REG - Byotrol PLC - Final Results
31/07/2023 07:00
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RNS Number : 6293H Byotrol PLC 31 July 2023
Byotrol plc
FINAL AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2023
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 2023 ("Results").
We are pleased to report our results in line with expectations in a year of
sizeable change. This has been a year of increased focus on reducing
complexity and building Byotrol's product sales operations in our chosen core
markets of animal health and human health. This makes us ideally placed to
benefit from the multiple growth drivers across our markets.
We report that our efforts are already showing some very substantial progress,
with gross margin on products improving from 37% to 43% during the year.
Financial Highlights
· Sales £4.6m (versus £6.3m in 12m to 31 March 2022)
· Gross profit pre-exceptional charges £2.1m (versus £3.0m)
· Gross margin on product sales, pre-exceptional charges 42.6% (versus
37.0%)
· Operating costs from continued business: £3.4m (versus £3.3m)
· Adjusted EBITDA: -£0.7m (versus £0.04m)
· Cash at year end; £0.7m (versus £1.1m)
Operational Highlights
· Further high-quality additions to the team and complete concentration
of activities in Chester, including:
o Recruitment of Ian Brown from Univar as Director of Group Supply Chain
o A new Professional Sales team with strong track records in animal and
human health
o A new Customer Services team
o An upgraded Quality team, now putting professional and systemised quality
at the core of the company
o Continued focus on cost control with closure of the Sevenoaks office,
previously the HQ of Medimark, with all Medimark functions and systems now
absorbed within Byotrol in the Chester central office
· SKUs reduced from 200 to 130, technology platforms for Product
Sales from 7 to 4, and consolidation to one logistics provider
· Concentration of marketing and sales resources on animal health and
human health, focusing on niches with high technical requirements and superior
margins. These two segments now account for 71% of our sales in the year,
compared to 61% in the previous year.
· Launch of market-leading new formulations and brand imagery for
surface care products in animal health, especially for Anigene branded
products. For H2 of the 2023 Financial Year, Anigene, through the new Cruise
reformulation, has grown 9% and is accelerating in the new financial year.
IP/Licencing Highlights
With our product sales now being firmly targeted to animal and human health,
our IP commercialisation efforts are able to target all other market segments
with our technologies and also seek and develop third party technologies that
we can cross-sell into animal and human health:
· Solvay's Actizone continues to proceed very encouragingly, with
further regulatory approvals and with new formats now ready to go. Due to us
(and Solvay) being limited by confidentiality agreements with the brands that
are launching, we remain very restricted on what we can report on customer
progress. But we understand that global companies are now in the process of
launching and market-testing Actizone based products under their own branding,
with more to come.
· Integrated Resources Inc ("IRI"), US licensee of Byotrol24, our
EPA-registered long lasting surface sanitiser continues to progress to a
market launch in US institutional markets under an internationally-recognised
brand. Product registration is now almost complete in the individual states,
including with new and enhanced efficacy claims against viruses and as a
hospital-grade sanitizer. Again, we stand to do well financially should
those licensees be successful with their launches.
· Post year end, we gained patent approval in the UK for a seaweed
extract for use as a prophylatic against viruses. Without a patent it was
proving tricky to engage safely in a sales process without initial and lengthy
confidentiality discussions, but with that now achieved we now have more
freedom to seek partners.
· We have also now gained a patent in the UK for our alcohol-free hand
sanitiser formulation, the basis of our brand Invirtu and the formulation
supplied to Boots retail. This further increases the value of this excellent
asset.
Investor Presentation
The Company is intending to do an investor roadshow, to include an update on
trading for the current financial year, in mid September. This will include
an InvestorMeetCompany on-line presentation and Q&A.
Commenting on the results, Trevor Francis, Chairman of Byotrol plc, said:
"I remain optimistic that we can flourish in the substantial and global
opportunities in infection control, and I have long been a key supporter of
our mix of IP and product sales. I have for some time thought we needed to
do better at the product sales side of our business and I believe we now have
the team and the systems to do just that. Certainly all the key indicators
on our business health in that respect are moving apace in the right
direction.
I firmly believe (and can see that) your Company is becoming stronger.
