April 26, 2010

 

Kiotech International reports increase in profits

 
 

Kiotech International plc, a supplier of high-performance natural feed additives, has increased its sales and profit over the previous year and also completed the acquisition of Optivite Group, whose results are included from October 1, 2009.

 

Richard Edwards, chief executive, said, "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."

 

In the year to December 31, 2009, headline profit before tax was GBP1,409,105 (US$2,162,643), including  the exceptional gain of GBP675,417 (US$1,036,605) on the  Ultrabite®  sale. Sales more than doubled to GBP10,955,355 (US$   16,813,883) while pre tax profit, before share-based payments and the Ultrabite® disposal, advanced significantly to GBP763,659 (US$1,172,036).  This result was driven by an excellent performance from Agil and a maiden three months contribution from Optivite.  The balance sheet remains very sound and the year ended with a cash balance of over GBP5million (US$7.7 million) underlining the cash generative quality of the business, the sale of the sports fishing business and the share placing.  These funds will be available for investing in the expansion of the business through trading and appropriate acquisitions.

 

In Thailand, the company's distributor commenced sales of 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.  The company 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 the company has recently received product registration for its gut acidifier pHorce.

 

Product development is central to driving organic growth and the recently launched gut acidifier, pHorce, continues to grow as a result of new customers, particularly in the grower pig market.  The company is also in the final stages of developing and launching a number of other products drawing on the nutritional expertise of Optivite.

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