MULTIMILLIONAIRE business angel Richard Farleigh is leading the battle to revive Oxonica, the Oxfordshire company which hit a crisis last year.

Oxonica, based at Begbroke Science Park, made ten people redundant last May when it lost a £6.1m contract from Turkish oil company Petrol Ofisi.

It brought in Mr Farleigh, one of its major investors and a former panelist on TV's Dragon's Den, as chairman and raised £4m on the stockmarket.

However, the company - an Oxford University spin-off which employs 20 staff at Begbroke and 28 in the US - is still struggling for survival.

It now has £4.8m cash - enough to last until next year - but its losses widened by 112 per cent to £5.6m last year, according to results released this week.

Oxonica's shares crashed last April when its fuel-saving additive Envirox failed to come up to promise in Ofisi's trials.

But chief executive Kevin Matthews said a more recent trial with Stagecoach had confirmed a 4.3 per cent fuel saving.

He said: "Stagecoach are using it all over the country, including Oxford, improving their operating finances and reducing their environmental impact.

"We are asking other bus operators why they are not doing it.

"Bus operators are complaining about fuel costs and the increasing environmental regulations. Our product offers benefits in both of these areas."

Mr Farleigh said truck firms and municipal waste contractors were also big users of diesel and would see significant savings.

Oxonica's revenues were also boosted by sales of Optisol, an ultra-violet screen launched to consumers at the Professional Beauty Show in London. It is used in Boots suntan lotion and anti-ageing cream.

The company is now pinning its survival hopes on a deal for its loss-making medical diagnostics business, based in the US.

US investment bank ThinkEquity Partners has been asked to explore all options, including a possible sale of the division.

Mr Matthews said: "We are very bullish about Envirox and we don't see any significant headcount reduction in the UK at this stage."

4:37pm Monday 17th March 2008

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