• All relevant expense items decreased
• Revenue falls to EUR 1.1 million owing to one-time effect in the case of antibacterial additives
• Half-year result nearly stable
Nuremberg, September 11, 2014 — In the first six months of fiscal year 2014, Bio-Gate AG (ISIN DE000BGAG981), a leading supplier of antimicrobial products and multifunctional surfaces for medical technology, built on the positive operational trend of the second half of 2013. Existing projects were successfully continued and new customers acquired in all business divisions.
However, the revenue trend in the first half of the year was influenced by a one-time effect, resulting in a decline in income by around 20% to EUR 1.1 million (PY: EUR 1.4 million) despite the positive operational trend. This was due to changes in the sales organization of a customer in the area of antibacterial additives. This caused delays, and the delivery of the agreed sales volumes will not start until the second half of the year. Moreover, the exceedingly strong first half of prior year 2013, in which nearly 60% of the entire annual income was realized through catch-up effects, distorted the comparison. Consequently, 2014 mid-year revenue increased by around six percent over the second half of 2013. Through the markedly improved cost structure in the Bio-Gate Group, the mid-year result remained nearly stable at EUR -0.8 million (PY: EUR -0.8 million).
Cosmetics business remains the strongest revenue driver
Bio-Gate realized marked growth in the case of MicroSilver-based cosmetics products that were developed for customers and already exceeded the entire previous year’s revenues in the first half year of 2014. The company registered equally gratifying growth in the case of skin care creams which are available in the branch stores of leading drugstore chains. The sale of oral care products with MicroSilver is expected to improve further in the in the course of 2014. The two mouthwashes introduced to the market last year by our customer Dentognostics, as well as the toothpaste, were included in the sales catalog of global dental product distributor Henry Schein at the start of the second quarter of 2014 and have already had a good start.
Operating cash flow improved
Largely driven by increased trade payables, cash flow from continuing operations improved markedly to EUR -0.4 million, following EUR -0.8 million in the same period last year. To increase the capital base, the company placed a zero-coupon convertible bond with exclusion of original shareholder subscription rights in the first half of 2014 and supplemented debt financing with a loan. The liquidity of Bio-Gate AG was again strengthened after the balance sheet date by the taking out of an additional loan. Total liabilities increased appreciably to EUR 1.7 million (December 31, 2013: EUR 0.9 million), primarily through the convertible bond placement, the loan and increased trade payables. Accordingly, the equity capital ratio fell to 17.2% (December 31, 2013: 50.3%).
Revenue declined in the first six months of 2014 over the prior year’s very strong six-month period. This was also attributable to a one-time effect. The company nevertheless achieved a nearly stable six-month result. We are again counting on clear growth in the second half of the year in comparison with the prior year’s period and with the first half of 2014. The Bio-Gate Group is therefore confirming its financial objectives for the entire year 2014. Accordingly, we expect greatly increased revenue, simultaneously accompanied by a markedly decreasing deficit. At the operational level (EBITDA), the breakeven point is expected to be reached by the end of the year. The prerequisite for this forecast is that the present development projects incur no major delays and the plans with regard to product marketing are fulfilled.
The complete 2014 mid-year report is available on the homepage of Bio-Gate at Link to Mid year report 2014
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The medical technology company Bio-Gate AG develops and markets applications which exploit unique silver technology to help prevent infections and thus to improve health. Bio-Gate’s specialty is treating materials and surfaces that are used in all areas of daily life with pure silver, thus providing long-term and medically effective protection against bacteria, micro-organisms and other pathogens. Bio-Gate works in three fields to supply a variety of products that provide antimicrobial protection: material refinement, surface coating and testing the antimicrobial or anti-adhesive properties of materials. The Nuremberg-based company offers systems that stretch across the entire value-adding chain, from development to approval to production. In addition, the development and marketing of cosmetics and body-care products are concentrated in its subsidiary, BioEpiderm GmbH. Bio-Gate’s most important customers include, for example, the cosmetics manufacturer LR Health and Beauty Systems, Stada AG and leading international companies working in the medical devices sector.
This publication constitutes neither an offer to sell nor an invitation to buy securities. The shares in Bio-Gate AG (the “Shares”) may not be offered or sold in the United States or to or for the account or benefit of “U.S. persons” (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)). The securities have already been sold.