Byotrol extends agreement with Solvay

Specialist anti-microbial technology company Byotrol announced on Friday that it has expanded its agreement to develop and commercialise long-lasting biocidal products for hard surfaces with the international chemical group Solvay.

The AIM-traded company said the agreement extends the commercial and technical relationship between the company and Solvay’s Novecare business unit.

Whereas the initial agreement - announced in June 2015 - was primarily targeted at the EU consumer market, the new agreement anticipates an expanded list of countries and markets.

Under the terms of the agreement, Novecare will also make an unspecified but “substantial” cash payment to Byotrol in the current financial year.

“It is less than a year since we signed our first agreement with Solvay,” said Byotrol chairman Nicholas Martel.

“Our anticipation of the benefits has proved to be well founded and this has encouraged us to significantly extend the scope of the collaboration by signing this further agreement.

Martel said the company welcomes the extended reach to target customers that comes with the alliance with Solvay.

“In turn, we are pleased to be able to offer our technology and expertise to Solvay to further their relationships with those clients.”

Byotrol also updated the market on its expectations, ahead of its full-year results to 31 March, to be released in late August.

On an unaudited basis, Byotrol is expecting to report an EBITDA loss before exceptionals of £0.45m, compared with £0.53m in the prior year.

It was looking at a “sharply narrowed” loss after tax of £0.53m, against a loss of £0.75m the year before.

Byotrol had cash and cash equivalents of more than £1m at year-end, it indicated, well up from the previous figure of £0.29m.

“As our newer markets particularly in the consumer sector unfold, we will be concentrating more of our resources on those markets that offer the most reward and our cash position gives us the flexibility to do just that,” Martel explained.

“We look forward to updating the market in detail on our progress following our results in late August.”