Disperse Tech Share Discussion Threads

[charmer1_23] 31/5/2005 17:58

LONDON (AFX) - Disperse Group PLC, an importer and distributor of health and
beauty products, said it is on target to achieve full-year results in line with
market expectations as it swung into profit following its acquisition of
cosmetic designer Elizabeth French.
The group said it made its first operating profit while turnover had jumped
to 7.4 mln stg for the six months ended 28 February 2005, compared to 515,000
stg a year earlier.
Over 90% of the Disperse Group's turnover is now generated by Elizabeth
French, it said.
Consolidated profit before tax, research & development and amortization was
718,000 stg against a loss of 74,000 stg in 2004.
As previously announced, Disperse Group said that it will seek partners to
work with its drug division, Disperse Pharma, to help it bring products to
market.
Meanwhile, the group has announced a proposed acquisition of The Woods of
Windsor Group, a retailer and distributor of toiletries.
nh/ec





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[rambutan2] 31/5/2005 15:11

other thread, epic dgp.
although that hardly heaving with folks!

[dynoport] 31/5/2005 14:59

Where is everybody? Disperse buying some Woods I hear?

[rambutan2] 20/3/2005 21:30

this thread now null and void, see above.

[rambutan2] 20/3/2005 21:27

thread under dgp epic launched...

[tyranosaurus] 12/2/2005 12:22

I now have the price on my monitor.
Thanks

Shame the DGP discussion board still comes up Darby Group.
Should we be transferring to that board with a new thread ?

[edelin] 11/2/2005 21:46

It's now DGP.

:)

[tyranosaurus] 11/2/2005 17:49

Why has DPT share price disappeared along with the trades etc ??
I tried DPG but comes up with "unknown symbol"

[tyranosaurus] 31/1/2005 18:39

I`ve never been close to a rams butt before !!!

[rambutan2] 31/1/2005 12:04

youre making me jealous fez.
ive not tasted a good rambutan for a few years now.

[fez] 31/1/2005 11:54

rambutan2 - superb information - thanks

(I was eating rambutans just the other day in a market in Vietnam - Mmmmm)

[tanaz] 30/1/2005 15:51

excellent post rambutan2. Solid stuff imo.

[mickbaxter] 30/1/2005 15:42

Thanks rambutan2.

[rambutan2] 30/1/2005 13:43

right, now im not the best at jotting down notes at agms, but this was the gist/my take.

first things first. i got it confirmed that the agreements with shiseido, nu skin, nice-pak, and cosmetic essence etc can be forgotten about. nothing came of them. they are null and void.

so, the two historic licences in action are the two the company mentions ie estee and bbw. the former is ticking along nicely but there is no chance of renegotiating it unless their is a change in the way estee want to use the tech, which unlikely. as we know the bbw contract was renegotiated and that kicked in last april (i think?) with the first cheque arriving last week. the new contract is done on net sales, with the first $50m at 1% (sorry missed the increments after that, but it went up to 2% to a certain point, but if it went beyond a certain point then dropped back down.) i jotted down that perhaps $500k to come from bbw this year.

the reason the above two licence agreements came to fruition and others didnt was said to be that estee and bbw do their own production while others subcontract it out and so are not necessarily in charge of their own destiny to the same extent. as the dpt tech is essentially 'disruptive' folks do their best to resist it. it was also interesting to hear that time/money has to be spent policing the two licences, so they are not quite the free rev stream that they might appear.

of course, the above isnt to say that one of the big cosmetic cos might not have a change of heart one day and decide to go for it.

xme can also be written off, at least for the time being. the tech has not sold and a decision is being taken on its future within the next few weeks.

so, now we know what we are dealing with on the historic side, and anything new can be seen as a very big bonus. blue sky.

so, onto the new model. and here there seemed to be genuine high hopes of success. with talk of turnover targets of £40-£50m within 3yrs. acquisitions are hoped for, but would have to be immediately earnings enhancing.

if liz french performs the extra payments (up to £4.5m) will come out of the profits. ie it will pay for itself.

