16th Apr 2007 07:02
PuriCore Plc16 April 2007 Preliminary Results for Year Ended 31 December 2006 Strong Revenue Growth as Installed Base Nearly Trebles MALVERN, PENNSYLVANIA, AND STAFFORD, UK, 16 April 2007 - PuriCore (LSE: PURI),the life sciences company focused on the development and commercialisation ofits novel, safe antimicrobial technology, today announces its inaugural annualresults for the year ended 31 December 2006. Financial Highlights • Floated on the LSE in June, raising $54.9 million (gross) • Revenue up 24% to $15.9 million (2005: $12.8 million) • Year-end cash of $43 million (including restricted cash of $5.3 million) (2005: $953,000 million) • Future lease revenue under contract at year end of $15.8 million • R&D investment increased by 29% to $2.1 million (2005: $1.6 million) • Sales and marketing spend increased by 43% to $6.2 million (2005: $4.4 million) • 2006 net loss of $17.8 million ($15.4 million excluding the effect of share based payment expenses for the issuance of share options to employees and directors) Operational Highlights • Year-end installed base of Sterilox Systems up 187% • Supermarket installed base up 269% to approximately 1,400 systems • Nearly 90% of all supermarket installations are leased • Global Sterilox Endoscopy installed base up 20% to approximately 220 systems • 100% customer retention of Sterilox Endoscopy customers with expiring leases Recent Developments • Signed exclusive distribution agreement with Minntech Corporation to expand Sterilox Endoscopy UK product portfolio • Entered a marketing partnership with BHT Hygienetechnik to enhance Sterilox Endoscopy UK product portfolio • Received US FDA 510(k) clearance for the Sterilox Endoscopy System Greg Bosch, Chief Executive Officer of PuriCore, said: "Following the successful flotation, PuriCore has focused on establishing asolid position in its primary markets. We are now poised to leverage ourstrengths both operationally and technically to lead in our core markets and toexpand into new strategic geographies and markets. The Company iswell-positioned to capitalize on these opportunities and to deliver futuregrowth for our shareholders." Contacts: PuriCore plcTel: +1 (484) 321-2700Greg Bosch, Chief Executive OfficerKeith A. Goldan, Chief Financial Officer Financial DynamicsTel: +44 (0) 20 7831 3113Ben BrewertonJohn Gilbert About PuriCore PuriCore (London Stock Exchange: PURI) is a life sciences company focused ondeveloping and commercializing proprietary products that safely, effectively,and naturally kill contagious pathogens. PuriCore's technology provides asolution to a broad range of markets that depend upon controlling contamination,including food safety, medical device disinfection, wound management, andhospitality. The Company's proprietary technology mimics the human body'sproduction of the natural antimicrobial hypochlorous acid, which is highlyeffective in killing bacteria, viruses, and fungal spores. Deployinghypocholous acid solutions as soaks, sprays, mists, and in other forms,PuriCore's technology is designed to limit the spread of infectious disease,including major public health threats of M. tuberculosis, MRSA, E.coli,norovirus, avian influenza, HIV, polio virus, Helicobater pylori, andLegionella. PuriCore is headquartered in Malvern, Pennsylvania, with offices inStafford, UK. To receive additional information on PuriCore, please visit our web site atwww.puricore.com, which does not form part of this press release. Chairman and CEO Review We consider 2006 a breakthrough year for PuriCore. We completed a majortransformation from private to public company and achieved major marketpenetration. Revenues increased 24%, and the installed base of Sterilox Systemsin the Food Safety and Endoscopy businesses grew strongly, increasing 187% from561 Systems in 2005 to 1,608 Systems. Growth in the Sterilox Food Safety business was particularly robust in 2006. Byyear end, PuriCore had an installed base of approximately 1,400 Sterilox FoodSafety