REG - Byotrol PLC - Final Results
30/08/2022 07:16
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RNS Number : 4758X Byotrol PLC 30 August 2022
Byotrol plc
FINAL AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2022
Byotrol plc (AIM: BYOT), ("Byotrol" or "the Company") the specialist infection
prevention and control company is pleased to present its audited results for
the year ended 31 March 2022.
Our results for the year to 31 March 2022 reflect the return to some degree of
normality in our markets following the Covid pandemic. Our sales are ahead
of the partially covid-driven FY 2020, but behind the fully covid-driven
FY2021, and reflect an increased investment across the business from extra
resources generated during the pandemic. Byotrol has exited the Covid
pandemic as a significantly stronger business than it entered.
Financial Highlights
· Sales £6.3m (versus £11.2m in 12m to 31 March 2021, and £6.0m in
12m to 31 March 2020)
· Gross profit pre-exceptional charges £3.0m (versus £4.9m and £2.9m
respectively)
· Operating costs from continued business: £3.3m (versus £3.5m and
£2.7m respectively)
· Adjusted EBITDA: £0.04m (versus £1.78m and £0.47m respectively)
· Debt free with cash at year end of £1.1m (versus £1.6m and £1.7m
respectively)
· Post year end issue of £1m convertible loan notes, subscribed for by
Directors, Senior Management and certain shareholders
Operational Highlights
· Restructuring of team and concentration of activities and reporting
in Chester, including hires of a full time CFO and full time CGO, both with
blue-chip backgrounds and experience. Consolidation of the Byotrol and
Medimark sales and marketing functions, under the new CGO
· Reorganised our technical team to concentrate on innovation rather
than testing, under a new CTO
· Increased investment in systems, including upgraded reporting and
accounting, IT and HR systems and processes
· Launched a programme to reduce inefficiencies in the business,
including reducing skus from over 200 to 170, and substantially concentrating
our proactively-served customer base.
IP/Licencing Highlights
· First commission now generated from Solvay SA on its sales of
Actizone 24 hours surface sanitiser. Solvay continues with its global
launches of Actizone - both in its own right and via global FMCGs - boosted by
receiving full approval from the US EPA for long-lasting sanitisers
· Sale of our own proprietary EPA registered, long-lasting germ kill
product (Byotrol24) in the US to Integrated Resources Inc ("IRI") for gross
cash of $1.4m over four years, plus ongoing royalty payments and a share of
upside if the formulation is sold on.
· Post year-end two new IP agreements reached
o in conjunction with IRI, an exclusive sub-licence over Byotrol24 to an
internationally-recognised brand in US institutional markets
o a 7 year license with Rentokil Initial Plc in alcohol-free hand sanitisers
for serviced washrooms
Commenting on the results, John Langlands, Chairman of Byotrol plc, said:
"Our confidence in Byotrol's strategy remains undiminished and as expected we
are seeing many examples of competitors withdrawing from some of our markets
as biocide regulations bite in the UK and EU. Additionally stability is
starting to return to the marketplace with ordering patterns returning to more
regular levels which we expect to settle further in the second half of this
new financial year.
We now need to focus on the markets and technologies that offer the greatest,
sustainable long-term returns and then invest carefully to maximise profits
for the lowest risk profile. Our markets do continue to offer significant
opportunities and we remain highly confident that we are on the right path to
taking advantage of them. We remain optimistic about future growth and
profitability. "
The information communicated in this announcement contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU) No.
596/2014.
For further information, visit www.byotrolplc.com (http://www.byotrolplc.com)
, follow on twitter @byotrol, or contact
Byotrol plc
David Traynor - Chief Executive Officer
Chris Sedwell - Chief Financial
Officer
01925 742 000
finnCap
Geoff Nash/ James Thompson - Corporate
Finance
Richard Chambers - ECM
020 7220 0500
Flagstaff Strategic and Investor
Communications
020 7129 1474
Tim Thomson/Andrea Seymour/Fergus Melon
byotrol@flagstaffcomms.com
Notes to Editors:
Byotrol plc (BYOT.L), quoted on AIM, is a leading infection prevention and
control company, operating globally in the animal health, human health,
facilities management, and consumer sectors.
