Final Results

RNS Number : 5348B
Plant Health Care PLC
21 February 2011
 



For immediate release                                                                                        21 February 2011

 

 

PLANT HEATH CARE PLC

("Plant Heath Care" or the "Company")

Results for the year ended 31 December 2010

 

Plant Heath Care (AIM: PHC.L), a leading provider of naturally-derived products to the agriculture industry, announces its results for the year ended 31 December 2010.

 

 

Highlights:

 

Important new agreements signed with Syngenta, Legacy Seeds and Germains Seed Technology

Reclamation business sold in May 2010 and U.S. landscape and retail business in January 2011

Strong industry demand for Harpin and Myconate

Revenue of $7.1 million (2009: $16.7 million)

Gross profit of $3.6 million (2009: $11.1 million)

Gross margin of 51% (2009: 67%)

Operating loss of $7.9 million (2009: loss of $1.8 million)

Net loss of $7.6 million (2009: loss of $1.3 million)  and;

Cash and short-term investments at 31 December 2010 of $13.0 million (2009: $15.9 million)

 

as of mid-February 2011 $18.2 million

 

 

Commenting on the results, Chief Executive John Brady said: "Plant Health Care is entirely focused on a strategy to license our IP-protected, yield-enhancing products to the world's largest agrichemical companies. Global agricultural productivity has been able to keep up with rising food demand over recent decades, but a rapidly growing emerging market population and income level has upset the balance. We have a product portfolio that is aimed at being a part of the solution by obtaining greater yields from new and existing agricultural land under all conditions."

 

"We have a significant research and development programme targeting both the further improvement of the utility of Harpin and the development of the next generation of products from our Harpin platform with several candidates showing great promise."

 

 

 

For further information please contact:

Plant Health Care plc 

 

John Brady, Chief Executive Officer


Tel: +1-603-525-3702


jabrady@planthealthcare.com


 


Evolution Securities

Tim Worlledge / Tim Redfern

Tel: +44-20-7071-4300

tim.worlledge@evosecuties.com

tim.redfern@evosecuties.com

 

 

 

Notes to editors:

About Plant Health Care plc: Plant Health Care plc ("PHC") is a leading provider of naturally derived products for plants and soil. Established in 1995 in Pittsburgh (Pennsylvania) in the United States, PHC currently has approximately 70 employees and has operations in the United States, Mexico, the United Kingdom, Spain and the Netherlands. The Company's ordinary shares have been quoted on the Alternative Investment Market ("AIM") of the London Stock Exchange since July 2004 and listed on the Official List of the Channel Islands Stock Exchange in February 2010 (ticker symbol/ mnemonic: PHC).

 

PHC's products are aimed at the agriculture industry and are environmentally beneficial. Through the commercialisation of these products, PHC is capitalising on long-term trends toward natural systems and biological products for plant care. Further information is available at: www.planthealthcare.com.


 

Plant Health Care plc

("Plant Health Care" or the "Company")

Results for the Year Ended 31 December 2010

 

Chairman's statement

 

Overview

 

I am pleased to report Plant Health Care's results for the year ended 31 December 2010.

 

The year under review included a number of important strategic developments which place Plant Health Care in a stronger position to achieve its goal of becoming one of the world's leading providers of natural technologies for the promotion of plant heath and growth. We entered into two new agreements with Syngenta Crop Protection (Syngenta) and others with Legacy Seeds (Legacy) and with Germains Seed Technology (Germains), which we expect to advance the Group's progress to commercialisation and revenues in the coming years.  We have sold our reclamation business in May 2010 and, since the year end, our US landscape and retail business in January 2011, for a total consideration of $5.1 million, in order to focus on the worldwide agriculture market and to strengthen our financial resources to achieve our strategic goals.  Nonetheless, our financial results were disappointing, primarily due to the much lower than expected level of Harpin sales to the Monsanto Company (Monsanto), which had a substantial amount of inventory carried forward from 2009.  We are pleased to report that Direct Enterprises (DEI), a leading distributor of seed treatments in the US, has acquired half of this excess stock and has undertaken to acquire the balance by the end of the year.

