http://www.proactiveinvestors.co.uk Proactiveinvestors RSS feed en Wed, 29 Mar 2017 04:16:49 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/170315pure5410z/ Wed, 15 Mar 2017 09:59:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/170315pure5410z/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/170309pure0323z/ Thu, 09 Mar 2017 11:20:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/170309pure0323z/ <![CDATA[RNS press release - Half Yearly Report ]]> http://www.proactiveinvestors.co.uk/companies/rns/170307pure6783y/ Tue, 07 Mar 2017 07:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/170307pure6783y/ <![CDATA[RNS press release - PureCircle Completes Stevia Plant Expansion ]]> http://www.proactiveinvestors.co.uk/companies/rns/170302pure3398y/ Thu, 02 Mar 2017 10:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/170302pure3398y/ <![CDATA[RNS press release - Total Voting Rights ]]> http://www.proactiveinvestors.co.uk/companies/rns/170131pure5273v/ Tue, 31 Jan 2017 07:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/170131pure5273v/ <![CDATA[RNS press release - Removal of Restriction on Imports into the U.S. ]]> http://www.proactiveinvestors.co.uk/companies/rns/170130pure4184v/ Mon, 30 Jan 2017 07:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/170130pure4184v/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> http://www.proactiveinvestors.co.uk/companies/rns/170126pure2525v/ Thu, 26 Jan 2017 16:41:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/170126pure2525v/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/170126pure2517v/ Thu, 26 Jan 2017 16:36:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/170126pure2517v/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/170120pure7414u/ Fri, 20 Jan 2017 11:34:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/170120pure7414u/ <![CDATA[RNS press release - Release of U.S. Shipments ]]> http://www.proactiveinvestors.co.uk/companies/rns/170110pure7622t/ Tue, 10 Jan 2017 07:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/170110pure7622t/ <![CDATA[News - PureCircle's sales, profits and margins hit by US problems ]]> http://www.proactiveinvestors.co.uk/companies/news/171206/purecircle-s-sales-profits-and-margins-hit-by-us-problems-171206.html PureCircle Limited (LON:PURE), the maker of sugar substitute Stevia, lost a tenth of its value on Thursday morning after a profit warning.

Group sales in the first half of the current financial year are expected to be down 15% year-on-year at US$47mln.

The group said it expects gross margin, underlying earnings (EBITDA) and net profit in the first half will also be lower than in the corresponding period of the previous financial year.

Trading has been adversely affected by US border control intervention, which saw three shipments of stevia products detained in June.

The US Customs Border Protection (CBP) agency kicked off an investigation that saw PureCircle’s name included in a “Withhold Release Order”.

The company has worked extensively with the US CBP, providing tracking documents and related data in response to their detailed requests. It is now awaiting a decision from the CBP.

“Whilst the US CBP process has been a major distraction for our business in H1 FY17 and has adversely impacted our sales growth in the United States, I am delighted by the continued growth in sales in the rest of the world, which has further diversified our sales footprint, and by the strong customer support that we continue to receive,” said Magomet Malsagov, chief executive of PureCircle.

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Thu, 05 Jan 2017 12:03:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/171206/purecircle-s-sales-profits-and-margins-hit-by-us-problems-171206.html
<![CDATA[RNS press release - Trading Update ]]> http://www.proactiveinvestors.co.uk/companies/rns/170105pure4103t/ Thu, 05 Jan 2017 07:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/170105pure4103t/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> http://www.proactiveinvestors.co.uk/companies/rns/170103pure2441t/ Tue, 03 Jan 2017 16:41:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/170103pure2441t/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/170103pure2435t/ Tue, 03 Jan 2017 16:35:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/170103pure2435t/ <![CDATA[RNS press release - Block listing Interim Review ]]> http://www.proactiveinvestors.co.uk/companies/rns/161230pure5964s/ Fri, 30 Dec 2016 07:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/161230pure5964s/ <![CDATA[RNS press release - Result of AGM ]]> http://www.proactiveinvestors.co.uk/companies/rns/161201pure6889q/ Thu, 01 Dec 2016 09:37:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/161201pure6889q/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/161114pure0657p/ Mon, 14 Nov 2016 07:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/161114pure0657p/ <![CDATA[RNS press release - Notice of AGM and Annual Report: Amendment ]]> http://www.proactiveinvestors.co.uk/companies/rns/161102pure1222o/ Wed, 02 Nov 2016 08:32:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/161102pure1222o/ <![CDATA[RNS press release - Notice of AGM and Annual Report ]]> http://www.proactiveinvestors.co.uk/companies/rns/161102pure8576n/ Wed, 02 Nov 2016 07:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/161102pure8576n/ <![CDATA[News - PureCircle appoints new chief operating officer ]]> http://www.proactiveinvestors.co.uk/companies/news/168318/purecircle-appoints-new-chief-operating-officer-168318.html Stevia producer and marketer PureCircle Limited (LON:PURE) told investors that it has appointed industry veteran Gary Juncosa to its board as the company's new chief operating officer.

