TIDMRMS
RNS Number : 5388X
Remote Monitored Systems PLC
05 May 2021
5 May 2021
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
Remote Monitored Systems plc
("RMS" or the "Company")
Trading Update
The Company announces a trading update for the period to 30
April 2021. The three primary drivers over the recent months have
been to (i) strengthen the manufacturing and supply chain for RMS's
main subsidiary Pharm 2 Farm Limited ("P2F"), (ii) develop P2F's
sales pipeline and (iii) complete a strategic review of the Company
and its subsidiaries; P2F, Gyrometric Systems Ltd and Cloudveil Ltd
(together with RMS being the "RMS Group").
Manufacturing and Supply Chain
Prior to establishing sales channels, it was important to first
secure the production pipeline for P2F's ProLarva mask and to clear
a few quality-control issues, for which the assistance of Egremont
Capital was contracted. As previously reported, the performance of
the Lemu mask-making machine has encountered various problems from
the outset and the combined teams from P2F and Lemu have been
working hard to remedy these issues. The majority of the mechanical
concerns have been resolved although issues with the software means
the machine is still running significantly below the expected rate.
A number of possible solutions have been identified and further
progress is expected over the next few weeks.
In order to be able to meet potential demand, P2F sought to
outsource some of its manufacturing through an agreement with Volz
Filters ("Volz"). Heads of terms have been agreed by both
companies, which will move to a more formal agreement once the
sales pipeline is firmed up. In the meantime, Volz is manufacturing
anti-viral masks for P2F on an order-by-order basis. Discussions
have also progressed with the manufacturer of the alpha-virion
layer (the specific layer containing P2F's nano-particles) and P2F
is confident that it now has a smooth running, high-quality supply
chain; from the in-house production of nano-particles to the
outsourced production of the alpha-virion layer to both the
in-house and outsourced production of the P2F mask itself.
Sales Pipeline
With the manufacturing chain falling into place, P2F is now in a
position to increase its sales and marketing efforts. As prices of
imported generic masks that do not contain P2F's patented
anti-viral layer have fallen significantly over the last year, P2F
is focusing more on specific sectors where demand is less price
sensitive and more concerned with the unique utility and value of
P2F's ProLarva MHRA approved, anti-viral mask. The Company is
pleased to announce that it has entered into a distribution
agreement with Numed Holdings Limited (www.numed.co.uk), who will
supply the P2F mask into GP, dental and veterinary surgeries,
opticians and care homes across the UK and Ireland. Although the
strong interest displayed in 2020 in P2F's anti-viral technology
has yet to translate into significant sales of the ProLarva mask in
2021, P2F is currently in discussions with several potential large
customers both in the UK and overseas and hopes to be able to
announce some significant orders in the near future.
The agreement with Francis McIntyre Limited, as announced on 4
March 2021, has experienced administrative delays in meeting the
listing criteria of the e-commerce platform and in registering the
product's ProLarva brand name. The former is expected to be
complete shortly although the latter may take another couple of
months to work through the UK's Intellectual Property Office. The
result is that Francis McIntyre Limited has not been in a position
to place any further orders beyond the initial 100,000 masks.
However, this is expected to change once the listing criteria has
been approved.
Strategic Review
The third element was to conduct a strategic review of RMS and
its three very disparate subsidiaries. The Board's initial findings
are that the value of P2F, as the Company's largest and most
significant subsidiary, resides principally in its intellectual
property and the expertise of its scientific team, led by Dr Gareth
Cave. The original inclusion of copper nano-particles in a
non-woven layer for the P2F masks has led to the development of two
other products, also utilising the natural anti-viral properties of
copper, with significant long-term target markets. Whilst there is
no guarantee of success as these products are still in the
development phase, the team are confident given the progress to
date. P2F is also continuing to develop products in its original
core field of expertise of agriculture, where increasing the
bioavailability of key elements by supplying them as a
nano-particle can solve a number of major problems. To these areas
can be added the potential for nano-particles in the broader fields
of human health and nutrition and also in advanced materials. The
Board believes that the long-term value of P2F lies in exploiting
these opportunities through the team's ability to produce
consistently sized and shaped nano-particles and incorporating them
in innovative products.
With the future direction and strategy for P2F now much clearer,
the Company is commencing the search for a new Chief Executive
Officer.
In the meantime, the immediate focus is on continuing to grow
the mask sales and completing the development of a couple of new
products in P2F, alongside finalising the consolidated accounts for
the RMS Group, which the Company plans to issue around the end of
May ahead of holding an AGM around the end of June.
Antony Legge, Executive Chairman, commented; "At the start of
last year, prior to the pandemic, P2F was a small research driven
business with a unique way of manufacturing nano-materials such
that the size and shape could be tightly controlled, which was
developing products for the agricultural sector that utilised the
properties of nano-particles to be more easily and quickly absorbed
by both plants and animals.
"With arrival of the pandemic, the team realised that they were
in a position to assist society by embedding copper nano-particles,
which have proven anti-bacterial and viricidal properties, into
face masks. The commercial and technical challenges along that
route should not be underestimated and the team deserved to be
congratulated for all that has been achieved to date. In addition,
the work on the mask has led to the development of other, and
potentially more exciting, products.
"While the team had hoped to be in a position to secure larger
orders sooner for P2F's ProLarva mask, it is only recently that
supply chain issues have been resolved such that P2F has the
capability to meet any large orders and we look forward to
announcing further sales progress in due course.
"Long term, the Board is committed to building up the research
and development side of the business, marketing the ability of
nano-materials and out-sourcing the manufacturing to third
parties."
- ENDS -
ENQUIRIES :
Remote Monitored Systems plc via IFC Advisory
Antony Legge (Executive Chairman)
SP Angel Corporate Finance LLP +44 20 3470 0470
Nominated Adviser and Joint Broker
Stuart Gledhill
Caroline Rowe
Peterhouse Capital Limited +44 20 7469 0930
Joint Broker
Lucy Williams
IFC Advisory Ltd +44 20 3934 6630
Graham Herring
Zach Cohen
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