18th Feb 2014 09:35
LONDON (Alliance News) - PuriCore PLC Tuesday said it expects to report a 15.6% increase in revenue for the full-year, attributed to significant growth in the Supermarket Retail business driven by a USD14.0 million Sterilox Fresh capital equipment sale, the growth of the concentrate products, and a change in equipment lease revenue recognition.
The Sterilox Fresh System generates an electrolysed water food sanitizing solution to be used in industrial kitchens.
The company, which produces sterilisation products for the health and agriculture markets, said it expects to post revenue of USD54.8 million for the year ended December 31 2103, compared with USD47.4 million a year earlier.
PuriCore said earnings before interest, taxation, depreciation and amortisation increased to USD2.5 million at the year end, from USD1.3 million, which is above market expectations.
Gross profit margin decreased slightly to 32.5% from 32.7% in 2012 due to a one-off write-off of inventory deemed incompatible with the new produce and floral concentrate platforms and new distribution agreements.
Moreover, operating expenses increased 5.6% to USD18.5 million from USD17.5 million a year earlier due to planned investments in marketing and sales, the intellectual property portfolio as well as a one-off charge related to the termination of the Misonix distribution arrangement.
Last October, terminated a private-label wound care product distribution deal with Misonix.
"The parties had different views as to the interpretation of the distribution agreement, which was entered in July 2011, and the directors determined that this settlement was the prudent course rather than to initiate potentially costly and distracting litigation," it said at the time.
Cash and cash equivalents were USD3.4 million as at the year end.
Full year results of the group are expected to be announced the week of April 21.
The stock was trading at 44.12 pence Tuesday, up 0.12 pence or 0.3%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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