www.tyratech.com
TyraTech Nature's Technology effectively controls insects and parasites while providing a new level of safety for people, animals and the environment. TyraTech's patented scientific process targets receptors active only in invertebrates, not in humans or animals. TyraTech leverages this scientific platform to develop natural products that are as effective as traditional chemical options.
TyraTech boosts revenues and slashes costs during H1 2011
Environmentally-friendly pesticides company TyraTech (LON:TYR) boosted revenues and significantly cut its losses during the first six months of 2011.
Total revenues at the firm increased 85 per cent to US$5 million during the year thanks mainly to a strong contribution from product sales, which doubled to US$2.8 million. TyraTech’s collaborative revenue increased 64 per cent, due primarily to US$1.4 million from three milestone payments.
TyraTech’s gross profit increased 400 per cent to US$3.5 million, while its loss before tax came in at US$0.5 million – much reduced from the US$3.1 million loss it made in H1 2010.
Cash and cash equivalents were US$1.6 million at the end of June, compared with US$1.5 million a year earlier and US$3.3 million at the end of 2010.
The firm’s partners include pest control specialist Terminix International, to which it delivered three new innovative insect control products during the period, and Kraft Foods, with which it is making good progress on the two companies’ functional food project.
TyraTech said that it had made good progress with the regulatory process for its household insecticide products for Europe and it expects to have three new products registered by the end of the year. “We are in the process of identifying potential distribution partners and hope to be in a position to launch in 2012,” said Alan Reade, the firm’s executive chairman.
Reade added that TyraTech is also in the advanced stages of developing three new animal health products with a further two in the pipeline, and that the firm is in discussion with potential partners.
US-based TyraTech’s relocation of its operations to the Research Triangle Park area in North Carolina has been successfully completed, with the firm now having all its research, product development and commercial activities in “one efficient location”. It pointed out it was already seeing important benefits from the relocation, with improved communications and faster decision making as well as financial benefits.
Reade pointed out that the financial results show that TyraTech has significantly accelerated the speed and effectiveness of product development, as well as controlling costs and improving margins. “We are very satisfied with the increase in product revenues,” he said. “In this first six months we have more than doubled the product sales over the same period last year and our total revenues for the six months are nine per cent higher than the previous year.”
He added that cost control had allowed good top line results to flow through to the bottom line.
However, Reade cautioned that the firm has a “challenging period” in front of it. “It is a period in which we have to balance continued cost control with speed to complete product development registrations,” he said, pointing out that the firm had to secure agreements with new partners in some areas, such as Europe, and make important strategic decisions with its animal health offerings, particularly in regard to which route the company takes to customers.
Shares in the firm were up three per cent at 31 pence at the start of trading today.
