News

XL TechGroup beat a path higher today as the company, set up to commercialise technologies, reported final results in line with expectations and announced a couple of deal for its TyraTech subsidiary.

The firm exceeded its cash objectives for the 12 months to 31 December, with ending cash of $49.4m, which includes proceeds from the $35m debt financing. Losses for the year were $13m.

Total cash and quoted securities at market (net of debt) as at 31 December was approximately $158m, compared with $28m a year earlier.

AgCert, in which XL holds a 27.2% stake worth around £107m, completed its listing on the main market of the LSE in June last year and was valued at more than $687m last week.

Chief executive John Scott said, "We anticipate significant progress at both TyraTech and DxTech this year, and we would also expect to announce the launch of our fourth company within the next few months."

"We are on target to accomplish our strategy of building one to two companies per year at a value of at least $400m within four years," said the group.

"Our cash and quoted securities have increased substantially in 2005 and we look for this to continue."

In addition, its 66.7% owned subsidiary TyraTech has signed an exclusive five-year supply and distribution agreement with Mexican company Terra Quest SA de CV.

Terra Quest has "excellent" relationships with key governmental and commercial partners in Mexico and will represent TyraTech's products for insect, vector and parasite control within Mexico.

TyraTech has also signed an option agreement with The Scotts Company, a subsidiary of The Scotts Miracle-Gro business, to conduct product development and technical evaluation its natural pesticide technologies relating to a number of specific insects in certain consumer applications.