Provexis plc, the business that develops, licenses and markets scientifically-proven functional food and sports nutrition technologies, has announced its audited preliminary results for the fiscal year ended 31 March 2012.
- Science in Sport (SiS) generated revenues of £3.48 million in the nine months from acquisition, representing like for like revenue growth of 12% compared to the same period last year
- Substantial investment made in SiS in order to execute the Board’s growth plan for the 2012-13 financial year, including new supply facility and plant, investment in marketing and sales, and enhanced innovation pipeline
- Significant restructuring across the company to ‘reduce cash burn’ and improve the operating margin of SiS
- Appointment of John Clarke, formerly Global President of GlaxoSmithKline’s Consumer Healthcare business, as Non-Executive Director
- First two SiS innovations in market, with Fruitflow heart health product to follow in Q3 of Provexis’ 2012-13 financial year
- Good progress with proprietary Fruitflow heart health technology, with seven regional consumer products containing Fruitflow syrup now on sale in various international markets, and at least five further launches expected in the 2012 calendar year
- Tablet grade powder format of Fruitflow now complete, with good levels of interest from potential customers
- DSM Nutritional Products (Provexis’ ‘Alliance partner’) continuing commercial discussions with a wide range of consumer healthcare businesses including global brand owners
Provexis has reported that its underlying operating loss reduced to £2.18 million in the latest financial year ending March 2012. This is down from £2.41 million in the 2010-11 financial year. The 2012 underlying operating loss includes £0.66 million of costs which are non-recurring, following the restructuring undertaken during the financial year.
The underlying operating loss was before impairment and amortisation of intangible assets, share based payments and exceptional costs of £2.15 million (versus £69,000 in 2011).
The company’s reported a statutory loss from operations of £4.33 million, up from £2.48 million in 2010-11. This loss is after charging £1.39 million of non-cash amortisation and impairment charges (2011: £Nil), £0.15 million of acquisition costs (2011: £Nil), £0.46 million of restructuring costs (2011: £Nil) and a £0.14 million non cash share based payment charge (2011: £0.07m).
As at 31 March 2012, the company’s cash balance stood at £1.45 million (versus £7.55 million in 2011).
Commenting on the results, Stephen Moon, Chief Executive Officer of Provexis plc said “We announced at the interim results in December that, going forward, Provexis would focus its efforts and resources on the significant opportunities of Fruitflow and Science in Sport (SiS). I believe we have implemented this strategy successfully, making strong progress with both Fruitflow and SiS, together with significantly reducing costs in non-core areas.”
Moon added, “We are very pleased with progress made with the SiS business. Significant changes were made post-acquisition including new management appointments, the opening of a new supply chain facility, reductions in operating costs, initiatives to improve gross margin and the development of a new innovation pipeline to assert our position as leaders in elite endurance sports nutrition.
“The benefits of these changes are already being seen, with the brand achieving good growth in revenue, despite very tough trading conditions given economic and weather related factors…
“At a group level we implemented a cost reduction plan in the second half of the financial year, the full effect of which will be seen in the current year ending March 2013. Further cost savings are also expected in the current year, through overhead reductions and efficiency improvements as we drive towards break-even and profitability.
“Overall the Board believes the company is well placed for sustained long-term growth and we are looking forward to the year ahead.”