REG - Ocean Harvest Tech. - Trading Update and Notice of Results

Ocean Harvest TechnologyAnnouncement

17/07/2023 07:00

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RNS Number : 1337G  Ocean Harvest Technology Group PLC  17 July 2023

17 July 2023

Ocean Harvest Technology Group plc

 

("OHT", the "Company", or the "Group")

 

Trading Update and Notice of Results

 

Ocean Harvest Technology Group plc, a leading global producer of animal feed
supplements from multispecies seaweed blends, is pleased to provide the
following trading update for the six months ended 30 June 2023 (the "Period").

Highlights:

·      Trading for the first half of the year has been significantly
ahead of the prior year and the Board remains confident in achieving market
expectations for 2023

·      Investment in sales and marketing has delivered 65% year-on year
increase in product revenue to approximately €1.6 million (2022 H1:
€0.95m)

·      Record customer trial pipeline expected to drive future growth

·      Improved margin efficiencies following a reduction in shipping
costs post Covid-19 pandemic

Product revenue growth of approximately 65% has come from new customers,
volume growth from existing customers and the increase in average selling
prices.

Gross margins in the first half were significantly higher than 2022, largely
due to the elimination of selling concessions which OHT had offered to
customers in previous years in response to the high shipping costs resulting
primarily from the Covid-19 pandemic.

OHT sold product to over 40 customers in the Period, an increase over the
circa 30 customers sold to during 2022. These new customers include one of the
largest UK animal feed companies and a top 5 swine producer in the US.

The Company has continued to expand its supply chain, sourcing new suppliers
in new and existing markets for each of its key seaweed species. OHT has
strong visibility for H2 2023 seaweed purchase volumes and recently entered
into a strategic arrangement with a supplier of brown seaweed which has
guaranteed its supply at attractive pricing for at least the next two years.

As announced on 19 June 2023, OHT reported on some of its recently completed
feed trial results which demonstrated the efficacy of Ocean Harvest's
OceanFeed™ products and its benefits in a number of applications. OHT's
proprietary seaweed blends are delivering strong results in animal performance
and production economics in a cost-effective and environmentally sustainable
manner. OHT currently has trials in progress or scheduled with over 20
potential customers.

The Company will publish its interim financial statements for the six months
ended 30 June 2023 in September and will provide a further update at that
time.

 

Mark Williams, CEO of Ocean Harvest Technology Group, commented:

"We are delighted with the continued strong growth that OHT has achieved in
the first half of this year.  Having completed the IPO during this period, we
are focused on the ongoing investment in R&D, sales and marketing and our
supply chain to continue to drive this growth. We look forward to the future
with confidence."

For more information please contact:

 Ocean Harvest Technology Group plc                                  Tel: +44 (0)118 228 7612

 Mark Williams, CEO

 finnCap Ltd (Nominated Adviser and Sole Broker)                     Tel: +44 020 7220 0500
 Geoff Nash / Seamus Fricker / George Dollemore (Corporate Finance)

 Charlotte Sutcliffe / Harriet Ward (ECM)

 Camarco (Financial PR Adviser)                                      Tel: +44 (0) 203 757 4991
                                                                     oht@camarco.co.uk (mailto:oht@camarco.co.uk)

 Tom Huddart / Rosie Driscoll / Letaba Rimell

 

 

 

 

Notes to Editors

Ocean Harvest Technology Group plc is a global leader in the development and
commercialisation of value adding products from multiple species of seaweed.
The Company provides a range of natural ingredients focused on improving
animal performance whilst protecting the environment, through its unique and
proven intellectual property portfolio. The Company's products are produced in
its facility in Vietnam from seaweeds soured from multiple markets across the
world.

For more information, please visit www.oceanharvesttechnology.com
(http://www.oceanharvesttechnology.com) .

 

 

 

 

 

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