29th Sep 2014 11:09
LONDON (Alliance News) - British polymer technology company Revolymer PLC Monday said it narrowed its losses in the first half of 2014, driven by an increase in revenue from the sale of nicotine gum in Canada.
The company reported a pretax loss of GBP2.7 million for the half-year to June 30, slightly smaller than the GBP2.9 million loss it posted a year earlier. Revenue increased to GBP366,000 from only GBP22,000 in the first half of 2013, after Revolymer released deferred revenue relating to potential Canadian sales returns of GBP157,000.
Revenue generated was primarily sales of nicotine gum in Canada though a Canadian retailer, a revenue stream that commenced in the period, it said.
It said lower cost of sales also helped narrow its loss.
The company operates two business divisions: its Consumer Specialties segment, which designs and develops novel polymers for improving the performance of existing consumer products in markets such as personal care, household products and adhesives, and its Chewing Gum segment, where it develops medicated chewing gum, nicotine gum and confectionery chewing gum.
"The signing of our first commercial deal in Consumer Specialities with Solvay is a significant milestone for Revolymer and a validation of our technology in this business area. This deal, together with the announcement of a supply and distribution agreement for our nicotine gum products in the US, demonstrates the commercial progress the company is now making across all areas of the business. I look forward to further positive developments across Revolymer's remaining project portfolio," said Chief Financial Officer Robin Cridland in a statement.
Last week, the company said it has signed a global licensing contract with Belgian chemicals group Solvay SA for its encapsulation technology.
Under the terms of the deal, the first licence awarded by Solvay to Revolymer's Consumer Specialties business, Solvay will have exclusive rights to apply the 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.
As a consideration for the licence, Solvay will make royalty payments to Revolymer on net sales of PAP products which incorporate its technology.
Revolymer shares were down 1.2% at 58.80 pence before midday Monday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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