Annual Report & Accounts 2014 - CEO Report and Operational Review
Second, TyraTech's products are gaining traction in the market
and attracting major retailers. In both the USA and the UK,
Vamousse is distributed by world-class chains of pharmacies
and groceries, validating our business model and paving the
way for future growth. Our early successes have attracted the
interest of potential partners and will serve as a launching pad for
geographical expansion.
Third, we demonstrated our operational ability to address
large customers and varied markets. I am particularly proud of
the TyraTech team for having established a full discovery-todevelopment-
to-commercialisation process, a solid production
and supply network, and an award-winning marketing program.
The progress made in 2014 and early 2015 is the building block for
expansion into other market segments.
Fourth, we have established a reliable network of business
partners. I want to thank all the partners, being in sales and
commercialisation, supply chain, marketing and distribution, who
believed in our story, our technology and our team and often
took the risk with us to market our products. These partners have
the bandwidth to grow with TyraTech and the reach to help us
successfully launch new products.
Fifth, we are laying the foundations for future growth. The
Company's growth pathway will rely upon increasing the market
penetration of its existing products, expanding geographically,
and developing its rich patent portfolio into a pipeline of new
products.
Outlook for 2015
In 2015, we are clearly seeing opportunities for growth, immediately
with Vamousse, but also in a diversified portfolio of products for
both personal care and animal health and we will continue
to implement a phased geographical expansion, as resources
permit.
The combination of the launch of Vamousse Protection Shampoo
in Walmart and a number of new distribution arrangements in both
the US, including CVS and Walgreens, and the UK has contributed
to a positive start to 2015, with year-to-date revenue being in line
with management's expectations.
It is worth noting, however, that the sale of head lice products,
which account for a significant proportion of the Company's
current turnover levels, is a seasonal business and, as a result, the
Company's full year outcome will be heavily weighted on the
level of Vamousse sales achieved in the second half of the year,
which includes the traditional back to school period. That aside,
and notwithstanding the lack of prior year sales data to assist
with budgeting, management is confident that the commercial
achievements in the first half of the year put TyraTech in a strong
position to address the market demand in the upcoming head lice
high season.
Whilst TyraTech continues to incur costs for the on-boarding and
integration associated with establishing and maintaining major
retail customer relationships, the Company remains focused on
cash preservation and optimisation. Subsequent to year end,
the Company received approximately $0.5 million in repayment
of loans and consideration relating to the renegotiation of the
shareholding structure of Envance, the Company's joint venture
with AMVAC. Based upon the Company's internal forecasts
through 2016, TyraTech believes its existing cash and cash
equivalents, its current operating plans, the anticipated revenues
from product sales and other collaborative arrangements, and
the ability to control costs as a result of the Company's cost
minimisation program, will provide sufficient cash to meet its
working capital needs for the foreseeable future.
Vince Morgus, who was CFO, has decided to leave the Company
to pursue other interests and the Board wishes him well in his
future plans. We have commenced the process of finding a
replacement for Vince, and in the interim, Barry Riley (Chairman
of the Audit Committee), non-executive Director and a Chartered
Accountant, has agreed to become acting CFO.
In closing, I want to thank our Board of Directors and the TyraTech
team who work so diligently to help us launch our innovative
products. They have committed themselves to our vision and have
given us a compelling advantage in today's marketplace. I also
want to thank our shareholders for their continued confidence in
our strategy and implementation capabilities.
Bruno Jactel
Chief Executive Officer
22 June 2015
TYRATECH • ANNUAL REPORT 2014 • PAGE 5