Following the acquisition of Medimark, it took some time to align our
processes and operating systems, but these are now in good shape and
contributing significantly in our strategy. With the changes the new team is
now making I am confident that this work will soon be recognised in due course
through improved results . Your Board remains very engaged and highly
confident in the Company's positioning and in its financial prospects. We
look forward to a year of significant revenue growth and returning to
profitability"
For further information, visit www.byotrolplc.com (http://www.byotrolplc.com)
, follow on twitter @byotrol, or contact
Byotrol Plc
Dr Trevor Francis, Non- Executive Chairman +44 (0)1925 742 000
Vivan Pinto, 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 (mailto:byotrol@flagstaffcomms.com)
Notes to Editors:
Byotrol plc (BYOT.L), quoted on AIM, is a specialist infection prevention
and control company, operating globally in the Healthcare, Industrial, Food
and Consumer sectors, providing low toxicity products with a broad-based and
targeted efficacy across all microbial classes; bacteria, viruses (including
coronavirus), fungi, moulds, mycobacteria and algae.
Byotrol's products can be used stand-alone or as ingredients within existing
products, where they can significantly improve their performance, especially
in personal hygiene, domestic and industrial disinfection, odour control, food
production and food management.
Byotrol develops and commercialises technologies that create easier, safer and
cleaner lives for everyone.
For more information, go to byotrol.com
CHAIRMAN'S STATEMENT
Dear Shareholder
This has been a year of sizeable change, with increased focus on reducing
complexity and building Byotrol's product sales operations in our chosen core
markets of animal health and human health. This also required us to focus
hard on our supply chain, quality and marketing operations, all linked to
offering a more professional sales process. I am pleased to report that our
efforts are already showing some very healthy progress with gross margin on
products improved from 37% to 43% during the year.
Revenue for the year was £4.6m, compared to £6.3m in the previous year,
comprising £4.3m in product sales (2022: £5.2m) and £0.3m (2022: £1.1m) in
IP sales.
We remain confident in our strategy and have continued to invest over the year
in people, technology and marketing, as efficiently as possible. Headline
operating costs were broadly flat YoY at £3.4m, but staff costs down by over
9% YoY to £2m and technology costs net of capitalised spend were more than
covered by R&D tax credits.
This resulted in an Adjusted Loss BeforeTax, Depreciation and Amortisation of
£0.7m compared to a profit (Adjusted EBITDA) of £40k in 2022, in line with
market expectations..
IP commercialisation remains a key part of our business activities and we
continue to support current relationships as well as search for new licensees
and alliance partners. We have been reasonably successful in the last
year, but we now continue to demand more of ourselves, albeit in tough
macro-economic times.
Financing
Our financing strategy for many years had been to raise equity capital to
finance growth as company valuation increased. This strategy has been a
challenge in the last few years, having been impacted by (a) a steady decrease
in institutional interest in listed companies of our size, except amongst EIS
and VCT funds who rarely buy shares in the secondary market; and (b) our
segment falling out of favour as the financial hype around Covid dissipated.
We have therefore now turned for the time being to non market and internal
sources of cash where needed, including monetising IP assets sooner than
historically we would have planned. As announced in July 2022, we raised
£1m by way of convertible loan notes, to underpin continued investment in the
business. At year end we reported net debt of £313k and we expect to return
to profit in the current financial year.
Board and employees
In the last year, we have been through a period of managed change at Board
level, initiated by John Langland's retirement and secondly to improve the
operational activities of the Company. The key changes were:
· John Langlands retiring in January this year, following a very
influential six years with us, especially in guiding the Company through the
exceptionally volatile market conditions in the pandemic period. We are very
grateful to John for his calm leadership and considerable experience in
helping the Company develop into what is unarguably a much better company.
· John was replaced for a short period by David Traynor stepping up
from CEO to Executive Chairman in November 2022 to manage the transition to
the new team. The Board was conscious of the need for the long-term Chair to
be independent and non-executive so it was with some pride that I agreed in
April this year to become Byotrol's Independent Non Executive Chairman.
· Vivan Pinto promoted in November to Chief Executive Officer, with a
particular brief to increase product sales and margins, something he had
already been doing very well for us since joining as Chief Growth Officer in
January 2022
· David Traynor returned as Executive Director, with a brief to develop
further commercialisation of our intellectual property portfolio.
· We welcomed Ian Brown from Univar, and ex BP Lubricants, as Director
of Supply Chain and Dr Chris Plummer was promoted to Head of Technology with a
brief to further grow our excellent technical capability.
