11th Jul 2014 07:40
LONDON (Alliance News) - PuriCore PLC said Friday that it expects to reported a swing to a loss before interest, tax, depreciation and amortisation for the first half to end-June.
Shares in PuriCore were trading down 25% at 32.02 pence, the biggest faller on the London main market Friday morning.
The biotechnology company said that it had seen lower revenues from its supermarket retail concentrate products, as its customers transition to consumable products and away from capital equipment sales.
Demand for consumable implementations has been strong, PuriCore said. However, meeting the demand in a short timeframe has led to higher-than-expected service costs.
The delay of sales ahead of the launch of its new endoscope washer disinfector, combined with the distraction of selling its Endoscopy business in June, means that earnings are expected to be lower than the previous year, PuriCore said. Additionally, whilst its saw progress in its wound care and dermatology business, the absence of milestone payments it saw in the previous year means revenues and earnings will be weaker, it said.
The company has launched a strategic and operational review to decide how to use the proceeds from the sale of the Endoscopy business for USD26.9 million. It said it will focus on tight cost control to optimise markets, with further investment in key areas.
It will disclosed its strategic plan and revised full-year expectations in the fourth quarter of the year, it said.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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