Trading Update

RNS Number : 8429T

Revolymer PLC

19 December 2012

 



Revolymer plc

("Revolymer" or "the Group")

Trading Update

Revolymer (AIM: REVO), the British polymer company developing patented products for a number of high value fast moving consumer goods ("FMCG") and industrial markets, is pleased to provide an update on the progress of commercialisation of its technologies.

The Group expects to make its preliminary announcement of the results for the year ending 31 December 2012 in early March 2013. Currently, management anticipates that overall financial performance, including aggregate revenues from its operations, for the 12 months ending 31 December 2012 will be in line with market expectations.

Looking further ahead, the Group will continue to focus on executing its stated strategy. In particular, management will be prioritising the pursuit of royalty-bearing commercialisation licences in the Consumer Specialties business area, including household products, personal care and coatings and adhesives; markets where significant value is projected. Executing such licences is an internal key performance indicator for the board of directors of Revolymer in the short term.

The Group will also continue to seek commercial partnerships for its nicotine gum products which are differentiated by having more confectionery-like chew characteristics than existing marketed nicotine gums. Revolymer's first nicotine gum product was launched in Canada in the first half of 2012.

With respect to its confectionery gum products, the Group's primary objective continues to be the licensing of its breakthrough removable and degradable gum technology. As stated in its admission document, the Group already has two licensees in the confectionery gum field for this technology.

The direct sale of Rev7® branded confectionery gum has been intended to demonstrate consumer interest ahead of licensing to additional third parties. The board believes, however, that it is also important to control and balance appropriately the cost of such activities in the context of the whole business, taking into consideration that the primary focus remains on licensing.

Whilst sales of Rev7® gum in the USA have continued during 2012, the board believes that the likely future quantum of these sales no longer justifies a continued physical presence in the US market, and accordingly such commercialisation effort in this territory will cease from the start of 2013. The one-time costs associated with desisting sales of Rev7® confectionery gum in the USA are expected to be approximately £360k and these will be provided for in the 2012 financial results. The non-variable annual cost base associated with the US operation (including staff and establishment costs) is approximately £500k, and this will not be incurred going forward.

Outside of the USA, the Group has recently launched Rev7® confectionery gum in Ireland as an initial test market, in partnership with the Topaz service station network. Future activities in Europe will be planned after the test marketing is completed.

Management continues to believe that Revolymer's strategy of licensing its technology to commercialisation partners, rather than seeking to market its own products, will generate significant shareholder value.

Ends

For further information please contact:

Revolymer plc	[phone]
Roger Pettman Rob Cridland
Panmure Gordon (UK) Limited	[phone]
Callum Stewart / Adam James (Corporate Finance) Adam Pollock / Charles Leigh-Pemberton (Corporate Broking)
Citigate Dewe Rogerson	[phone]
Simon Rigby / David Dible / Ginny Pulbrook

About Revolymer

Revolymer is a technology company that designs, develops and formulates novel polymers to improve the performance of existing consumer products within the FMCG markets. Revolymer's strategy is to generate significant and growing revenue streams by licensing its unique and proprietary technologies to manufacturers and marketers within the global high value FMCG industry. Current applications for the Group's technologies are in the coatings & adhesives, household products and personal care markets (together "Consumer Specialties") and the confectionery chewing gum and medicated chewing gum (together "Gum") markets.

www.revolymer.com

 

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