24th Apr 2014 13:18
LONDON (Alliance News) - PuriCore PLC Thursday posted a widened pretax loss for 2013, as higher revenue was offset by increases in operating expenses and lower profit margins.
The biotechnology company warned that its revenue is expected to soften in the short term as it transitions towards recurring revenue sources.
Puricore posted a pretax loss of USD6.5 million, widened from a pretax loss of USD3.2 million in 2012. Revenue rose to USD54.8 million from USD47.4 million, but was offset by lower profit margins and higher operating expenses.
Puricore's operating margin edged down to 32.4% from 32.7%, hit by a one-off inventory provision of USD1.5 million. PuriCore also posted a USD400,000 charge relating to the termination of its distribution agreement with Misonix Inc.
The company increased its investment in marketing and sales, and research and development, taking its operating expenses up to USD18.5 million from USD17.5 million.
Revenue growth was driven by a strong performance from the company's Supermarket Retail business, which saw revenue rise to USD28.9 million from USD22.2 million.
In its Wound Care and Dermatology business, revenue rose to USD2.6 million from USD1.7 million as it won new marketing partnerships in the Middle East and North Africa, and launched new products.
The company's Endoscopy business saw revenues decline slightly to USD23.3 million from USD23.5 million.
Puricore said that it had continued to advance its research and development in the agriculture sector during the year. It started a study into wheat in 2013, but this was delayed due to weather conditions.
The company said it remained focused on its growth strategy to deliver more predictable recurring revenue, and to improve its margins.
It will invest strategically in its Supermarket Retail business, PuriCore said, and will pay more attention to the floral market to drive sales of its FloraFresh product.
In the UK it will focus on growing recurring revenue and marketing its new products, with the hope of opening the door to international expansion.
Shares in PuriCore were trading down 12% at 40.12 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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