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PureCircle's volumes still sub-scale

Tue, 11th Sep 2012 09:13

PureCircle, which produces sweetener products derived from stevia, saw sales dip and losses deepen last year as it moved away from a 'take or pay' contracted sales model.Sales in the year to the end of June eased to $45.41m from $52.26m the year before, with the company at pains to point out that last year's top line included $22m of committed 'take or pay' sales, where a customer either takes the product or pays the supplier a penalty.Sales which are not under a 'take or pay' arrangement have risen from $6m two years ago to $39m in the fiscal year just ended, the company pointed out.Some 85% of sales comprised demand that did not exist three years ago, Chairman Paul Selway-Swift noted. "This augurs well for future sales growth," he suggested.Loss before tax widened to $26.66m from $19.54m a year earlier. Net debt at the end of the reporting period had grown to $78.06m from $70.87m a year earlier.Total volumes of high purity stevia increased by 26% year-on-year. Volume increases were led by sales of the portfolio of proprietary new ingredients introduced over the past eighteen months (Alpha, SG95, Natural Flavor range), each of which increased by more than 100%. "Despite the volume increase, FY 2012 [fiscal 2012] sales levels remained sub-scale and did not reflect the strong growth in end market usage of high purity stevia. This is principally due to the continued impact of inventory at Beverage Global Key Accounts (BGKAs)," the company said.At $74m, inventories were $23m lower than at June 2011 and $40m lower than their peak at December 2010. Further reductions are expected as sales volumes increase before they stabilise at a consistent proportion of sales demand."Our recent results have been impacted by the tough decisions we made in 2011 to slowdown Reb A production temporarily to better align inventories to current market demand. Results should improve as the evident growth in market usage of our products starts to translate into higher sales," Selway-Swift declared."We remain confident of the future of our high purity stevia business but continue our guidance that this should be seen as a mid to long term opportunity," he added.The market took that guidance on board, selling the shares in the short-term, pushing the price down 10.5p to 165.5p.JH
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21 Mar 2014 09:36

Friday broker round-up UPDATE

Anglo American: Nomura reduces target price from 1550p to 1475p and retains a neutral rating. Antofagasta: Nomura cuts target price from 800p to 720p and stays with its reduce rating. Canaccord Genuity reduces target price from 1030p to 880p, while its buy recommendation is kept. ASOS: UBS reduces

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20 Mar 2014 09:12

Thursday tips round-up: Smiths Group, Pure Circle

Following yesterday's dip in shares of Smiths Group, after the release of its latest set of halfway figures, the stock is back at where it was when talk surfaced last summer of an approach for its medical division. Ironically, it was precisely that division's performance which was one of the weakest

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19 Mar 2014 12:07

PureCircle Narrows Losses; Driven By Strong Volume, Sales Growth

LONDON (Alliance News) - Food and drinks flavouring company PureCircle Ltd Wednesday said it narrowed its losses in the first half of the year, driven by strong volume growth in the period, and a 32% increase in sales for its all-natural, no-calorie sweetener and natural flavour systems. In

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19 Mar 2014 07:33

PureCircle swings to H1 operating profit as sales surge

PureCircle, the stevia sweetener producer and marketer, swung to an operating profit in its first half, helped by a strong growth in sales across all regions. Operating profit totalled $2.9m in the six months to December 31st, compared with a loss of $2.9m the year before, on sales that surged by 3

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6 Jan 2014 12:34

PureCircle expects first half sales growth on back of innovations

PureCircle, the world's largest producer of stevia ingredients, said it expects first half sales to be 31 per cent ahead of last year's performance at 34.7m dollars. In a trading update the group reported sales growth across all high purity ingredients, driven by innovations in the Stevia 3.0 TM po

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6 Jan 2014 11:43

UK WINNERS & LOSERS: RSA Jumps Ahead Of Irish Business Review Findings

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6 Jan 2014 10:06

UK BROKER RATING CHANGES: Six Brokers Raise Next Price Target

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6 Jan 2014 09:30

STOCKS NEWS EUROPE-UK small caps up 0.2 pct in morning trade

The FTSE small cap index rise 0.2 percent in morning trade, while junior-listed AIM shares gain 0.1 percent, both outperforming a 0.2 percent drop on the blue chips. Crawshaw Group rallies 15.6 percent to 19.75 pence after the butchers group says like-for-like sales in the seven weeks to De

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6 Jan 2014 08:42

PureCircle To Swing To Interim Operating Profit On Sales Rise

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30 Dec 2013 12:46

UK WINNERS & LOSERS: LED International Soars; Max Petroleum Slips

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30 Dec 2013 09:39

PureCircle Receives No Objections From US FDA For Reb M Stevia Sweetener

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8 Oct 2013 10:11

DIRECTOR DEALINGS: PureCircle Chief Executive, CFO Awarded Options

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18 Sep 2013 08:28

Wednesday broker round-up UPDATE

African Minerals: Canaccord Genuity reduces target price from 410p to 330p, while its buy recommendation remains unaltered. Amlin: Goldman Sachs moves target price from 405p to 420p and reiterates a neutral rating. Andor Technology: Investec takes target price from 360p to 410p leaving its buy rec

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16 Sep 2013 12:13

Monday broker round-up

AEC Education: WH Ireland places both its target price (prev.: 11p) and its recommendation under review. Aggreko: Citi reduces target price from 2100p to 2000p leaving its buy recommendation unaltered. Allergy Therapeutics: Panmure Gordon lowers target price from 18p to 16p, while keeping its buy

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16 Sep 2013 10:10

PureCircle Pretax Losses Narrow As New Soft Drinks Take Off

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