) typically provide for fixed payments to be made by
customers over a given term (typically between three and five years
but which may extend longer). Under IFRS 15, in order to reflect
the time value of money, such contracts are recognised as the
capitalised value of the income stream plus notional interest
accruing for the period on the credit deemed to be extended to the
customer (on a reducing balance basis). For the 6 months to 30
September 2023 this figure amounts to license revenue of GBPnil and
notional interest income of GBP42,000.
3 Non-GAAP profit measures and exceptional items
Reconciliation of operating profit to adjusted EBITDA (earnings
before interest, taxation, depreciation and amortisation):
6 months 6 months Year to
to to 31 March
30 September 30 September 2023
2023 2022
GBP'000 GBP'000 GBP'000
Operating loss (763) (652) (1,857)
Adjusted for:
Amortisation and depreciation 210 301 689
_______ _______ _______
EBITDA (553) (351) (1,168)
Loss on disposal of assets 6 1 64
Revenue recognised as interest
under IFRS 15 42 49 101
Expensed share-based payments 57 - 33
Exceptional items:
-------------- -------------- ----------
- Inventory Provision - - 258
Total exceptional items - - 258
_______ _______ _______
Adjusted EBITDA (448) (301) (712)
The criterion for adjusting items in the calculation of adjusted
EBITDA is operating income or expenses that are material and either
(i) arise from an irregular and significant event or (ii) are such
that the income/cost is recognised in a pattern that is unrelated
to the resulting operational performance. Materiality is defined as
an amount which, to a user, would influence decision-making based
on, and understandability of, the financial statements. Adjustment
for share-based payment expense is made because, once the cost has
been calculated, the Directors cannot influence the share based
payment charge incurred in subsequent years, and the value of the
share option to the employee differs considerably in value and
timing from the actual cash cost to the Group.
Exceptional items are treated as exceptional by reason of their
size or nature and are excluded from the calculation of adjusted
EBITDA (and adjusted earnings per ordinary share) to allow a better
understanding of comparable year-on-year trading and thereby an
assessment of the underlying trends in the Group's financial
performance. These measures also provide consistency with the
Group's internal management reporting.
Adjusted EPS
The calculation of adjusted EPS is shown in Note 6.
4 Finance income
6 months 6 months Year to
to to 31 March
30 September 30 September 2023
2023 2022
GBP'000 GBP'000 GBP'000
Interest receivable on interest-bearing
deposits 1 1 2
Notional interest accruing on
contracts with a significant
financing component 42 49 101
_______ _______ _______
Total finance income 43 50 103
5 Finance expense
6 months 6 months Year to
to to 31 March
30 September 30 September 2023
2023 2022
GBP'000 GBP'000 GBP'000
Interest and finance charges 56 21 70
Interest on lease liabilities
under IFRS 16 - - 1
_______ _______ _______
Total finance expense 56 21 71
6 Earnings per share
The following sets out the earnings and share data used in the
basic and diluted earnings per share computations:
Denominator for earnings per share ("EPS") calculations
6 months 6 months Year to
to to 31 March
30 September 30 September 2023
2023 2022
Weighted number of ordinary shares
in issue 453,890,405 453,890,405 453,890,405
Effect of dilutive potential
ordinary shares - Share Options 2,275,340 522,444 2,059,553
_______ _______ _______
456,165,745 454,412,849 455,949,958
The Group has two categories of potentially dilutive ordinary
share. The first is share options granted to employees where the
exercise price (plus the remaining expected charge to profit under
IFRS 2 per option) is less than the average price of the Company's
ordinary shares during the period. The weighted average number of
shares for the calculation of diluted earnings per share is
computed using the treasury share method.
The second relates to the Convertible Bond. The Group issued a
Convertible Bond for GBP1m in July 2022 to new and existing
investors in the Company, including Board directors. The Loan Notes
have a term of five years, are senior in ranking, unsecured and
convertible at investors' option into ordinary shares in the
capital of the Company ("Ordinary Shares") at a price of 3.25 pence
per Ordinary Share, representing a 30% premium to the mid-price of
the Company's share price at close of business on 26 July 2022. The
Loan Notes carry a coupon of 9% per annum, payable quarterly in
arrears. Based on the issue size of GBP1,000,000, the Loan Notes
would, if converted, represent approximately 30,769,230 Ordinary
Shares, amounting to 6.8% of the current issued share capital of
the Company. However, as the average Byotrol share price since the
issue of the Convertible Bond has been below the 3.25p conversion
price, these are currently classed as non-dilutive and do not
feature in the Denominator calculation above.
