Provexis Sees Revenue Dip Amid Supply Chain Delay But Points to Strong Future Orders and China Progress

Provexis interim results: revenue dip on supply snag, but orders and China offer upside

Provexis has posted unaudited interim results for the six months to 30 September 2025. Headline revenue fell as a delayed production run constrained sales late in the period. However, management points to strong post-period orders, a fuller pipeline, and meaningful progress in China with BYHEALTH that could be transformative if approvals land.

Here is what matters, why it happened, and how I think about the risk-reward from here.

Key half-year numbers at a glance

Metric	6m to 30 Sep 2025	6m to 30 Sep 2024
Total revenue	£364,369	£785,348
Fruitflow II SD revenue	£302,183	£724,817
Fruitflow+ Omega-3 revenue	£62,186	£60,531
Gross profit	£169,378	£273,348
Loss from operations	£309,730	£147,539
Underlying operating loss (excl. non-cash share-based payments)	£155,014	£98,332
Loss before taxation	£307,146	£146,649
Cash and cash equivalents (period-end)	£523,348	£478,199
Inventories (period-end)	£43,969	£152,755
Total net assets (period-end)	£610,888	£351,388
Basic and diluted loss per share	0.01 pence loss	0.01 pence loss

Why revenue fell: a production delay squeezed Q1/Q2

Total revenue of £364,369 was down 53.6% year-on-year. The bulk of the decline came from Fruitflow II SD, which fell to £302,183 from £724,817. Management attributes this to a supply issue, not demand: all remaining stock purchased from DSM in 2023 and 2024 was sold out, and a new production run completed in October 2025, around two months later than booked. That timing gap depressed sales in August and September.

This is annoying but not unusual for a small company relying on third-party manufacturers. The key question is whether orders bounced once product was back on the shelf. On that front, the update is encouraging.

Post-period momentum: “several hundred thousand pounds” of orders and more runs planned

After 30 September 2025, Provexis says it has taken orders for and/or sold several hundred thousand pounds of Fruitflow II SD, and it is handling numerous enquiries from existing and new customers for 2026 and beyond. In response, the company plans at least three further production runs over the next 12 months, with the next delivery expected in February 2026.

In plain English: the lull looks driven by availability, not appetite. Assuming supply reliability improves, revenue should track order flow more closely. Note the cash implication though – more and larger batch runs mean higher upfront cash outlay to hold inventory.

China with BYHEALTH: the big swing factor

BYHEALTH, a circa £2 billion listed Chinese supplements group, continues to progress a major regulatory submission with China’s SAMR, seeking a new permitted health function claim for anti-platelet effects – a core Fruitflow benefit. BYHEALTH has publicly stated it has invested “tens of millions of funds” (RMB) into this programme since 2015. If approved, Provexis expects orders at a significant multiple of current sales.

Timelines are not disclosed, and multi-party confidentiality applies. That is frustrating for investors, but standard for China’s process. The significance is clear: this is potentially transformative market access with a heavyweight partner holding exclusive rights in Mainland China, Hong Kong, Macau, Taiwan and Australia under the 2021 agreement.

DSM partnership and the microbiome patent: attractive optionality

The long-standing relationship with dsm-firmenich progressed well, with continuing interest from significant global customers. The 2022 reset created two tracks:

• Provexis selling Fruitflow II SD as an ingredient directly (including former DSM customers), while supplying DSM for its Premix and Market-Ready Solutions channels.
• A new partnership around Fruitflow’s gut microbiome patent application, giving DSM preferential access to products based on that technology. Customer interest is described as strong.

Royalties payable to DSM on transferred customers run to 31 December 2026 and decrease further from 1 January 2026, then cease. That should help margins over time, provided volumes grow.

IP moat: five patent families with long tails

Provexis owns outright four Fruitflow patent families plus a fifth in process for the microbiome application. Across these families, potential patent protection runs to November 2029, April/December 2033, November 2037 and June 2043 depending on the claim. Coverage spans major markets including China, the US and Europe. For a science-led ingredient, this matters – it underpins pricing power and partner confidence.

Cash, funding and going concern: watch the runway

Cash was £523,348 at 30 September 2025, down from £708,087 at 31 March 2025 as the company paid for the new production run in cash. Net assets stood at £610,888. Management is candid that further equity or potentially loan finance may be needed in the coming months, largely driven by:

• The size and timing of new production runs of Fruitflow II SD.
• Revenue outcomes versus forecasts.
• Royalty payments to DSM through 31 December 2026, which Provexis aims to settle in shares, subject to agreement.

These factors together represent a material uncertainty related to going concern. Directors nonetheless have a reasonable expectation of securing sufficient additional capital, and the company is exploring consignment stock to reduce cash tied up in inventory. For shareholders, the message is clear: growth needs working capital; dilution risk is present but potentially mitigated if order momentum converts to cash quickly.

Other moving parts

• Fruitflow+ Omega-3 delivered £62,186 of sales, broadly flat year-on-year, with subscriber numbers largely unchanged. It remains a steady albeit small contributor.
• Loss before tax was £307,146, with an underlying operating loss of roughly £155,014 once non-cash share-based payments are stripped out. The business is not yet profitable.
• Issued share capital stands at 2,345,891,239 ordinary shares. There were 288,230,000 options and warrants in issue at 30 September 2025, currently anti-dilutive.

My take: near-term execution versus long-term catalysts

There is good and bad here. The bad is straightforward: a 53.6% revenue decline, bigger operating losses, and a need for fresh capital if batch sizes step up. Supply chain discipline is the execution priority for 2026.

The good is equally clear: stock-outs rather than weak demand drove the dip; orders after the period look healthy; at least three production runs are planned; DSM interest continues; and the BYHEALTH pathway in China remains alive and well-funded. If SAMR ultimately approves the new health function claim, Provexis’ sales profile could look very different, very quickly.

In short, this is still a classic small-cap ingredients story: lumpy halves, large optionality. For investors, the next catalysts are February’s expected delivery, conversion of the post-period order book into reported revenue, clarity on DSM royalties being settled in shares, and any visibility on SAMR progress. Delivery on those checkpoints would go a long way to de-risking the equity raise question.