Byotrol Share Discussion Threads

[riddlerone] 17/12/2020 17:24

So this is interesting

Why can't I buy Odor-X or Defend-X on their own?

You can only buy Odor-X and Defend-X refills if you have already purchased dispensing equipment (SmartPod and/or Hygienica Backpack). This is because the spray wands are specifically designed to dispense product in the right droplet sizes to be in compliance with the EPA claims. If you use the product without the correct dispensing equipment, it will not be effective.

[1gw] 17/12/2020 09:42

Looks good if Move Clean are going to promote the use of the Turtle Wax disinfectant (B24) with the hygienica equipment, which would be logical.

[riddlerone] 17/12/2020 07:39

I suppose the way we have to look at the US license is that we are not going to get anywhere near the material minimum annual guaranteed payment they have to make for 2020/21.All of this marketing and tie-ups should benefit us for 2021/22 royalty payments which we would hope will handsomely outstrip minimum payments for the full year.

[riddlerone] 17/12/2020 07:13

Looks a good partnership football, they look pretty connected.

[football] 16/12/2020 23:37

More deals for move clean(Byotrol24) in the usa today hTTps://www.prnewswire.com/news-releases/move-clean-and-hygienica-partner-to-bring-new-dispensing-technology-to-the-transportation-space-301193763.html

[football] 16/12/2020 21:22

More dodgy hand sanitizer coming off the shelfs hTTps://www.duvarenglish.com/amp/eus-anti-fraud-body-seizes-140000-liters-of-turkey-manufactured-hand-sanitizer-for-being-dangerous-news-55493

[rivaldo] 14/12/2020 14:51

Looking strong - hopefully the long-term chart uptrend is continuing.

Thanks to all those above digging out the news flow on the royalty deals etc.

[football] 13/12/2020 20:52

Don't you just love people who live in the past(STT) it doesn't matter if there's a vaccine and covid goes away employees still have a duty of care to customers and employees so would hand sanitiser will have to be available otherwise they will be liable

[sikhthetech] 13/12/2020 19:11

1gw
"With Solvay, Move Clean and Turtle Wax launches, byotrol must be looking at a realistic chance of very material royalty payments going forward:"

Vaccine is being rolled out, so expect demand for base products to reduce. They already had a summer 'lull'.

Will Royalty income replace the lower revenues from those products?

Let's have a read of their accounts...
Royalty income fy2020 £780k, H1 2021 £590k
Yet Mcap is a massive £29m. Lot of jam tomorrow built in.


FY2020:

"We also recognised revenue and gross profit from IP agreements of £0.78m, lower than the prior year (which benefited from one large IP agreement with Solvay SA)."




H1 2021:
"including £0.59m of royalty and licensing revenue"




How does those royalty figures stack up against your 'building blocks' post for THIS YEAR - your £17m!!!!



1gw 14 May '20 - 17:37 - 5918 of 5960
Just as a reminder of the building blocks for this year:

£12m product sales (annual based on Mar-May run rate)
£ m royalty/minimum guaranteed payment Americas byotrol24
£ m royalty/minimum guaranteed payment SC Johnson Invirtu
£ m royalty/minimum guaranteed payment Tristel/Cache
£ m royalty/minimum guaranteed payment Solvay Actizone
£ m royalty Tristel new formulation (+ any increase in actizone supply sales over Apr-May rate)

Now some of the £m may be £k this year, but it seems to me byotrol is putting together an impressive portfolio of licence deals. And even so you could argue it is only just getting started: how many more deals can it do like the Tristel/Cache one to license non-core technologies to companies whose products are under regulatory threat? how many more geographies could it license byotrol24 in? can it license Invirtu in various geographies, or will meaningful royalties come in from the US red cross deal if Advanced Hygienics can find funding for marketing and production?


Best to read the company newsflow

[1gw] 13/12/2020 17:34

Remember that royalties are virtually 100% profit, so if the base product sale business can be made consistently cashflow positive (including covering the overhead), then royalty receipts become free cashflow, available for distribution (buyback/dividend) or investment (including acquisitions). With Solvay, Move Clean and Turtle Wax launches, byotrol must be looking at a realistic chance of very material royalty payments going forward:

Solvay Actizone;
IRI byotrol24 (incl Move Clean, Turtle Wax);
SC Johnson Invirtu;
Tristel Cache (2 products);
Tristel8.

The Tristel deals are a combination of royalty and also product (Actizone) supply.

Not forgetting the possibility that some older agreements such as Advanced Hygienics may start delivering meaningfully at some point.

Even with free cashflow, they couldn't distribute "surplus" cash without first removing the retained losses on the balance sheet, which is where the capital reduction comes in (as a quicker way than waiting for future profits to wipe out the current retained losses).

