PURI.L Share News (PURI)

Green cleaning technology developer PuriCore fell to a 52-week low on the back of disappointing interim results that were affected by spending cutbacks in the National Health Service (NHS). Revenue in the first half of 2011 was slightly down from $19m last year to $18.75m, which was compounded by an increase in sales cost, resulting in a pre-tax loss of $6.6m, versus a loss in the same period of the previous year of $5m. Cash and cash equivalents were significantly reduced, down $7m to $3.76m. The company said: "PuriCore sales for the half-year were lower than expected though virtually level with the same period last year, resulting from delays in both the UK with NHS capital spending and in the US with supermarket retail orders delayed into Q3. "Capital orders for the UK Endoscopy business slowed as the National Health Service constrained capital spending as it started its new fiscal year; however, the board is confident that sales will improve as the NHS fiscal year progresses," the company statement said. Recurring revenues for the Endoscopy business unit, nonetheless, increased by 28% over the first half of 2010, as the group generates more value from its installed base in UK hospitals and its drive towards greater rental income. "We anticipate this trend to continue as we seek to increase the overall percentage that recurring revenues represents of our total revenues thereby insulating the business from NHS spending policy changes," the company said.The group is targeting sales growth across the business over the full year, despite the lacklustre first half. After the end of the reporting period, the group received major new supermarket retail orders totalling $8.2m, underlining its confidence for the full year.The company saw its recurring sales revenue increase 28% for the period on a like-for-like basis, accounting for 76% of sales in the first six months. The share price was down 2.27% to 21.50p at 15:11. NR