TyraTech

Having narrowed losses last year, natural pesticides developer TyraTech has now raised £2.2m at 9p in a welcome move boosting its working capital.

AIM-listed TyraTech, which pared losses for the year to December by 26% to $12.95m (£8.92m), on turnover increased 177% to £2.9m, produces a number of pesticides which are made from natural ingredients. These include ‘Natural forces’, a range of sprays for killing flies and insects, aimed at the mushroom industry and ‘Tyratech naturals GP’, a spray for usage in the restaurant and customer services industries.

TyraTech, which also has products for the consumer home, animal health and agriculture industries, may well be a small company, but it punches above its weight. In 2006, it attracted the attention of investors by signing a deal with US food producing giant Kraft, for the development of compounds in food and beverages to help fight parasitic infections in the developing world.

Chairman Alan Reade tells Growth Company Investor that the group will be ‘shielded from the wider economic climate as we work in a very interesting area, making products which are competitive in cost. The EPA (Environmental Protection Agency) is keen to increase the number of insect controls in and around the house that use decreased toxicity, and we believe we may benefit from this'.

Despite recent positive developments, TyraTech shares, currently trading at 13p, having plummeted from a 52-week high of 68.50p, remain high-risk fare, with the company not expected to generate pre-tax profits until at least 2012. Avoid for the time being, but keep TyraTech on your radar.