 

The challenge of providing enough food for an ever-increasing population continues to make headline news around the world. Improved agricultural productivity is the key to meeting the forecasted increase in demand for crops and governments around the world are becoming increasingly proactive in seeking products to help improve yields, as demonstrated by Plant Health Care's agreement with the Brazilian government to evaluate the efficacy and economic feasibility of Myconate in Brazilian agriculture, signed in May 2010.

 

Another driving factor behind the market in which Plant Health Care operates is the need to provide "greener crops" with a smaller environmental footprint.  Retailers and consumers have become more active in demanding lower levels of residual chemicals in their food and the soil in which it is grown. The need to minimise environmental impact has always been at the forefront of Plant Health Care's ethos; Harpin and Myconate products leave no residue in the soil or on the crop after harvest.

 

Our cash and liquid short-term investments balances as of mid-February 2011 are $18.2 million.  This strong liquidity position will allow the Group to develop and expand relationships with existing and new partners over the coming years, as well as to continue to invest in formulation and product development of its Harpin and Myconate technology platforms, while our revenue builds.

 

Financial results

 

Group sales from continuing operations were $7.1 million (2009: $16.7 million).  The reduction in sales was due primarily to Monsanto's excess inventory position, which resulted in an $8.2 million decline in Harpin sales to this customer. Additionally, the Group chose not to continue with its "early order" programmes in Europe and Mexico, which it has implemented in recent years, in order to establish improved pricing and terms of sale for the future.

 

Gross profit margin from continuing operations was 51% (2009: 67%) with the margin decline being due to the aforementioned reduction in Harpin off take by Monsanto. 

 

Operating expenses from continuing operations were $11.5 million (2009: $12.9 million), as the Group actively reduced administrative expenses, especially in the area of headcount and overall compensation, while increasing investment levels in field trials and product development.

 

The resulting operating loss from continuing operations was $7.9 million (2009: loss of $1.8 million). 

 

The net loss for the year was $7.6 million (2009: loss of $1.3 million).

 

Discontinued operations 

 

We announced, in May 2010, the sale of our reclamation business for a consideration of $0.4 million, and, in January this year, the sale of our US landscape and retail business for a consideration of $4.65 million.  These discontinued businesses contributed $0.1million to operating profit in 2010 (2009: loss of $0.6 million).

 

As was previously indicated, the Board believes that the returns from these businesses did not justify the financial capital and management resource that was required to operate them.  Moreover, the businesses are inherently low margin businesses and serve as a distraction of both time and resource from the much higher margin business of licensing the intellectual property estate that underpins our Harpin and Myconate technology platforms, thereby utilising the distribution reach of large multinational companies for getting product to market.

 

Partnerships

 

Following these disposals, management is able to focus on developing products for the worldwide agricultural market. Commercial exploitation will be achieved through existing and new partnerships with major industry players at multiple levels in the agricultural value chain who have the ability to achieve distribution of our technologies throughout the world. 

 

Having demonstrated success in our 2010 trial programme in large acreage crops, such as corn, soybeans and  potatoes, and in combination with widely-used chemicals, such as fungicides and herbicides, we believe even more strongly that commercialisation of our technologies will be achieved in the future.

 

Despite the decline in sales to Monsanto in 2010, the recent sale of Monsanto's inventory overhang is expected to have a positive impact on our future potential revenues from Harpin in the US.  We are actively engaged in a number of marketing and product development efforts to enhance and expand this commercial relationship. 

 

Two agreements were signed with Syngenta in 2010 to evaluate and potentially develop Harpin in a wide variety of crops and crop protection products. In 2011, Syngenta will be performing its first full year of testing on a wide variety of crops and enter its second year of trials with the world's largest crop protection product, glyphosate.  We also signed a four-year agreement with Legacy, one of the leading alfalfa seed companies in the US, granting them the exclusive rights to Harpin and Myconate for the alfalfa market in the US.  An exclusive agreement was signed with Germains, part of the Associated British Foods Group, to develop and market Plant Health Care's Harpin proteins as a seed treatment for sugar beets worldwide in combination with Germains' seed priming technologies.

 

Monsanto is one of the major and most influential agrichemical companies in the world.  For this reason, it remains an important partner for us and continues to promote Harpin to the downstream agriculture distribution market through a multi-year agreement with DEI to market Harpin.  We are also working with Monsanto on new and improved products.