Systems in US retail supermarkets, in line with market expectations. In2006, more than 1,000 Sterilox Food Safety Systems were installed (307installations in 2005). Of these, 939 were under long-term lease agreements and72 were capital sales. In the Endoscopy business, the UK NHS budget constraints impacted growth.Nonetheless, the installed base of Sterilox Endoscopy Systems increased 20%, andPuriCore retained 100% of its customers with expiring rental contracts. Translating Vision to Reality PuriCore's Corporate Vision is to be a global leader in advancing human healththrough the control of infectious pathogens. This Vision drives our overridingCore Purpose 'to generate life sciences solutions for a safer, healthier world.' Infectious disease is a major global problem and is a great concern forcompanies, healthcare providers, governments, and consumers. PuriCore hasemployed its solid intellectual property and 10 years of knowledge and expertiseto develop safe, effective solutions to fight the spread of infectious disease.PuriCore's Sterilox technology was recognised by the leading healthcare marketresearch firm Frost & Sullivan as the recipient of its Technology InnovationAward in late 2005. Our Sterilox Systems generate hypochlorous acid, the human body's own infectionfighter. Hypochlorous acid is produced by human cells to fight invadingpathogens. Using water, common salt, and electricity, PuriCore's proprietytechnology generates Sterilox Solutions-the same hypochlorous acid our bodiesnaturally produce. The Sterilox Solutions are deadly to dangerous bacteria,viruses, and fungi-all types including E. coli, norovirus, avian influenzavirus, and MRSA-yet completely safe for humans and the environment. The first six months of 2006 were spent building a foundation for our successfulflotation on the London Stock Exchange in June; during the last half of theyear, we continued to execute on our business plan and experienced growth in ourcore markets. PuriCore is now positioned for opportunity-for new market entryand new geographical exploration. Building Market Positions The June flotation strengthened our balance sheet, enabling us to execute ourbusiness plan in building the franchises, teams, and processes necessary toestablish PuriCore as a leader in the control of infectious pathogens. We arethe beneficiaries of a singular core platform technology that allows us toexpand into many industries and geographies. This provides us with bothopportunities for growth as well as leverage against cyclical market realities. In 2006, we focused on our core businesses and initiated new market efforts: Food Safety: By year end, PuriCore had garnered approximately 4% of the marketfor US retail supermarkets. The Company completed a national roll-out for atop-five US supermarket chain and concluded a new, three-year lease agreementcalling for the installation of more than 200 further Sterilox Systems,generating cumulative revenue and cash flow totalling approximately $3.3million. Of the approximately 1,400 Systems installed at year end, 88% wereunder long-term lease agreements. Several top-10 US supermarket chains arecurrently in late-stage trials. Endoscopy: The UK Government's 2006 directive that it will not continue tooffset the over-budget expenditures of the NHS resulted in a delay in orders forSterilox Systems. By year end, however, the Sterilox Endoscopy installed basehad increased 20% globally, and the UK pipeline of prospective customers wasrobust. In addition, PuriCore retained 100% of its Sterilox Endoscopy customerswith expiring leases and maintained an estimated 25% marketshare of NHShospitals that have endoscopy departments. Since the year end, PuriCore has expanded its presence and product portfolio inthe UK through an exclusive distribution agreement with Minntech Corporation anda marketing partnership with BHT Hygienetechnik allowing PuriCore to expand itsmarket penetration strategy into the UK asynchronous and large passthrough AERsegments. In