[riddlerone] 13/12/2020 17:11

You would have to hope for that wisecat.Tristel pay 50% of net profits in dividends a policy that would not go unnoticed by the market if we adopted it.Of course you have to have the profit there in the first place hence we go back to my point on capital reduction.

[wisecat2] 13/12/2020 16:40

Maybe preparation for dividends

[riddlerone] 13/12/2020 16:36

I have wondered what prompted the board to go down the route of capital reduction especially as our balance sheet isn't overflowing so to speak with free cash.At some point they must have seen the potential of this licence next year and the early registrations in the US for Turtle Wax so did that sway them?

[riddlerone] 13/12/2020 16:10

Nice bit of detective work there 1gw,I think its calendar year going by the delayed payment earlier this year and that generous figure of 5% does start to look feasible.

[sikhthetech] 13/12/2020 15:52

1gw,
"sense-check on royalty rates."

Advanced Hygienics have been a partner for years.

Surely that would be give a better sense check as to what the company might expect from these royalties.

How much minimum guaranteed royalties have Byot received from Advanced Hygienics over the past 3 yrs?

[sikhthetech] 13/12/2020 15:47

The interims (7th Dec) were only a week ago.

For H1, they increased sales by only £4.5m compared to H1 2020 (£6.7m compared to £2.2m) and adj Ebitda only increased by £800k, £1.2m (H1 2020 £0.4m)

Given the biggest pandemic to hit the world in 100yrs that's not much of
an increase in sales and profits.

Given covid vaccines are now approved and being rolled out, here & US, the hightened demand for sanitiser products will decrease over time.

As usual, there's a lot of jam tomorrow. They announced the trial at Target in May 2018 and it ended in March 2020, after nearly 2 years. The Turtle Wax, Move Clean, is also a trial where the data won't be known for months or even more than a year. By then Covid vaccination rollout will be at an advanced stage.


£30m mcap - seems like a lot of jam tomorrow already factored in!!

revenues £6.7m(£2.2m) fy £6.1m
GP £2.3m (£0.9m)
adj Ebitda £1.2m (£0.4m)

[1gw] 13/12/2020 15:07

And actually if the minimum guaranteed royalty payments under the Solvay deal were £300k for year 1 (calendar 2019 sales) and £200k for year 2 (calendar 2020 sales), that would give another sense-check on royalty rates. Presumably the £300k was meant as a conservative estimate of what might be expected should Solvay have decided to launch in late 2018/early 2019 - so again that seems consistent with a 5% royalty rate and a target of £10m sales in year 1 (i.e. "target" of £500k, so minimum guarantee set at £300k).

[1gw] 13/12/2020 12:39

Cheers riddlerone.

You can quantify things a bit I think from the annual report. Note 24 shows they moved £176k of long-term trade receivables to current as of 1st April 2020, so I think that has to be the final minimum royalty guarantee on the Solvay deal i.e. the FY21 minimum royalty payment.

That £176k will be a bit less than the actual minimum royalty payment due because of the discounting effect, so round up to £200k perhaps as the minimum payment. If we assume that the finnCap implied 5% royalty rate is about right, that would mean the minimum royalty equates to £4m of sales by Solvay. In other words if Solvay can do more than £4m of sales of Actizone in FY21 (ending 31/3/2021) then there would be royalty due above the minimum guaranteed amount. Given the number of customer projects identified on the Solvay slide and the fact that sales have already started in Asia Pacific, and perhaps also in Germany, it does seem possible that they could exceed £4m in sales by 31st March. Again, from the finnCap estimates of £10m of sales in year 1 and given Solvay's September launch, £4m seems credible. I'd have to think that upon launch of retail products, especially into a northern hemisphere winter with covid rates spiking, customers would want to have a fairly large inventory available which would mean initial orders from Solvay could be relatively big.

Edit: Although, having said that I wonder if the sales year for the Solvay deal is calendar - given the issue last year about the £300k payment due at end-March slipping to early April. In that scenario the minimum payment would be due by 31st March (i.e. in the byotrol financial year) but the measurement period for sales would be the calendar year. If that were the case, sales would have to ramp up more quickly following the Solvay Actizone launch in order to trigger a royalty payment above the minimum guaranteed for calendar 2020 sales.

[riddlerone] 13/12/2020 09:40

Wouldn't it be nice to know at the end of this financial year how close the commission gets to the minimum payment from Solvay,it could be a very close thing.Can I just say you have done some great digging up lately football and 1gw and for that I thank you.

[loafofbread] 13/12/2020 09:01

Can you slow down on the positive posts so I can add a few more at 6pish please?

[1gw] 12/12/2020 22:01

"Wings Group launches WIZ24 disinfectant to complement anti-bacterial product line"

This must be the Wings connection from the Solvay slide. Interestingly, Wings appears to have launched Wiz24 on 7th August, before Solvay officially launched Actizone.