TIDMZED
RNS Number : 9984H
Zenova Group PLC
30 November 2022
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CONSIDERED TO BE IN THE PUBLIC DOMAIN
30 November 2022
Zenova Group PLC
("Zenova", the "Company" or the "Group")
Launch of FX500 and Year End Trading Update
-- Zenova announces the launch of the Zenova FX500, a fire
extinguisher that is effective for use on any type of fire
-- Sale of first units of Zenova FX500 for the use by the military in Ukraine
-- Zenova makes good strategic progress by product, sector and
geography albeit with slower revenues
-- Zenova products have now been specified for several regulated
UK projects which is a key indicator of the Company's superiority
and quality
Zenova Group PLC (AIM: ZED) , specialists in fire safety and
heat management technology solutions, is pleased to announce that
the Zenova FX500 fire extinguisher will be launching in
December.
An initial preorder has been received from a distributor in
Ukraine, following their own internal testing of the Zenova FX500
over the past few months; this order will be used by the Ukrainian
military and will be deployed by the end of the year in Ukraine
where it is expected that more orders will be made as the Zenova
production ramps up to meet demand.
Given that the Zenova FX500 is ideal for use in multiple global
sectors and due to the significant amount of interest it has
gathered, production has commenced in both the UK and the USA.
Enquiries from the UK and USA in recent weeks have presented
encouraging signs for further orders and sub distribution
opportunities from a wide range of sectors now that the Company is
in a position to manufacture in key regions.
The Zenova FX500 is a high-performance handheld fire
extinguisher that is tested by independent experts and adheres to
the highest industry standards. The fire extinguisher is safe to
use on any type of fire, reduces the risk of reignition once the
fire has been extinguished and has been tested to the BS 6165
standard. It boasts an efficient and compact design, allowing for
it to be dispersed from any 360deg orientation, which ensures that
the Zenova FX500 is convenient to handle and simple to operate
while providing the user with a highly effective and fast working
fire extinguisher.
Trading Update
The Company believes that Zenova products remain best in class
and outperform competitor products and as such, the Board's primary
job at this time is one of continued market penetration. This is
developing well as a result of the solid base the programme of
R&D, certification and testing has provided. Despite a global
pandemic and war in Europe, resulting in global resource and
shipping delay issues affecting many sectors, the Company is making
good progress across its product range, including those still in
development.
As announced in previous months Zenova products have now been
specified for a number of projects throughout the UK, including
social housing. This is a significant achievement in a short period
of time as, once specified, the rate of growth of sales and brand
recognition should only increase. The board believes that to become
specified by architects, Local Authorities, specialist consultants
is a key indicator of the superiority and quality the Zenova
products bring to the market.
Successful trials and pilots have allowed the Company to
penetrate many key sectors, which the board has targeted within its
sales plan. The Company has achieved a number of sales that should
act as launch pad to future significant revenues in these key
sectors.
The key sectors currently being targeted by the Company's sales
and marketing team are as follow:
-- Social Housing
-- Local Authorities
-- Military
-- Transport
-- Construction
-- Marine
-- Film & TV
-- Fire services
-- Modular ECO Buildings
The Company has secured some cornerstone agreements or in some
cases made sales within these key sectors which are expected to
develop into large, longer-term sales from these partnerships.
-- Beyond Surface Solutions is a specialist within the Marine
and Automobile sectors with stock now purchased and in place for
Zenova FP, IP, IR and Primer. A number of key trials are now
underway with potential customers from the motor industry for both
Zenova FP and Zenova IP products to assist with fire protection and
insulation respectively.
-- SIG Plc is an experienced specialist within the construction
sector and one of the largest in the UK with a turnover of GBP2.2
billion and a significant presence in Europe. SIG has also now
placed its first order for Zenova FP, IP, IR and Primer with
assisted Zenova product training underway with 24 branches
-- Robert Price, a builders merchants with 29 branches in South
Wales, has placed an order for Zenova products comprising FP, IP,
IR and Primer. Robert Price specialises in supplying innovation to
the construction industry and in particular offers key assistance
in submitting Zenova products for green and safety grant-funded
schemes initiated by the Welsh Assembly.
-- Bells & Two Tones and Fire Service Group UK are
specialist fire service advisers within the Film and TV sector.
Orders have now been placed for Zenova FP and Zenova WB and the
products have been utilised on film sets with exceptional results
and very positive feedback from the film sets' producers and
special effect teams. This customer continues to order products
from the Company and has indicated that it will order significantly
more product in the coming months as a result of the feedback from
the film producers themselves.