Byotrol develops unique antimicrobial technologies for use on surfaces, skin
and instruments, which it then commercialises through market-leading
distribution partners in each sector.
Byotrol's antimicrobial technologies can be licensed for use in leading
brands, to significantly improve their product claims, while reassuring
consumers and end-users of their efficacy and quality.
Founded in 2005, the Company develops technologies and products with the aim
of providing easier, safer and cleaner lives for everyone.
CHAIRMAN'S STATEMENT
Dear Shareholder
Our markets continue to grow from pre-pandemic levels, although growth does
remain uneven and exposed to external shocks. Our results this year reflect
that profile, with increased sales, gross profit and gross margin compared to
pre-covid, but obviously some way below that achieved during the
covid-inflated previous year.
Our confidence in Byotrol's strategy remains undiminished and as expected we
are seeing many examples of competitors withdrawing from some of our markets
as biocide regulations bite in the UK and EU. We continue to invest in
technical performance and regulatory approvals to secure our competitive
position.
Results
Revenue for the year was £6.3m, compared to £11.2m in the previous year and
£6.0m in the prior year, itself inflated by 3 months of covid demand. Product
sales fell to £5.2m, compared to £10.2m and IP sales were unchanged at
£1.1m. This resulted in Adjusted EBITDA of £39k compared to £1.78m in
2021.
We continued to invest judiciously in upgrading systems and our team over the
year, with operating costs up by around 20% compared to pre-covid, but down 5%
compared to the previous financial year.
We completed an internal restructuring during the year related to the
long-overdue integration of Medimark Scientific, resulting in an exceptional
charge of £225k. We have also made exceptional provisions of £214k for
stock taken on during the pandemic that is now slow moving and £147k relating
to a historic IP agreement. After making these charges and non-cash provisions
the loss before tax was £1.25m compared to a profit of £1.0m in the previous
year.
Financing
At the year end we had no borrowings (2021 nil) and cash of £1.1m (2021
£1.6m). In order to ensure that we could continue to invest in the business
to deliver growth, and as equity markets remained very difficult for new
issuance, the Board decided to issue convertible loan notes. This raised £1m
in July with £0.5m coming from Directors, demonstrating their confidence in
the long-term outlook for the business.
Strategy
We continue with our strategy of satisfying increasingly complex needs for
infection control products by developing and commercialising a variety of high
performance biocidal technologies, grounded in excellent science, supported by
strong data and structured to receive regulatory approval in the relevant
markets.
During the pandemic the team was necessarily active in multiple business
segments across both B2B and B2C. This was profitable activity and certainly
provided us with a lot of extra resources. As the pandemic has tailed-off
the team has been working hard to focus on fewer technologies and fewer
products in a smaller number of market segments, which should in turn lead to
improved profitability and stronger market shares. This process will carry
on into the new financial year.
One key change that shareholders will note in future is that we will
increasingly target product claims outside of our historic "long-lasting"
positioning. This is because we have now formalised agreements with a number
of partners to commercialise our long-lasting technologies in the US
(Integrated Resources and its customers), globally in B2B and B2C (Solvay SA
and its customers), UK hospitals (Tristel plc) and a number of smaller
partners elsewhere in the world. We will of course be supporting those
partners where we can - as we will only make money if they do - but we are now
freeing up resources to pursue other technical niches such as natural and
sustainable products, of which our seaweed technologies is one exciting
prospect.
Board and employees
During the year we were pleased to welcome two key new employees to the
leadership team. Chris Sedwell FCA joined the Board in December 2021 as an
Executive Director and our first full-time CFO. Chris joined us from a
consulting role in SMEs and prior to that a Finance Director at ConvaTec. We
were also very pleased to hire Vivan Pinto in Janaury 2022 from Johnson &
Johnson as Chief Growth Officer (CGO), taking over much of the
revenue-generating side of the business. Both have made strong starts within
the Company.