the virgin deal brings in much better margins than the estee/bbw licences. there are very high hopes for similar deals with the likes of asda, tesco, boots etc. while on the liz french distribution side, names touted were superdrug, lloyds chemists and co-op. progress here has been a little slower than hoped for as its taken a bit longer to get in the right personel ie the marketing lady cant start until april. everyone seemed v confident of hitting any stated turnover targets. (my notes slightly muddled for the above but im certain ive got the gist)

cash management is going to be crucial for dpt and the fd was happy to point out that the extra natwest overdraft facility has not had to be used as yet.

which moves me on to the drug delivery tech/tropical drugs stuff etc. theres been interest from large pharmas and generic cos and all liked what they saw. however, they need phase 1 trial data and of course dpt cant afford to do this on its own (cost of approx £2m per trial). so partners are needed to move things along. same goes for sanitizers.

re mrsa, theyve got a handcream which works but dont hold high hopes as nhs system a nightmare to deal with.

work done on mosquito and crop stuff was said to be promising.

so, my overall take was of upbeatness. and of a new lease of life in the company. theres the potential to do some serious growing on the cosmetics side and theres all the other/blue sky stuff in for free. if things work out over the next 12mth id have thought that a big re-rating was on the cards. im happy to hold.

all the above imho.

[tanaz] 29/1/2005 20:58

MickBaxter excellent news!. Hopefully we will see this comapany back at the prices it hit (and further) in the good old ofex days :-)

[mickbaxter] 29/1/2005 13:52

There's a mention at the end of Edmund Conway's Market Report in today's Mail:

"Cosmetics and heathcare company Disperse Technologies told its annual meeting that Virgin Cosmetics would be launching products developed by the company. More intriguing still was the announcement that 'the company is currently negotiating a similar contract with another major company'. Tha company also has a deal with Estee Lauder. Its shares, sitting pretty at 19p, are worth watching."

[tyranosaurus] 28/1/2005 18:40

Back down again in the afternoon.
This stock is difficult to get moving.

[rambutan2] 28/1/2005 11:12

well, up a little on the statement, and someones even bought a few of the wrrs this morning - they must be super confident in some great short term news!

[tanaz] 28/1/2005 09:26

tyranosaurus a good insight / knowledge base is on the unquoted site. Bearing that in mind, this company is grossly undervalued. It has suffered the effects of the tech stocks demise (without actually resembling dotcom attributes by any means) and the value of the dollar. It has excellent prospects and is definitely one of the best growth stocks around. This is not a ramp and you will find postings by me and mickbaxter on the unquoted site.

[mickbaxter] 28/1/2005 08:41

Disperse Technologies Group PLC
28 January 2005

Disperse Technologies Group plc
('Disperse' or 'Group')

VERY GOOD START TO THE YEAR

* Performance in line with expectations
* Group turnover in first quarter £6m
* £1.1 million VIVO sales since launch in July 2004
* Two new products to be launched on 1 February 2005 for Virgin Cosmetics Company
* Confident that the Group has a good future

Colston Herbert, the Executive Chairman, will make the following comments on current trading at the Annual General Meeting to be held in London today:

'We have had a very good start to the year with the successful integration of Elizabeth French into the Group and our performance is in line with expectations.

Group turnover in the first quarter, which benefits from the build up to Christmas, amounted to approximately £6 million with the results from Elizabeth French, which was acquired in July 2004, on target. The VIVO brand which was launched in July is developing well with sales to the end of November exceeding £1.1 million. We are confident that we are building an excellent brand and it has significant potential.

The traditional licensing activities of the Group continue to make good progress. Estee Lauder introduced a new moisturiser last November, which brings the number of products on the market using our technology to 6. Bath & Bodyworks has continued to show its confidence in our technology by renewing the royalty agreement. I therefore believe that we can look forward to a significant increase in revenues from this customer in the current year.

In February this year, Virgin Cosmetics Company will be launching a range of products which have been fully developed and sourced by Disperse Technologies. This has enabled us to maximise the use of the skills within the Group and we are currently negotiating a similar contract with another major company.

