BRIEF-Purecircle Says May Face Difficulty Sustaining Profit Margins In Short Term
April 9 (Reuters) - Purecircle Ltd:
* H1 SALES FELL 6 PERCENT TO 46.8 MILLION USD
* HY SALES DECLINED 6.0% TO $46.8 MILLION (1H FY19: $49.7M)
* NET LOSS FOR H1 FY20 OF $13.8 MILLION (1H FY19: NET LOSS $28.8 MILLION)
* HY NET DEBT OF $82.6 MILLION (1H FY19: $103.5 MILLION)
* GROUP CONTINUES TO HAVE SUFFICIENT INVENTORIES AT HAND THAT SHOULD MITIGATE ANY FURTHER DISRUPTIONS
* INTENDS TO REFINANCE ITS BANKING FACILITIES THROUGH VARIOUS OPTIONS INCLUDING EQUITY INFUSION
* GROUP ANTICIPATES HEADWINDS FROM SLOWDOWN IN GLOBAL ECONOMY AS A RESULT OF COVID-19.
* GROUP MAY NOT HAVE SUFFICIENT LIQUIDITY UP UNTIL BANK FACILITY IS REQUIRED TO BE REPAID IN NOVEMBER 2020
* PRODUCTION AT OUR CHINA EXTRACTION PLANT IS RUNNING AS USUAL
* REFINERY IN MALAYSIA RESTARTED PRODUCTION IN EARLY APRIL 2020
* PRODUCTION AT OUR CHINA EXTRACTION PLANT IS RUNNING AS USUAL.
* MAY FACE DIFFICULTY IN SUSTAINING PROFIT MARGINS IN SHORT TERM
* REVENUE IN JANUARY AND FEBRUARY 2020 TOTALLED $17.0 MILLION
* OUTLOOK FOR FULL YEAR IS NOW MORE CAUTIOUS THAN BEFORE.
* PERFORMANCE OF GROUP TO END OF FEBRUARY HAS BEEN UNEXPECTEDLY SLUGGISH WITH OVERALL SALES DECLINATION OF APPROXIMATELY 4.6% Source text for Eikon: Further company coverage:
