Interim Results

Nutrinnovator Holdings PLC 22 November 2004 For Immediate Release 22 November 2004 NUTRINNOVATOR HOLDINGS PLC ('Nutrinnovator' or 'the Group') Maiden Interim Results Nutrinnovator Holdings plc, which develops and markets food and drink products of superior nutritional quality, whilst retaining high quality taste, palatability and consumer appeal, today announces its maiden interim results for the six months ended 30 September 2004. Key Points • Turnover £138,143 (2003: £6,722) • Loss on ordinary activities before and after taxation £835,292 (2003: £334,982) • Cash balances £1.57m (2003: £735,000) • Net funds £1.17m (2003: £731,600) • Appointment of Food Brokers Limited, the UK's largest sales broker, from 1 October 2004 to improve Altu food bar sales - positive initial impact and a new listing in Boots from October 2004 • Altu Black premium cola launched on time in London test market in September, prior to national roll-out in Spring 2005. • Agreement of joint venture with Provexis Limited to develop a new heart healthy product based on the clinically-proven and patented CardioFlow food technology for launch in Summer 2005. • Patent application filed for a novel food-based drug delivery system. • Agreement of three-year deal with Plant Bioscience Limited, giving Nutrinnovator exclusive access to functional food technologies from leading research institutes. • Completed successful flotation on AIM in June 2004. Commenting on the results Stephen Moon, Managing Director of Nutrinnovator, said: 'The Group has achieved considerable progress in the last six months. This is despite the disruption caused by our flotation in June and the slower than expected initial sales of the Altu food bar. The initial impact of our new three-year partnership with Food Brokers Limited has been encouraging, and we will continue to extend the customer base of the Altu food bar over the coming months. The Altu brand will be further strengthened with the national launch of Altu Black premium cola in Spring 2005. We believe the wellbeing food category has great growth potential and we are actively pursuing a number of exciting development opportunities in our space which we believe can further add to our innovation portfolio. ' For further information please contact: Nutrinnovator Holdings plc Stephen Moon, Managing Director 07967 564301 Doug Gardner, Finance Director 020 8392 6637 Buchanan Communications 020 7466 5000 Tim Thompson / Tom Carroll Notes to editors: Nutrinnovator's strategy is to develop and market food and drink products designed to be of overall superior nutritional quality to competing products in specific product categories, whilst retaining the taste and palatability to appeal to the consumer. Health issues related to diet are significant in world consumer markets. Poor diet can lead to obesity which, in turn, can cause such health issues as diabetes, heart disease, and high cholesterol. The founders of Nutrinnovator came together to form the business with the aim of exploiting an opportunity in the food and drink-based 'wellbeing' sector. The first products of the Group, the Altu food bar range, were launched in the market in the UK in 2004 and the Altu Black premium cola range is due for launch in the UK in Spring 2005. The Group's experienced management team are constantly looking into new ventures to exploit the opportunities in the wellbeing food sector. The Group successfully floated on AIM in June 2004. CHAIRMAN'S STATEMENT The Group has achieved considerable progress in the six months under review. This is reflected in the improving sales of Altu food bars, the launch of Altu Black on time, and the development of a number of exciting opportunities in the broader wellbeing market. As previously announced, the Board was pleased to appoint Doug Gardner as Finance Director on 18th August, and I believe that this addition bolsters further a management team which is regarded by external partners as very strong and which remains well placed to benefit from the significant opportunities provided by the growth of the wellbeing food sector. Neville Bain MANAGING DIRECTOR'S STATEMENT Summary of Financial Results Turnover in the first half of £138,143 included the first sales of Altu Black and produced a strong underlying gross margin. There was a significant investment in the period in marketing and promotional costs for the Altu food bar, and also further investment in new product development. During this period of heavy investment, there has remained a strong focus on cash management. The equity fundraising carried out at the time of the AIM flotation in June 2004 and the associated loan note issue generated a cash inflow after costs of £1.80m, and at the period end cash balances were £1.57m. Altu Food Bar The cereal bar category continues to demonstrate strong growth in all retail channels, and has attracted new entrants from companies such as Nestle and Quaker. Despite the high level of competition and slower than expected first half sales, the quality of the Altu proposition continues to attract strong interest from customers. Together with the new Food Brokers selling operation, we continue to open new accounts, with our new listing in Boots in October 2004 evidencing this. We intend to invest consistently in established accounts which we believe will build revenues over the long term while minimising risk. Underlying gross margin is strong, and higher sales volumes will present the opportunity to further improve this. Altu Black Premium Cola This product is currently being seeded in the London area, with preparations