We operate in challenging markets, but I am confident that we have a firm base from which to develop the Group through both organic and acquisition led growth and that we can look forward to a good future.'

For further Information:

Disperse Technologies plc

Colston Herbert (Executive Chairman) 01925 215 555
Tony Williams (Finance Director) 01925 215 555

Beattie Financial
Brian Coleman-Smith / John Moriarty / Jo Clewlow 020 7398 3300

[tyranosaurus] 28/1/2005 08:30

AGM statement out this morning.
Any comments on it from those more knowledgeable about DPT ????

[rambutan2] 27/1/2005 19:06

spose everyone except for me had noticed that the disperse web site has been updated/refashioned.

these for my ref...
20/04/01 Major Licence Agreement With Bath & Body Works Inc.

10 October 2001
Major licence agreement signed

Disperse Technologies is pleased to announce that it has signed a licensing deal with Shiseido America Inc - the USA subsidiary of the Shiseido Company of Japan, the world's fourth largest cosmetics company, with world-wide group sales of $5.4 billion in fiscal 2000. Initially the license is intended for US developed and manufactured brands which are a key area in Shiseido's corporate development plans. For more information see: www.shiseido.co.jp
Disperse Technologies has also signed a Letter of Intent with Davlyn Industries Inc, a sister company of Shiseido America Inc, which is a major third party manufacturer of cosmetics and toiletries, with the intention of granting Davlyn a licence to use Disperse's technologies in products manufactured for other companies.

Disperse Technologies would like to emphasise that it is unlikely that any significant income will accrue from any of the above agreements before calendar year 2003 at the earliest.

Derek Wheeler, Chief Executive of Disperse, said:

"We are delighted to be associated with Shiseido America Inc and Davlyn Industries Inc who should provide a significant widening of our activities in the USA. In addition I am confident that we will be able to announce further agreements in the coming months with a number of different companies. These are exciting times for the teams who work in our research centres in both the UK and USA and I would like to thank them for their dedication and commitment."

13 December 2001
Licence agreement signed with Nu Skin Enterprises Inc

Disperse Technologies announces that it has signed an agreement with Nu Skin International ("Nu Skin"), a subsidiary of Nu Skin Enterprises Inc., to license its ATD technology.
Nu Skin Enterprises, with nearly $900 million in global sales, is a world leader in the creation and distribution of personal care products with an emphasis on skin care. Founded in 1984, Nu Skin has expanded into more than 30 countries throughout the Americas, the Asia Pacific region and Europe with products being sold one-to-one by over 500,000 active distributors. The corporate headquarters are located in Provo, Utah - 40 miles south of Salt Lake City. The company's stock is traded on the New York Stock Exchange under the symbol "NUS". See www.nuskin.com and www.nuskinenterprises.com.

Derek Wheeler, the Chief Executive Officer of Disperse Technologies, commented:

"Nu Skin is one of the most respected names in skin care and I am delighted that they have chosen to license our technology to further enhance the quality of their fine products. We look forward to doing increasing business with them over the coming years.

Once again, I would like to emphasize to our investors that it must be remembered that we only receive income once commercial production by our licensees has commenced and that substantial income streams may take at least 12-18 months to come through."

22 January 2002
Licence Agreement Signed With Nice-Pak International Limited

Disperse Technologies is pleased to announce that it has signed a Licence Agreement with Nice-Pak International Limited, the UK arm of Nice-Pak Products, one of the world's leading suppliers of wet wipes. Nice-Pak International Limited started trading in the UK in 1987. The Group employs over 1000 people in plants in USA and UK. Today, the Nice-Pak International Limited plant in Flint produces a large proportion of all the wet wipes used in the UK and Europe as well as the bulk of retailer brand wet wipes.
Derek Wheeler, the Chief Executive Officer of Disperse Technologies, said:

"I am very pleased to announce our first Licence deal of 2002 which is the first success of our European sales campaign initiated in the second half of 2001. We believe that our technologies will complement those of Nice-Pak International Limited and we look forward to a long and fruitful relationship between our two companies."