· Jane Kiely was promoted to Head of Marketing in November following
Vivan's elevation to the CEO role.
AGM
The Company's AGM is expected to be held on or around Wednesday 13(th)
September in London. We 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
I was very pleased to be asked by the Board to take over as Chairman of
Byotrol. I had already spent over eight years with the Company as CTO and
had overseen the early development of our excellent technologies, and then
latterly as a Non Executive Director since the end of 2021.
I am confident that we can flourish in the substantial and global
opportunities in biocides, and I have long been a key supporter of our mix of
IP and product sales. I have for some time thought we needed to do better at
the product sales side of our business and I believe we now have the team and
the systems to do just that. Certainly all the key indicators on our
business health in that respect are moving apace in the right direction.
I firmly believe (and can see that) your Company is becoming stronger.
Following the acquisition of Medimark, it took some time to align our
processes and operating systems, but these are now in good shape and
contributing significantly in our strategy. With the changes the new team is
now making I am confident that this work will soon be recognised in due course
in an improved valuation. Your Board remains very engaged and highly
confident in the Company's positioning and in its financial prospects. We
look forward to a year of significant progress and a return to profitability.
Trevor Francis
Non-Executive Chairman
CHIEF EXECUTIVE OFFICER'S STATEMENT
Dear Shareholder
This is my first shareholder report, having taken over as CEO in November
2022. I am convinced that the overall strategy being pursued by the Company
is the right one, namely 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.
Our markets remain very large and continue to grow globally and we are now
seeing competitors withdrawing from certain markets as regulation bites
harder. We are also seeing the serious market disruption that Covid caused
settling down with the last vestiges of covid-related over-supply
disappearing, although now replaced by pricing pressures on both input and
output driven by the energy-driven recessionary environment.
It has been clear to me for some time that the company needed to increase
focus on product sales in fewer segments and SKUs, and to attend to operating
systems, processes and efficiencies as we drive scale within our chosen
markets. This has led to changes in the team, to a strategic shift of
resources to animal and human health and to substiantal reduction in product
formats and technologies.
Our results for the year under review show some of the impact of those changes
and include some one-off exceptional charges to our inventory of £258k.
Despite those changes, our reported results still came in line with
expectations and investor guidance and the underlying trends in the core areas
of focus are all very encouraging. This is shown in particular by an
increase in gross margin on product sales of +6% pts, from 37% to 43%.
Financial highlights of the year are;
· Sales £4.6m (versus £6.3m in 12m to 31 March 2022)
· Gross profit pre-exceptional charges £2.1m (versus £3.0m)
· Gross margin on product sales, pre-exceptional charges 42.6% (versus
37.0%)
· Operating costs from continued business: £3.4m (versus £3.3m)
· Adjusted EBITDA: -£0.7m (versus £0.04m)
· Cash at year end; £0.7m (versus £1.1m)
Operational highlights:
· Further high-quality additions to the team and complete concentration
of activities in Chester, including:
o Recruitment of Ian Brown from Univar as Director of Group Supply Chain
o A new Professional Sales team with strong track records in animal and
human health
o A new Customer Services team
o A new Quality team, now putting professional and systemised quality at the
core of the company
o Formal closure of the Sevenoaks office, previously the HQ of Medimark,
with all Medimark functions and systems now absorbed within Byotrol in the
Chester central office
· SKUs reduced from 200 to 130, technology platforms for Product Sales
from 7 to 4.
Markets
Professional
We report full year revenues in Professional of £4.0m, compared to £5.1m in
the previous year. Gross profit amounted to £1.8m, compared to £2.6m
respectively. Product sales gross margin of 42.5% versus 37.1% in the prior
year reflects well-executed price rises and operational improvements
Key initiatives in Professional in this year were:
· Concentration of marketing and sales resources on animal health and
human health, focusing on niches with high technical requirements and superior
margins. These two segments now account for 71% of our sales in the year,
compared to 61% in the previous year.
· Launch of market-leading new formulations and brand imagery for
surface care products in animal health, especially for Anigene branded
products. For H2 of the 2023 Financial Year, Anigene, through the new Cruise
reformulation, has grown 9% and is accelerating in the new financial year.
· Launch of our first training modules for healthcare professionals, to
educate our customers on the benefits of the new technologies we are
launching.
· Transitioning out of medical devices, where our technologies were
increasingly out of step with Regulations, and out of products containing
PHMB, which is being regulated out of UK and EU markets.
