REG - Ocean Harvest Tech. - Trading Update

Ocean Harvest TechnologyAnnouncement

27/01/2025 07:00

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RNS Number : 6837U  Ocean Harvest Technology Group PLC  27 January 2025

27 January 2025

 

Ocean Harvest Technology Group plc

 

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

 

Trading Update

 

 

Ocean Harvest Technology Group Plc (AIM: OHT), a leading researcher, developer
and supplier of proprietary blended seaweed products as functional additives
for the global animal feed industry, gives a trading update for the year to 31
December 2024.

 

Highlights

 

·      The Company continues to lead the way in the commercialisation of
blended seaweed feed additives within the global animal nutrition sector for
which it was granted two patents in 2024;

 

·      OHT expects reported revenue to be approximately €2.1M (2023:
€3.4M) reflecting a combination of non-recurring commoditised single seaweed
sales and the H1 impact of a deferral of orders from OHT's largest OceanFeed
customer, whose own production was temporarily negatively impacted by a
natural disaster;

 

·      Strong growth in H2 2024 with OceanFeed revenue growing
approximately 30% vs H1;

 

·      Continued improvement in gross margins in H2 with OceanFeed
margins to be in excess of 40% and expected to continue expanding in 2025;

 

·      As part of the strategy to expand geographical reach in a
cost-effective manner, OHT has had first orders from three new distributors,
and is in the latter stages of onboarding another five with discussions
continuing with several other potential partners;

 

·      Continued investment in sales and marketing resource across
LATAM, APAC and EMEA with two new sales people onboarded in 2024 and a further
four people across sales, marketing and product management joining in January
2025; and

 

·      OceanFeed product registration is currently in progress for 10
new countries, expected to complete in H1 2025, demonstrating further progress
in our planned global market expansion.

 

 

Outlook for 2025

 

·      Despite the challenges faced in 2024, the Company is entering
2025 with optimism, bolstered by numerous global initiatives aimed at
accelerating growth and expanding market reach.

·      Given the substantial progress made since late 2024, the Company
expects to deliver significant revenue growth in 2025 coupled with continued
margin improvement and will provide more detail alongside the preliminary
results, the date of which will be announced in due course.

 

 

 

Ashley Head, Executive Chair of OHT, commented:

 

"Despite a challenging year, I am pleased to see much improved performance in
H2 compared with H1 with significant growth in OceanFeed revenue. 2024 has
been a year of many changes for the Company as it seeks to position itself for
the future and in 2025 we expect to see the first material signs of these
changes positively impacting the company's financial results.

 

OHT is well placed for the year ahead and will continue to deliver on growing
its customer base, investing in R&D where appropriate and building its
supply chain to extend our position as the leading provider of blended seaweed
additives to the animal feed industry. We look forward to significant progress
in 2025 and will provide a further update with our full year results."

 

 

This announcement was deemed by the company to contain inside information as
stipulated under the Market Abuse Regulations (EU) no. 596/2014 as they form
part of UK domestic law by virtue of the European Union (withdrawal) Act 2018.
With the publication of this announcement, this information is now considered
to be in the public domain.

 

 

For more information please contact:

 Ocean Harvest Technology Group plc                                   Tel: +44 (0) 1737 735018

 Ashley Head, Executive Chairman

 Chris Scott, CFO

 Cavendish Capital Markets Ltd (Nominated Adviser and Sole Broker)    Tel: +44 020 7220 0500
 Geoff Nash / Seamus Fricker / Trisyia Jamaludin (Corporate Finance)

 Tim Redfern / Harriet Ward (ECM)

 

Notes to Editors

 

Ocean Harvest Technology Group plc is a global leader in the development and
commercialisation of value adding proprietary products from blending multiple
species of seaweed. The Company provides a range of natural additives focused
on improving animal performance and the sustainability of the feed chain,
through its unique and proven proprietary seaweed blends. The Company sources
its seaweed globally, utilising sustainable and socially responsible
harvesting of largely wild blooming seaweed species.  Its products are
produced in its facility in Vietnam and sold into the $40bn animal feed
additive sector in multiple markets across the world.

 

 

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