17 March 2003
Major Licence Agreement with Cosmetic Essence, Inc

Disperse Technologies Inc, based in Paramus, New Jersey, the wholly owned US subsidiary of Guildford based Disperse Technologies, announces the signing of a licence agreement between Cosmetic Essence, Inc and Disperse Limited.
Cosmetic Essence, Inc. ("Cosmetics Essence"), headquartered in Holmdel, New Jersey, is a leading provider of outsourced manufacturing, filling, packaging, and distribution services to the $29 billion U.S. personal care products industry. It specialises in providing product formulation, finished product manufacturing, and subsequent full-service distribution, and has a diversified customer base ranging from branded fragrance and cosmetics marketers to mass-merchant and specialty retailers.

By offering some the largest retailers in the US a complete range of services for alcohol-based, skin care, and colour cosmetics products, Cosmetic Essence has established itself as one of the industry's largest and most versatile contract manufacturers in the North American market.

Colston Herbert, the Executive Chairman of Disperse, said:

"We are delighted that Disperse Technologies Inc in its new role as the Disperse Technologies Group sales agent in the USA has secured its first licence on behalf of Disperse limited with one of the major cosmetics manufacturers in North America. This agreement should, in due course, significantly increase the sales of cosmetics products using our leading edge ATD technology.

I would like to emphasise that is unlikely that any significant income will accrue from this agreement before the end calendar year 2004 at the earliest."

march 03 newsletter:
Estée Lauder, Bath & Body Works and Davlyn all plan to launch new products containing our technologies this year. Meanwhile, presentations and discussions are ongoing with a number of other potential customers in the USA, Europe and Japan. One significant change in our sales approach has been the adoption of product licensing (rather than technology licensing). This approach involves agreeing a general licensing principle with our customers but then agreeing terms for each individual product they wish to launch. This gives us opportunities for greater control, more flexibility on pricing and quicker exploitation (although the actual licence agreement process may take a little longer). Generally, we have found more enthusiasm from potential licensees for product rather than technology licenses.

Our first licences for the use of our TFE technology should be finalised during the next few months.

Emulsion Systems Limited

Newly re-formed under the guidance of our David Gladman, Emulsion Systems Limited (EMSYS) has begun the process of exploiting XME technology in a variety of industries. David has overseen the construction and development of bench-top and pilot-scale XME units and is busy making presentations and demonstrations in the specially appointed chemical engineering lab at Guildford. Brian Clark, an experienced sales and marketing consultant in the field of processing equipment, has joined him. EMSYS has now attracted the attention of a number of major European and American companies - the pilot- scale model is undergoing trials in the USA with a large US company as I write. More information can be obtained from the website at www.emulsionsystems.com

aug 03 newsletter:
Change is very much in the air at Disperse. Until now, our business strategy has been to license our technologies to very large companies in return for royalties and it has provided us with an annual income of over £1 million. However, the rate of income growth has been slower than we would like. This is because large companies cannot adopt technologies as novel as ours with the speed that we had initially hoped and anticipated. Of course, licensing of this kind will continue to play an important and expanding part of our future business and we are in the process of meaningful negotiations with several of the world's largest cosmetics and household goods manufacturers.

However, your Board has charged us with the task of finding additional ways to exploit our world-class technologies - ways that will give us an even better and speedier return on our R&D investment.

[mickbaxter] 26/1/2005 14:37

I'm not going to the AGM, but would appreciate a write up from anyone who does.

Thanks in anticipation.

[rambutan2] 26/1/2005 10:35

just a reminder that agm at 12noon this friday - time to get those questions answered.

this from the finals of a (one of a number i suspect) vct holder...

Disperse Technologies Group plc

Disperse Technologies owns the patents to a technology that enables cosmetics
and personal care products to be produced more efficiently and reduces the
concentration of additives and preservatives. In July 2004, the company moved
from OFEX to AIM, raised £4.7m and acquired Elizabeth French, an importer and
distributor of branded cosmetics.

Date of Initial Investment July 2004

Cost (£'000s) 500

Valuation as at 31.10.04 (£'000s) 514

Equity held 4.55%