Consumables drive H1 revenue growth in Supermarket Retail;
Advancing Health Sciences future direction - new leadership to present details and execution plan in Q1 2016
23 September 2015 – PuriCore plc (AIM: PURI), an international company focused on applying its proprietary hypochlorous acid platform technology to unmet needs in human health, today announces its interim financial results for the six months ended 30 June 2015.
FINANCIAL HIGHLIGHTS
• Group revenue increased 5.9% to $9.1m (H1 2014:$8.6m)
- Supermarket Retail revenue increased 9.3% to $8.4m (H1 2014: $7.7m) driven by higher sales of consumable products
- As expected, Health Sciences revenue decreased to $0.3m (H1 2014: $0.9m) following the termination of the Onset Dermatologics partnership agreement, as previously announced, in December 2014
- Other revenue increased to $0.4m (H1 2014: nil) and represents fees paid by third parties to gain letters of access to the Active Chlorine Biocidal Products Regulation (BPR) dossier
• Gross margin decreased to 24.5% (H1 2014: 28.2%) due to increased service costs within Supermarket Retail
- Company remains focused on improving margins in the mid- term and is investing in improving the reliability of its generators and updating early versions of its concentrate delivery system
• Operating expenses increased to $6.9m (H1 2014: $6.1m) due primarily to investment in research, development and regulatory activities in Health Sciences and Supermarket Retail
• EBITDA* loss $3.8m (H1 2014 loss: $2.2m)
• Cash and cash equivalents, net of debt ($0.2m), were $16.3m as at 30 June 2015 (as at 31 December 2014: $20.7m, net of debt)
* Earnings before interest, tax, depreciation, amortisation, and non-cash equity-related charges.
OPERATIONAL HIGHLIGHTS
• Appointment of Alex Martin to the Board as Chief Executive Officer in June 2015 to rejuvenate the Company’s Health Sciences efforts and optimise the Supermarket Retail business
• In Supermarket Retail
- Sterilox® Fresh agreement with a top-three US supermarket retailer worth approximately $17.8m over six years announced in March 2015
- Continued success in concentrate placements and usage of ProduceFresh® and FloraFresh® (concentrate related revenue is up 100% in H1 2015 compared to H1 2014)
- On-going investment to improve the reliability of equipment and update early versions of the concentrate delivery systems. This investment, which continues in H2, is likely to improve margins over time.
• In Health Sciences
- Preclinical studies in process to confirm potential benefit of hypochlorous acid in novel therapeutic applications
- Re-evaluation of all initiatives in the medical device space
- Strategic review advancing with an update and execution plan to be announced during Q1 2016
POST-PERIOD EVENT
• In September 2015, the Company reached a settlement with the California Department of Pesticide Regulation (DPR) in connection with the sale and promotion of the Company’s concentrate products in California which resulted in a charge of $0.4m in the H1 accounts. The Environmental Protection Agency (EPA) is also reviewing the concentrate products and the Company has not yet received any feedback or conclusion from the EPA. No provision has been recorded related to the EPA investigation. The Company will update as and when more information is known. The Company has implemented measures to enhance compliance controls.
Alex Martin, Chief Executive Officer of PuriCore, said:
“During the period, we reported solid growth in the Supermarket business primarily driven by new consumable customer placements and consumption. We expect H2 revenue to significantly exceed H1, while we continue to invest in equipment reliability, research and development and other key areas to drive long-term sustainable results. This revenue growth continues to support our approach of providing customers with flexible purchasing options that can be adapted to suit their specific business needs.
“The Company has not created significant value from its healthcare efforts to date; we are looking to change that. We are near the completion of a strategic review of our Health Sciences business and are very excited about areas where we can potentially leverage our technology to address unmet medical needs. We look forward to communicating our new business strategy and outlining our plans for execution in Q1 2016.”
Enquiries:
PuriCore plc
+44 (0) 20 3727 1000
Alex Martin, Chief Executive Officer
Marella Thorell, Chief Financial Officer and Chief Operating Officer
FTI Consulting
+44 (0) 20 3727 1000
Simon Conway / Mo Noonan / Victoria Foster Mitchell
N+1 Singer (Nominated Adviser & Broker)
+44 (0) 20 7496 3000
Aubrey Powell / Jen Boorer / Thomas Smale
About PuriCore
PuriCore is an international company, focused on developing and commercialising products based on its proprietary hypochlorous acid platform technology, to address significant unmet needs in human health. PuriCore’s products are currently used in two broad market segments: Supermarket Retail and Health Sciences. PuriCore’s products do not cause harm to human or animal life or to the environment. The Group is headquartered in Malvern, Pennsylvania.
In the Supermarket Retail segment, PuriCore’s products are used by customers to enhance quality and freshness of produce and floral products. Product offerings include the Sterilox® Fresh Systems (capital equipment) that are installed at customer locations and allow for generation of the solution as needed at the store. ProduceFresh® is the Company’s concentrate bottled version of the solution for produce application. Customers use FloraFresh®, also sold as a concentrate in bottled form, to improve the freshness of cut flowers. ProduceFresh and FloraFresh are diluted for use by customers through the Company’s concentrate delivery systems.
In Health Sciences, PuriCore offers a range of products to manage a variety of skin and wound conditions under a medical device registration.
Help employers find you! Check out all the jobs and post your resume.
