Pre-close update

RNS Number : 0778B

Provexis PLC

28 March 2013

 



28 March 2013

Provexis plc

PRE-CLOSE UPDATE

Provexis plc ("Provexis" or the "Company"), a business that develops, licenses and markets scientifically-proven functional food and sports nutrition technologies, announces a pre-close update for the year ended 31 March 2013.

In its preliminary results statement expected in July, the Company expects to report on a year of very strong progress. During the year the Company completed the development and successfully commenced the commercialisation of its novel Fruitflow® heart-health technology, in conjunction with its Alliance partner DSM Nutritional Products ("DSM"). The Company's sports nutrition business, Science in Sport ("SiS"), completed its restructuring phase and delivered strong revenue growth.

Fruitflow®

The syrup version of the ingredient Fruitflow® continues to make progress, with more regional consumer healthcare brands being launched in various international markets, bringing the total to 13 commercialised products on the market that use this form of the Fruitflow® ingredient. These brands include sports nutrition applications and travel-related products. Following the successful test market launch of a Fruitflow® syrup product by a significant dietary supplement marketer in Q4 2012, DSM and the customer are reviewing all options to maximise the potential of this offering, including potentially utilising the Fruitflow® powder format.

The powder version of the Fruitflow® ingredient has been scaled up and commercialised by DSM and first orders have been received from six customers in international markets. The first customer brand launch is expected in Taiwan during April. The official launch of the powdered version of the Fruitflow® ingredient will take place at the Vitafoods exhibition in Geneva in May, although the internal DSM launch to their global sales force will take place before that date. The new powder format is generating the bulk of customer interest in the Fruitflow® technology, due to its broader range of potential applications, including tablets and capsules.

Science in Sport

We reported growth of 7% in the first half of the year, despite historically poor summer weather. Like for like growth has been very strong in the second half of the year, with March sales orders a new record for the business. This growth is the result of initiatives such as our new e-commerce platform, investment in in-store display equipment, joint business planning with major grocers, and the effect of our marketing investment based on our brand ambassador assets including Sir Chris Hoy. We expect to deliver sales revenues for the year in line with management expectations.

Stephen Moon, CEO of Provexis, commented:

"This has been a very positive year for the business, as our Fruitflow® Alliance with DSM has made very good progress, with the new powder format now reaching the market, and good levels of customer interest from a range of customers across the globe. The Science in Sport business is gaining momentum as new strategic initiatives have begun to drive growth, and with joint business plans in place with major customers, and world class assets such as Sir Chris Hoy underpinning our marketing efforts, we are set for a strong year."

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For further information please contact:

Provexis plc

Stephen Moon, Chief Executive                      Tel: [phone]

Cenkos Securities plc

Max Hartley / Bobbie Hilliam                         Tel: [phone]

Haggie Financial LLP

Matthew Longbottom / Peter Rigby               Tel: [phone]

                                                                        [e-mail]

 

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