· In Europe, we have successfully registered Anigene in France, and are
looking to place our first order this financial year. This compliments our
successful transition of existing customers in Europe and the rest of the
world to the new Anigene formulation.
Within Professional, we reported IP sales (including royalties from licensing)
of £0.3m (of which £0.1m was received in cash), compared to £1.1m in the
previous year, split £0.2m in actual cash received and the balance recognised
in revenue as discounted future guaranteed payments.
Licensing and IP Sales
With our product sales now being firmly targeted to animal and human health,
our IP commercialisation efforts are able to target all other market segments
with our technologies and also seek and develop third party technologies that
we can cross sell into animal and human health:
· Solvay's Actizone continues to proceed very encouragingly, with
further regulatory approvals and with new formats now ready to go. Due to
us and Solvay being limited by confidentiality agreements with the brands that
are launching, we remain very restricted on what we can report on customer
progress. But we understand that three global companies are now in the
process of launching and market-testing Actizone based products under their
own branding, with more to come. We are also pleased to report that we have
now received our first commission payment from Solvay SA on its sales, which
as previously reported is small in magnitude. We expect this to grow though
and assuming that Solvay and its customers are successful with launches, we
will also be succesful in monetary terms, all at 100% gross margin.
· Integrated Resources Inc ("IRI"), US licensee of Byotrol24, our
EPA-registered long lasting surface sanitiser continues to progress to a
market launch in US institutional markets under an internationally-recognised
brand. Product registration is now almost complete in the individual states,
including with new and enhanced efficacy claims against viruses and as a
hospital-grade sanitizer. Again, we stand to do very well financially should
those licensees be successful with their launches.
· As in the prior year, our other existing licensees across
Professional and Consumer (Tristel, SC Johnson, Turtlewax, Byoworks), largely
performed to plan at or below minimum guaranteed royalty levels, as a result
of their own struggles with the unusual market environment. This means that
Byotrol received cash of £0.4m in the year under review from licensees, all
of which had been already taken through our profit and loss in previous years,
but zero extra revenue.
· Post year end, we gained patent approval in the UK for a seaweed
extract for use as a prophylatic against viruses. This had proved a more
complex process than we thought due to an issue with a non-commercial,
academic patent in one country in Asia. Without a patent it was proving
tricky to engage safely in a sales process, but the challenge has now been
resolved and we now have more freedom to seek partners.
· We have also now gained a patent in the UK for our alcohol-free hand
sanitiser formulation, the basis of our brand Invirtu and the formulation
supplied to Boots retail. This further increases the value of this excellent
asset.
Consumer
We report full year revenues in Consumer of £0.6m, compared to £1.2m in the
previous year. Gross profit amounted to £0.3m, compared to £0.4m, which is
a substantial gross margin improvement to 43% from 37%, albeit on lower sales,
as we exited low cost manufacturing in China for third party own label brands
In line with reducing complexity and bringing greater focus, and having now
reviewed consumer as a segment, we have concluded that our business here sits
better as a B2B activity, as our customers are intermediaries to consumers
and not the consumers themselves. So we will continue to service existing
customers well (and seek new ones for our core technologies, particularly
online) but with very limited B2C marketing activities. This strategy is
already bearing fruit as we have seen a 5-fold increase in our online Amazon
consumer sales through the launch of the new Anigene Cruise formulation on the
platform. As we continue to roll out our new formulations in more consumer
friendly formats such as ready to use sprays, we will apply these technologies
to the consumer sector, split through our divisions of animal and human
health.
Research and Development
Our R&D team remains at the core of Byotrol's positioning and we continue
to invest heavily in its activities. A number of technical initiatives are
making good progress, notably:
· the reformulation of Anigene in both concentrate and RTU, and - soon
to come - Chemgene for human health and other non animal markets.
· fine tuning our new naturals-based, sustainable surface and handcare
formulations under the generic project name of Artemis. These formulations
are showing very high - and in many cases superior - efficacy for uses across
all of our targeted market claims and offer excellent growth potential.
Natural/sustainable products are favoured by EU and UK regulators with a
compressed, lower cost approval process, but those approvals are required in
advance of sales, rather than being acquired in parallel.
· further developing seaweed as an anti-viral, particularly as a
prophylactic agent. Almost all formulation and supply chain challenges have
now been addressed satisfactorily, and the project now moves more to a
commercialisation project.