 

 

 

Product development

 

Two areas are being targeted in our research and product development programme.  First, Plant Health Care is seeking to further improve the utility of its existing Harpin product for both its partners and its downstream grower customers.  Formulation development will further improve shelf life and ease of handling both on farm and in seed treatment facilities.  Developments in liquid formulations are already showing promise.  Secondly, we are investing in the development of the next generation of products from our Harpin technology platform.   These are Harpin versions with increased and more specifically targeted bioactivity, designed to contribute to an expanded suite of Harpin products for the future. Several candidates, with great promise to further increase yields in major crops, have already been identified and isolated in the greenhouse. Advanced field trials and development work on these new products will begin during 2011.

 

Current trading and outlook

 

As stated above, our strategy is to focus on rolling-out our IP-protected technology platforms with current and new partners during 2011.

 

Agrichemical companies are forever seeking enhanced product performance, product differentiation, and IP protection, all of which can be achieved by combining Myconate and Harpin with traditional crop protection products.  A more effective, more targeted product and extended patent life will prevent these products from becoming generics and suffering from a resultant drop in sale price.

 

It takes time, up to three years, for revenues to be generated from partnership arrangements whilst we work with our partners on the formulations and combinations and on trialling the products ahead of product launch. We recognise that during this period our revenues and profitability can be significantly impacted year-on-year until we have a more extensive portfolio of on-market products and a more consistent and diversified flow of partnership revenue. However, by focusing our business strategy, we have ensured that our cash position is strong and the combination of our product pipeline, strong market drivers and the good progress we are making with our partners and potential partners encourage us to look forward to the future with optimism and confidence in our ability to realise our strategy. 

 

In closing, I would like to thank the entire Plant Health Care team for their efforts in 2010 to position the Group for future success. 

 

Dominik Koechlin

Chairman

18 February 2011



Chief Executive's report

 

The period under review saw a number of positive developments for Plant Health Care. The sales of the US landscape and retail business and of the reclamation business will enable the Group to give its undivided attention to our core strategy of developing partnership arrangements for distributing its IP-protected technology in agriculture. The reclamation and US landscape and retail businesses did not offer shareholders exposure to the maximum potential of Harpin and Myconate due to their low growth and the significant amount of overhead required to guarantee market penetration. Partnering in agriculture offers the potential to reach much larger markets, more quickly, by becoming a component in partners' products with large existing market shares and international exposure.

 

Important new agreements have been signed with Syngenta, Germains, the Brazilian government and Legacy. The strength of existing relationships provides the Company with confidence in its plan to roll-out Harpin and Myconate across worldwide agriculture markets, as well as to attract new partners for further penetrating these global markets.

 

Technology partnering

 

Our strategy is to grow the Group by building a strong licensing base by entering into technology partnering agreements. Our Harpin and Myconate technology platforms are the keys to success for Plant Health Care. Harpin improves plant growth and crop yields, enhances disease resistance and improves post-harvest quality, whilst Myconate encourages plant growth and helps crops cope with drought and thereby enhances yield.

 

Harpin platform

 

In December 2008, a long-term commercial agreement was signed with Monsanto for the exclusive rights to commercialise Harpin seed treatment technology in corn, soybeans, cotton, canola and selected vegetables.  In 2009, Plant Health Care generated significant revenues from purchases of Harpin by Monsanto for their new product launch of Roundup Ready 2 Yield soybeans.  As noted in the Chairman's statement, DEI has purchased a large portion of Monsanto's existing inventory and has already moved a large portion of that product into the 2011 seed treatment and foliar markets.

 

Furthermore, Monsanto is also offering farmers the option to use Harpin as a standalone product for soybeans and cotton and, through its relationship with DEI, across all of its soybean seeds. This has greatly increased the possible market size to 35-40 million acres, although ultimate levels of market penetration will depend on a number of market forces that will play out over the next year. 

 

Syngenta has non-exclusive rights to commercialise Harpin in combination with glyphosate and other herbicides for all genetically modified herbicide resistant crops. A second agreement was signed with Syngenta during 2010 to evaluate and potentially develop Harpin in a wide variety of crops and in combination with some of its leading products. 2011 will mark the first full year of testing by Syngenta on a variety of crops.