in hand for a Spring 2005 national rollout. Initial consumer and industry feedback on the premium flavour, lower sugar cola is positive. We are currently selling into wholesale accounts in preparation for a New Year retailer merchandising drive and we will be presenting the product to major multiple accounts for the Spring 2005 range reviews. CardioFlow Heart Healthy Juice In conjunction with our joint venture partners, we are developing a novel heart healthy beverage for launch in the UK in Summer 2005, based on the patented and clinically-proven CardioFlow technology. We believe this product will have significant sales potential in the £2.2 billion global market for proven heart health products. The joint venture has exclusive rights to the UK, US and Japan and it is intended to develop an entry strategy to the US market, following establishment of the product in the UK. Food Based Drug Delivery Technology The global growth in long-term health problems such as diabetes, high cholesterol, and cardiovascular disease presents a substantial opportunity to deliver combinations of medicines and food to sufferers with extended, and in many cases lifelong, regimes of treatment. We have filed our first patent for a novel beverage-based drug delivery system and will continue prototype development over the coming year. Other New Product Development Our ability to bring innovative wellbeing products to market rapidly is being recognised in the industry and this is presenting further opportunities. We have signed a three-year agreement with Plant Bioscience Limited (a leading company in the area of managing IP from academic research institutes) to give us exclusive access to functional food technologies from over 30 universities and research institutes worldwide. We believe that we are well placed to secure further opportunities to develop novel products in the coming months. Outlook The Group has taken steps to address the initial slower than expected food bar sales in a very competitive market, and initial signs following our appointment of Food Brokers Limited are positive. Our second product to market, Altu Black, has been well received and we look forward to a successful national rollout in the New Year. We remain very active in progressing our other new product development areas, and I feel confident that with the management team we have in place, allied to the higher profile arising from the AIM flotation, the Group is well placed to benefit from the significant opportunities provided by the wellbeing food sector. I would like to thank my colleagues and all our employees for their contribution in the last six months and look forward to the future with confidence. Stephen Moon Nutrinnovator Holdings plc Consolidated profit and loss account for the six months ended 30 September 2004 Note Six months ended Six months ended Ten months ended 30 September 2004 30 September 2003 31 March 2004 (unaudited) (unaudited) (audited) £ £ £ Turnover 138,143 6,722 74,878 Cost of sales (96,013) (4,072) (52,328) ________ ________ ________ Gross profit 42,130 2,650 22,550 Distribution costs 3 (14,819) (359) (9,575) Administrative expenses (870,118) (340,542) (872,854) ________ ________ ________ Operating loss (842,807) (338,251) (859,879) Interest receivable 14,195 3,612 5,866 Interest payable and similar charges (6,680) (343) (543) ________ ________ ________ Loss on ordinary activities before and after taxation and transferred from reserves 4 (835,292) (334,982) (854,556) ________ ________ ________ Loss per ordinary share Basic and diluted, p (5.4) (2.5) (6.4) All amounts relate to continuing activities. All recognised gains and losses in the current and prior periods are included in the profit and loss account. Nutrinnovator Holdings plc Consolidated balance sheet as at 30 September 2004 As at As at As at 30 September 2004 30 September 2003 31 March 2004 (unaudited) (unaudited) (audited and restated, see note 1) Note £ £ £ Fixed assets Tangible assets 15,544 3,070 17,228 Current assets Stocks 108,745 19,740 61,891 Debtors 138,878 22,982 57,225 Cash at bank and in hand 9 1,566,538 734,997 186,938 _________ _________ _________ 1,814,161 777,719 306,054 Creditors: amounts falling due within one year (395,314) (111,108) (215,362) _________ _________ _________ Net current assets 1,418,847 666,611 90,692 _________ _________ _________ Total assets less current liabilities 1,434,391 669,681 107,920 Creditors: amounts falling due after more than one year 9 (400,000) (1,243) (129) _________ _________ _________ Net assets 1,034,391 668,438 107,791 _________ _________ _________ Capital and reserves Called up share capital 332,184 265,583 265,583 Share premium account 1,335,192 - - Merger reserve 1,137,616 777,517 777,517 Profit and loss account (1,770,601) (374,662) (935,309) _________ _________ _________ Shareholders' funds 1,034,391 668,438 107,791 _________ _________ _________ Nutrinnovator Holdings plc Consolidated cash flow statement for the six months ended 30 September 2004 Six months ended 30 Six months ended Ten months ended September 2004 30 September 31 March 2004 2003 Note (unaudited) (unaudited) (audited) £ £ £ Net cash outflow from operating activities 7 (779,265) (330,748) (767,645) Returns on investments and servicing of finance Interest received 584 3,612 5,854 Interest element of finance lease rental payments (180) (343) (543) ________ ________ ________ 404 3,269 5,311 Taxation - - - Capital expenditure Purchase of tangible fixed assets (2,283) (1,248) (15,315) ________ ________ ________ (2,283) (1,248) (15,315) ________ ________ ________ Cash outflow before financing (781,144) (328,727) (777,649) Financing Issue of ordinary share capital 2,020,764 1,043,099 923,100 Costs of share issues (258,871) - - Capital element of finance lease rental payments (1,149) 393 (1,671) Issue of convertible loan notes 400,000 - - ________ ________ ________ 2,160,744 1,043,492 921,429 ________ ________ ________ Increase in cash in the period 8 1,379,600 714,765 143,780 ________ ________ ________ Nutrinnovator Holdings plc Notes to the consolidated accounts for the six months ended 30 September 2004 1. Financial information The interim financial information for the six months ended 30 September 2004 and the six months ended 30 September 2003 are unaudited and do not constitute statutory accounts within the meaning of section 240 of the Companies Act. This information has been drawn up using accounting policies and principles consistent with those applied in the preparation of the audited accounts of Nutrinnovator Limited for the period ended 31 May 2003 and the period ended 31 March 2004 and the new accounting policy on merger accounting. The accounts of Nutrinnovator Limited were drawn up respectively for the periods from 16 May 2002 to 31 May 2003, and subsequently for the ten month period from 1 June 2003 to 31 March 2004 because that company changed its year end from 31 May to 31 March during the period. The comparative information in the report for the ten months ended 31 March 2004 constitutes the statutory accounts for that financial period. This information has been derived from the accounts of Nutrinnovator Limited for the period ended 31 March 2004, but has been restated to comply with the additional accounting policy on merger accounting. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified. 2. Merger accounting Nutrinnovator Holdings plc was incorporated on 15 April 2004 and, following a group reorganisation effected on 12 May 2004, it acquired its interest in Nutrinnovator Limited in consideration for the issue of shares. In the above financial information, Nutrinnovator Limited is treated as if it had always been a member of the Group, with its results being included for the full period in which it has joined the Group. The corresponding figures for the previous periods include its results for that period, the assets and liabilities at the period end dates and the shares issued by the Company as consideration as if they had always been in issue. The difference between the nominal value of the shares acquired by Nutrinnovator Holdings plc and those issued to acquire them has been taken to reserves. 3. Administrative expenses Six months Six months ended Ten months ended ended 30 September 2004 30 September 2003 31 March 2004 (unaudited) (unaudited) (audited) £ £ £ Administrative expenses comprise : Marketing and promotional costs 486,369 83,864 348,515 Product development costs 67,745 52,582 131,720 Other administrative costs 316,004 204,096 392,619 ________ ________ ________ 870,118 340,542 872,854 ________ ________ ________ Nutrinnovator Holdings plc Notes to the consolidated accounts for the six months ended 30 September 2004 (cont'd) 4. Taxation Based upon the results of the Group, there is no tax charge / (credit) for the period. 5. Dividend No interim dividend is proposed. 6. Loss per ordinary share The calculation of basic loss per ordinary share is based upon the loss after taxation for the period of £835,292 (2003 : loss £334,982 ; ten months ended 31 March 2004 : loss £854,556) and the weighted average number of ordinary shares in issue during the period of 15,340,951 (2003 : 13,279,150 ; ten months ended 31 March 2004 : 13,279,150). There are no potentially dilutive shares in issue. 7. Reconciliation of operating loss to net cash outflow from operating activities Six months ended Six months ended Ten months ended 30 September 2004 30 September 2003 31 March 2004 (unaudited) (unaudited) (audited) £ £ £ Operating loss (842,807) (338,251) (859,879) Depreciation 3,967 3,639 4,480 Increase in stocks (46,854) (19,740) (61,891) Increase in debtors (68,043) (17,852) (45,871) Increase in creditors 174,472 41,456 195,516 ________ ________ ________ Net cash outflow from operating activities (779,265) (330,748) (767,645) ________ ________ ________ Nutrinnovator Holdings plc Notes to the consolidated accounts for the six months ended 30 September 2004 (cont'd) 8. Reconciliation of net cash flow to movement in net funds Six months ended Six months ended Ten months ended 30 September 2004 30 September 2003 31 March 2004 (unaudited) (unaudited) (audited) £ £ £ Increase in cash in the period 1,379,600 714,765 143,780 Cash (inflow)/ outflow from increase in debt and lease financing (398,851) 856 1,671 ________ ________ ________ Change in net funds resulting from cash flows 980,749 715,621 145,451 New finance leases - (1,249) (1,249) ________ ________ ________ Movement in net funds in the period 980,749 714,372 144,202 Opening net funds 184,547 17,197 40,345 ________ ________ ________ Closing net funds 1,165,296 731,569 184,547 ________ ________ ________ 9. Analysis of net funds As at Cash As at 1 April 2004 flow 30 September 2004 £ £ £ Cash at bank and in hand 186,938 1,379,600 1,566,538 ________ 1,379,600 Obligations under finance leases (2,391) 1,149 (1,242) Convertible loan notes - (400,000) (400,000) ________ ________ ________ Total net funds 184,547 980,749 1,165,296 ________ ________ ________ This information is provided by RNS The company news service from the London Stock Exchange

Companies

Provexis (PXS)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today