26 May 2017
Cost Savings Result in Increased Net Profit
The Board announces today that the current FY17 unaudited management accounts reflect
a net profit of approximately $400,000, which is higher than any previous profit in ANO’s
history, disregarding the 2009 profit due to a substantial tax benefit which was revised in
later years. Unfortunately, the Board have agreed that the Company is not in a position to
start paying dividends. The increase profitability is the result of cost savings from
transferring numerous operating processes within the business to Brisbane. A number of
new strategic initiatives started in June 2016 have taken longer than expected, however
should begin to contribute to revenue in the second half of 2018.
The initiatives include:
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The development of a library of end products / formulations under the ZinXation
brand using EcoCert approved ingredients.
The development of a pump bottle SPF moisturising lotion to complement the
SPF50+ sunscreen, already in stability testing.
Increasing the library of active ingredients to create more sales and possible end
products / formulations.
Finalisation of our manufacturing arrangements in the US to suit large scale
manufacturing. There has been a delay of approximately 12 weeks to commence full
scale production, with technical equipment issues currently being resolved.
Geoff Acton (B.Com CA)
Managing Director