 

In May 2010, a four-year agreement was signed with Legacy for the exclusive rights to develop Harpin and Myconate for use in the alfalfa market in the US.  Following trials in the first year, the second year of development trials has begun with a focus on non-irrigated, drought susceptible areas, a key strength of our Myconate product.

 

During 2010, Plant Health Care also signed an exclusive agreement with Germains to develop and market Plant Health Care's Harpin proteins as a seed treatment for sugar beets worldwide in combination with Germains' seed priming technologies. The combined treatments will have the potential to be used on all sugar beet, which annually occupy more than 10 million acres worldwide. Germains is the leading provider of priming treatments for sugar beet seed with a market share of over 40% in the US, over 35% in the Western and Central European markets and a strong presence elsewhere in the world.

 

Myconate platform

 

We are selling Myconate into the potato market in the UK and South Africa, where we have established a strong position.  We are using these successes as a launching platform for similar arrangements in major markets, such as the US and Eastern Europe.

 

Testing programmes for row crops and cereals are in place with a number of major agrichemical and seed companies and further technology partnering agreements are expected to be announced during 2011. 

 

Product development

With the bulk of agrichemicals sold in a liquid state, one of our key programmes has been the development of Harpin into a liquid commercial product.  We have made important strides in this area and are working with several large formulation companies to bring this project to a successful completion.

 

Plant Health Care is currently developing an enhanced and more potent Harpin product pipeline for the future. The first new products are expected to reach the market in three years and will provide enhanced growth activity, as well as more resistance to environmental stress. These new products will offer a quicker and less costly route to market compared with traditional synthetic chemistry.  Our research indicates that there is a potential for creating Harpins with greater activity, crop and environmental specificity and synergy with the key crop protection products.  We believe that this capability, deployed from our own financial resources and in collaboration with our partners, has the potential to generate a differentiated range of Harpin products that taps into the increasing groundswell of interest in active ingredients with a biological, as opposed to a chemical base.  Furthermore, this work broadens and reinforces our already extensive IP position in Harpins.

 

In April 2010, Plant Health Care announced the purchase of Bayer CropScience's Myconate intellectual property portfolio and the conclusion of the final details concerning the termination of its previous Myconate agreement. The acquisition of these rights further strengthens the IP surrounding Myconate and extends further the patent life for the product.

 

Other developments

In October 2010, Plant Health Care licensed its patent-pending Computer Automated Spatial Analysis (CASA) technology to XS, Inc., the North American industry leader for retail sales transaction data collection, analysis and online reporting for the seed, trait and crop protection chemical industry.  XS will begin to commercialise the technology in 2012 using Plant Health Care's AgVeritas™ trademark.   The technology was developed as a way for the Group to demonstrate to prospective licensing partners the on-farm yield benefit of our proprietary technologies.

 

Outlook

 

As a result of our recent disposals, Plant Health Care is entirely focused on a strategy that enables us to license our IP-protected, yield-enhancing products to the world's largest agrichemical companies. Global agricultural productivity has been able to keep up with rising food demand over recent decades, but a rapidly growing emerging market population and income level has upset the balance. Major changes are needed to grow more food on the same land area without damaging the environment. Plant Health Care has a corporate strategy and product portfolio that is aimed at being a part of the solution by obtaining greater yields from new and existing agricultural acres under all conditions, from the ideal to the most challenging.

 

John Brady

Chief Executive

18 February 2011

 

Consolidated statement of comprehensive income for the year ended 31 December 2010

 

Note

2010 

$'000 

 

2009 

$'000 

 

 

 

 

As restated 

(Note 8)

Revenue

3

7,085 

 

16,678 

 

Cost of sales

 

3,496 

 

(5,581)

 

 

 

 

 

Gross profit

 

3,589 

 

11,097 

 

 

 

 

 

Distribution costs

 

(3,133)

 

(2,737)

Research and development expenses

 

(2,166)

 

(1,658)

Administrative expenses

 

(6,165)

 

(8,530)

 

 

 

 

 

Operating loss

4

(7,875)

 

(1,828)

 

 

 

 

 

Finance income

6

239 

 

1,203 

Finance expense

6

(13)

 

(54)

 

 

 

 

 

