31st Mar 2014 09:45
LONDON (Alliance News) - Provexis PLC said Monday that it expects to report "on a year of substantial change" when it releases its full-year results in July, as it reduced the cost base of its legacy business, while profits from its Fruitflow ingredient were negated by high start-up costs.
The company said that costs of goods for Fruitflow have been high in the start up phase, which has resulted in its share of the profits from the product being negated.
Fruitflow is a tomato extract that inhibits platelet aggregation, which can lead to heart attacks, strokes and venous thrombosis.
The company said that its partner, DSM Nutritional Products, has continued to make good progress marketing Fruitflow, and the product is contained within 24 regional consumer brands. The company said that DSM remains focused on reducing the production costs of Fruitflow, and expects more positive margins and profit distributions as manufacturing volumes increase.
Provexis de-merged its Science in Sport business during the first half of the year which has "significantly" reduced the cost base of its legacy business, it said.
"With DSM making good progress in the marketplace and the company having very low operational costs, we remain positive about the outlook for the Fruitflow business," said Chairman Dawson Buck in a statement.
Shares in Provexis were trading down 9.3% at 0.771 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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