addition, PuriCore received US FDA regulatory clearance to marketits Sterilox Endoscopy Systems in the US, the largest in the world. New Markets: In 2006, PuriCore initiated efforts in therapeutic applicationssuch as wound management as well as in the hospitality and bio-decontaminationmarkets. PuriCore received US FDA clearance for the VASHE Wound TreatmentSystem, a noninvasive wound-cleansing process, and the Aquatine EndodonticCleanser. PuriCore focused its initial hospitality efforts on casino resorts inLas Vegas and has installed approximately 20 Sterilox Systems to date. We spent much of 2006 establishing a stronghold in our primary markets and inpositioning PuriCore for opportunity and growth. We established supply-chainprocesses, communications systems, human-capital tools, and internal systems andprocedures, all designed to create an infrastructure able to support sustainabletraction in our existing markets and in new geographies and markets. Outlook PuriCore is poised to widen its market position. Our primary directive is topenetrate further and establish leadership positions in our core markets: USFood Safety and UK Endoscopy. Simultaneously, we will begin to expand into newstrategic geographies with these core businesses as well as into new marketsbased on our existing proprietary technology and experience. Looking ahead, weexpect to employ the human therapeutic benefits of our Sterilox Solutions. Inaddition, the increasing proportion of recurring revenues, blended with capitalsales, provides PuriCore with a more predictable and sustainable business modelto serve better the long-term financial health of the Group. With the development of PuriCore's internal structure, processes, and systems,we are well-positioned to execute our business plan and to build a globalleadership position in the field of infection control. With PuriCore's strongerbalance sheet, progress in both of our core markets, and our initiatives inother industry sectors, we look forward to delivering future growth for ourshareholders. Christopher P.J. Wightman Gregory T. BoschChairman Chief Executive Officer Financial Review Revenue PuriCore had two primary sources of revenue in 2006: Sterilox Food SafetySystems for US retail supermarkets and Sterilox Endoscopy Systems for the UKNHS. PuriCore recognized revenues in 2006 of $15.9 million, a 24% growth over2005 revenues of $12.8 million. While total Company sales were slightly belowmarket expectations, PuriCore's 2006 results do not adequately reflect the truegrowth of the business due to the increased proportion of units installed underits recurring-revenue rental model. Under the rental model, PuriCore places its Sterilox Systems at the customersite, and the customer pays a fixed monthly or quarterly rental fee. Generally,Sterilox Food Safety System leases are for three years, and Sterilox EndoscopySystem leases are for five years. By 31 December 2006, $15.8 million in leaseincome was contracted but not yet recognized. In 2007, PuriCore expects torecognize approximately $7.0 million of that income. Cash PuriCore's cash position was very strong at year end. The Company raised $6million in a private equity transaction in January 2006. On 30 June, PuriCorewas admitted to the Official List of the Financial Services Authority and totrading on the London Stock Exchange, raising a total of $54.9 million ($47.4million net). PuriCore's working capital increased dramatically (to $37.8 at 31December 2006 from $0.3 at 31 December 2005) largely due to the monies raisedfrom the flotation. In addition, debt financing of $5.1 million in December 2006 furtherstrengthened PuriCore's cash position, lowered the Company's weighted averagecost of capital, and enabled PuriCore to end 2006 with $43 million in cash andcash equivalents (including restricted cash). Operating Expenses In 2006, PuriCore had three primary areas of operating expense: PuriCore's investment in research and development increased 29% in 2006 to $2.1million ($1.6 million