Those senior changes, plus the covid-delayed integration of the Medimark team
into the Company have in turn led to a relatively high staff turnover in the
last year, which the core team have born with a great deal of professionalism
and good humour. The team now numbers 40, compared to 39 a year ago, and I
thank the team for their professionalism and committment during the
transition.
AGM
The Company's AGM is expected to be held on or around 22(nd) September in
London. We held our first post-covid AGM in public last year in London and
found the Q&A section informative and enjoyable. We do value the
participation of smaller and retail shareholders in these meetings and we
continue to encourage your attendance - please do join us if you can.
Prospects
Our prospects remain excellent. We performed very well during the pandemic
and have used the extra resources and skills generated then to improve the
Company at all levels.
We now need to focus on the markets and technologies that offer the greatest,
sustainable long-term returns and then invest carefully to maximise profits
for the lowest risk profile. Your Board remains highly confident that we are
on the right path to doing that and remain optimistic about future growth and
profitability.
John Langlands
Chairman
CHIEF EXECUTIVE OFFICER'S STATEMENT
Dear Shareholder
Now that the world is returning to a degree of normality following the covid
pandemic, Byotrol has returned to its steady pre-covid progress, but with
added excitement about the many increased opportunities in our markets and our
positioning within them.
Our sales for the year were below that of the covid-inflated years but were
still solid (albeit stop-start) across product sales and intellectual
property. We are seeing underlying longer term demand in our markets
steadily increasing and we subscribe to market analyst projections of 10%
future market growth, double that of pre-covid.
That underlying growth is obscured in our results by the vestiges of
oversupply as covid-related demand dissipates, and as international supply
chain challenges persist. There remains an element of excess stock in the
system with overstocked competitors cost-cutting but these pressures are now
beginning to subside.
Having run a very lean business pre-covid, we have utilised the extra
resources generated during the pandemic to upgrade the quality of our systems
and teams and will now gradually return to our lean approach, but with
increased investment in sales and marketing, and team.
Financial highlights of the year, compared to the fully covid-driven FY 2021
and partially covid-driven FY 2020 are;
· Sales £6.3m (versus £11.2m in 12m to 31 March 2021, and £6.0m
in 12m to 31 March 2020)
· Gross profit pre-exceptional charges £3.0m (versus £4.9m and
£2.9m respectively)
· Operating costs from continued business: £3.3m (versus £3.5m
and £2.7m respectively)
· Adjusted EBITDA: £0.04m (versus £1.78m and £0.47m
respectively)
· Cash at year end; £1.1m (versus £1.6m and £1.7m respectively)
· Debt free
Operational highlights:
· Restructuring of team and concentration of activities in Chester,
including
o Recruited our first full time CFO and our first full time CGO, both with
blue-chip backgrounds and experience
o Reorganised our technical team to concentrate on innovation rather than
testing, under a new CTO
o Consolidated the Byotrol and Medimark sales and marketing functions, under
the new CGO
o Post year end, closed the Sevenoaks office, previously the HQ of Medimark,
with staff now based at Byotrol's head offices in Chester and trading activity
similarly transferring across to Byotrol.
· Increased investment in systems, including upgraded reporting and
accounting, IT and HR systems and processes
· Launched a programme to reduce inefficiencies in the business,
including reducing skus from over 200 to 170, and substantially concentrating
our proactively-served customer base.
We are currently projecting costs for the new financial year to increase by
around 4% but we expect payback on this through increased gross margin and
other operational gains.
Strategy
We continue to focus on technologies and chemical formats that satisfy
infection prevention needs and that have the innovation and uniqueness that
should generate sustainable and high returns. Our products have to date been
exclusively biocidal-based chemistries in a variety of formats.
Our longer-term positioning has always been based on offering technologies
that require regulatory approval from the relevant national regulators via a
complex process that weaker competitors cannot support. We continue in that
vein and are pleased to see this is now working for us with competitors now
focussing on fewer and fewer markets. This has been complicated a little by
the UK now choosing to diverge from the EU biocide regulations and introducing
its own regime, but the strategy remains in place and we are busy securing
approvals for our core chemistries in both EU and UK markets, plus other
international markets on a case-by-case basis.
