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Company update: Kiotech International

Kiotech International plc, supplier of natural feed additives to enhance health, growth and sustainability in agriculture and aquaculture, significantly increased its sales and profit over 2009 and also completed the acquisition of Optivite Group, whose results are included from 1 October 2009.

  • Profit before tax amounted £1,409,105 (2008: £482,211) includes £675,417 exceptional gain from the Ultrabite® disposal
  • Underlying profit before tax and share-based payments rose to £763,659 (2008: £553,836)
  • Sales advanced to £10,955,355 (2008: £5,428,169)
  • Cash balance increased to £5,014,820 (2008: £1,867,592) at year end
  • 5% increase in the proposed final dividend to 0.05 pence per share (2008: 0.04 pence)
 
Operations
  • Profit improvement achieved through 31% growth in sales at Agil
  • Acquisition and integration of Optivite progressing to plan.
  • First sales of Salkil gut acidifier achieved in Brazil.
  • Registration received in China for pHorce and first sales achieved.
  • Aquatice® given approval to market for fin fish species in Thailand.
Richard Edwards, Chief Executive, commented: "This has been another very good year for the Group with sales and profit growth driven by a combination of organic and acquisition growth in our agricultural markets. The acquisition of Optivite presents further opportunities to develop the business into a focused feed additive and nutrition business with significant global reach.  Financially we are very sound with a strong cash position, which allows us to consider further acquisition opportunities, at the right price, to broaden our product and geographic spread and enhance shareholder value."
 
Agriculture
This was another very good year for the division with Agil delivering a sales increase of over 30%.
Performances in Bangladesh, Chile, Greece, Iran, Saudi Arabia and Turkey were particularly encouraging.
 
Salmonella issues in Finland increased demand for Salkil and Vietnam, a new territory for Agil, performed well.
In Thailand the Kiotech distributor commenced sales of the anti-oxidant products used in animal feed applications and has now started to register a number of organic acid products for sale in the Thai agricultural market.
 
Kiotech has recently registered a number of products in Brazil and South Africa, including Salkil, the company's key acidifier for the poultry market.
 
The Group's wholly owned subsidiary in China is now fully established and has recently received product registration for the gut acidifier pHorce. Further approvals are expected.
 
“Product development is central to driving organic growth and our recently launched gut acidifier, pHorce, continues to grow as new customers, particularly in the grower pig market, experience the health and financial benefits from using the product,” Edwards said.
 
Aquaculture
At the end of 2009 the Thailand Department of Fisheries approved the use of Aquatice® for fin fish as a water additive. This significant event allows the Group to market and sell fin fish product to tilapia and catfish farmers in Thailand.
 
Total annual production for all species of tilapia and catfish in Thailand is around 350,000 metric tonnes, requiring about half a million tonnes of feed.
 
The registration dossier for shrimp Aquatice® is in the final stages of preparation and further trials are being undertaken in a number of countries.
 
Outlook
“The year has started encouragingly with our international brands trading well and the integration of Optivite continuing on plan,” Edwards said.
 
“We are particularly excited by the potential in China and Brazil and also a number of new product developments, which are due to be launched later this year.
 
“The registration timetable and customer adoption will govern the performance of our aquaculture division, but our focus in Thailand should begin to see some success.
 
“Financially we are very sound with a strong cash position, which allows us to consider further acquisition opportunities, at the right price, to broaden our product and geographic spread and enhance shareholder value.”
 
 

Dick Ziggers

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