Juncosa will start his new position immediately (1st November) and will be responsible for driving the optimisation and management of PureCircle’s global operations.

That means he’ll cover everything from leaf sourcing to manufacturing right through to customer service, the company said.

“Gary will be instrumental in driving the operations of our company now that the new expanded purification facility is near to completion,” said chief executive Magomet Malsagov.

“With the new COO overseeing the day-to-day activities of the company and the continued support of other leaders in the management team, I will be able to focus on driving the growth strategy and development of PureCircle's long term business objectives.” 

Juncosa has more than 20 years of experience in the specialty chemicals sector having previously been in various global leadership roles at International Flavours and Fragrances as well as being the Vice President of operations of Yinghai Aroma Chemical Group in Tianjin, China.

Most recently he worked for global biofuel and renewable chemicals firm, Renewable Energy Group, where he was the general manager of its chemical division.

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Tue, 01 Nov 2016 08:03:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/168318/purecircle-appoints-new-chief-operating-officer-168318.html
<![CDATA[RNS press release - Appointment of Chief Operating Officer ]]> http://www.proactiveinvestors.co.uk/companies/rns/161101pure8575n/ Tue, 01 Nov 2016 07:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/161101pure8575n/ <![CDATA[RNS press release - Total Voting Rights ]]> http://www.proactiveinvestors.co.uk/companies/rns/161031pure7448n/ Mon, 31 Oct 2016 07:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/161031pure7448n/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/161011pure2712m/ Tue, 11 Oct 2016 16:49:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/161011pure2712m/ <![CDATA[RNS press release - Total Voting Rights ]]> http://www.proactiveinvestors.co.uk/companies/rns/160930pure2391l/ Fri, 30 Sep 2016 07:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160930pure2391l/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/160928pure1265l/ Wed, 28 Sep 2016 16:16:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160928pure1265l/ <![CDATA[News - PureCircle could be sweet for investors ]]> http://www.proactiveinvestors.co.uk/companies/news/166260/purecircle-could-be-sweet-for-investors-166260.html Potential growth at Stevia firm PureCircle Limited (LON:PURE) looks sweet and now could be a good time for investors to take advantage.

Stevia is a sugar substitute and the group, which produces and markets it and has a 75% share of the industry. The firm has over 20 products, derived from the same type of plant, which have already been commercialised.

It sells across 59 countries and  customers include the giants Nestle, Coca Cola, Kraft and Unilever.

The company is also expanding its production facilities to 5,000 tonnes from 2,800 tonnes at a cost of US$42mln, and the new facility in Malaysia should be completed in 2017 and take sales capacity to US$500mln.

Full year results show progress despite challenges

PureCircle is profitable and reported sales for the  year to June 30, 2016 of US$138.6mln, up from US$127.3mln last year.

The gross margin improved 41% to US$57mln (2015: US$40.3mln), while the net profit after tax was 257% higher at US$14.6mln.

EPS (earnings per share) rose 242% to 8.49 US cents.

Significant milestones in the period were the approval of high purity stevia in India and Brazil, approval of Reb M (a product, which can reduce calories by 100% in fizzy drinks) in Europe and the launch of the Zeta new ingredients, which have the  most sugar-like taste and create the lowest calories.

US customs action causes delay

In June, the firm revealed that stevia shipments had been detained by US border control, based on an allegation, refuted by PureCircle, that they contained products produced using forced labor.

Three shipments were detained in June but later the same month they were cleared for release into the US.

PureCircle said this had played its part in lower than expected second half sales, along with delayed customer launches.

Indeed a number of the firm's shipments are still in in detention in the USA and the group continues to work with the authorities to address the matter and have its name removed from the WRO (Withhold Release Order), it told the final results.

House broker Liberum said the matter make it take a cautious stance and assumes no resolution until the second half of 2017 (to June 30 next year).

