Wash those nits right out of your hair!

Tyratech (AIM: TYRU) offers a compelling product proposition. Controlling bugs and parasites using conventional pesticides is both harmful to the environment and ineffective. Over the years insects have built up resistance to many of the chemicals used to kill them. So Tyratech’s natural products are not only safer but also a lot more effective than the competition. 

 Wash those nits right out of your hair!


Tyratech (AIM: TYRU) offers a compelling product proposition. Controlling bugs and parasites using conventional pesticides is both harmful to the environment and ineffective. Over the years insects have built up resistance to many of the chemicals used to kill them. So Tyratech’s natural products are not only safer but also a lot more effective than the competition. 

Tyratech (AIM: TYRU) offers a compelling product proposition. Controlling bugs and parasites using conventional pesticides is both harmful to the environment and ineffective. Over the years insects have built up resistance to many of the chemicals used to kill them. So Tyratech’s natural products are not only safer but also a lot more effective than the competition. As is the case with many emerging companies though, it’s taking longer for sales to build than initially expected.

 

The lead product is Vamousse, a shampoo which kills lead lice. The long-established competitor brands suffer from resistance in some regions; so Vamousse has generated interest from the major retailers. In the US, WalMart and leading pharmacy chains Walgreens and CVS stock the product. The UK launch has Lloyds Chemists, Boots, Tesco, and Superdrug on board. This is an excellent slate of quality retailers and Vamousse is now in 27,000 stores. The fight now is for shelf space and consumer awareness.

 

Building consumer brands is tough and expensive. Tyratech is using TV ads here in the UK, with social media and online the focus in the US. It raised £3 million last November to support the marketing of Vamousse and also to launch a new pest control range aimed at the animal health market. This will be sold to farmers through distributors; so it’s a highly targeted sales effort, but it will probably take time for volumes to build.

 

This week’s trading update said that revenues for last year will be slightly lower than market forecasts of $7.3 million; but the expected loss will be in line. 2016 will mark the first full year of retail distribution for Vamousse and sales will likely be skewed to the second half, with the back-to-school period seasonally important. Revenues are forecast to grow to $11.6 million with a small pre-tax loss. The market cap is just £11 million; so there’s plenty of potential if sales show signs of surprising on the upside.

 

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