Balance Sheet
Our balance sheet remains healthy, with cash at year end of £0.7m (2022:
£1.1m) and stock, post provisions, at £0.5m (2022: £0.4m).
On 28 July 2022, we raised £1m by way of convertible loan notes, the majority
from directors and their families and also from a small number of existing
significant shareholders. This was to reduce the risk profile of the company
during the current difficult financing markets and has allowed for continued,
confident investment in the business.
In the year we added a further £0.4m to capitalised development costs to
reflect ongoing investment in regulatory, IP and patent assets.
Outlook
Although we oversaw a dip in sales in the year under review, this was the
result of a proactive initiative to reduce complexity and increase focus to
improve the margins and fundamental health of the Company. Since year end we
have seen fundamental improvements in all KPIs in the company, across sales,
profits and operations. The sales trends are particularly encouraging year
to date in animal healthcare and we are expecting the same in the second half
of this year in human health.
We have now completed the rationalisation of our portfolio, and completed the
reorganisation of our business model. We are now poised for growth, despite
the recessionary economic environment, as we continue to roll out our new
technologies across Animal and Human health, where to date we have had a
positive reception from our customers. We will also look to access new
geographies, particularly in Europe through the technologies which are in line
with the new Biocides Product Regulations which are being rolled out over the
next 2 years.
I believe that Byotrol is now in better shape than it has ever been, and we
are well under way in completing our transition to the new regulatory
landscape in which we operate. The team will continue to build on the
positive changes we have already made and remain determined to report
profitable growth over the next two financial years and beyond.
Vivan Pinto
Chief Executive Officer
GROUP STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2023
2023 2022
£'000 £'000
(audited) (audited)
Revenue 4,592 6,327
Cost of sales pre-exceptional item (2,475) (3,287)
_______ _______
Gross profit pre-exceptional item 2,117 3,040
Cost of sales - exceptional item (258) (214)
_______ _______
Gross profit 1,859 2,826
Adjusted administrative expenses (3,383) (3,315)
_______ _______
Adjusted operating (loss) (1,524) (489)
Exceptional items - (372)
Amortisation of acquisition-related intangibles (300) (317)
Share-based payments (33) (95)
_______ _______
Operating (loss) (1,857) (1,273)
Finance income 103 48
Finance expense (71) (20)
_______ _______
(Loss) before taxation (1,825) (1,245)
Income tax credit/(charge) 133 (102)
_______ _______
(Loss) for the year (1,692) (1,347)
Other comprehensive income/(expense):
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations 107 59
_______ _______
Other comprehensive income, net of tax 107 59
Total comprehensive (expense) for the year (1,585) (1,288)
Earnings per share - from profit for the year
Attributable to the owners of Byotrol plc (basic) (0.26)p (0.07)p
Attributable to the owners of Byotrol plc (diluted) (0.26)p (0.07)p
GROUP STATEMENT OF FINANCIAL POSITION
For the year ended 31 March 2023
2023 2022
£'000 £'000
(audited) (audited)
Assets
Non-current assets
Intangible assets 3,218 3,506
Tangible assets 61 73
Right-of-use assets 13 25
Deferred tax assets 163 134
Trade receivables 1,436 1,561
_______ _______
4,891 5,299
Current assets
Inventories 494 399
Trade and other receivables 1,669 1,941
Cash and cash equivalents 687 1,132
_______ _______
2,850 3,472
TOTAL ASSETS 7,741 8,771
Liabilities
Non-current liabilities
Lease liabilities 4 12
Deferred tax liabilities 299 383
Convertible loan notes 962 -
_______ _______
1,265 395
Current liabilities
Trade and other payables 863 1,246
Lease liabilities 8 12
_______ _______
871 1,258
TOTAL LIABILITIES 2,136 1,653
NET ASSETS 5,605 7,118
Issued share capital and reserves
Share capital 1,135 1,135
Share premium 457 457
Other reserves 932 787
Retained earnings 3,081 4,739
_______ _______
TOTAL EQUITY 5,605 7,118
GROUP STATEMENT OF CASH FLOWS
For the year ended 31 March 2023
2023 2022
£'000 £'000
(audited) (audited)
Cash flows from operating activities
(Loss) for the year (1,692) (1,347)
Adjustments for:
Finance income (103) (48)
Finance costs 71 20
Depreciation of tangible non-current assets 34 31
Amortisation and impairment of intangible non-current assets 642 517
Loss on patent abandonment 64 17