It says it has no doubt in PureCircle’s conviction that the allegations against it are inaccurate but unfortunately there is no clear timetable for customs to reach a final decision, and until it's cleared up theissue will slow the group's sales into the North American market and drive up the cost of doing business. It has reduced 2017 and 2018 EPS forecasts by 60% and 61% respectively.

Growth of Stevia set to soar

Liberum highlights that in the last five years the stevia market has more than doubled to over US$200mln, while PureCircle has been growing revenues at a compound annual growth rate of 32%. Yet Stevia is still just 0.2% of the overall sweeteners and  flavours market.

It also notes that 10,000 food and drink products have been launched around the world using stevia and it only received  European and Canadian approval for use as a food ingredient five years ago.

The sugar substitute is an important tool in the much talked fight against diseases like diabetes and obesity, and governments globally are under pressure to reduce sugar intake.

The World Health Organisation (WHO) says sugar intake should be restricted to no more than 10% of daily calorie intake, and ideally below 5%.

Valuation is undemanding

Liberum says that trading at 5.7 times enterprise value to sales, PureCircle's valuation is not demanding for a firm, which should deliver strong double-digit sales growth and even stronger profit growth

The broker bases long-term forecasts assuming that stevia can gain around 10% of the global sugar market and that PureCircle’s long-term market share falls to 25%, giving a 10-20 year revenue potential of around US$1.6bn for PureCircle.

The shares have been hit by recent challenges. We believe this represents a good entry point for investors, says Liberum, repeating a ‘buy’ rating.

Its target price of 500p, down from 600p still offers a hefty upside with shares currently at around 310p.

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Wed, 21 Sep 2016 12:25:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/166260/purecircle-could-be-sweet-for-investors-166260.html
<![CDATA[News - PureCircle's new state-of-the-art plant set to double production ]]> http://www.proactiveinvestors.co.uk/companies/news/166243/purecircle-s-new-state-of-the-art-plant-set-to-double-production-166243.html Sweetener group PureCircle (LON:PURE) is building a new processing plant in  Malaysia, which has the potential to double the group's stevia leaf extract production.

It will also have a production line specifically for the Zeta Family ingredients, which are for the firm's products like Reb M for fizzy drinks, which have the most sugar-like taste and allow for the biggest calorie reductions.

Chief commercial officer Jason Hecker said: "We are extremely excited about bringing this new plant online because the demand for stevia has increased dramatically over the last six years.

"More specifically, the demand for PureCircle's Zeta ingredients has grown exponentially. This plant will allow us to support the stevia industry in a way that is unmatched by other suppliers."

The state-of the-art facility is expected to cost $42 million and is expected to come online in early 2017.

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Wed, 21 Sep 2016 09:20:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/166243/purecircle-s-new-state-of-the-art-plant-set-to-double-production-166243.html
<![CDATA[News - PureCircle delighted at stevia progress despite challenges ]]> http://www.proactiveinvestors.co.uk/companies/news/166164/purecircle-delighted-at-stevia-progress-despite-challenges-166164.html Sweetener firm PureCircle Limited (LON:PURE) said it's well positioned in the fight against obesity and diabetes, as it posted a 9% increase in sales in its full year just gone.

The firm produces and markets stevia, a sugar substitute, and sales for the 12 months to June 30 were US$138.6mln versus US$127.3mln last year.

Gross margin improved 41% to US$57mln (2015: US$40.3mln), while net profit after tax was 257% higher at US$14.6mln. EPS (earnings per share rose 242% to 8.49 US cents.

The group said it now had 20 products in market all derived from the same stevia leaf, and the improvement in profit and operating cashflow across the last five years underlined its  operational usages.

Positive developments in the year included that sugar taxes are being imposed in the group's major market and that stevia has been approved in Brazil and India

The group conceded that second half sales had been lower than anticipated due to delayed customers launches and US Customs and Border Protection (CBP) actions,

In June, shipments of the sweetener were detained by American border control but later the same month three shipments were cleared for release into the US.

The detention order had been based on an inaccurate allegation that the shipments contained products that were produced using forced labor, the firm had said.

The firm revealed that a number of its shipments remain in detention, despite Customs and Border Protection having received the same documents, the same level of traceability information, and the same audit reports for these shipments as PureCircle and its customer provided to CBP for the three released shipments.

"We continue to actively work with the CBP to address the matter and have our name removed from the WRO (Withhold Release Order)," it told investors.

