(Alliance News) - Zenova Group PLC on Wednesday reported a widened annual loss and "lower than expected" revenue
But, it said sales are now improving following successful product launches and a "very positive" collaboration with Liverpool John Moores University.
The Essex-based fire safety and thermal insulation products provider reported a pretax loss of GBP2.0 million for the year ended November 30, widened from the GBP1.1 million loss reported the year before.
Revenue shot up to GBP175,000 from GBP6,000, but sales were still lower than anticipated.
The widened loss was mainly due to administrative expenses, which increased by 86% to GBP2.1 million from GBP1.1 million. Zenova also incurred GBP67,000 in cost of sales and GBP10,000 in finance costs, both up from zero the prior year.
The company declared no dividend for the 2022 financial year, unchanged from the prior year.
More recent operational highlights included the launch of the FX500 hand-held fire extinguisher in April, with pre-order clients including the Ukrainian military. Furthermore in early May Zenova concluded a successful trial of its Zenova IP thermal insulation paint with Liverpool John Moores University. It said benefits from the product included lower fuel bills and improved energy performance certificate ratings.
Zenova said it is well positioned for future turnover growth, but meanwhile has implemented a "rigorous cost management" programme to maintain sufficient working capital. It intends to focus on sales growth over the next year and expects improved distribution channels, and the upcoming launches of two new extinguishers, to add further revenue streams.
"It has been a challenging year with a number of issues impacting on the pace of sales, primarily testing and verification taking longer than expected...the sales cycle is now improving with the relevant validation and certification in place to allow the products to scale into the commercial sectors within Europe," said Chief Executive Officer Tony Crawley.
"Production of the FX500 is now underway in Canada as well, and with the level of interest from the USA and Canada markets we see encouraging sales. Further interest of Zenova IP paint in the USA as well as in the UK and Europe is also gaining traction following the very positive recently published Liverpool John Moores University trial results."
Shares in Zenova were down 2.1% at 4.16 pence in London on Wednesday.
By Emma Curzon, Alliance News reporter
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Zenova Grp (ZED)