Revolymer – Interim Results

Revolymer plc – Interim Results
21 Sep 2015
Unaudited Interim Results for the 6 month period to 30 June 2015
Revolymer plc (AIM: REVO) (“Revolymer”, the “Company” or the “Group”), today announces its unaudited interim results for the 6 month period to 30 June 2015.

Business Highlights
Deals executed in 2015:

• As announced on 3 June 2015, Revolymer closed a global licence to its encapsulation technology with the international chemicals group Solvay in the field of Sodium Percarbonate (“SPC”) for liquid product formulations. Solvay has exclusive rights to apply Revolymer’s encapsulation technology to its bleaching active ingredient SPC, commercialised currently by Solvay under the trademark Oxyper®, in the field of liquid formulations of laundry and automatic dish washing. The geographic territory of the licence is global.
• As announced on 1 September 2015, Revolymer closed a licence to its encapsulation technology with OCI Alabama LLC representing the US-headquartered international chemicals group OCI Chemical Corporation (“OCI”). OCI has rights to apply Revolymer’s encapsulation technology to its SPC based bleaching active ingredients, commercialised currently by OCI under the Provox C and Provox Ultra (which includes an activator) trademark families, in the field of powder and other solid formulations of laundry, automatic dish wash and other cleaning agents. The geographic territory of the Provox C-based licence is global except for the European Union. The geographic territory of the Provox Ultra-based licence is global.
• The Company has further refined its business model, positioning itself as a specialty chemicals business focussed on controlled release, responsive systems and delivery systems that improve the functional performance of its customers’ products, based on its expertise in the design and synthesis of polymers (often in combination with other materials) to manage the interface between different surfaces and phases.
  As announced on 18 September 2015, Bryan Dobson was appointed as Chairman of the Board with immediate effect, replacing Jack Keenan. Mr Keenan will remain as an independent non executive director to provide continuity until a replacement is recruited.Financial Highlights
• Cash, cash equivalents and short term investments were £12.0m at the period end (30 June 2014: £15.2m, 31 December 2014: £13.2m), benefitting from R&D tax credit receipts of £775k during the period.
• Revenue for the period increased 62% to £594k (2014: £366k) – primarily sales of nicotine gum in Canada to a Canadian retailer.
• Gross profit for the period was £12k (2014: £139k). This reduction is primarily due to the prior period including a release of £157k of deferred sales relating to potential product returns deemed no longer necessary based on actual returns. Gross profit before this release improved by £30k compared to the prior period.
• Administrative expenses for the period reduced to £1.7m (2014: £2.9m), partly due a reduced share based payment charge and a reduction in company overheads. Excluding the share based payment credit/charge, administration expenses were £2.1m (2014: £2.7m)
• Finance income of £48k (2014: £57k) relating to the cash, cash equivalents and short term deposits on hand was credited in the period.
• The loss for the period was £0.3m (2014: loss of £2.7m) after crediting R&D tax credits of £1.3m (2014: £nil) claimed on qualifying expenditure for the three years ended 31 December 2014.Outlook
  The business continues to drive its existing product pipeline towards deals, which management expects will include product supply agreements as well as licences; whilst actively pursuing additional product opportunities in new markets complementary to its expertise.

  Dr Kevin Matthews CEO of Revolymer said: “The business has continued to make commercial progress in the period, and also retains significant cash resources on hand to fund future developments. Accordingly we look forward to achieving further milestones as we pursue our focus on improving the functional performance of our customers’ products.”

  For further information please contact:
  Revolymer plc
  +44 (0) 1244 283 500
  Kevin Matthews / Robin Cridland