in 2005). The Company's successful flotation providedadditional capital to invest in microbiology, chemistry, and engineering, aswell as in new product development. In 2006, PuriCore increased sales and marketing expenses to $6.2 million (up 43%from $4.4 million in 2005). Expenditures were focused on the Sterilox Endoscopyand Food Safety businesses. PuriCore's general and administrative expenses increased following theflotation. As a publicly traded plc, the Company experienced additional overheadof legal, accounting, and other professional fees. Additionally, the Companyrecognized $2.4 million in 2006 ($1.3 million in 2005) for non-cash stockcompensation expense related to the issuance of share options to Employees andDirectors of the Company (as determined under IFRS 2). Financial Outlook At year end, PuriCore was well-positioned financially with a strong balancesheet to execute our business plan and achieve our Vision of being a globalleader in advancing human health through the control of infectious pathogens. Keith A. Goldan Chief Financial Officer Note 2006 2005 $ $CONTINUING OPERATIONS REVENUE 2 15,867,232 12,835,954Cost of sales (12,943,478) (8,961,594) ____ ____GROSS PROFIT 2,923,754 3,874,360Selling, general and administrative expenses (18,887,838) (14,035,941)Research and development (2,120,795) (1,646,277) ____ ____LOSS BEFORE INTEREST AND TAX 2 (18,084,879) (11,807,858)Finance costs (1,261,644) (1,227,546)Finance income 1,341,385 119,489 ____ ____LOSS BEFORE TAX 1-2 (18,005,138) (12,915,915)Income tax income/(expense) 166,160 - ____ ____LOSS FOR THE YEAR (17,838,978) (12,915,915) ____ ____ATTRIBUTABLE TO:EQUITY HOLDERS OF THE PARENT (17,838,978) (12,915,915) _____ _____ EARNINGS PER SHARE $/share $/shareContinuing operationsBasic and Diluted 3 (0.14) (0.14) 2006 2005 $ $ Exchange differences on translation of foreign operations 1,094,179 (130,152) _____ ____NET INCOME/(EXPENSE) RECOGNISED IN EQUITY 1,094,179 (130,152)Loss for the financial year (17,838,978) (12,915,915) ____ ____TOTAL RECOGNISED INCOME AND EXPENSE (16,744,799) (13,046,067) ____ ____TOTAL RECOGNISED INCOME AND EXPENSE IS ATTRIBUTABLE TO: Equity holders of the parent (16,744,799) (13,046,067) _____ _____ 2006 2005 $ $ASSETSNON CURRENT ASSETSIntangible assets 5,329,721 4,534,245Property, plant and equipment 9,323,024 3,649,412Other loans receivable - 783,073Restricted cash 3,033,000Other receivables - 202,270 _____ ____TOTAL NON CURRENT ASSETS 17,685,745 9,169,000 ____ ____CURRENT ASSETSInventories 3,672,381 3,731,050Trade and other receivables 6,496,776 2,882,226Other loans receivable - 1,775,226Restricted cash 2,250,000 -Cash and cash equivalents 37,683,515 952,842 ____ ____TOTAL CURRENT ASSETS 50,102,672 9,341,344 ____ ____TOTAL ASSETS 67,788,417 18,510,344 ____ ____LIABILITIESCURRENT LIABILITIESTrade and other payables (6,295,128) (6,675,808)Financial liabilities (5,933,974) (2,362,641)Provisions (91,989) - ____ ____TOTAL CURRENT LIABILITIES (12,321,091) (9,038,449) ____ ____NON CURRENT LIABILITIESFinancial liabilities (8,762,225) (2,881,046)Provisions - (25,752) ____ ____TOTAL NON CURRENT LIABILITIES (8,762,225) (2,906,798) ____ ____TOTAL LIABILITIES (21,083,316) (11,945,247) ____ ____NET ASSETS 46,705,101 6,565,097 ____ ____ 2006 2005 $ $EQUITYShare capital 2,758,718 99,494Share premium 144,931,003 93,283,890Other reserves 5,387,301 2,808,835Retained earnings (107,490,271) (89,651,293)Cumulative translation adjustment 1,118,350 24,171 ____ ____ISSUED CAPITAL AND RESERVES ATTRIBUTABLE TO EQUITY HOLDERS OF THEPARENT 46,705,101 6,565,097 ____ ____TOTAL EQUITY 46,705,101 6,565,097 ____ ____ 2006 2005 $ $CASH FLOWS FROM OPERATING ACTIVITIESLoss for the year (17,838,978) (12,915,915) Adjustments for:Taxation (166,160) -Finance costs 1,151,269 1,227,546Finance income (1,341,385) (119,489)Depreciation and amortisation 2,995,164 1,328,421Amortisation of warrant and debt discount and issuance costs 110,375 52,634Share based payment and warrant issuance expense 2,578,466 