PureCircle Chief executive Magomet Malsagov said: "Despite challenging market conditions in FY16, I am delighted with the progress PureCircle has made, with strong growth in both revenue and profit."

He added:  "Significant milestones in the year include the approval of high purity stevia in India and Brazil, Reb M approval in Europe and the launch of our Zeta family of new ingredients, closing the taste gap for low or no calorie applications and opening up new F&B categories adoption of stevia.

"These developments underpin our confidence in the long term prospects for our business and support the investments we are making to increase production capacity and further product innovation."

Broker Liberum repeated a 'buy' on the shares but reduces the target price to 500p from 600p.

It says the weak sentiment currently offers a buying opportunity and it remains confident in the long-term growth outlook for stevia and PureCircle’s Number One position.

But it says the US Customs restrictions prompt it to take a more cautious stance for full year 2017 by assuming no resolution until the second half of the group's 2017 year. Beyond full year 2017, it is predicting around 15% of sales growth on a repeatable basis.

PureCircle shares today eased 6.06% to 310p.

--- ADDS BROKER COMMENT AND SHARE PRICE---

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Tue, 20 Sep 2016 10:05:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/166164/purecircle-delighted-at-stevia-progress-despite-challenges-166164.html
<![CDATA[RNS press release - Final Results ]]> http://www.proactiveinvestors.co.uk/companies/rns/160920pure2588k/ Tue, 20 Sep 2016 07:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160920pure2588k/ <![CDATA[RNS press release - Notice of Results ]]> http://www.proactiveinvestors.co.uk/companies/rns/160812pure9962g/ Fri, 12 Aug 2016 07:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160812pure9962g/ <![CDATA[RNS press release - Total Voting Rights ]]> http://www.proactiveinvestors.co.uk/companies/rns/160729pure6941f/ Fri, 29 Jul 2016 11:57:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160729pure6941f/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/160714pure2043e/ Thu, 14 Jul 2016 11:10:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160714pure2043e/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/160714pure2039e/ Thu, 14 Jul 2016 11:09:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160714pure2039e/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/160714pure2032e/ Thu, 14 Jul 2016 11:08:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160714pure2032e/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/160713pure1149e/ Wed, 13 Jul 2016 15:57:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160713pure1149e/ <![CDATA[News - PureCircle's COO off to pastures new ]]> http://www.proactiveinvestors.co.uk/companies/news/128089/purecircle-s-coo-off-to-pastures-new-128089.html Stevia sweetener group PureCircle’s  (LON:PURE) chief operating officer Jordi Ferre is to step down at the end of September to take up another job elsewhere.

Paul Selway-Swift, chairman, thanked Ferre for his contribution to the company and wished him success in the future.

Magomet Malsagov, chief executive, will lead the search for Ferre's replacement, the company said.

PureCircle has been trading strongly recently as concern about the levels of sugar people are consuming has prompted the UK and other countries to propose sugar taxes.

Last week, the group said operating profits this year would grow by 60%.

It also appointed Rakesh Sinha as chief financial officer.

 

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Tue, 12 Jul 2016 07:21:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/128089/purecircle-s-coo-off-to-pastures-new-128089.html
<![CDATA[RNS press release - Resignation of Chief Operating Officer ]]> http://www.proactiveinvestors.co.uk/companies/rns/160712pure8736d/ Tue, 12 Jul 2016 07:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160712pure8736d/ <![CDATA[RNS press release - Additional Listing ]]> http://www.proactiveinvestors.co.uk/companies/rns/160708pure6417d/ Fri, 08 Jul 2016 07:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160708pure6417d/ <![CDATA[News - PureCircle predicts strong profit rise as new CFO comes on board ]]> http://www.proactiveinvestors.co.uk/companies/news/127890/purecircle-predicts-strong-profit-rise-as-new-cfo-comes-on-board-127890.html Sweeteners specialist PureCircle Limited (LON:PURE) said operating profits would grow by 60% as margins “strengthened considerably” in the year just ended.

In a pre-close statement the producer and marketer of high purity stevia ingredients told investors revenues would be “not less than” US$138mln for the 12 months to June 30.

Underlying earnings (EBITDA) are expected to be US$37mln, while net profit is expected to have grown 275% to US$15mln. The company also said it generated positive cash flow in the period as it gave a reasonably upbeat assessment of the prospects.

It said shipments detained by US customs in May have now been released. Broker Liberum reckoned this will have acted as a drag on a busy fourth quarter of trading.

