Zoetic International PLC (LON:ZOE) said its interim results revealed the CBD specialist’s ‘seed to shelf’ strategy was working, with the company’s chief executive upbeat on the prospects for next year.
“Shareholders have come to know me for my conservative approach and I am not one for grand predictions but I remain confident that our multi-channel sales approach can bring success to our company,” said Nick Tulloch in commentary accompanying its first-half update.
“We have a number of key events in the first quarter of 2020 and I will look forward to providing regular updates.”
Revenues for the six months ended September 30 grew to £1.15mln from £520,000 a year earlier with 89 stores in the US now stocking Zoetic and Chill products. A trial is underway with Mr Checkout, the North American distributor.
On this side of the Atlantic Zoetic brands will appear in the easyJet magazine.
In its latest update, the company said it now has 25 products across Zoetic and Chill brands, while its feminised seed production remains on track for the 2020 growing season.
The group also said its historic natural resources business, which includes interests in shale and an oil recovery technology, is now trading profitably after a “radical restructuring”.
“We continue to assess interest from prospective buyers but the urgency to dispose of this division has now abated and so we will ensure a compelling price is paid before sanctioning any sale,” said CEO Tulloch.
Turning to the financials, Zoetic made an operating loss of just over £1.7mln for the period. As at September 30, it had just over £1mln in cash.
"Our interim results and our achievements during the remainder of 2019 have positioned us as the only vertically integrated CBD company listed on the London Stock Exchange,” said Tulloch.
“To that, we added trading on the OTC in New York in November. Our task now is to deliver on the business lines we have created.”
Shares fell 8% to 5.9p.
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