An improved financial performance helped chemicals group Revolymer (REVO) take another step towards becoming a profitable company. Revenue was boosted by a 21 per cent increase in net sales of the group's nicotine gum in Canada. The Aim-traded company's pre-tax losses were also reduced by lower research and development investment, which helped to cut administration costs by 17 per cent.
The company, which designs novel polymers to improve the performance of consumer products, completed a strategic review in September which has given way to two main business divisions: personal & consumer healthcare, and homecare & industrial. Within the latter, the group has developed an encapsulation system for increasing the efficiency of laundry detergents. Last year this technology gained two important licensing deals, through which the group will earn royalty payments.
There have been some key personnel changes. The board has appointed of a new chairman, Dr Bryan Dobson, following the departure of John Keenan in September. A new chief commercial officer has also been appointed.
Broker Panmure Gordon expects 2016 adjusted pre-tax losses of £3.6m, resulting in a loss per share of 4.6p, compared to losses of £3.6m and 3.2p in 2015.
REVOLYMER (REVO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 56p | MARKET VALUE: | £32m | |
| TOUCH: | 54-58p | 12-MONTH HIGH: | 92p | LOW: 53p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 18p | NET CASH | £10.5m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 0.15 | -3.93 | na | nil |
| 2012 | 0.18 | -10.1 | -25.2 | nil |
| 2013 | 0.53 | -5.28 | -9.8 | nil |
| 2014 | 1.02 | -4.30 | -7.7 | nil |
| 2015 | 1.25 | -3.59 | -3.2 | nil |
| % change | +22 | - | - | - |
Ex-div: nil Payment: nil | ||||
