Sweet taste of success Purecircle's profits triple

SHARES in sweetener maker Purecircle soared by 5 per cent yesterday on the back of a tripling in sales and pre-tax profits.

Sales in the year to 30 June reached $33.4 million (19.1m), up from $11m in 2007. Pre-tax profits rose from $543,000 in the previous year to $2.2m.

Purecircle, which has a market cap of about 200m, was floated on Aim last December.

The company's products are derived from Stevia rebaudiana, a plant native to Paraguay, which Purecircle says has been used to sweeten teas in Paraguay and Brazil for hundreds of years. Purecircle said the sweetest extract from stevia is rebaudioside-A and has "zero" calories.

The company is registered in Bermuda and has a production facility in China. Purecircle also has plantations in Kenya, Laos, Paraguay and Thailand.

Following the end of a two-year exclusive contract with food producer Cargill, the firm has signed deals to supply Reb-A to Pepsi and Whole Earth, a subsidiary of Merisant, which makes Canderel sweeteners. A new two-year deal has also been signed with Cargill. Purecircle is awaiting approval from regulators in the United States.