RLM.L Regulatory News (RLM)

5 Feb 2007 07:01

PuriCore Plc05 February 2007 5 February 2007 PuriCore plc ("PuriCore") Pre-Close Trading Update PuriCore (LSE: PURI), the life sciences company focused on the development andcommercialisation of its novel, safe antimicrobial technology, today provides apre-close trading update prior to publication on 16 April 2007 of itspreliminary results for the year ended 31 December 2006. PuriCore's platformtechnology mimics the human body's production of its natural anti-microbial,hypochlorous acid, an entirely safe and non-hazardous approach to disinfectionand sterilisation. PuriCore expects to announce sales for 2006 of approximately $15.6 million, anincrease of 22% over the prior year. The US Food Safety business experiencedrobust growth during 2006 and now has approximately 1,400 Systems installed insupermarkets across the United States, in line with market expectations.Several substantial new contracts were awarded in 2006, and discussions withother major US grocery retailers continue. The Endoscopy business, which supplies Sterilox Systems and services for thesterilisation of reusable endoscopes to hospitals, encountered continuedchallenging conditions as a result of cutbacks in healthcare expenditure in theNHS. Despite these constraints, the installed base of global Endoscopy Systemsstill grew by more than 20% and year-end customer demand points to a strongstart in 2007. Additionally, 100% of existing Endoscopy customers continue tosign new contracts for extended periods, demonstrating a high degree ofsatisfaction with the Sterilox System and validating PuriCore's strategy to growits portfolio of rented Systems. The combined installed base of PuriCore's Sterilox Systems in Food Safety andEndoscopy grew over 200% in 2006. As a result of the NHS spending constraints, operating losses (EBITDA)excluding the impact of non-cash compensation charges for the issuance of stockoptions and warrants (approximately $2 million), are expected to be between $15- $16 million for the year, slightly higher than currently forecasted. (Note:Financial ranges provided as full impact of IFRS adjustments not yet finalized.) PuriCore remains well financed, with cash and cash equivalents at 31 December2006 of approximately $43 million. Greg Bosch, Chief Executive of PuriCore, said: "PuriCore experienced excellent growth in 2006, tripling the installed base ofSterilox Systems. Importantly, 90% of the 2006 installations were Systemsplaced under rental agreements, and 78% of our cumulative installed base areunder rental contracts at year end, representing $15 million in future revenue.We continue to expand our rental business which adds to our base of recurringrevenue and allows us to plan targeted investments in the future. "Despite a challenging environment for our UK Endoscopy business, we areoptimistic that our current backlog of customer demand, coupled with newpartnerships to expand our endoscopy portfolio such as the Minntech dealannounced today, will enable us to achieve our targets. Similarly, we expectcontinued robust growth in 2007 in our US Food Safety business. "As we continue to build PuriCore's global leadership in the field of infectioncontrol, we remain focused on delivering strong growth and attractive investmentreturns to our shareholders. We look forward to sharing more details in thepreliminary results on 16 April." Contacts: PuriCore plc +1 (484) 321-2700Greg Bosch, Chief Executive OfficerKeith A. Goldan, Chief Financial Officer Financial Dynamics Tel: +44 (0) 20 7831 3113Ben BrewertonJohn Gilbert Notes to Editors: All financials are unaudited. PuriCore (LSE: PURI) is a life sciences company focused on the development andcommercialisation of its proprietary technology that mimics the production bythe human body of its natural anti-microbial, hypochlorous acid. Hypochlorousacid is highly effective at killing pathogens such as bacteria, viruses andfungi and yet is safe and environmentally friendly. PuriCore's solutions haveapplications in a wide range of markets where it is important to controlmicrobial contamination. These markets include medical device disinfection,food safety, dental equipment decontamination, environmental remediation,hospitality, water safety, wound management and other applications intended tolimit the spread of infectious disease, including major global disease threatssuch as Tuberculosis, MRSA, Influenza, E.coli, Norovirus, HIV, polio, HepatitisA, H.pylori and Legionella. PuriCore markets a portfolio of branded systems which produce hypochlorous acidsolutions on-site at a customer's location from water, electricity and commonsalt. These solutions are generated at a range of concentrations and at anearly neutral pH range similar to the human body. They are effective as soaks,sprays, mists and in other forms. PuriCore is headquartered in Malvern, Pennsylvania with offices in Stafford, UK. To receive additional information on PuriCore, please visit our web site atwww.puricore.com, which does not form part of this press release. This information is provided by RNS The company news service from the London Stock Exchange