During the year The Group largely completed the integration of the Optivite Group, whose results are included for the full year.

Kiotech is a supplier of natural high performance feed additives to enhance growth, health and sustainability in agriculture and aquaculture.

Sales nearly doubled to £21.565m (2009 £10.955m) boosted by a maiden full year contribution from Optivite coupled with organic growth (2009: 3 months contribution).

Total underlying profit before tax and exceptional items more than doubled to £1.877 million (2009: £0.764 million) with Profit before tax of £1.517 million (2009: £1.409 million) includes exceptional costs of £0.261 million relating to the restructuring of the Group.

Underlying earnings per share increased 58% per cent to 7.27 pence per share (2009: 4.60 pence per share) and diluted underlying earnings per share rose 59% per cent to 7.20 pence per share (2009: 4.53 pence per share). A final dividend of 2.00 pence per share is proposed, an increase of 74% over the previous year’s final dividend of 1.15 pence.

Optivite integration

The production of feed additive products has now been consolidated at Manton Wood. This plant has almost trebled its production throughput, with the additional Agil volume and growth from international operations. A recently commissioned third production line at Manton Wood, has enabled the transfer of omega-3 supplements from Optivite’s North Scarle site, as well as providing additional capacity for the acid product range. The North Scarle site has just been closed leaving the Group operating from two production sites: Manton Wood for the functional feed additive business and Boroughbridge, in North Yorkshire, where the Vitrition, organic feed business is located.

Operations – aquaculture

Work is being undertaken with a number of farmers and hatcheries on shrimp, tilapia and Asian sea bass species. The product technology has been well received although, as expected, trial data is mixed, reflecting the inherent nature of trialing at fish farm level, where disease and events such as flooding can undermine results.

Trials with one of South East Asia’s largest feed mill and farm groups will start soon and the company is continuing to work with a major multi-national, whose aquaculture team understands the potential of Aquatice®, and are continuing to test the product to assess its scope.

Aquatice® is a unique technology and requires focused sales support in order for it to gain acceptance in the aquaculture industry. Kiotech says it is conscious that it may be some time before it generate significant sales from this technology but it will continue to work with key partners to achieve this.