Shares in TyraTech (AIM: TYR), the clean technology company for human, animal and environmental health, came under pressure this morning after the company stated in a first half trading update that it would miss full year market expectations on revenues and profits.
The primarily culprit was difficulty in projecting the timing of new orders from its commercial partner, Terminix, the largest pest control company in North America. TyraTech was however keen to stress that its partnership with Terminix had developed ahead of schedule, and was showing “material sales growth”.
TyraTech also reported lower activity among some of its more low-margin business areas, and softer demand for its WasteSolver and SolidSolver equipment to dairy farms for effective waste management.
On the flip side, the company said it was still forecasting that year-end cash levels would be near or at current market expectations, thanks largely to a recently completed rationalisation program to cut overheads.
“While additional contracts and orders are expected in 2009, the company will communicate these developments to the market, when they are accurately known,” the company stated.
TyraTech has developed a number of insecticide products that incorporate unique blends of natural active ingredients. Its range of products addresses a range of issues, which include pest control in homes, the prevention of parasitic infections and the protection of crops and plants from insects, worms and fungal diseases.
The company has a number of products at various stages of the development cycle, and also reported today that its development project with Kraft Foods was on track for 2009 with no revenue reduction expected.
TyraTech's other partnerships with Arysta and TyraChem are “continuing to develop well”.
Douglas Armstrong, CEO of TyraTech, said: "While the business operations have progressed well, we are cautious about how quickly our markets will expand and we are therefore carefully controlling our costs and working capital investments. We remain positive that we can execute our business plan and strategy and that there is a potential for high gross margins on products and additional material payments from partnering and licensing deals. We believe that we will be able to evidence this progress through announcements during the rest of 2009 and we will carefully expand expectations as the business grows into 2010."
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