Loss before tax

 

(7,649)

 

(679)

 

 

 

 

 

Income tax expense

7

(40)

 

(85)

 

 

 

 

 

Net loss from continuing operations

 

(7,689)

 

(764)

Profit/(loss) of discontinued operations, net of tax

8

136 

 

(582)

Loss for the year

 

(7,553)

 

(1,346)

 

 

 

 

 

Other comprehensive (loss)/income:

 

 

 

 

Exchange difference on translation of foreign operations

 

(152)

 

95 

 

Total comprehensive loss for the year

 

(7,705)

 

(1,251)

 

 

 

 

 

Net loss attributable to:

 

 

 

 

     Owners of the parent

 

(7,559)

 

(1,331)

     Non-controlling interest

 

 

(15)

 

 

(7,553)

 

(1,346)

 

 

 

 

 

Total comprehensive loss attributable to:

 

 

 

 

     Owners of the parent

 

(7,711)

 

(1,236)

     Non-controlling interest

 

 

(15)

 

 

(7,705)

 

(1,251)

 

 

 

 

 

Basic and diluted loss per share

9

$(0.14)

 

$(0.03)

 

 

 

 

 

Basic and diluted loss per share from continuing operations

 

9

$(0.15)

 

$(0.02)

 

 

Consolidated statement of financial position at 31 December 2010

 


Note

2010 

$'000 


2009 

$'000 

Assets





Non-current assets

 




Intangible assets

10

3,564 


4,045 

Property, plant and equipment

 

476 


688 

Trade receivables

11

123 


949 

Total non-current assets

 

4,163 


5,682 


 




Current assets

 




Inventories

 

1,675 


1,599 

Trade and other receivables

11

7,581 


13,576 

Investments

 

4,982 


3,729 

Cash and cash equivalents

 

8,054 


12,171 

Total current assets

 

22,292 


31,075 


 




Assets in disposal groups classified as held for sale

8

1,949 



 




Total assets

 

28,404 


36,757 


 




Liabilities

 




Current liabilities

 




Trade and other payables

12

2,615 


4,493 

Borrowings

 

42 


62 

Provisions

 

166 


278 

Total current liabilities

 

2,823 


4,833 


 




Non-current liabilities

 




Borrowings

 

10 


59 

Provisions

 

141 


117 

Total non-current liabilities

 

151 


176 


 




Liabilities directly associated with assets in disposal groups classified as held for sale

 

560 



 




Total liabilities

 

3,534 


5,009 


 




Total net assets

 

24,870 


31,748 


 




Share capital

 

944 


940 

Share premium

 

50,270 


49,934 

Reverse acquisition reserve

 

10,548 


10,548 

Share-based payment reserve

 

2,329 


1,842 

Foreign exchange reserve

 

(593)


(441)

Retained earnings

 

(38,788)


(31,229)


 

24,710 


31,594 

Non-controlling interests

 

160 


154 


 




Total equity


24,870 


31,748 



Consolidated statement of changes in equity at 31 December 2010

 


Share

capital

$'000

Share 

premium 

$'000 

Reverse acquisition reserve

$'000

Share-based

payment  reserve

$'000

Foreign 

exchange 

reserve 

$'000 

Retained 

earnings 

$'000 

Total 

$'000 

Non- 

controlling 

interests 

$'000 

Total 

equity 

$'000 











Balance at 1 January 2009

821

34,102 

10,548

1,220

(536)

(29,898)

16,257 

169 

16,426 











Total comprehensive income

-

-

-

95 

(1,331)

(1,236)

(15)

(1,251)

Shares issued

108

16,018 

-

-

16,126 

16,126 

Share-based payments

-

-

622

622 

622 

Options and warrants exercised

11

510 

-

-

521 

521 

Placement costs

-

(696)

-

-

(696)

(696)











Balance at 31 December 2009

940

49,934 

10,548

1,842

(441)

(31,229)

31,594 

154 

31,748 











Total comprehensive income

-

-

-

(152)

(7,559)

(7,711)

(7,705)

Shares issued

1

159 

-

-

160 

160 

Share-based payments

-

-

487

487 

487 

Options exercised

3

177 

-

-

180 

180 











Balance at 31 December 2010

944

50,270 

10,548

2,329

(593)