Zenova has entered into a number of international
sub-distributor agreements in various territories globally
including Australia, Spain, Germany, Austria and Switzerland as
well as Saudi Arabia and the USA. These contracts include a n
annual commitment to purchase a minimum quantity by value of Zenova
products , as previously announced . This has grown more slowly
than expected and resulted in a low level of orders being placed to
date. The Company expects that this will increase in pace as the
penetration of markets takes place over time and anticipates that
this international network will deliver the revenues committed to
as anticipated , albeit at a slower pace until external market
conditions improve .
The Company continues to identify and appoint international
sub-distributors:
-- Ethmaar Investment Company has been approved as a
sub-distributor in Saudi Arabia for Zenova FP, IP, IR and Primer.
Ethmaar is completing the certification process required by the
government in Saudi Arabia, following which a first order is
expected to be placed by the end of the year.
-- Omnis Panels LLC has been appointed as a sub-distributor
within the construction sector in the USA for Zenova FP, IP, IR and
Primer. Omnis has begun the task of building brand awareness in the
USA with a number of trade show events completed, generating
significant interest.
The Board believes that Zenova is now positioned for a period of
positive turnover growth as the Company benefits from the hard-work
and achievements during the period. The board believes that sales
during the current year have been impacted as sales cycles for new
innovative safety critical products have lengthened as a result of
the broader trading environment. The board therefore expects
revenues it previously anticipated to be recorded in 2022 to be
pushed into the following financial year. Turnover for the period
ended 30 November 2022 will therefore be below that previously
anticipated.
The Company is committed to a programme of rigorous cost
management and is currently managing its budgets on a monthly basis
at Board level. This is coupled with a lower than budgeted
manufacturing cost due to its outsourced just in time manufacturing
arrangements giving it flexibility, speed and scalability which
assists cashflow management. Loss for the year is broadly in line
with the board's expectation.
Zenova's cash balance at the end of October was GBP875,000 which
the board believes is sufficient to meet Zenova's current working
capital requirements.
Tony Crawley, Chief Executive of Zenova Group PLC said: "The
Company continues to make encouraging progress during 2022 and
whilst revenue generation has been lower than expected to date, we
are confident that the demand for Zenova products will continue to
grow, with revenues increasing accordingly.
The launch and first sale of the FX500 extinguisher is another
significant milestone for Zenova and will add a further quality
product to our fire safety range, benefiting our current
sub-distributors and clients globally. The Zenova team has
conducted thorough testing and demos to perfect a quality high
performance product that extinguishes any type of fire.
Zenova is very proud to be supplying its product for use by the
military in Ukraine, with confirmation that the FX500is highly
effective in its application in extinguishing all fires.
For further information please contact:
Zenova Group PLC
Tony Crawley, Chief Executive Via Orana Corporate
Officer Don Nicolson, Executive LLP: Anthony Eastman
Chairman Tel: +44 20 3475 6834
SPARK Advisory Partners Limited (Nominated Adviser)
Matt Davis / Adam Dawes Tel: +44 20 3368 3550
SI Capital Limited (Broker) Tel: +44 1483 413
Nick Emerson 500
About Zenova Group PLC:
The Group, through Zenova Ltd, is the holder of intellectual
property that underpins a suite of fire safety and temperature
management products and technology. The product range is applicable
to industrial, commercial, and residential markets. The Group's
products include fire retardant paints, insulating paints and
render, fire extinguishing fluid and applications. Through
innovative development, and a refined formulation and development
process, Zenova provides industry leading solutions across a range
of fire protection and temperature management problems,
comprising:
Zenova FP
A water-based fire-protection paint that prevents ignition and
spread of fire. It can be used in commercial, industrial, and
domestic applications on variety of materials, from wood to
metal.
Zenova FX
Patent pending fire extinguisher filled with proprietary Zenova
Fluid (Zenova FXB) that extinguishes all types of fires, reduces
chances of re-ignition, works in cold (-15 C) conditions, is
non-toxic and does not produce harmful by-products.
Zenova IP
Thermal insulation paint that creates a thermal barrier,
provides thermal reflection of sunrays and infrared radiation,
anti-condensation, and anti-mould properties. It can be applied to
virtually any exterior or interior material, regardless of the
surface.
Zenova IR
Thermal insulation render to enhance the effectiveness of
insulation by creating a thermo shield. It fills all cavities and
gaps regardless of geometric shape and creates a vacuum - the most
effective insulator.
ZENOVA WB
A wildfire barrier fluid (applied via spray wands or aerial
drops), which provides a virtual barrier where fire simply will not
burn. Repeated tests on a variety of extremely dry wildfire fuels
(grasses, hays, brush) demonstrates the incredible fire resistance
Zenova WB provides, while remaining viable after application for
30+ days in dry conditions.
The Group has achieved this without compromising the
sustainability of natural and economical resources, including
personal health and safety, with ecologically sound products.
Further information on the Group can be found at
www.zenovagroup.com
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