Tuesday 28th May 2013
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The Directors of BLIS Technologies ("BLT") advise that the Group recorded a net deficit of $1,856k for the March 2013 financial year (2012:$1,759k). The result was in line with the revised guidance provided in February 2013 and reflected a disappointing operating performance and the decision in February to restructure the operations of BLIS Functional Foods ("BFF") with the cessation of ice-cream production and a relocation of Group operations to the BFF site.
Trading revenue declined during the period to $1,121k (2012:$1,467k) including a full 12 months trading from BFF (2012: 8 months). The key reason for the reduction in revenue was a review of supply chain requirements by its distributor Stratum Nutrition compounded by the suspension of a United States formulator's major product launch.
The Directors said that in spite of the results not meeting expectaion some key relationships are being developed to increase the sales and distribution of the products.They also added that BLIS Technologies has continued to make progress in facilitating the commercialisation of its probiotic offerings particularly in the regulatory and market development areas.
At the time of the Share Purchase Plan and Placement in September 2012, the Company signaled that supplementary funds would likely be required in the 2014 financial year. The assessment was based on the outcome of an external strategic and financial review and on operating expectations at the time. The Company can now confirm that it will need further capital in order to fund the execution of its business strategy. Therefore the Company has initiated plans to raise such further capital and the expectations of Directors are that a minimum $1 million in new equity can be raised in support of the business strategy.
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