Pre Close Trading Update
December 12 2003 - 2:00AM
UK Regulatory
RNS Number:1812T
Biotrace International PLC
12 December 2003
For Immediate Release: 07.00 am, Friday, 12th December 2003
BIOTRACE INTERNATIONAL PLC
Pre Close Trading Update
Biotrace International Plc (the "Group"), a leading manufacturer and supplier of
industrial microbiology and life science products, will announce its preliminary
results for the year to 31 December 2003 on 3 March 2004.
Ian Johnson, CEO, commented on trading in the second half of the year, said:
"Despite currency weaknesses in the second half of the year, I am pleased to
announce that the Group's sales and profits for the current year are likely to
be in line with the Board's expectations.
During the second half we have continued to experience strong growth from
existing business and through acquisition. Biotrace derives approx. 90% of its
revenues from repeat consumable sales, which have continued to grow throughout
the year. Capital equipment sales have remained weak, which has mainly affected
the Ruskinn brand, but this has largely been offset by robust consumable sales.
There is some evidence of the easing of capital equipment budgets, which
together with the recent launch of our new hygiene instrument and air sampler
should further improve the Group's prospects next year.
I am delighted to be able to report that the integration of International
BioProducts Inc. ("IBP") acquired in September is progressing well. The
organisations in North America have been merged and the former Biotrace Inc. HQ
has now been closed. This, coupled with the relocation of Ruskinn products to
Bridgend, will lead to operational savings in 2004 and beyond. IBP products are
currently being launched into the Group's European and Asia-Pacific distribution
network, which should contribute to organic growth next year. As a result of the
acquisition of IBP, the Group now earns half its income from North America which
has further exposed the Group to US$ Dollar exchange rate fluctuations. This has
had an adverse affect on this year's sales and will continue to have an impact
on sales in 2004.
I am pleased to report that Defence sales have continued to be strong during the
second half with the #1.35 million order received in March now having been
completed. Despite a further batch of reagents being deferred to January 2004,
defence sales for 2003 should be at record levels. However, even though we now
have greater visibility on Defence sales, we anticipate that sales in 2004 are
likely to drop below historic levels.
Overall, The Group has made excellent progress during the year in executing its
plans to become a leading supplier of industrial microbiology products. Going
forward, sales of Industrial products are expected to account for approx. 90% of
the Group's turnover and investment in new products, particularly in Ruskinn,
will continue to fuel organic growth next year. Further acquisitions are
envisaged next year to enhance the Group's European distribution and broaden the
product range and we look forward to reporting continued growth in 2004".
ENDS -
For further information, please contact:
Biotrace International
Ian Johnson, Chief Executive Officer Tel: +44 (0) 1656 641 400
Peter Morgan, Finance Director
Buchanan Communications
Tim Andersen / James Strong Tel: +44 (0) 20 7466 5000
Notes to editors:
Biotrace International Plc is a leading manufacturer and supplier of
microbiology instrumentation and test reagents to industrial, healthcare and
defence markets. Biotrace is the acknowledged leader in rapid hygiene testing
and the continuous real-time detection of airborne biological weapons.
Many of the world's leading food manufacturers and catering companies, including
19 out of the top 20 world food groups now rely on Biotrace as an essential part
of their quality procedures. Industrial customers include many of the world's
largest water treatment chemical multi-nationals. Biotrace also supplies highly
specialised workstations to hospitals, public health laboratories and medical
research institutes for the examination of micro-organisms and diseases. A small
part of the Company's business is the manufacture and supply of equipment and
reagents for the detection of biological weapons, which it supplies to the UK
MoD, other foreign governments and large defence contractors,.
Formed in 1988 and floated on the London Stock Exchange in 1993, Biotrace
intends to continue to broaden its business base through organic growth and
acquisition of products and technologies to become a 'one stop shop' for its
large and growing international customer base.
This information is provided by RNS
The company news service from the London Stock Exchange
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