PuriCore: Trading Update
PuriCore (LSE: PURI), the life sciences company focused on developing and commercializing proprietary, green solutions that safely, effectively, and naturally kill infectious pathogens without causing harm to human health or the environment, announced its trading update for the six months ended June 30, 2008. Interim results for this period are expected to be announced on 29 August 2008.
In addition, the Company also announces this morning that it has raised GBP 6 million by way of a Placing through the issue of 44,937,890 Placing Shares at the Issue Price of 13.25 pence per share and an Open Offer of up to GBP 4 million through the issue of up to 30,577,758 Open Offer Shares (together with Applicable Warrants) at the Issue Price. The Placing is fully underwritten by Nomura Code Securities. The Open Offer is not underwritten. Full details of the Placing and the Open Offer are contained in a separate announcement today.
Financial Highlights (unaudited)
— Q2 revenue up 107% to $10.4 million (2007: $5.0 million)
— H1 revenue up 98% to $19.5 million (2007: $9.9 million)
— Food Safety sales up 188% to $10.8 million (2007: $3.8 million)
— Endoscopy sales up 43% to $8.4 million (2007: $5.8 million)
— Operating expenses for the first half 2008 expected to be approximately 8-10% below the same period last year
— $11 million Sterilox Food Safety contract announced with top-five US supermarket
— $8.6 million contract extension awarded from PuriCore’s largest existing Sterilox Food Safety customer, a top-five US supermarket
— $2.5 million contract extension awarded from one of PuriCore’s largest Sterilox Food Safety customers (see separate announcement today)
— Sterilox Solution demonstrated to be highly effective against pandemic H5N1 avian influenza
— Sterilox Solution approved for organic food production, processing and handling
— $9 million in cash as of June 30, 2008
— Debt reduced by $3.4 million in the six months ended June 30, 2008
— Placing raising GBP 6 million with an Open Offer to raise up to an additional GBP 4 million to fund the Company’s growth (see separate announcement today)
With a strong current order book and further anticipated order flow in both core businesses, the Company expects continued strong top-line growth as well as improving gross margins through leveraging the fixed costs associated with the Company’s field service departments in the US and in the UK. This anticipated sales increase and improving gross margins, achieved with tight control over costs aimed at reducing operational expenditure, should enable the Company to achieve operational leverage of the business model thereby reducing net cash consumption and enabling further expansion into new markets.
“PuriCore had an excellent first half with revenues nearly double those for the same period last year, and we foresee significant organic revenue growth on a full year basis,” Greg Bosch, Chief Executive of PuriCore, said. “At the same time we are focused on improving margins and controlling operating costs. Both core businesses are growing strongly, and further opportunities exist to exploit the potential of our technology in other markets and applications.
“We are also pleased with the successful completion of the fundraising announced this morning enabling us to invest further to grow the business.”
PuriCore plc (LSE: PURI) is a life sciences company focused on developing and commercializing proprietary green solutions that safely, effectively, and naturally kill infectious pathogens without causing harm to human health or the environment.
The Company targets markets that depend upon controlling contamination, including food safety in retail and foodservice, medical device disinfection, and wound therapy. PuriCore’s products are used in approximately 2,200 hospitals (some with multiple systems installed) and supermarkets as well as hotel resorts to protect against the spread of infectious pathogens. Additionally, there are 2,100 dental practices using Sterilox Systems.
The Company’s patented, proprietary technology mimics the human body’s production of the natural antimicrobial hypochlorous acid, which is highly effective in killing bacteria, viruses, and fungal spores-without contributing to antibiotic resistance. 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. Hypochlorous acid is more effective at killing pathogens than bleach but is safe for people and the environment. PuriCore markets a portfolio of branded systems (“Sterilox Systems”) that electrochemically generate a hypochlorous acid solution from water and common salt. The Sterilox Systems produce hypochlorous acid solutions at a range of concentrations and at a nearly neutral pH.
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.