Neotronics Technology Plc, purveyors of Neotronics Olfactory Sensing Equipment, or the Neural Nose to close friends, has announced drops in interim profits and turnover. Pre-tax profits fell 46.7% to #509,000 and turnover by 6.4% to #9.8m, as the Bishops Stortford, Hertfordshire-based company, saw a squeeze in its core product area of gas monitoring equipment, with sales down by #800,000 during the period to March in the US alone. The sudden fall in US is blamed on the delay in full availability of the MiniGas 4, a response to the 1993 US Federal legislation, and the failure to address changes in the US market. Elsewhere, despite tough market conditions, sales volumes were maintained but at lower overall sales values. The company also manufactures equipment to measure air and water quality, and that grew by 5% by volume, with particular growth in the Indoor Air Quality market in the US. The Nose, launched in the UK in January (CI No 2,380), has, according to Neotronics chairman, Paul Gotley, exceeded all expectations in market response, and he believes there is a very clear market requirement for this product in many large industries and that the commercial potential of the Nose is such that it could make a very significant contribution to the group. The company is presently planning to set up a new company to market the Nose and offer technical support for customers’ Noses. However there are worries about the large sums necessary to market the product and the Neotronics is considering joint venture marketing and funding the Nose as an independent project.