Chief executive Magomet Malsagov said PureCirle’s main markets continued to develop strongly with “favourable regulatory developments” and continued roll-out of “ever larger” food and beverage brands using stevia.

“These developments underpin our confidence in the long term prospects for our business and support the investments we are making to increase production capacity and further product innovation,” he added.

“Our business model is robust so that we are confident that as sales increase we will report improved profitability.

“But as stated in prior reports, the trajectory of our sales growth will be uneven and is dependent on the pace and extent of customers' product launches hence we caution that there will be continued volatility in the development of our business."

In the same announcement the company said effective today Rakesh Sinha takes over from the departing William Mitchell as chief financial officer. 

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Wed, 06 Jul 2016 08:08:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/127890/purecircle-predicts-strong-profit-rise-as-new-cfo-comes-on-board-127890.html
<![CDATA[RNS press release - Trading Update and Board of Director Changes ]]> http://www.proactiveinvestors.co.uk/companies/rns/160706pure3434d/ Wed, 06 Jul 2016 07:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160706pure3434d/ <![CDATA[News - PureCircle says detained US shipments now released ]]> http://www.proactiveinvestors.co.uk/companies/news/127623/purecircle-says-detained-us-shipments-now-released-127623.html PureCircle Limited (LON:PURE) told investors that shipments of sweetener stevia, which were detained by American border control earlier this month, have  now been cleared for release into the US.

In a brief statement,  the firm added it continued "to work actively with the Customs and Border Protection (CBP) to effect a full resolution of the issue for further shipments".

The detention order was based on an inaccurate allegation that the shipments contained products that were produced using forced labor, the firm  said earlier in the month.

PureCircle said it was committed to human rights and has been certified by independent auditors to ensure compliance with the Sedex Members Ethical Trade Audit (SMETA) which requires that "there is no forced, bonded or involuntary prison labour used".

Stevia is a plant extract used in Coca-Cola Coke Life and other drinks.

The group also confirmed that its product, including shipments being withheld by US customs is not sourced from Inner Mongolia Hengzheng Group Baoanzhao Agricultural and Trade LLC.

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Wed, 29 Jun 2016 07:57:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/127623/purecircle-says-detained-us-shipments-now-released-127623.html
<![CDATA[RNS press release - US Customs and Border Protection Update ]]> http://www.proactiveinvestors.co.uk/companies/rns/160629pure5686c/ Wed, 29 Jun 2016 07:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160629pure5686c/ <![CDATA[RNS press release - Company Secretary Change ]]> http://www.proactiveinvestors.co.uk/companies/rns/160627pure3105c/ Mon, 27 Jun 2016 07:58:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160627pure3105c/ <![CDATA[News - PureCircle working to resolve issue as US customs detains Stevia shipments ]]> http://www.proactiveinvestors.co.uk/companies/news/126661/purecircle-working-to-resolve-issue-as-us-customs-detains-stevia-shipments-126661.html PureCircle Limited (LON:PURE) said it was working to quickly release shipments of sweetener stevia, which have been detained by US border control.

The firm said the detention order was based on an inaccurate allegation that the shipments contained products that were produced using forced labor.

PureCircle said it was committed to human rights and has been certified by independent auditors to ensure compliance with the Sedex Members Ethical Trade Audit (SMETA) which requires that "there is no forced, bonded or involuntary prison labour used".

Stevia is a plant extract used in Coca-Cola Coke Life and other drinks.

The group also confirmed that its product, including shipments being withheld by US customs is not sourced from Inner Mongolia Hengzheng Group Baoanzhao Agricultural and Trade LLC.

It said it had submitted relevant documentation of this, including independent,  third party verification to the US authorities and said it was working with them to correct the inaccurate information in the detention order communication and to expedite the release of our shipments.

PureCircle added today: "Depending on the duration of the detention order there could be some impact on sales and profit in the current financial year."

House broker Liberum said the announcement had understandably hit the share price but believes it will prove to be a buying opportunity.  

"PureCircle has a fully audited supply chain and has submitted the relevant documentation to correct the innacurate information and to allow shipments to be released."

 "We expect this issue to be resolved but given PureCircle has a June 30th financial year, the delay of shipments into the US may impact FY16 results," it added.

The broker estimates that $10 to 15mln of revenues and $5 to 7mln of net profit could be shifted from full year 2016 into full year 2017 but said it was waiting to hear on the speed of resolution before making changes to its estimates.

