24th Feb 2015 09:00
LONDON (Alliance News) - Biotechnology company PuriCore PLC on Tuesday said it expects to report a wider loss and a big drop in revenue for 2014, as expected, but said it is gaining traction in its shift to a recurring revenue model.
The company said it expects its earnings before interest, taxation, depreciation and amortisation loss to widen to USD4.9 million for the year to the end of December, compared to a USD0.6 million loss last year.
The loss has been driven by a huge fall in revenue over the year, down to USD17.1 million from USD31.5 million, owing to a lower proportion of capital sales in the year and changes made to its Supermarket Retail business model. Revenue from the Supermarket Retail business fell to USD15.6 million from USD28.6 million.
But the group said it is seeing early evidence of traction in its shift to a recurring revenue model. Recurring revenue will contribute 72.8% of group revenue for the year, up from 37.1% last year, on the back of growth for its ProduceFresh and FloraFresh units.
"In terms of outlook, the board recognises that these directional changes in the business have yielded a sizeable decline in financial results, but remains confident that the strategies being implemented will provide greater sustainable shareholder value in the longer term," said Chief Executive Michael Ashton.
Ashton said the PuriCore board is progressing the search for his replacement, as he will retire by the company's annual general meeting, which last year was held in June.
Shares in PuriCore were down 1.6% to 31.00 pence in early trade on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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