LONDON (Alliance News) - PuriCore PLC Friday reported a decline in third quarter revenue, amid the continued rebalancing of its supermarket retail product mix, as consumable product sales increase and capital equipment sales decline.
In a statement, PuriCore reported USD4.7 million of revenue from continuing operations in the third quarter, compared with USD9.5 million in the corresponding period last year. The company completed the disposal of the UK Endoscopy business on June 30, meaning the results of operations for that business are reported as discontinued operations.
Over the nine months to September 30, revenue from continuing operations decreased to USD13.2 million from USD21.9 million in the corresponding period last year.
PuriCore said that, as expected, 2014 revenues and earnings will be lower than in the prior year, as its supermarket retail business model transitions and investments are made across the group to support longer-term growth.
"The company will remain vigilant in controlling costs and preserving cash while prudently investing for the future. The board has advanced the strategic and operational review of the business and plans to announce further details later this year," according to the company's statement.
Chief Executive Michael Ashton said: "The lower reported revenue for the period is consistent with the announced change in the supermarket retail business, from a capital sales driven business model to one that will deliver more consistent recurring revenues. We are confident that this shift is the right strategy for the longer-term success of the business."
"Through the strategic review, we have identified new growth opportunities across the Group in which we will invest while implementing focused cost reduction plans elsewhere," Ashton said. "These opportunities entail new products and applications as well as geographic expansion and centre on leveraging PuriCore's patented technology. As the strategy continues to evolve, we will share further updates with the market later this year."
PuriCore shares were down 12% at 30.00 pence on Friday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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