Markets
Professional
We report full year revenues in Professional of £5.1m, compared to £9.4m in
the covid-inflated prior year, and £5.2m in the previous year, itself
inflated by 3 months of covid. Gross profit amounted to £2.6m, compared to
£4.1m and £2.5m respectively
Within this, IP sales (including royalties from licensing) were £1.1m, split
£0.2m in actual cash received and the balance recognised in revenue as
discounted future guaranteed payments.
The gross margin from product sales in this segment in the year was 37.1%
versus 36.8% in the prior year, reflecting good management of supply chain
relationships despite the turmoil
Licensing and IP Sales
· We are pleased to report that we have now invoiced our first
commission from Solvay SA on its sales of Actizone 24 hours surface
sanitiser. This was a modest sum, but an important first step. Solvay
continues with its global launches of Actizone - both in its own right and via
global FMCGs - boosted by receiving full approval from the US EPA for
long-lasting germ kill claims.
· In October and March this year we sold our own long-lasting germ
kill product (Byotrol24) in the US to Integrated Resources Inc ("IRI") for
gross cash of $1.4m over four years, plus ongoing royalty payments and a share
of upside if the formulation is sold on. Post year-end we signed, in
conjunction with IRI, a sub-licence over Byotrol24 to an
internationally-recognised brand in US institutional markets
· Other existing licensees across Professional and Consumer
(Tristel, SC Johnson, Tutlewax, Byoworks), largely performed to our reduced
expectations given the unusual post-pandemic market environment.
· Our alcohol-free hand-sanitiser licensee Advanced Hygienics LLC
("AH") in the US has struggled over recent years with competition from
alcohol-based sanitisers, and no support from US regulators. We feel it
prudent to write down the value of that license from US$0.15m to zero,
although we will keep the agreement open as AH restructures.
Consumer
We report full year revenues in Consumer of £1.2m, compared to £1.8m in the
covid-inflated prior year, and £0.8m in the previous year, itself inflated by
3 months of covid. Gross profit amounted to £0.4m, compared to £0.7m and
£0.4m respectively
The gross margin from product sales in this segment in the year was 36.6%
versus 39.4% in the prior year, reflecting some challenges with our consumer
manufacturing base in China.
Consumer is still under-resourced within the Company and consumer-oriented
marketing relatively limited. However all core customers have remained solid
in performance and we have had some success in new listings for floor care
sanitisers (dispensed by Swan and RK Wholesale branded domestic cleaning
machines) and on-line listings for Hycolin24 surface sanitiser at Amazon and
Ocado.
Since year end we have hired new leadership for our consumer business, both at
strategy and national account manager level, and also within group marketing,
which supports our consumer marketing efforts.
Research and Development
Our R&D team remains at the core of Byotrol's positioning and we continue
to invest heavily in its activities.
The team performed a largely support role during the pandemic, solidifying and
validating product claims against coronavirus, testing and approving new
formulations and formats where supply chain conditions demanded. In the past
year, the team under the new leadership of Dr Chris Plummer, has shifted its
focus to:
· Developing and validating the performance of next generation
surface sanitiser, approved for EU and UK animal health markets. This will
form the basis of Byorol's biggest ever product launch, planned for November
2022
· Developing and validating the performance of a fogging
disinfection technology for large indoor spaces, with product claims of 30 day
efficacy. This is particuarly targeted to overseas facilites management
markets
· Developing natural based sanitisers for surfaces and human skin,
seeking sustainable technologies that either meet the performance of
non-naturals or exceed the performance of currently used naturals.
· Securing partners for the commercialistion of the anti-viral
properties of seaweed, where we now have a data-supported explanation for the
mode of action underlying the extraordinary performance characteristics.
Securing partners is a slow process, but progress is encouraging with two
analytical programmes already underway with globally-recognised names in
FMCG and pharmaceuticals.
All of these projects are proceeding in a very encouraging manner.
