PuriCore Interim Management Statement
Published: May 17, 2013
May 17, 2013 -- PuriCore (LSE: PURI), the water-based clean technology company, today announces its Interim Management Statement for the period from 1 January 2013 to 17 May 2013 (which incorporates information in relation to the financial performance of the business for the first quarter being from 1 January 2013 to 31 March 2013).
Q1 Financial Highlights (unaudited)
- Group revenue down 23.7% (23.2% at constant currency) to $10.9m (Q1 2012: $14.3m)
-- Supermarket Retail revenue down 51.0% to $3.6m (Q1 2012: $7.4m)
-- Endoscopy revenue down 4.9% (3.9% at constant currency) to $6.2m (Q1 2012: $6.6m)
-- Wound Care revenue up 188.5% to $1.1m (Q1 2012: $0.4m)
- EBITDA* profitable in Endoscopy and Wound Care businesses
- Gross profit margin improved by 4.6 percentage points
- Gross cash of $4.3m at 31 March 2013
* Earnings before interest, tax, depreciation, and amortisation.
Business and Operational Highlights
- Strengthened the balance sheet
-- Converted 95% of the £7.95m of Convertible Loan Notes
-- Raised approximately £2.3m (before expenses) in a placing
Food & Agriculture
-- Signed a $14m Sterilox Fresh agreement with a top-five US supermarket retailer
-- Received US FDA regulatory clearance for Vashe Skin and Wound Hydrogel formulation itch related to atopic dermatitis<
-- Formed marketing partnership with Onset Dermatologics for new Vashe-based dermatologic hydrogel products
-- Formed marketing partnership with SteadMed Medical in April for marketing of Vashe Wound Therapy in the US, Canada, and Mexico
Michael Ashton, Executive Chairman, said:
“We significantly improved our balance sheet in the quarter. Comparative revenue results, however, were affected by very high installations of Sterilox Fresh Systems during Q1 2012 as well as the receipt of a $14 million Sterilox Fresh contract that was not signed and therefore not delivering revenue until Q2 2013. This agreement and other forthcoming orders in the Supermarket Retail business plus our expansion into the floral departments will continue to drive revenues in the Supermarket Retail segment for the full year. With these sales coupled with our recently signed marketing partnerships in the Wound Care and Dermatology therapeutic areas and an increasing revenue stream from our Endoscopy business, the Directors remain confident in the prospects for the Company going forward.”
During the period, the Company significantly strengthened its balance sheet. As announced in December 2012 and approved by shareholders in January, the Company restructured 95.28% of the £7.95 million of Convertible Loan Notes, which mature on 31 December 2013. In addition, the Company completed a placing, announced in December 2012 and approved by shareholders in January, raising approximately £2.3 million in new shares (before expenses) at a price of 43 pence per Ordinary Share.
Revenue for the Company decreased 23.7% to $10.9 million (23.2% at constant currency) in the first quarter of 2013 (Q1 2012: $14.3 million). This variance primarily was due to timing of orders in the Supermarket Retail business. Gross profit margin for the Company improved by 4.6 percentage points due to strong results in Wound Care and improving margins in Endoscopy. The Endoscopy and Wound Care businesses were EBITDA profitable in the period. Cash and cash equivalents were $4.3 million as at 31 March 2013.
Food & Agriculture
In the Supermarket Retail business, revenue decreased 51% to $3.6 million (Q1 2012: $7.4 million) as expected as the Company prepared to commence installing in Q2 2013 Sterilox Fresh Systems as part of the $14 million agreement with a top-five US supermarket retailer. Under the terms of the agreement, the retailer will broadly implement Sterilox Fresh across its enterprise and has agreed to a six-year warranty agreement. Revenue will be recognised on the agreement beginning in Q2 2013, and the Company expects the majority of the system revenue will be recorded in the 2013 financial accounts. The remaining revenue will be recognised over the term of the warranty.
In the Endoscopy business, revenue decreased 4.9% (3.9% at constant currency) to $6.2 million (Q1 2012: $6.6 million) whilst the business remained EBITDA profitable for the quarter.
The Wound Care business was EBITDA profitable with revenue increasing 188.5% to $1.1 million (Q1 2012: $0.4 million). In February, PuriCore announced that it had received US FDA regulatory clearance for Vashe Skin and Wound Hydrogel formulation for the management and relief of pain, burning, and itching experienced with various dermatoses including atopic dermatitis. The clearance was a key milestone in PuriCore’s partnership with Onset Dermatologics, a leader in the development and commercialisation of prescription dermatology products, for the sale of Vashe-based dermatology products, which was announced in March. The agreement includes upfront payments and double-digit royalty payments on future sales of Aurstat Anti-Itch Hydrogel and Aurstat Kit. Onset Dermatologics commenced marketing and distributing this new Vashe-based formulation as Aurstat Anti-Itch Hydrogel and as a component of Aurstat Kit exclusively in the US. All intellectual property related to the Vashe hydrogel formulation remains with PuriCore.
In April, PuriCore announced a marketing partnership with SteadMed Medical, a leading marketer of acute and chronic wound care products, to commercialise Vashe Wound Therapy in the US, Canada, and Mexico. Vashe will be an integral part of the SteadMed comprehensive protocol of care for acute and chronic wounds and burns, targeting wound care centres, hospitals, and home health agencies. This agreement will expand marketing reach for the Vashe product through SteadMed’s experienced sales, marketing, and clinical teams. Under the terms of the multi-year agreement, PuriCore received an upfront payment of $500,000 and will receive royalties in the high teens based on sales volumes. All intellectual property related to Vashe remains with PuriCore.
Susan Stuart/Simon Conway
Victoria Foster Mitchell
+44 (0) 20 7831 3113
Sage Strategic Marketing
+1 610 410 8111
PuriCore plc (LSE: PURI) is a water-based clean technology company focused on developing and commercialising proprietary solutions that protect people from the spread of infectious pathogens without causing harm to human health or the environment. PuriCore’s antimicrobial technology and complementary products are used principally in well-established core businesses and emerging sectors of two broad markets: Health Sciences and Food & Agriculture. In the Health Sciences market, PuriCore is the leading full provider of all products and services required for a safe, efficient, and compliant endoscope decontamination to protect patients in UK hospitals. PuriCore’s breakthrough wound therapy solution is used to treat chronic and acute wounds including diabetic ulcers and burns as well as atopic dermatitis as dermatologic treatment products. In the Food & Agriculture market, both Sterilox Fresh and FloraFresh provide savings to supermarket retailers in labour costs and improvements in inventory loss of fresh produce and floral products. In addition, the Company is progressing in its research and development programmes at Oxford University on the use of its technology as an agricultural fungicide. PuriCore is headquartered in Malvern, Pennsylvania, with operations in Stafford and Clevedon, UK. To receive additional information on PuriCore, visit www.puricore.com.
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