Shares in specialist infection prevention and control company Byotrol (BYOT:AIM) surged 18% to 5.5p today after the company announced two new licence agreements and said it expected record first quarter sales.
Chief executive David Traynor commented, ‘our team is now increasingly focused on the longer term, positioning for the post COVID-19 world by entering into new agreements that will increase distribution into markets that we could not easily access ourselves and at a speed that we could not achieve ourselves.’
BOOSTING US PRESENCE
The company has signed a 10-year exclusive license with Integrated Resources International (IRI) for its US branded all-purpose disinfectant Byotrol24, which is approved by the Environmental Protection Agency (EPA), meaning the product does what it says on the label while not posing a hazard to health.
IRI is a consortium of investors and experienced market professionals, already known to the company via its sister company Advanced Hygienics.
The significance of the deal is that Byotrol achieves an increased marketing and sales reach within the Americas without losing ownership of the brand and technology.
In addition, it removes ‘material costs’ that were incurred in supporting the brand as well as receiving a $250,000 upfront license fee and quarterly royalty payments with ‘material minimum annual payments.’
The company also announced it had extended its license agreement with SC Johnson Professional in alcohol free santisers, from a short-dated supply and manufacturing agreement into a multi-year license with guaranteed revenues.
RECORD TRADING
Strong momentum reported in the 27 April trading update has continued into April with Byotrol saying both March and April generated revenues exceeding £1m and the order book was north of £2m.
This implies at least a doubling of revenues compared with the £6m indicated for the year-ended 31 March 2020.
The supply chain is working without disruption despite a global shortage of biocidal ingredients made worse by the lock-downs and border closures.