Balance Sheet
Our balance sheet remains healthy, with cash at year end of £1.1m (£1.6m)
and stock, post provisions, at £0.4m (£1.1m), the latter reflecting the
exceptional provision of £0.2m against slow moving inventory dating back to
the height of the pandemic. Both indicators are below the previous year as a
result of post covid adjustments but are still both ahead of historical norms
for our business.
As annnounced on 28 July, post year-end we raised £1m by way of convertible
loan notes, from directors and their families and from existing significant
shareholders. This extra cash allows for continued investment in the
business without increasing our risk profile and without being reliant on
future capital markets health, especially in the event of more external
economic and political shocks.
In the year we added a further £0.5m to capitalised development costs to
reflect ongoing investment in regulatory, IP and patent assets. This should
underpin the Company's valuation as the regulatory environment continues to
tighten.
Outlook
We expected product sales and income from royalties to fall this year relative
to the pandemic period. We also expected a difficult trading environment as
overstocking across the industry worked through. These expectations became
reality and our results show the impact of those pressures.
Nevertheless we remain completely confident in our products and our future
performance and have been investing hard to secure future growth and profits
in the rapidly changing industry environment we operate in. We have
therefore been reviewing strategy and processes across product and customer
concentration, core versus non core technology platforms, sector focus, export
opportunities and of course our teams across all levels. We have introduced
a lot of change and believe there are many efficiencies to accrue. Extra
resources generated from sales during the pandemic have given us a one-off
opportunity to upgrade and solidify our business for long-term gain.
The opportunity remains vast in this market and the profit potential
substantial. We continue to be very excited about our future and look
forward to further progress in the year ahead.
David Traynor
Chief Executive Officer
GROUP STATEMENT OF COMPREHENSIVE INCOME 2022 2021
For the year ended 31 March 2022
Note £'000 £'000
(audited) (audited)
Revenue 1 6,327 11,214
Cost of sales pre-exceptional item (3,287) (6,359)
_______ _______
Gross profit pre-exceptional item 3,040 4,855
Cost of sales - exceptional item (214) -
_______ _______
Gross profit 2,826 4,855
Adjusted administrative expenses (3,315) (3,486)
_______ _______
Adjusted operating (loss) / profit (489) 1,369
Exceptional items (372) -
Amortisation of acquisition-related intangibles (317) (243)
Share-based payments (95) (111)
_______ _______
Operating (loss) / profit 2 (1,273) 1,015
Finance income 48 66
Finance expense (20) (44)
_______ _______
(Loss) / Profit before taxation (1,245) 1,037
Income tax (charge) (102) (58)
_______ _______
(Loss) / Profit for the year from continuing operations (1,347) 979
Discontinued operations
(Loss) for the year from discontinued operations - (98)
_______ _______
(Loss) / Profit for the year (1,347) 881
Other comprehensive income/(expense):
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations 59 (98)
_______ _______
Other comprehensive income, net of tax 59 (98)
Total comprehensive (expense) / income for the year (1,288) 783
Total comprehensive income / (expense) for the year arises from:
- continuing operations (1,288) 881
- discontinued operations - (98)
_______ _______
(1,288) 783
Earnings per share - from continuing operations
Attributable to the owners of Byotrol plc (basic) (0.30p) 0.22p
Attributable to the owners of Byotrol plc (diluted) (0.29p) 0.22p
Earnings per share - from discontinued operations
Attributable to the owners of Byotrol plc (basic) - (0.02)p
Attributable to the owners of Byotrol plc p (diluted) - (0.02)p
Earnings per share - from profit for the year
Attributable to the owners of Byotrol plc (basic) (0.30p) 0.20p
Attributable to the owners of Byotrol plc (diluted) (0.29p) 0.20p
GROUP STATEMENT OF FINANCIAL POSITION
For the year ended 31 March 2022
2022 2021
Note £'000 £'000
(audited) (audited)
Assets
Non-current assets
Intangible assets 3,506 3,552
Tangible assets 73 84
Right-of-use assets 25 30
Deferred tax assets 134 315
