30th Mar 2015 11:47
LONDON (Alliance News) - Revolymer PLC Monday said its pretax loss narrowed in 2014 on the back of a boost to its revenue from nicotine gum sales in Canada, which helped the company post its first gross profit to date.
The company, which operates three core business areas of household products, personal care, and nicotine gum, said its pretax loss for the year was GBP4.3 million, compared to a GBP5.3 million loss a year earlier. Its gross profit for the year was GBP119,000, compared to a GBP343,000 loss a year earlier.
Revenue rose 94% to GBP1 million from GBP0.5 million the year before, boosted by sales of nicotine gum in Canada doubling in the year to GBP1 million. It also signed a supply and distribution agreement in June last year for its nicotine gum products for the USA with PL Developments LLC, a US manufacturer and supplier of over-the-counter products.
In September, Revolymer signed a global licensing contract with Belgian chemicals group Solvay SA. Under the terms of the deal, Solvay has exclusive rights to apply Revolymer's encapsulation technology to its proprietary cleaning and disinfecting active ingredient 6-phthalimido-peroxyhexanoic acid, PAP. The acid is currently commercialised under the Eureco brand name.
The company also said it is focusing on developing its amphiphilic polymer systems to provide a range of benefits for its personal care products, including skincare, haircare and colour cosmetics.
"2014 was a pivotal year in Revolymer's progression from a technology development company into a commercial business, with revenue increasing by 94% to exceed £1 million for the first time, and a number of deals being executed in key target markets," Chief Executive Kevin Matthews said in a statement.
"Financial performance during the year has improved over 2013 and the business remains well funded, with GBP13.2 million of current cash investments, cash and cash equivalents on hand at the year end. Management will deploy these resources carefully to maximise the funded runway and allow time to provide clarity on future revenue streams and, consequently, refinancing needs," he added.
Shares in Revolymer were untraded Monday, last trading at 52.30 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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