1,333,380Gain on disposal of property, plant and equipment (31,221) 942,753 (12,542,470) (8,150,670)OPERATING LOSS BEFORE MOVEMENT IN WORKING CAPITALDecrease/(increase) in inventories 58,669 (102,411)Increase in trade and other receivables (798,196) (983,625)Decrease in trade and other payables (380,680) (4,963,720)Increase/(decrease) in provisions 66,237 (142,618) _____ ____CASH GENERATED BY OPERATIONS (13,596,440) (14,343,044)Income tax paid - - ____ ____NET CASH FLOW FROM OPERATING ACTIVITIES (13,596,440) (14,343,044) ____ ____CASH FLOWS FROM INVESTING ACTIVITIESPurchase of property, plant and equipment (8,067,069) (2,772,811)Proceeds from sale of property, plant and equipment 143,382 176,758Purchase of intangible assets - (1,651)Cash paid for internally generated intangibles (1,102,626) (905,506) ____ ____NET CASH FLOW FROM INVESTING ACTIVITIES (9,026,313) (3,503,210) ____ ____CASH FLOWS FROM FINANCING ACTIVITIESIssue of shares, options and warrants 52,480,096 29,019,407Proceeds from new loan notes 5,128,367 5,896,050Proceeds from new bank loans 7,529,081 -Repayments of borrowings (3,227,254) (15,847,161)Repayments of obligations under finance leases (69,119) (30,356)Interest received 1,341,385 119,489Decrease in overdraft (635,356) - ____ ____NET CASH FLOW FROM FINANCING ACTIVITIES 62,547,200 19,157,429 ____ ____NET INCREASE IN CASH AND CASH EQUIVALENTS 39,924,447 1,311,175Cash and cash equivalents at beginning of year 952,842 -Effect of foreign exchange rate changes on cash held 2,119,226 (358,333) ____ ____CASH AND CASH EQUIVALENTS AT END OF YEAR 42,996,515 952,842 ____ ____ 1. BASIS OF PREPARATION PuriCore plc is incorporated in the UK. PuriCore, Inc. is incorporated underthe laws of Delaware in the USA. The Group financial statements consolidatethose of the PuriCore, Inc. Group and PuriCore plc. The Group financial statements are authorised for issue by the Board ofDirectors on 16 April 2007. European Union law (EULAW) (IAS Regulation EC 1606/2002) requires that the financial statements of the Group are prepared inaccordance with International Financial Reporting Standards as adopted by the EU(EU-IFRS). The financial statements have been prepared on the basis of therecognition and measurement requirements of EU-IFRS that are endorsed by the EUand effective at 31 December 2006. The financial information does not constitute the company's statutory accountsfor the years ended 31 December 2006 (but is derived from the 2006 accounts).Statutory accounts for 2006 will be delivered in due course to the registrar ofcompanies. The auditors have reported on these accounts; their reports were (i)unqualified, (ii) did not include references to any matters to which theauditors drew attention by way of emphasis without qualifying their reports and(iii) did not contain statements under section 237 (2) or (3) of the CompaniesAct of 1985. The comparative figures for the year ended 31 December 2005 are not thecompany's statutory accounts for that financial year. Those accounts, whichwere prepared under International Financial Reporting Standards as adopted bythe EU ("Adopted IFRSs"), have been reported on by the Reporting Accountant(KPMG LLP). The report of the Reporting Accountants was (i) unqualified, (ii)did not include a reference to any matters to which the Reporting Accountantsdrew attention by way of emphasis without qualifying their report and (ii) didnot contain a statement under section 237 (2) or (3) of the Companies Act of1985. 