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Summary
- Byotrol reported sales of about £3.4 million in Q1 FY2021.
- Byotrol highlighted that the FY2021 revenue and EBITDA would be ahead of the market expectation.
- Byotrol entered a new license agreement with Integrated Resources International LLC in the US.
- Provexis entered into a patent purchase deal with the University of Oslo.
- Provexis witnessed increased demand for Fruitflow during the pandemic.
- Provexis issued new shares worth close to £79,350 to complete the patent acquisition.
Byotrol PLC (LON:BYOT) & Provexis PLC (LON:PXS) are FTSE AIM All-Share listed stocks. BYOT is a basic materials stock, and PXS is a consumer staple stock. BYOT was up by about 10.40 percent, whereas PXS was down by close to 2.10 percent from the previous closing price (as on 18 August 2020, before the market close at 1:55 PM GMT+1). It is mindful to note that BYOT shares were trading at their 52-week high at the time of reporting.
Byotrol PLC (LON:BYOT) - Order book of close to £2 million as on 30 June 2020
Byotrol PLC is a UK based company that provides antimicrobial technology. The technology is useful against pathogens. The Company mainly operates in the UK, and it is included in the FTSE AIM All-Share index.
Trading update as reported on 3 August 2020
For Q1 FY21 ended 30 June 2020, the product sales were close to £3.4 million with steady orders for July and August 2020. As on 30 June 2020, the order book was close to £2 million with net cash of £1.8 million. On 3 July 2020, the Company reported that it had issued 2,593,975 new shares as some of the employees exercised their options.
New License Agreement
On 14 May 2020, the Company reported that it entered a new license agreement with Integrated Resources International LLC (IRI) and SC Johnson Professional Ltd. IRI is a US-based company with whom Byotrol has signed a deal for technology license of Byotrol24, a sanitizer that kills germ and it is EPA registered. ISI has exclusive rights of Byotrol24 and patents for ten years. Byotrol has a clawback right for the agreement with a few conditions. The deal is for USD 250,000 in addition to sales based quarterly royalty payment. Byotrol holds the ownership of the brand in the US, and it would benefit from the expertise of ISI and would not incur any material costs post-agreement in the US. The sister concern of ISI named Advanced Hygienics holds Byotrol formulation license for the hand sanitizer in the US. The Company closed the deal with SC Johnson Professional in mid-April 2020 and completed the legal formalities in May 2020. The deal is for the long-term technology license for alcohol-free hand sanitizers.
FY2020 trading update (ended 31 March 2020) as reported on 27 April 2020
In FY20, the Company expects the revenue to be close to £6.0 million and adjusted EBITDA of approximately £0.25 million. Byotrol incurred a one-time gain of around £0.4m through renegotiation with vendors of Medimark Scientific Limited.
Share Price Performance Analysis
1-Year Chart as on August-18-2020, before the market close (Source: EODHD/Others, Thomson Reuters)
Byotrol PLC's shares were trading at GBX 9.20 and were up by close to 10.40 percent against the previous closing price (as on 18 August 2020, before the market close at 1:55 PM GMT+1). BYOT's 52-week High and Low were GBX 9.22 and GBX 1.40, respectively. BYOT had a market capitalization of around £26.24 million.
Business Outlook
The Company expects the FY21 revenue and EBITDA to be ahead of the market expectation. The volatility in the supply chain has started to ease down and would benefit the Company positively. It has entered into new agreements that would strengthen the long-term position of the Company, and it would focus on signing more new deals.
Provexis PLC (LON:PXS) – Revenue of £222,000 generated in H1 FY2020
Provexis PLC is a UK based company that develops and sells Fruitflow®, a heart-health functional food ingredient. The Company's primary product Fruitflow is tomato extract that comes in powder and syrup form and inhibits platelet aggregation. Provexis is included in the FTSE AIM All-Share index.
Intellectual property purchase deal with the University of Oslo
On 13 August 2020, Provexis agreed with Inven2 AS for purchase of intellectual property and patents for blood pressure lowering. Inven2 AS is the University of Oslo's technology department. Provexis would issue 11.5 million new shares for buying intellectual property. The value of the issued shares was close to £79,350 as per the trading price on 12 August 2020. The Company signed a partnership deal with the University of Oslo for research between the relationships of Fruitflow and blood pressure regulation and option for buying the license for any patent developed under the collaboration in November 2014. Provexis fund the research under the partnership. As per the agreement, Inven2 would provide the ownership of for antihypertensive patents for Fruitflow in Europe and three other regions. The patents application is under process for five different areas.
Few key patents held by the Provexis apart from antihypertensive patents include,
- Fruit extracts patent received from the European Patent Office that has also received a grant in eight other regions, including China.
- Nitrate added Fruitflow that helps in recovery from exercise. It had received a grant in the UK, Australia, New Zealand, China and Japan.
- Patent for Fruitflow for cardiovascular system that provides defence against air pollution. The patent is until November 2037.
H1 FY2020 result highlights (ended 30 September 2019) as reported on 31 December 2019
In H1 FY20, the Company generated revenue of £222,000 that was up by close to 15 percent year on year. The Company incurred an operating loss of £126,000 during the reported period. As on 30 September 2019, Provexis had cash of £173,000, and it raised close to £301,000 through the placement of new shares in December 2019.
Share Price Performance Analysis
1-Year Chart as on August-18-2020, before the market close (Source: EODHD/Others, Thomson Reuters)
Provexis PLC's shares were trading at GBX 0.95 and were down by close to 2.10 percent against the previous closing price (as on 18 August 2020, before the market close at 1:55 PM GMT+1). PXS's 52-week High and Low were GBX 1.09 and GBX 0.25, respectively. PXS had a market capitalization of around £16.50 million.
Business Outlook
The Company and its partner DSM Nutritional Products witnessed increased demand for the Fruitflow during the pandemic as consumers moved to more healthy drinks. The product has blood circulatory, and anti-inflammatory properties and the Company wants to expand the commercial footprint of Fruitflow. Provexis highlighted that patent ownership has significant value for the business and its alliance partners over the long-term term.
