TIDMPURE
RNS Number : 3998T
PureCircle Limited
14 November 2019
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
14 November 2019
Company update
PureCircle (LSE: PURE) (the "Company" and together with its
subsidiary undertakings, the "Group"), the world's leading producer
and innovator of great tasting stevia sweeteners for the global
food and beverage industry, provides the following update further
to the announcements of 20 September, 25 October and 28 October
2019.
The Company appointed KPMG LLP to investigate the issues
announced on 20 September 2019 relating to the classification and
valuation of inventory. In line with the Company's previous
guidance, KPMG's provisional assessment is that those issues have
had the cumulative effect of reducing inventory by approximately
US$23 million and consequently increasing cost of goods sold by the
same amount, spread across financial years 2018 and 2019, with
potentially a relatively modest adjustment to 2017.
The Company does not expect this amount to change materially,
but it has yet to be signed off by the Group's auditors,
PricewaterhouseCoopers. The adjustments will have consequential
effects on the potential carrying value of some of the Group's
intangible assets and inventory items, some of which may be
material. The adjustments will be reflected in the Group's audited
financial statements for the year ended 30 June 2019.
The Company and its professional advisers have seen no
indication that the issues identified will have any impact on the
net debt of the Group or the cash generation of the business.
The Company is in ongoing discussions with its banks and is
seeking appropriate waivers with regard to certain covenants under
its banking arrangements.
During the course of the work of KPMG and
PricewaterhouseCoopers, matters of concern have recently been
identified in relation to how certain other transactions have been
constructed and/or reflected in the Group's accounting records.
Some of these matters indicate potential impropriety. The Company
and its professional advisers are now investigating these matters
further, both to examine them fully and to quantify their potential
impact.
The Group's CEO, Magomet Malsagov, has voluntarily agreed to
stand aside on a temporary basis with immediate effect as Group CEO
and as a director of Group companies, pending further investigation
of the issues that have been identified. The Company's Chairman,
John Slosar, has assumed the role of Interim Group CEO with
immediate effect. Mr. Malsagov, acting in the capacity of Adviser
to the Chairman, will assist John Slosar in this role.
Further updates will be made in due course.
Enquiries:
Investors/Analysts
John Slosar, Chairman and Interim CEO
Phone: +603 2166 2206
Newgate Communications, Media Relations
Elisabeth Cowell
Giles Croot
Email: purecircle@newgatecomms.com
Phone: +44 (0) 20 3757 6880
Notes to Editors
About PureCircle
-- PureCircle is the only company that combines advanced R&D
with full vertical integration from farm to high-quality,
great-tasting innovative stevia sweeteners.
-- The Company collaborates with farmers who grow the stevia
plants and with food and beverage companies which seek to improve
their low- and no-calorie formulations using a sweetener from
plants.
-- PureCircle will continue to: lead in research, development
and innovation; produce a growing supply of multiple varieties of
stevia sweeteners with sugar-like taste, using all necessary and
appropriate methods of production; and be a resource and innovation
partner for food and beverage companies.
-- PureCircle stevia flavor modifiers work in synergy with
sweeteners to improve the taste, mouthfeel and calorie profile, and
enhance the cost effectiveness, of beverage and food products.
-- Founded in 2002, PureCircle is continually investing in
breakthrough research and development and it has been granted over
100 stevia-related patents with more than 250 applied for patents
pending.
-- PureCircle has offices around the world with the global headquarters in Chicago, Illinois.
-- To meet growing demand for stevia sweeteners, PureCircle is
rapidly ramping up its supply capability. It completed expansion of
its Malaysian stevia extract facility in March 2017, increasing its
capacity to rapidly supply the newer and great-tasting specialty
stevia sweeteners and helping provide ever-increasing value to its
customers.
-- PureCircle's shares are listed on the main market of the London Stock Exchange.
-- For more information, visit: www.purecircle.com
About stevia
-- Given the growing global concerns about obesity and diabetes,
beverage and food companies are working responsibly to reduce sugar
and calories in their products, responding to both consumers and
health and wellness advocates. Sweeteners from the stevia plant
offer sugar-like taste and are becoming an increasingly important
tool for these companies.
-- Like sugar, stevia sweeteners are from plants. But unlike
sugar, they enable low-calorie and zero-calorie formulations of
beverages and foods.
-- Stevia leaf extract is a natural-based, zero calorie,
high-intensity sweetener, used by global food and beverage
companies as a great-tasting zero-calorie alternative to sugar and
artificial sweeteners.
-- Stevia is a naturally sweet plant native to South America;
today, it is grown around the world, notably in Kenya, China and
the US.
-- The sweet-tasting parts of the stevia leaf are up to 350 times sweeter than sugar: stevia's high-intensity sweetness means it requires far less water and land than sugar.
-- Research has shown that the molecules of the stevia leaf are
present and unchanged in the dried stevia leaf, through the
commercial extraction and purification process, and in the final
stevia leaf extract product. All major global regulatory
organisations, across 65 countries, have approved the use of
high-purity stevia leaf extracts in food and beverages.
For more information on the science of stevia, please visit
https://www.purecirclesteviainstitute.com/
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDFFWSWLFUSEDF
(END) Dow Jones Newswires
November 14, 2019 02:40 ET (07:40 GMT)
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