2nd Feb 2009 07:00
PuriCore Pre-Close Trading Update for Year Ended 31 December 2008
Revenues Increased +80% and Cashflow Significantly Improved
MALVERN, PENNSYLVANIA, AND STAFFORD, UK, 2 February 2009 - PuriCore (LSE: PURI), the life sciences company focused on developing and commercialising proprietary, green solutions that safely, effectively, and naturally kill infectious pathogens without causing harm to human health or the environment, announces its pre-close trading update for the year ended 31 December 2008. Audited results for this period are expected to be announced in late April 2009.
2008 Financial Results
Gross margins improved to approximately 22.2% (2007: 15.8%)
Total selling, general, and administrative expenses reduced approximately 10% versus prior year (net of non-cash stock compensation)
Earnings in line with market expectations
Cash outflow from operations halved to approximately $7 million (2007: $14.1 million)
Cash of $20.7 million at period end
2008 Operational Highlights
Safeway, a top-five US supermarket retailer, announced the implementation of Sterilox Food Safety Systems throughout its North American stores
$11.1 million in contract extensions awarded from the largest existing Sterilox Food Safety customers
£8.4 million equity (gross) raised in a Placing and Open Offer
$9.7 million raised through issuance of debt
Greg Bosch, Chief Executive of PuriCore, said:
"2008 was a strong year for PuriCore with record revenues in both core businesses: US Food Safety and UK Endoscopy. We believe that these two markets -- retail food grocery and non-elective medical procedures -- will be less susceptible to the current challenging economic climate. Looking ahead, we remain keenly focused on increasing revenue and improving gross margins while leveraging our operating expenses. These efforts, combined with our successful equity and debt fund raisings in 2008, leave us well-positioned to execute on our business plan."
Company Results
PuriCore achieved record results for the year with 81% top-line growth and total revenue of $33.8 million and significant operating loss reduction. Excluding the negative impact of the stronger dollar, revenue grew 85.1% over the prior year. Despite very difficult financial markets, PuriCore completed two fundraisings during the year: a Placing and Open Offer raised £8.4 million in equity (gross), and the issuance of debt raised $9.7 million. Even with the significant sales growth, PuriCore reduced expenses in both core businesses as well as in corporate expenses. The Company's cash position at the year end was $20.7 million.
Food Safety
PuriCore's Food Safety business in the US achieved outstanding growth, driven in large part by implementation of Sterilox Systems by the major national chains. In the second half of the year, PuriCore received a contract for Safeway's remaining North American supermarkets, marking the chain-wide implementation for this top-five US supermarket retailer. Additionally, PuriCore received contract extensions totalling $11.1 million from its largest existing Sterilox Food Safety customer, a top-five US supermarket, and another major Sterilox Food Safety customer. Late in the year, PuriCore launched its next-generation Sterilox Food Safety System Model 2200. The Company placed 820 new Sterilox Food Safety Systems in 2008 bringing its total installed base to 2,400 Systems, representing approximately 10% of targeted US supermarkets. PuriCore has further sales opportunities within its active customer base, which in total accounts for nearly 30% of its 24,000 US target market.
Endoscopy
PuriCore's Sterilox Endoscopy business in the UK also had significant growth of 43% in 2008 on a constant currency basis. The business grew at its fastest pace ever despite clearly challenging economic times and in a relatively mature market. This growth performance was a function of increased unit placements as well as a focus to develop recurring revenue streams from lease contracts, service agreements, and related consumable products. The UK business was also able to achieve this growth whilst greatly reducing operating expenses throughout the year.
2009 Outlook
PuriCore anticipates profitability in each of its two core businesses in 2009. These businesses will continue to drive the majority of PuriCore revenue in 2009 with some early sales in the Wound Care business. Additionally with reductions already made across the Company's operating expenses and further diligent cost controls in place as noted in the Interim Results, PuriCore expects to realize further cost reductions of approximately 10% in 2009. PuriCore's 2008 year-end cash position of $20.7 million enables the Company to execute on its business plan.
Enquiries:
|
Ben Brewerton |
Greg Bosch, CEO |
|
Susan Quigley |
Darren Weiss, VP Finance |
|
Financial Dynamics |
PuriCore |
|
+44 (0) 20 7831 3113 |
+1 484 321 2700 |
About PuriCore
PuriCore plc (LSE: PURI) is a life sciences company focused on developing and commercialising proprietary green solutions that safely, effectively, and naturally kill infectious pathogens without causing harm to human health or the environment. PuriCore's patented, proprietary technology mimics the human body's production of the natural antimicrobial hypochlorous acid, offering a safe and non-hazardous approach to disinfection and sanitisation. The Company's products are used in a broad range of markets that depend upon controlling contamination, including retail and foodservice, medical device disinfection, and wound care. Hypochlorous acid is proven to be safe, environmentally friendly, and fast acting against a broad range of infectious pathogens, including major public health threats of M. tuberculosis, MRSA, E.coli, Norovirus, H5N1 Avian Influenza, HIV, Salmonella, Polio Virus, Helicobater pylori, and Legionella. PuriCore is headquartered in Malvern, Pennsylvania, with offices in Stafford, UK.
To receive additional information on PuriCore, please visit our website at www.puricore.com, which does not form part of this press release.
Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.
All 2008 financials are unaudited.
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