Trade receivables 1,561 1,249
_______ _______
5,299 5,230
Current assets
Inventories 399 1,099
Trade and other receivables 1,941 1,614
Cash and cash equivalents 1,132 1,598
_______ _______
3,472 4,311
TOTAL ASSETS 8,771 9,541
Liabilities
Non-current liabilities
Lease liabilities 12 4
Deferred tax liabilities 383 348
_______ _______
395 352
Current liabilities
Trade and other payables 1,246 1,023
Lease liabilities 12 26
_______ _______
1,258 1,049
TOTAL LIABILITIES 1,653 1,401
NET ASSETS 7,118 8,140
Issued share capital and reserves
Share capital 1,135 1,116
Share premium 457 190
Other reserves 787 728
Retained earnings 4,739 6,106
_______ _______
TOTAL EQUITY 7,118 8,140
GROUP STATEMENT OF CASH FLOWS
For the year ended 31 March 2022
2022 2021
£'000 £'000
(audited) (audited)
Cash flows from operating activities
(Loss)/Profit for the year (1,347) 881
Adjustments for:
Finance income (48) (66)
Finance costs 20 44
Depreciation of tangible non-current assets 31 26
Amortisation and impairment of intangible non-current assets 517 426
Loss on patent abandonment 17 107
Income tax charge recognised in profit or loss 102 58
Share-based payments 95 111
Costs relating to Capital Reduction recognised in equity - (36)
_______ _______
Operating cash flows before movements in working capital from continuing (613) 1,551
operations
(Increase)/decrease in trade and other receivables (555) 90
(Increase)/decrease in inventories 699 (814)
Increase/(decrease) in trade and other payables 186 (34)
Cash in/(out)flow from discontinued operations - (211)
_______ _______
Cash generated (used in)/generated from operating activities (283) 582
Income tax refund received - 25
_______ _______
Net cash generated from/(used in) operating activities (283) 607
Cash flows from investing activities
Development of intangible assets (488) (394)
Acquisition of property, plant and equipment (20) (55)
_______ _______
Net cash (used) in investing activities (508) (449)
Cash flows from financing activities
Proceeds from issue of ordinary shares, net of issue costs 286 205
Movement in invoice discounting facility - (296)
Repayments of principal on lease liabilities (7) (39)
Finance costs (12) (42)
Interest expense on lease liabilities (1) (2)
_______ _______
Net cash generated from/(used in) financing activities 266 (174)
Net (decrease) in cash and cash equivalents (525) (16)
Foreign exchange differences 59 (98)
Cash and equivalent at beginning of period 1,598 1,712
_______ _______
Cash and cash equivalents at end of period 1,132 1,598
GROUP STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2022
Share capital Share premium Merger reserve Retained earnings Total
Exchange reserve
£'000 £'000 £000's £'000 £'000 £'000
Balance at 1 April 2020 1,101 28,423 826 1,065 (24,353) 7,062
Profit after taxation for the period - - - 881 881
Other comprehensive income:
Exchange differences - - (98) - - (98)
Transactions with owners:
Share-based payments - - - - 111 111
Deferred tax on share-based payment transactions - - - - 15 15
Shares issued during the year for cash 15 190 - - - 205
Transactions with owners - capital reduction:
Capitalisation of Merger reserve to B Ordinary Shares 1,065 - (1,065) -
Cancellation of B Ordinary Shares (1,065) - 1,065 -
Cancellation of Share Premium (28,423) - 28,423 -
Costs of Capital Reduction (36) (36)
_____ _____ _____ _____ _____ _____
Balance at 31 March 2021 1,116 190 728 - 6,106 8,140
Loss after taxation for the period - - - - (1,347) (1,347)
Other comprehensive income:
Exchange differences - - 59 - - 59
Transactions with owners:
Share-based payments - - - - 95 95
Deferred tax on share-based payment transactions - - - - (115) (115)
Shares issued during the year for cash 19 267 - - - 286
_____ _____ _____ _____ _____ _____
Balance at 31 March 2022 1,135 457 787 - 4,739 7,118
1 Revenue and segmental analysis
The Chief Operating Decision Maker monitors the operating results of segments
separately in order to allocate resources between segments and to assess
performance. Segment performance is predominantly evaluated based on gross
profit as operating costs, net finance costs and income tax are managed on a
centralised basis; therefore, these items are not allocated between operating
segments for the purposes of the information presented to the Chief Operating
Decision Maker and are accordingly omitted from the segmental information
below.
