US sales highlight as Blis posts loss

Dunedin-based Blis Technologies, which has more than doubled its sales in the United States, yesterday booked its sixth consecutive full-year loss but otherwise appears to remain on a sound footing.

Blis, which has raised about $3 million recently for ongoing expenses, develops and manufactures products and ingredients for the oral-healthcare market in New Zealand, Asia, Europe and the United States.

Yesterday, in its full-year-to-March result it posted a $482,000 before-tax loss, compared with a $488,000 loss last year, mainly due to deducting financing costs during the year, including a dividend payment of $150,000 to convertible preference shareholders.

During the past year, Blis shares on the NZX alternative exchange have been at a 14c high and a 3.6c low, and yesterday they traded down 3.67% to 10.5c a share after the announcement.

Craigs Investment Partners broker Chris Timms said while it would be good to see a bottom-line profit after six years, Blis was clawing back losses each year and making good inroads into increasing sales.

"Blis have secured about $3 million in funding, which gives them two to three years' breathing space to get up and running. The highlight is its increasing sales, especially in the US," he said.

Blis did not report its cash-in-hand position, but Mr Timms estimated it was financially "on a sound footing" and he held no concerns for its viability during the next two to three years.

Overall sales during the year were up from $609,000 to $1.23 million: in the US up from $325,000 to $760,000, New Zealand from $146,000 to $192,000, Asia from zero to $136,000 and Australia from $74,000 to $147,000.

Blis chairman Peter Fennessy said its three business development areas continued to be: increasing US sales through a business partnership; gaining US regulatory approval from the powerful Food and Drug Administration; and developing new long-term business partnerships with companies with global interests.

In early April, Blis received a $1 million boost when shareholder Edinburgh Equity Nominee Ltd took up an option to purchase one million preference shares at $1 each.

Edinburgh first took a cornerstone 4.88% shareholding in Blis in mid-2008 for $500,000, followed by a rights issue by Blis totalling $2.5 million. The $3 million was targeted for working expenditure and capital and to secure more regulatory approvals.