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
Latest directors dealings
- 1 day ago Judges Scientific
- 1 day ago Mitie Group
- 1 day ago NCC Group
- 1 day ago Worldwide Healthcare Trust
- 1 day ago JpMorgan China Growth & Income