Discontinued operations comprise the entirety of the Group's US operations
which sold a range of biocidal products primarily to consumers via major
retailers. This operation was discontinued in the Prior Year.
For the year ended 31 March 2022, there was one customer that represented more
than 10% of the Group's revenue, amounting to £1.1m, included within Royalty
and licencing income.
An analysis of revenue (and the related gross profit) by product or service
and by geography is given below. The comparative amounts for profit and loss
information have been reclassified in line with the requirements of IFRS 5:
Non-current assets held for sale and discontinued operations.
Revenue by type
To 31 March 2022 Continuing Discontinued operations Total
operations
Professional Consumer
£'000 £'000 £'000 £'000
Product sales 4,034 1,181 - 5,215
Royalty and licensing income 1,112 - - 1,112
_______ _______ _______ _______
Total revenue 5,146 1,181 - 6,327
To 31 March 2021 Continuing Discontinued operations Total
operations
Professional Consumer
£'000 £'000 £'000 £'000
Product sales 8,334 1,805 15 10,154
Royalty and licensing income 1,075 - - 1,075
_______ _______ _______ _______
Total revenue 9,409 1,805 15 11,229
Gross profit by type
To 31 March 2022 Continuing Discontinued operations Total
operations
Professional Consumer
£'000 £'000 £'000 £'000
Product sales 1,496 432 - 1,928
Royalty and licensing income 1,112 - - 1,112
_______ _______ _______ _______
Total gross profit - pre-exceptional item 2,608 432 - 3,040
To 31 March 2021 Continuing Discontinued operations Total
operations
Professional Consumer
£'000 £'000 £'000 £'000
Product sales 3,068 712 (13) 3,767
Royalty and licensing income 1,075 - - 1,075
_______ _______ _______ _______
Total gross profit 4,143 712 (13) 4,842
Revenue by geography
The Group recognises revenue in three geographical regions based on the
location of customers, as set out in the following table:
2022 2021
£'000 £'000
United Kingdom 4,197 8,468
Rest of World 1,011 2,455
North America * 1,119 291
_______ _______
Total continuing operations 6,327 11,214
* this represents revenue other than that arising from discontinued operations
Management makes no allocation of costs, assets or liabilities between these
segments since all trading activities are operated as a single business unit.
Customer concentration
The Group has no customers representing individually over 10% of revenue each
(2021: nil), apart from within the Royalty and licensing income segment as
previously noted.
Licence revenue and finance income
Licence 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 year on the credit deemed to be extended to the
customer (on a reducing balance basis). For the financial year 2022 this
figure amounts to licence revenue of £1.11m and related notional interest
income of £36,000 (2021: £1.08m and £53,000).
2 Reconciliation of Operating Profit to Adjusted
EBITDA
Reconciliation of operating profit to EBITDA (earnings before interest,
taxation, depreciation and amortisation) and Adjusted EBITDA:
Year to 31 March 2022 2021
£'000 £'000
Operating (Loss)/profit (1,273) 1,015
Amortisation and depreciation 578 491
_______ _______
EBITDA (695) 1,506
Adjusted for:
Loss on patent abandonment 17 106
Revenue recognised as interest under IFRS 15 36 53
Expensed share-based payments 95 111
Exceptional items:
- Inventory Provision 214 -
- IP receivables provision 147 -
- Restructure costs 225 -
Total exceptional items 586 -
_______ _______
Adjusted EBITDA 39 1,776
3 Annual Report & Accounts
The full Annual Report & Accounts for the year ended 31 March 2022,
including Accounting Policies and Notes to the Financial Statements, will be
available today on our website www.byotrolplc.com (http://www.byotrolplc.com)
, along with Notice of the AGM, to be held at finnCap's offices in London at
11am on 22(nd) September 2022.
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