Shares in London shed 12.4% to 318p.

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Thu, 02 Jun 2016 09:46:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/126661/purecircle-working-to-resolve-issue-as-us-customs-detains-stevia-shipments-126661.html
<![CDATA[RNS press release - U.S Customs and Border Protection Communication ]]> http://www.proactiveinvestors.co.uk/companies/rns/160602pure0076a/ Thu, 02 Jun 2016 08:26:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160602pure0076a/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/160523pure0047z/ Mon, 23 May 2016 10:43:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160523pure0047z/ <![CDATA[RNS press release - Total Voting Rights ]]> http://www.proactiveinvestors.co.uk/companies/rns/160429pure8043w/ Fri, 29 Apr 2016 08:55:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160429pure8043w/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/160418pure4881v/ Mon, 18 Apr 2016 10:13:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160418pure4881v/ <![CDATA[RNS press release - Change of Brokers ]]> http://www.proactiveinvestors.co.uk/companies/rns/160415pure2856v/ Fri, 15 Apr 2016 07:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/160415pure2856v/ <![CDATA[News - PureCircle Limited on course to meet full-year expectations ]]> http://www.proactiveinvestors.co.uk/companies/news/124418/purecircle-limited-on-course-to-meet-full-year-expectations-124418.html PureCircle Limited (LON:PURE), the high purity stevia ingredients producer, said trading in the first three months of 2016 continued to be strong.

The three month period – the third quarter of the company's financial year – saw sales growth in line with the first half of the financial year.

The company said that there are more than $40mln of projects within the fiscal fourth quarter pipeline, though PureCircle cautioned that it has no control over when these orders are fulfilled as they are dependent on their customers' launch schedules.

Taking a conservative view that some of these deals will be delayed until the next financial year, the company expects year-on-year sales growth for the full year will be at least 10%.

Last year sales totalled $127.4mln.

Strong improvements in profit margins are currently expected to continue across the balance of fiscal 2016 (FY16), such that, even if not all sales projects close in FY16, the company still expects net profit for the full year to be in line with consensus.

Some of this improvement in margins will be down to favourable movements in foreign exchange rates but, speaking to Proactive Investors, chief financial officer William Mitchell noted that at the halfway point of the year gross margin had improved by eight points to 42%, of which only three percentage points was due to forex movements.

“The larger balance was due to benefits of our innovation (more new products being commercially successful from the same stevia leaf inputs), and we expect this innovation-led improvement to continue to lead to improved volumes and margins,” Mitchell said.

Meanwhile, the company highlighted that developments in the global sweetener market have continued to favour the mid-to-long term growth prospects for stevia.

There have been further regulatory approvals for stevia, including in the densely populated countries of India and Brazil, while, of course, in Britain the government has proposed a tax on added sugar in soft drinks.

“The market for stevia and our sales activity both continue to grow strongly; however, as I said in March, the trajectory of our sales growth will be uneven and is dependent on the pace and extent of customer roll-outs,” said Magomet Malsagov, chief executive of PureCircle.

“Although the precise level of our short term growth is uncertain, our operating margins continue to strengthen, which gives us confidence in the increasing future profitability of the group," Malsagov added.

Mitchell reinforced that message, telling Proactive Investors that, although PureCircle would be a “very large mid-to-long term growth” story, the company has consistently said the short-term growth trajectory would “not be a straight line”.

Liberum Capital left its earnings per share estimates for the full year unchanged but trimmed its sales forecast to $147mln, which would still represent a 15% increase year-on-year.

“PureCircle's 3Q update makes three points. 1) 3Q sales rose in line with 26% growth reported in 1H16. 2) There is timing uncertainty in the greater than $40mln 4Q16 launch pipeline which may result in FY sales growth falling into low double-digits. 3) Even in this scenario margin improvement means that PC [PureCircle] is on track to meet FY16 consensus EPS of $0.13,” the broker said.

The company's desire to err on the side of caution in terms of the fourth quarter pipeline sent the shares 10p lower to 370p, but Liberum said any signs of share price weakness should be viewed as a buying opportunity.

“Rising pressure to reduce sugar in food & beverages and PureCircle's number one stevia position puts PC in a strong position to deliver substantial profit and cash flow growth which we do not believe is discounted by the shares,” the broker said.

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Tue, 05 Apr 2016 13:35:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/124418/purecircle-limited-on-course-to-meet-full-year-expectations-124418.html