Strategic Review Update by Year End
31 October 2014 – PuriCore plc (LSE: PURI), a global company focused on safe and effective protection against the spread of infectious pathogens, today announces its Interim Management Statement for the period from 1 July 2014 to 30 October 2014, which incorporates information in relation to the financial performance of the business for the third quarter and nine months ended 30 September 2014.
Group Results (Continuing Operations) *
Group revenue for the nine months ended 30 September 2014 decreased 39.5% to $13.2 million (2013: $21.9 million). In the third quarter of 2014, as expected, Group revenue decreased to $4.7 million (Q3 2013: $9.5 million). This reflects the impact of the continued rebalancing of Supermarket Retail product mix, as consumable product sales increase and capital equipment sales decline, in line with the fundamental change in the Supermarket Retail business model implemented last year.
Cash and cash equivalents, net of debt, were $22.7 million as at 30 September 2014. As at 1 July 2014, following receipt of PuriCore International Limited sale proceeds, pay-down of the line of credit, and payment of a limited portion of sale related expenses, gross cash and cash equivalents were $26.8 million.
Supermarket Retail Revenue
Revenue decreased 39.6% to $11.9 million for the nine months (2013: $19.8 million). However, during the period, new recurring revenue streams were created by adding new customer stores and converting existing customer locations to ProduceFresh® as well as from new stores implementing FloraFresh®.
Wound Care and Dermatology Revenue
Revenue, excluding milestones payments, was constant at $1.3 million for the first nine months of 2014 (2013: $1.3 million, excluding $0.8 million of milestone payments). The Company is evaluating the performance of distributors in these markets and is seeking new partners to expand geographic reach.
Outlook
The Board remains confident in PuriCore’s ability to deliver value to shareholders by leveraging its unique hypochlorous acid technology in markets and applications for which it delivers a competitive advantage. As expected, 2014 revenues and earnings will be lower than in the prior year as the business model in Supermarket Retail transitions and investments are made across the Group to support longer-term growth. The Company will remain vigilant in controlling costs and preserving cash while prudently investing for the future. The Board has advanced the strategic and operational review of the business and plans to announce further details later this year.
Michael Ashton, Chief Executive Officer of PuriCore, said:
“The lower reported revenue for the period is consistent with the announced change in the Supermarket Retail business, from a capital sales driven business model to one that will deliver more consistent recurring revenues. We are confident that this shift is the right strategy for the longer-term success of the business.
“Through the strategic review, we have identified new growth opportunities across the Group in which we will invest while implementing focused cost reduction plans elsewhere. These opportunities entail new products and applications as well as geographic expansion and centre on leveraging PuriCore’s patented technology. As the strategy continues to evolve, we will share further updates with the market later this year.”
* As previously announced, the Company completed the disposal of the UK Endoscopy business on 30 June 2014. Accordingly, the results of operations for that business, including the impact of the disposal, are reported as Discontinued Operations. The Continuing Operations comprise the Company’s Supermarket Retail and Wound Care and Dermatology businesses. Group Results reflect the Continuing Operations only and the comparative prior period results have been re-stated to reflect only the Continuing Operations.
Enquiries:
FTI Consulting
+44 (0) 20 3727 1000
Simon Conway/Mo Noonan
Victoria Foster Mitchell
About PuriCore
PuriCore plc (LSE: PURI) is a global company focused on safe and effective protection against the spread of infectious pathogens without causing harm to human or animal health or to the environment. PuriCore’s antimicrobial technology and complementary products are used in a well-established core business and emerging sectors of two broad markets: Food & Agriculture and Health Sciences. In the Food & Agriculture market, PuriCore’s portfolio is used by thousands of US supermarket retailers, including three of the top-five, to provide savings in labour costs and improvements in inventory loss and to address cross contamination of pathogens on fresh produce and floral products. In the Health Sciences market, PuriCore’s breakthrough wound care technology is used to treat chronic and acute wounds including diabetic ulcers and burns in humans, for atopic dermatitis as private-labelled dermatologic treatments for humans, and to manage wounds in all species of companion and farm animals in the animal health segment. PuriCore is headquartered in Malvern, Pennsylvania. To receive additional information on PuriCore, visit www.puricore.com. Help employers find you! Check out all the jobs and post your resume.
