TyraTech, Inc. Pre-close Trading Update (3902W)

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RNS Number : 3902W

TyraTech, Inc.

09 February 2017

Strictly embargoed until: 9 February 2017

TyraTech, Inc.

("TyraTech" or the "Company")

Pre-Close Trading Update

TyraTech, Inc. (AIM: TYR, and TYRU), a life sciences company focused on nature-derived insect and parasite control products, announces its pre-close trading update ahead of its Preliminary Results for the year ended 31 December 2016.

Market Overview and Financial Update

Despite a difficult market environment, gross sales of the Company's market leading Vamousse(R) head lice range of products continued to show double digit growth year on year, and the Vamousse brand gained market share against its major competitors.

The Company had indicated at the time of its Interim Results in September 2016, that the overall rate of growth of Vamousse had slowed in the second half of the year, mainly due to a deceleration of the lice category in the US, but the market did recover somewhat at the end of the year and finished almost flat in the US for the full year 2016.

In order to adapt to these market conditions, the Company has strictly controlled its overall level of expenses, and still expects the year end results to be broadly in line with current market forecasts and its cash position to be in excess of $1.7 m.

Business Update

Individual retail outlets across the distribution network in the US are now adding new Vamousse product Stock Keeping Units (SKUs), which is being driven by consumer demand. The Company is pleased that following CVS in the US in 2016, Walgreens, the biggest pharmaceutical chain with over 8,000 stores has also decided to add Vamousse Lice Defense shampoo and Vamousse Lice Elimination powder to Vamousse Treatment for the 2017 season.

After only being available online Guardian(R) (TyraTech's plant-based, non-toxic mosquito and tick repellent), will now be tested in Kroger stores, the biggest grocery chain in the US for the 2017 season.

In other initiatives, the Company has successfully finalized the development of its innovative, effective and non-toxic OutSmart(TM) Fly Spray repellent for the equine market. An additional patent filing has been made for the new formulation which was pre-launched by TyraTech's partner SmartPak at the end of 2016. The full launch for this product is expected during the second quarter of 2017 before the fly season begins.

The three animal health products sold under the brand PureScience(TM) are showing positive field testing results. Products have already been purchased and have received good feedback from several production facilities affiliated with the major poultry and swine producers in the US. Widespread adoption will take time, but reports from our partner MWI, the biggest distributor of animal health products in the US, show that the products are performing well.

Outlook, Strategic Direction and Date of Final Results

Taking into account the market conditions and these new product placements and adoptions, the Board is currently more cautious about revenue expectations but still anticipates double digit revenue growth in 2017. In addition, the Board continues to consider the strategic direction of the Company with respect to the personal care range of products including the Vamousse brand and the ultimately larger animal health opportunities.

The Company will announce Final Results for the year ended 31 December 2016 by the end of April 2017.

The information communicated in this announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

For further information:

 
TyraTech Inc. 
 Bruno Jactel, Chief Executive          Tel: [phone] 
 Officer                                           4340 
 Erica H. Boisvert, Chief Financial     Tel: [phone] 
 Officer                                           4287 
 www.tyratech.com 
 
  SPARK Advisory Partners Limited 
  (Nominated Adviser)                  Tel: [phone] 
  Matt Davis / Mark Brady                          3551 
 
  Allenby Capital Limited (Broker) 
  Chris Crawford                       Tel: [phone] 
                                                   5656 
 
Belvedere Communications (PR)          Tel: [phone] 
 John West / Kim van Beeck                         0510 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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February 09, 2017 02:00 ET (07:00 GMT)