(38,788)

24,710 

160 

24,870 

 


Consolidated statement of cash flows for the year ended 31 December 2010

 


Note

2010 

$'000 

2009 

$'000 




As restated 

(Note 8)

Cash flows from operating activities




Loss before tax


(7,553)

(1,346)

Adjustments for:




Depreciation


212 

222 

Amortisation of intangibles

10

244 

510 

Impairment of intangibles

10

272 

Share-based payment expense


487 

622 

Finance revenue


(239)

(1,203)

Finance costs


13 

58 

Loss on sale of property, plant and equipment


66 

Income taxes expense


40 

85 

Decrease/(increase) in trade and other receivables


5,225 

(6,244)

(Increase)/decrease in inventories


(665)

954 

Decrease  in trade and other payables


(1,183)

(927)

Decrease in provisions


(88)

(106)

Income taxes paid


(93)

(85)





Net cash  used in operating activities


(3,328)

(7,394)





Investing activities




Purchase of property, plant and equipment


(143)

(268)

Expenditure on externally-acquired intangible assets

10

(175)

(469)

Disposal of discontinued operations, net of cash


223 

Finance revenue


239 

1,203 

Purchase of investments


(5,291)

(7,499)

Sale of investments


4,038 

3,770 





Net cash used in investing activities


(1,109)

(3,263)





Financing activities




Interest paid


(13)

(58)

Issue of ordinary share capital


160 

15,441 

Exercise of options and warrants


180 

510 

Repayment of borrowings


(69)

(200)





Net cash provided by financing activities


258 

15,693 

Net (decrease)/increase in cash and cash equivalents


(4,179)

5,036 

Effects of exchange rate changes on cash




and cash equivalents


62 

(117)

Cash and cash equivalents at beginning of period


12,171 

7,252 





Cash and cash equivalents at end of period


8,054 

12,171 

 

 

Notes forming part of the Group financial statements for the year ended 31 December 2010

 

1.   Annual Report

 

The financial information set out in this document does not constitute the company's statutory accounts for 2009 or 2010. Statutory accounts for the years ended 31 December 2010 and 31 December 2009 have been reported on by the Independent Auditors. The Independent Auditors' Report on the Annual Report and Financial Statements for 2009 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 237(2) or 237(3) of the Companies Act 1985. The Independent Auditor's Report on the Annual Report and Financial Statements for 2010 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.


Statutory accounts for the year ended 31 December 2009 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2010 will be delivered to the Registrar in due course and will be posted to shareholders shortly and thereafter will be available from the Company's registered office at The Broadgate Tower, 20 Primrose Street, London EC2A 2RS, and from the Company's website www.planthealthcare.com.

 

2.   Accounting policies

 

Reporting currency

The financial statements are presented in US dollars.  The directors believe that it is appropriate to use US dollars as the presentational currency for reporting, since the majority of the Group's transactions are conducted in that currency.

 

Basis of preparation

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRSs) issued by the International Accounting Standards Board (IASB) as adopted by the European Union and those parts of the Companies Act 2006 which apply to companies preparing their financial statements under IFRSs.

 

The principal accounting policies are set out below.  The policies have been applied consistently to all the years presented and on a going concern basis. 

 

Standards, amendments and interpretations to published standards effective in 2010 adopted by the Group

Amendments to IAS 27: Consolidated and Separate Financial Statements

 

This amendment affects in particular the treatment of non-wholly-owned subsidiaries.  Transactions which increase or decrease the group's interest in a subsidiary without altering control will no longer give rise to changes in the carrying value of the subsidiary's assets or liabilities (including its associated goodwill) and will not give rise to a gain or loss. Any difference between the consideration paid or received and the adjustment to the carrying value of the non-controlling interest will be recognised directly in equity. In addition, total comprehensive income must now be attributed to owners of the parent and to the non-controlling interests even if this results in the non-controlling interest having a deficit balance. Previously, unfunded losses in such subsidiaries would be attributed entirely to the group. 

 

The amendment does not require the restatement of previous transactions and has had no effect on the current financial year.

 

None of the other standards or amendments effective from periods beginning 1 January 2010 have a material impact on the financial statements.

