From: BLIS Technologies Ltd (NZX: BLT)
MediaPak: National Pak
Date: Tuesday, 28 May 2013
Release: Immediate
BLIS Technologies Annual Report
The Directors of BLIS Technologies ("BLT") advise that the Group recorded a
net deficit of $1,856k for the March 2013 financial year (2012:$1,759k). The
result was in line with the revised guidance provided in February 2013 and
reflected a disappointing operating performance and the decision in February
to restructure the operations of BLIS Functional Foods ("BFF") with the
cessation of ice-cream production and a relocation of Group operations to the
BFF site.
Trading revenue declined during the period to $1,121k (2012:$1,467k)
including a full 12 months trading from BFF (2012: 8 months). The key reason
for the reduction in revenue was a review of supply chain requirements by our
distributor Stratum Nutrition compounded by the suspension of a United States
formulator''s major product launch.
Despite expectations for significant growth in ingredient sales not being
met, progress was made advancing the plans of product formulators and
distributors to launch products containing BLIS ingredients in major
international markets. As a consequence, we anticipate ingredient sales to
increase materially with greater concentration on finished product sales
globally, assisted by new partners and commercial contacts. The route to
market has been determined in China and this will lead to new business
developments in the 2014 financial year.
BLIS Technologies has continued to make progress in facilitating the
commercialisation of its probiotic offerings particularly in the regulatory
and market development areas. Affirmation of our progress and the underlying
scientific support for claims associated with our proprietary probiotics is
reflected in peer recognition and independent commissioning of clinical
studies, scientific publications and an increasing number of global research
collaborations.
Our strategy to support ingredient sales by exemplar in-market consumer
products and food applications produced mixed results in 2013. Despite
enabling critical proof of concept for delivery of our ingredients in
ice-cream and yoghurt formulations, the operation of BFF was not on a
commercial scale and would have continued to run an operating deficit absent
substantial new investment; therefore operations ceased in February 2013. In
contrast, investment in developing web-based delivery of our consumer
products has proved successful and it also provides a sound platform through
which to educate formulators and consumers of the benefits of BLIS-based
products. A new initiative planned for the 2014 financial year is the
further development and manufacture of a nutritional formulation based on
blending our branded ingredients with milk powder.
At the time of the Share Purchase Plan and Placement in September 2012, the
Company signaled that supplementary funds would likely be required in the
2014 financial year. The assessment was based on the outcome of an external
strategic and financial review and on operating expectations at the time. The
Company can now confirm that it will need further capital in order to fund
the execution of its business strategy. Therefore the Company has initiated
plans to raise such further capital and the expectations of Directors are
that a minimum $1 million in new equity can be raised in support of the
business strategy.
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YOUR CONTACT:
Dr Barry Richardson
BLIS Technologies Ltd
10 Birch Street
Dunedin, New Zealand
Phone +64 (3) 474 1338 or 021 664 742
www.blis.co.nz
End CA:00236711 For:BLT Type:FLLYR Time:2013-05-28 10:43:45