Income tax charge recognised in profit or loss (100) 102
Share-based payments 33 95
_______ _______
Operating cash flows before movements in working capital from continuing (1,051) (613)
operations
(Increase)/decrease in trade and other receivables 421 (555)
(Increase)/decrease in inventories (95) 699
Increase/(decrease) in trade and other payables (428) 186
_______ _______
Cash (used in) operating activities (1,153) (283)
Income tax refund received 125 -
_______ _______
Net cash (used in) operating activities (1,028) (283)
Cash flows from investing activities
Development of intangible assets (419) (488)
Acquisition of property, plant and equipment (22) (20)
_______ _______
Net cash (used) in investing activities (441) (508)
Cash flows from financing activities
Proceeds from issue of ordinary shares, net of issue costs - 286
Proceeds from issue of Convertible Loan Notes 1,000 -
Repayments of principal on lease liabilities (12) (7)
Finance costs (70) (12)
Interest expense on lease liabilities (1) (1)
_______ _______
Net cash generated from financing activities 917 266
Net (decrease) in cash and cash equivalents (552) (525)
Foreign exchange differences 107 59
Cash and equivalent at beginning of period 1,132 1,598
_______ _______
Cash and cash equivalents at end of period 687 1,132
GROUP STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2023 Share capital Share premium Retained earnings Total
Other reserve Exchange reserve
£'000 £'000 £000's £000's £'000 £'000
Balance at 1 April 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
Loss after taxation for the period - - - - (1,692) (1,692)
Other comprehensive income:
Exchange differences - - - 107 - 107
Transactions with owners:
Share-based payments - - - - 33 33
Deferred tax on share-based payment transactions - - - - 1 1
Shares issued during the year for cash - - - - -
Convertible loan note equity component - - 38 - - 38
_____ _____ _____ _____ _____ _____
Balance at 31 March 2023 1,135 457 38 894 3,081 5,605
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
1 Revenue and Segmental Analysis
The Chief Executive Officer & Chief Financial Officer monitor 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 Executive Officer & Chief Financial
Officer and are accordingly omitted from the segmental information below.
For the year ended 31 March 2023, there was no one customer that represented
more than 10% of the Group's revenue.
An analysis of revenue (and the related gross profit) by product or service
and by geography is given below:
Revenue by type
To 31 March 2023
Professional Consumer Total
£'000 £'000 £'000
Product sales 3,672 639 4,311
Royalty and licensing income 281 - 281
_______ _______ _______
Total revenue 3,953 639 4,592
To 31 March 2022
Professional Consumer Total
£'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
Gross profit by type
To 31 March 2023
Professional Consumer Total
£'000 £'000 £'000
Product sales 1,561 275 1,836
Royalty and licensing income 281 - 281
_______ _______ _______
Total gross profit 1,842 275 2,117
To 31 March 2022
Professional Consumer Total
£'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
Revenue by geography
The Group recognises revenue in three geographical regions based on the
location of customers, as set out in the following table:
2023 2022
£'000 £'000
United Kingdom 3,442 4,197
Rest of World 970 1,011
North America 180 1,119
_______ _______
Total operations 4,592 6,327
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
(2022: nil).
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 2023 this
figure amounts to licence revenue of £0.3m and related notional interest
income of £101,000 (2022: £1.11m and £36,000).
2 Reconciliation of Operating Profit to Adjusted EBITDA
Year to 31 March 2023 2022
£'000 £'000
Operating (Loss) (1,857) (1,273)
Amortisation and depreciation 689 578
_______ _______
EBITDA (1,168) (695)
Adjusted for:
Loss on patent abandonment 64 17
Revenue recognised as interest under IFRS 15 101 36
Expensed share-based payments 33 95
Exceptional items:
- Inventory Provision 258 214
- IP receivables provision - 147
- Restructure costs - 225
Total exceptional items 258 586
_______ _______
Adjusted EBITDA (712) 39
3 Annual Report & Accounts
The full Annual Report & Accounts for the year ended 31 March 2023,
including Accounting Policies and Notes to the Financial Statements, will be
available today on our website www.byotrolplc.com, along with Notice of the
AGM, to be held at finnCap's offices in London at 11am on 13(th) September
2023.
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