REL: 1336 HRS BLIS Technologies Limited |
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GENERAL: BLT: BLIS Technologies Limited Update and Guidance |
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Pursuant to its governance review BLIS Technologies Limited ("BLIS") has |
appointed Tony Offen to the newly established role of Deputy Chairman. Mr |
Offen who was first appointed to the Board in 2009 will also Chair the Audit |
Committee. The Board intends to appoint an additional Director to strengthen |
the organisations marketing expertise in due course. |
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Since reporting interim results in November the Company has substantially |
achieved its near term development objectives albeit with some delays. |
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New laboratory facilities are substantially complete with staff expected to |
transfer to the new premises in April. |
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The nutritional plant has been commissioned and the Food Safety Plan was |
approved in February but Registered Manufacturing Plant status remains |
pending, the latter being required to allow export of product to target |
markets in Asia. Accordingly no meaningful nutritional sales are now |
anticipated for the 2014 financial year. |
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Ingredient sales into the United States have resumed but some shipments have |
been delayed due to stringent border control protocols. |
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The delays resulting from regulatory certification and approval processes |
mean that trading revenues for the 2014 financial year are now expected to be |
about $1.25 million. This will be about a 12% increase on the $1.121 million |
recorded in the 2013 year despite the discontinued operations of BLIS |
Functional Foods ("BFF") which contributed $408k to 2013 turnover. |
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An operating loss of about $1.6 million is now anticipated for the 2014 |
financial year. A loss of this magnitude will be about 15% lower than the |
$1.856 million recorded in 2013. The decision not to capitalise any further |
development costs on products that are now in commercial production will |
result in about $0.1 million of costs capitalised rather than the $0.467 |
million capitalised during 2013. Accordingly the pre-capitalisation |
operating loss for 2014 will be about 30% lower than that recorded in 2013. |
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Aggregate revenues are expected to more than double in the 2015 financial |
year driven by the commencement of nutritional sales and strong growth in all |
remaining product categories. |
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An operating deficit is anticipated in the first half of the 2015 financial |
year with the Company expected to move into operating profit during the |
second half of the year. |