Revolymer – 6 month results
Business Highlights: Consumer Specialties
Revolymer is pleased to have announced, after the period end on 25 September 2014, the signing of its first commercialisation deal in the prioritised Consumer Specialties business area, namely a global licence of its encapsulation polymer technology to the international chemicals group Solvay. The deal is aimed at expanding the commercial applications of Solvay’s proprietary cleaning and disinfecting active 6-phthalimido-peroxyhexanoic acid, known as “PAP” and commercialised currently by Solvay under the trade mark Eureco(TM). Solvay will make royalty payments to Revolymer on net sales of PAP products incorporating its technology
On 14 April 2014, the Company announced a £0.5 million funding award by the UK’s innovation agency, the Technology Strategy Board, to co-fund a 2-year, collaborative research project to develop new, sustainable, high-performance marine fouling control coatings
Continued progress is being made towards commercialisation of a portfolio of other partnered projects based on Revolymer’s proprietary formulations, including laundry and non-laundry cleaning actives, personal care product and ingredient prototypes, and sealants used in the construction industry. Further announcements will be made in the future as projects within this portfolio culminate in commercial deals
Medicated Chewing Gum
As announced on 9 June 2014, a supply and distribution agreement for Revolymer’s nicotine chewing gum products for the United States of America was signed during the period with PL Developments LLC (“PLD”), a leading US manufacturer and supplier of over-the-counter (OTC) healthcare products. Under the terms of the agreement, PLD will be responsible for marketing, sales and distribution of Revolymer’s nicotine gum products within this territory, which is the world’s largest single market for nicotine gum
The Company received, after the period end, confirmation of compliance with the principles and guidelines of good manufacturing practice (“GMP”) from the Medicines and Healthcare Products Regulatory Agency (“MHRA”), following an inspection carried out in July 2014. GMP Certificates have been issued. This development evidences progress in the EU regulatory approval process for Revolymer’s nicotine gum products.
Management
As announced after the period end on 4 July and 27 August 2014, Dr Kevin Roger Kenneth Matthews commenced as Chief Executive Officer of Revolymer with effect from today, 29 September 2014. Dr Matthews has over 20 years of experience in senior management roles in the chemical, technology and pharmaceutical sectors and will bring significant marketing, strategy and business management expertise, along with a broad technical understanding, to Revolymer’s management team.
Financial Highlights
Cash, cash equivalents and short term investments were £15.2m at the period end (30 June 2013: £19.7m, 31 December 2013: £17.7m), reflecting the remaining significant resources on hand to fund the continued execution of Revolymer’s strategy of commercialising its technology through partnerships with larger industry players
Revenue for the period of £366k (2013: £22k) – after releasing deferred revenue relating to potential Canadian sales returns of £157k (2013: £nil). This revenue is primarily sales of nicotine gum in Canada though a Canadian retailer, a revenue stream that had not commenced in the prior interim period
Gross profit for the period of £139k (2013: loss £254k) – including a stock provision of £30k (2013: £262k). Gross profit for the period before the (non-cash) release of deferred revenue and stock provision was £12k (2013: £8k)
Other operating income for the period of £30k (2013: £166k) – reflecting decreased receipts from potential partners through early stage joint development agreements, as the Company has focused on its own product development
Loss for the period of £2.7m (2013: loss £2.9m) – after making non-cash charges in respect of (i) share based payments to employees of £224k (2013: £95k); and (ii) in 2013 only, £218k primarily relating to the impairment of manufacturing fixed assets used in the production of polymer stock.
Mr Robin Cridland CFO and Company Secretary of Revolymer said: “The signing of our first commercial deal in Consumer Specialities with Solvay is a significant milestone for Revolymer and a validation of our technology in this business area. This deal, together with the announcement of a supply and distribution agreement for our nicotine gum products in the US, demonstrates the commercial progress the Company is now making across all areas of the business. I look forward to further positive developments across Revolymer’s remaining project portfolio under the leadership of our new CEO Dr. Kevin Matthews.”