Numerator for EPS calculations
6 months to 30 September 2023 Total
GBP'000
Profit/(loss) attributable to
ordinary equity holders of the
Company (numerator for basic
EPS calculation) (742)
Adjusting items:
- share-based payments 57
- amortisation of acquisition-related
intangibles 114
- deferred tax credit arising
from acquisition-related intangibles (33)
_______
Adjusted earnings attributable
to owners of the Parent
(numerator for adjusted EPS
calculation) (604)
6 months to 30 September 2022 Total
GBP'000
Profit/(loss) attributable to
ordinary equity holders of the
Company (numerator for basic
earnings per share calculation) (579)
Adjusting items:
- share-based payments -
- amortisation of acquisition-related
intangibles 169
- deferred tax credit arising
from acquisition-related intangibles (24)
_______
Adjusted earnings attributable
to owners of the Parent (434)
Year to 31 March 2022 Total
GBP'000
Profit/(loss) attributable to
ordinary equity holders of the
Company (numerator for basic
earnings per share calculation) (1,692)
Adjusting items:
- share-based payments 33
- exceptional items 258
- amortisation of acquisition-related
intangibles 300
- deferred tax credit arising
from acquisition-related intangibles (85)
_______
Adjusted earnings attributable
to owners of the Parent (1,186)
The criteria for inclusion of adjusting items in the calculation
of adjusted EPS are the same as those relating to the calculation
of adjusted EBITDA as set out in Note 3. Amortisation of
acquisition-related intangibles (and the associated tax credit)
relates to the amortisation of intangible assets in respect of
customer relationships and brands which are recognised on a
business combination and are non-cash in nature.
EPS - reported
6 months to 6 months to Year to
30 September 2023 30 September 2022 31 March
2023
GBP'000 GBP'000 GBP'000
Reported earnings per share attributable to shareholders
- basic (0.16)p (0.13)p (0.37)p
- diluted (0.16)p (0.13)p (0.37)p
EPS - adjusted
6 months to 6 months to Year to
30 September 2023 30 September 2022 31 March
2023
GBP'000 GBP'000 GBP'000
Adjusted earnings per share attributable to shareholders
- basic (0.13)p (0.10)p (0.26)p
- diluted (0.13)p (0.10)p (0.26)p
7 Intangible assets
Intangible assets comprise capitalised development costs,
acquired software, customer relationships and goodwill.
Goodwill Other Total
Intangible
Assets
GBP'000 GBP'000 GBP'000
Cost
At 1 April 2023 502 5,335 5,837
Additions - 179 179
(Disposals) - (8) (8)
_____ _______ _______
At 30 September
2023 502 5,506 6,008
Amortisation
At 1 April 2023 - (2,619) (2,619)
Charge for the
period - (190) (190)
Eliminated on
disposal - 2 2
_______ _______ _______
At 30 September
2023 - (2,807) (2,807)
Net carrying
amount
At 30 September
2023 502 2,699 3,201
At 1 April 2023 502 2,716 3,218
Other Intangible Assets comprise:
Customer Brands Development Patents Total
Relationships Costs and licenses
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 April 2023 1,861 567 2,244 663 5,335
Additions - - 154 25 179
(Disposals) - - - (8) (8)
_______ _______ _______ _______ _______
At 30 September
2023 1,861 567 2,398 680 5,506
Amortisation
At 1 April 2023 (857) (337) (933) (492) (2,619)
Charge for the
period (93) (21) (64) (12) (190)
Eliminated on
disposal - - - 2 2
_______ _______ _______ _______ _______
At 30 September
2023 (950) (358) (997) (502) (2,807)
Net carrying
amount
At 30 September
2023 911 209 1,401 178 2,699
At 1 April 2023 1,004 230 1,311 171 2,716
8 Right-of-use assets
Right-of-use assets comprise leases over office buildings and
vehicles.
Vehicles Total
GBP'000 GBP'000
Cost
At 1 April 2023 26 26
Additions in the period - -
(Disposals) in the period - -
_______ _______
At 30 September 2023 26 26
Depreciation
At 1 April 2023 (13) (13)
Charge for the period (4) (4)
Eliminated on disposal - -
_______ _______
At 30 September 2023 (17) (17)
Net carrying amount
At 30 September 2023 9 9
At 1 April 2023 13 13
9 Lease liabilities
Lease liabilities comprise liabilities arising from the
committed and expected payments on leases over office buildings and
vehicles.
Amounts due in more than one year Vehicles Total
GBP'000 GBP'000
At 1 April 2023 4 4
Transfers from long to short term
liabilities (4) (4)
At 30 September 2023 _______ _______
- -
Amounts due in less than one year Vehicles Total
GBP'000 GBP'000
At 1 April 2023 8 8
Repayments of principal (4) (4)
Transfers from long to short term
liabilities 4 4
_______ _______
At 30 September 2023 8 8
10 Post balance sheet events
There have been no events subsequent to the reporting date which
would have a material impact on these interim financial
results.
[END]
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END
IR DZMGZVVGGFZM
(END) Dow Jones Newswires
December 07, 2023 02:00 ET (07:00 GMT)
Byotrol (LSE:BYOT)
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Byotrol (LSE:BYOT)
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