2 SEGMENTAL INFORMATION The Group is managed by type of business. Segmental information is providedhaving regard to the nature of the goods and services provided and the marketsserved. The segment identified as "Other" relates to the Company's GlobalDental business and certain business development activities not yet generatingsignificant revenues. Primary reporting format - Business Segments For the year ended 31 December 2006 Endoscopy Food Other $ $ $ REVENUE 8,902,951 6,477,618 486,663 _____ ____ ____ LOSS BEFORE INTEREST, TAX, DEPRECIATION ANDAMORTISATION (3,303,543) (442,747) (649,176)Depreciation and amortisation (233,213) (2,171,260) - ____ ____ ____LOSS BEFORE INTEREST AND TAX (3,536,756) (2,614,007) (649,176) ____ ____ ____SEGMENT ASSETSNon current assets 1,816,881 7,542,917 46,156Current assets 4,663,731 2,476,623 349,385 ____ ____ ____Total assets 6,480,612 10,019,540 395,541 ____ ____ ____SEGMENT LIABILITIESCurrent liabilities (4,035,610) (420,845) (168,562)Non current liabilities - - - ____ ____ ____Total liabilities (4,035,610) (420,845) (168,562) ____ ____ ____ (Continued from table above) For the year ended 31 December 2006 Corporate & Total as unallocated reported for the Group $ $ REVENUE - 15,867,232 ____ ____ LOSS BEFORE INTEREST, TAX, DEPRECIATION ANDAMORTISATION (10,694,249) (15,089,715)Depreciation and amortisation (590,691) (2,995,164) ____ ____LOSS BEFORE INTEREST AND TAX (11,284,940) (18,084,879) ____ ____SEGMENT ASSETSNon current assets 8,279,791 17,685,745Current assets 42,612,933 50,102,672 ____ ____Total assets 50,892,724 67,788,417 ____ ____SEGMENT LIABILITIESCurrent liabilities (7,696,074) (12,321,091)Non current liabilities (8,762,225) (8,762,225) ____ ____Total liabilities (16,458,299) (21,083,316) ____ ____ 2 SEGMENTAL ANALYSIS (continued) Endoscopy Food Other Corporate & Total as unallocated reported for the Group $ $ $ $ $ OTHER SEGMENT ITEMSCapital expenditure: property, 329,273 6,791,863 20,850 1,016,603 8,158,589plant& equipment _____ ____ ____ ____ ____ All business segments shown above are continuing. For the year ended 31 December 2005 Endoscopy Food Other $ $ $ REVENUE 10,994,419 832,032 1,009,503 _____ ____ ____ LOSS BEFORE INTEREST, TAX, DEPRECIATION AND (2,722,775) (2,486,385) (259,749)AMORTISATIONDepreciation and amortisation (543,525) (108,748) (132,914) ____ ____ ____LOSS BEFORE INTEREST AND TAX (3,266,300) (2,595,133) (392,663) ____ ____ ____SEGMENT ASSETSNon current assets 605,211 - -Current assets 673,521 131,731 112,601 ____ ____ ____Total assets 1,278,732 131,731 112,601 ____ ____ ____SEGMENT LIABILITIESCurrent liabilities (3,415,930) (330,517) (108,192)Non current liabilities - - - ____ ____ ____Total liabilities (3,415,930) (330,517) (108,192) ____ ____ ____OTHER SEGMENT ITEMSCapital expenditure: property, plant & 398,612 2,360,310 7,296equipment ____ ____ ____ (continued from table above) For the year ended 31 December 2005 Corporate & Total as unallocated reported for the Group $ $ REVENUE - 12,835,954 _____ ____ LOSS BEFORE INTEREST, TAX, DEPRECIATION AND (5,010,528) (10,479,437)AMORTISATIONDepreciation and amortisation (543,234) (1,328,421) ____ ____LOSS BEFORE INTEREST AND TAX (5,553,762) (11,807,858) ____ ____SEGMENT ASSETSNon current assets 8,563,789 9,169,000Current assets 8,423,491 9,341,344 ____ ____Total assets 16,987,280 18,510,344 ____ ____SEGMENT LIABILITIESCurrent liabilities (5,183,810) (9,038,449)Non current liabilities (2,906,798) (2,906,798) ____ ____Total liabilities (8,090,608) (11,945,247) ____ ____OTHER SEGMENT ITEMSCapital expenditure: property, plant & equipment 165,822 2,932,040 ____ ____ All business segments shown above are continuing. Intra-Group sales, which are priced on an 'arms length' basis, between bothsegments and regions are not significant. The analysis of EBIT by businessincludes an allocation, based on their nature, of costs incurred centrally inthe United Kingdom and United States of America. Unallocated costs representcorporate expenses. 