High dollar erodes Blis revenue 

Source: ONE News

Biotech entrepreneur Blis Technologies has posted a net loss of $180,000 for the six months to September 30.

It said the deficit represented a 56% drop on the deficit for the same period of last year, $411,000.

Without finance costs related to dividend payments on convertible preference shares, the latest net deficit was $11,000 ($405,000 last year).

No tax is payable and no dividend will be paid on ordinary shares. Blis shares closed on Thursday at 13 cents, up 2 cents.

Earlier in 2009, the Dunedin-based company reported a full year loss of $488,000 for the year to March 30, an improvement on the previous full-year loss of $617,000.

Revenue for the half-year to September increased 228% to $1,078,000 on the back of increased sales in North America, Asia and New Zealand.

But directors noted the 80% of its sales were international, compared with 58% in the 2008 half-year, and the high New Zealand exchange rates in the last few months had eroded revenue by $100,000 from the budgeted figure.

A big lift in US sales revenue was due to work with a distributor, Frutarom Ltd.

Blis developed and makes Blis K12, which contains beneficial bacteria to boost oral health by supporting the throat's natural defences, and earlier this year launched Blis M18, a probiotic sold in the US in Tooth Fairy products to prevent tooth decay in children.

A slow start in the Irish market is a concern, and it is reviewing the situation with the Whelehan Group. NZ revenue was higher than in the previous period by 94 percent as a result of the marketing campaign by Pharmabroker NZ.

Revenue from contract development agreements in the period, primarily involving Nestle Nutrition, was down 79% (from $120,000 to $25,000.

Other revenue at $365,000 was mainly from a major global consumer products company, though the agreement is subject to confidentiality agreements.

Ordinary shareholder funds are $1,739,000, compared to $1,637,000 the previous year.

The company raised $3 million in May, which included 1.08 million convertible preference  shares being allocated to Edinburgh Equity Nominee Ltd. The capital raised is treated as a long-term liability rather than owners' equity, with the net amount of $2.68 million considered part of the company's capital base.