21 January 2010

NEUTRAHEALTH PLC ("the Company")

TRADING UPDATE

NeutraHealth plc, one of the leading UK vitamins & supplements companies, is pleased to provide the following trading update. 

Sales in the second half of 2009 were strong, and are expected to exceed £18 million. This is almost 9% growth on the first six months of 2009, and over 4% growth on the second half of 2008. This has been achieved through product innovation and by focusing on our core customers, which has led to an increase in consumer demand.  

Profit for the year is in line with management expectations. Input prices have remained volatile. Our efforts on raw material cost reduction have increased and will have a positive impact in 2010.

We are also pleased to announce that we have disposed of the trade and assets of Nutrigold Limited, removing a loss making brand from the group and allowing BioCare to focus fully on core business. Nutrigold was purchased in February 2006 for consideration of £467,000 plus costs when sales were approaching £1million per annum. An earn out was put in place for the vendor which expired in December 2009, at which time sales had fallen to £626,000, with a loss exceeding £100,000 per annum. The cash received on disposal is £315,000 before costs, which will necessitate a goodwill impairment charge in the year to 31 December 2009. 

Ray Myers, Chief Executive, commented:

"We are pleased with our sales growth and hopeful that improved market conditions will be sustained. Delivering profitable growth is our priority for 2010. This will be achieved through reducing input costs, securing increased market share, and realising new product and customer opportunities."

Enquiries: 

RNS news service provided by Hemscott Group Limited.