PURE.L Regulatory News (PURE)

9 July 2012

PURECIRCLE LIMITED

("PureCircle" or "the Company")

PRE CLOSE PERIOD UPDATE 2H FY 2012

PureCircle (LSE: PURE) the world's largest producer and marketer of high purity stevia today provides a pre close period update in respect of its second half to 30 June 2012 (2H FY 2012). The Company's results statement for the full year FY 2012 will be announced on Thursday 27th September 2012.

Sales

In 2H FY2012 sales are expected to be $30m giving not less than $45m for the full year FY 2012. Whilst 2H sales are double those of 1H FY 2012 they are lower than we wished partly due to the delay in a number of projects now slated for launch in FY 2013; and partly due to the end of the legacy "Take or Pay" volumes and lower sales of Co-products, which reflects the Company's decision to slow down Reb A production in CY 2011 to better align inventories.

Overall high purity stevia volumes increased by more than 20% year-on-year. Within FY 2012 there has been triple digit growth in volumes of proprietary products, including our Natural Flavor TM range and new Natural Sweeteners range. These new products are rapidly winning market share for us and their variable contribution margin percentages are strong. Going forward we believe the improved mix of products will generate large volumes and a much improved base business with better production capacity utilisation.

FY 2012 has seen strong growth in the usage of high purity stevia, boosted by the opening of the important EU market in December 2011 and the reformulations of Sprite, Fanta, Lipton and Nestea being examples of global brands adopting stevia. However, as expected, the growth in usage has not yet fully translated into growth in sales for PureCircle, due to the continued wind-down in Beverage Global Key Account inventories.

FY 2012 was the first year since the beginning of the company's sales history that our sales have not included any contractually pre-committed or "Take or Pay" volumes. We estimate that almost $40m (85%) of sales this year are represented by customer orders and contracts that did not exist three years ago. This provides a good indication of the diversification of our customer base that has been achieved since FY 2009. Further it provides a strong base for sales growth when coupled with Beverage Global Key Account future demand for product, once their inventories are run-down. FY 2012 was also the first year of in-market sales by our Joint Venture companies which provide a good base for future growth in each of their regions.

Margins

The Group expects 2H FY 2012 variable margins to be in line with those reported in 1H FY 2012. With sales at double 1H levels, 2H losses will be lower than 1H FY 2012.

Cashflow and net debt

During 2H FY 2012 the Group has continued to reduce inventories. However with increased receivables due to the doubling of sales volumes, working capital is expected to be higher than at 31 December 2011, resulting in net debt increasing to not more than $80m. The Group funding headroom at the end of FY 2012 is expected to be not less than $44m.

Commenting on the 2H FY 2012 trading update, PureCircle CEO Magomet Malsagov said "Although our FY 2012 sales have been lower than expected due to the delay of a number of projects into FY 2013 and the continued winding down of Beverage Global Key Account inventories; the company still managed to increase year-on-year volumes of High Purity Stevia and Natural Flavors by more than 20%. The underlying usage of high purity stevia continues to grow strongly after the opening of the EU market. The important carbonated soft drink category is beginning to adapt high purity stevia in global mega brands. We have diversified our product portfolio and grown our customer base substantially and each month we get closer to the point where the real size of the market we are building will be evident in our reported sales. Together with our partners we have grown our presence globally to better manage our constantly increasing international customer base.

Through our introduction of innovative products we have successfully eliminated the Company's dependence on one product. Through our direct to market sales strategy we have increased our base of regular customers and repeat sales, with FY 12 being the first time in our history not to include any "Take or Pay" volumes. Going forward this will reduce our sales volatility caused by historic "lumpy" one off sales volumes.

Our innovative product portfolio and scaled supply chain are ready and proven, the measures we are taking to reduce inventories and improve cashflow are fully on track and we have sufficient headroom on our treasury facilities.

Looking forward, we are comfortable with market consensus for sales levels in FY 2013. More detailed guidance for FY 2013 and FY 2014 will be provided in September with our FY 2012 results announcement. Our guidance for high levels of sales remains mid-to-long term based and until then there will continue to be some volatility in our results."