PURE.L Regulatory News (PURE)

PURECIRCLE LIMITED

("PureCircle" or the "Company")

TRADING UPDATE

PureCircle (LSE: PURE) the world's largest producer and marketer of high purity stevia today provides a trading update in respect of its second half to 30 June 2011 (2H FY 2011). The Company's results statement for the full year FY 2011 will be announced on 26 September 2011.

Sales

In 2H FY2011 sales are expected to be 70% ahead of 2H FY 2010 at about $40m; in line with market expectations. Sales in 2H FY 2011 are underpinned by fulfillment of the contracted volumes with the Company's strategic beverage account and by continued strong growth in Reb A & SG95 volumes to the Group's increasing number of other customers worldwide. In addition the Group has made initial sales of its new proprietary natural flavor system range, NSF-02.

Margins and net profit

With increased sales volumes, in 2H FY 2011 the Group expects to report a positive net margin, before one off charges. EBITDA* for 2H FY 2011 is expected to be in the range of $3-5m. Net margin and EBITDA are both expected to be ahead of the comparable period in FY10.

Cashflow and net debt

The Group is expecting to be cashflow positive in 2H FY2011. This reflects reductions in the Group's inventories due to higher sales, partially offset by receivables that will be higher than at 31 December 2010.

The positive net cashflow will result in a reduction in net debt, which is expected to end FY 2011 at not more than $72m, $5m lower than at 31 December 2010 and ahead of expectations. Further reductions in net debt are expected in the coming months.

The 2H FY 2011 net cashflow is expected to show $20m improvement on the net cashflow achieved in the comparable 2H FY 2010.

The Group total funding headroom at the end of 2H is expected to be at $60m.

Commenting on the 2H FY 2011 trading update, PureCircle CEO Magomet Malsagov said "As expected we are seeing a strengthening in demand for our high purity stevia products. We have also secured initial sales of new natural flavor innovations that were introduced recently to the market. The decisions we have taken to improve cashflow are clearly taking effect. We end FY 2011 with an enhanced customer base in a growing market, diversified portfolio of products with introduction of PureCircle Flavors™ and with sufficient headroom on our treasury facilities. We expect continued growth, however our guidance for high level of market demand remains mid to long term based. Until then, there will continue to be some volatility in our results".

* 2H net margins and EBITDA are stated before the one off charges announced on 17 June 2011 which will be reflected in the full year FY2011 results to be announced on 26 September 2011.