2 SEGMENTAL ANALYSIS (continued) Segment capital expenditure is the total cost incurred during the year toacquire segment assets that are expected to be used for more than one year. Secondary reporting format - Geographical Segments Sales Segment assets 2006 2005 2006 2005 $ $ $ $Continuing operationsUnited Kingdom 8,902,951 10,960,298 3,699,922 6,161,304Americas 6,964,281 1,875,656 64,088,495 12,349,040 _____ ____ ____ ____ 15,867,232 12,835,954 67,788,417 18,510,344 ____ ____ ____ ____ (continued from table above) Capital expenditure 2006 2005 $ $Continuing operationsUnited Kingdom 780,486 541,650Americas 7,378,103 2,390,390 ____ ____ 8,158,589 2,932,040 ____ ____ The segment assets in the above table is based on the location of the assets. Products and services provided PuriCore's Sterilox Systems electrochemically generate hypochlorous acidsolutions for customers on-site and on-demand at a range of concentrations tomeet the needs of each application. Requiring only common salt, water, andelectricity, these systems are reliable, safe, effective, and user-friendly.Given hypochlorous acid breaks down into salty water over time, Sterilox Systemsproduce the Solutions onsite for immediate use. Each Sterilox System includes a combination of proprietary electrolysis cells,software, and control systems within a custom-designed unit. These proprietarycontrol systems ensure that the optimum concentration of hypochlorous acid isproduced consistently and reliably within narrow specification tolerances. TheSterilox Solution produced is near neutral pH (between 5 and 7) to maximize thelevels that are generally recognised to be substantially more biocidal yet safe.(Below pH 4, the solution is aqueous chlorine; above pH 7.4, the solution ishypochlorite, the chemical in common bleach.) The Sterilox Systems can beremotely monitored and incorporate a series of internal controls to ensure thatonly effective solution is available for use. The Sterilox Solution is currently used in the following areas: UK Endoscopy Endoscopes are commonly used in many medical procedures such as colonoscopiesand bronchoscopies. These endoscopes are designed to be reprocessed betweenpatients' clinical procedures. Strict regulations govern specific cleaningprocesses to ensure adequate safety and quality controls to prevent pathogentransmission and patient protection. These processes include a manual cleaningstep, automated washing, disinfection with an approved chemical/sterilant, andfinal wash with a bacteria free rinse water. US & UK Dental Water lines used in dental surgeries suffer from the build up of biofilms andother contamination. Sterilox Solutions acts to decontaminate water lines andmaintain acceptable water quality levels providing a safer, healthier workenvironment for patients and staff. US Food Safety Sterilox is a proven intervention to improve shelf life and home life for freshproducts, floral and seafood. The patented technology produces a non-toxic,food safe sanitizer at a fraction of the costs of traditional chemicals whileensuring a safer product for supermarket produce consumers. The numerical disclosures required under IFRS 8 for PuriCore plc are identicalto those given for IAS 14 above. 3 EARNINGS PER SHARE The calculation of basic and diluted earnings per share is based on thefollowing data: GroupEarnings 2006 2005 $ $ Earnings for the purpose of basic and diluted earnings per share (17,838,978) (12,915,915) _____ ____ GroupNumber of shares 2006 2005 Number NumberWeighted average number of ordinary shares for the purpose of basic 125,665,449 94,334,816earnings per share GroupEarnings per share 2006 2005 $/share $/shareFrom continuing operations:Basic and diluted (0.14) (0.14) Outstanding share options and warrants are excluded as they are anti-dilutive. 4 OPERATING LEASES RECEIVABLE Group 2006 2005 $ $ Minimum lease payments under operating leases recognised as 6,904,314 1,249,930income in the year _____ ____ At the balance sheet date the Group has total outstanding receivables undernon-cancellable operating leases, which fall due as follows: 2006 2005 $ $Within one year 6,967,101 1,887,824In the second to fifth years inclusive 8,775,807 2,743,767After five years 9,125 6,304 ____ ____ 15,752,033 4,637,895 ____ ____ Operating lease receipts represent rentals receivable from customers for the useof certain property, plant and equipment. Leases have varying terms and renewalrights. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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