 

Basis of consolidation

On 6 July 2004, Plant Health Care plc became the legal parent company of Plant Health Care, Inc. in a share-for-share transaction.  The former shareholders of Plant Health Care, Inc. became the majority shareholders of Plant Health Care plc.  Further, the continuing operations and executive management of Plant Health Care plc were those of Plant Health Care, Inc. 

 

This combination was accounted for as a reverse acquisition with Plant Health Care, Inc., the legal acquiree, being treated as the acquirer. Under this method the assets and results of Plant Health Care plc were combined with the assets, liabilities and results of Plant Health Care, Inc. from the date of combination. There was no adjustment to the carrying values of the assets and liabilities in Plant Health Care, Inc. to reflect their fair value at the date of combination. No goodwill arose on this combination.

 

Where the Company has the power, either directly or indirectly, to govern the financial and operating policies of another entity or business so as to obtain benefits from its activities, it is classified as a subsidiary. The consolidated financial statements present the results of the Company and its subsidiaries ("the Group") as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

 

The consolidated financial statements incorporate the results of business combinations using the purchase method.  In the consolidated statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date.  The results of acquired operations are included in the statement of comprehensive income from the date on which control is obtained.  They are deconsolidated from the date control ceases.

 

Non-controlling interests

For business combinations completed on or after 1 January 2010 the Group has the choice, on a business combination by business combination basis, to initially recognise any non-controlling interest in the acquiree at either acquisition date fair value or, as was required prior to 1 January 2010, at the non-controlling interest's proportionate share of the acquiree's net assets. The group has not elected to take the option to use fair value in acquisitions completed to date.

 

From 1 January 2010, the total comprehensive income of non-wholly owned subsidiaries is attributed to owners of the parent and to the non-controlling interests in proportion to their relative ownership interests. Before this date, unfunded losses in such subsidiaries were attributed entirely to the group. In accordance with the transitional requirements of IAS 27 (2008), the carrying value of non-controlling interests at the effective date of the amendment has not been restated.

 

Revenue

Revenue comprises sales of goods to external customers and revenues generated through the commercialisation of the Group's technology (fee income). Sales of goods to external customers are at invoiced amount less value added tax or local taxes on sales and are recognised at the point that the customer takes legal title to the goods sold.  Fee income is recognised when the Company has no remaining obligations to perform under a non-cancellable contract which permits the user to act freely under the terms of the agreement. 

 

Goodwill

Goodwill is measured as the excess of the cost of an acquisition over the net fair value of the identifiable assets, liabilities and contingent liabilities, plus any direct costs of acquisition.

 

Goodwill is capitalised as an intangible asset with any impairment in carrying value being charged to administrative expenses in the consolidated statement of comprehensive income.  The Company performs annual impairment tests for goodwill at the financial year end.

 

Other intangible assets

Externally-acquired intangible assets are initially recognised at cost and subsequently amortised on a straight-line basis over their useful economic lives. The amortisation expense is included within administrative expenses in the consolidated statement of comprehensive income.

 

Intangible assets are recognised on business combinations if they are separable from the acquired entity or give rise to contractual or other legal rights, and are initially recognised at their fair value.

 

Expenditures on internally-developed intangible assets (development costs) are capitalised if it can be demonstrated that:

 

it is technically feasible to develop the product for it to be sold;

adequate resources are available to complete the development;

there is an intention to complete and sell the product;

the Group is able to sell the product;

sale of the product will generate future economic benefits; and

expenditure on the project can be measured reliably.

 

Capitalised development costs are amortised over the periods of the future economic benefit attributable to the asset. The amortisation expense is included within administrative expenses in the consolidated statement of comprehensive income.

 

Development expenditure not satisfying the above criteria and expenditure on the research phase of internal projects are recognised in profit or loss.

 

The significant intangibles recognised by the Group and their estimated useful economic lives are as follows:

 

Licenses

-

12 years

Registrations

-

5-10 years

 

Impairment of goodwill and other intangible assets

Impairment tests on goodwill are undertaken annually at the financial year-end.  Other non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be recoverable.  Where the carrying value of an asset exceeds its recoverable amount (that is the higher of value in use and fair value less costs to sell), the asset is written down accordingly.

 

Impairment charges are included within administrative expenses in the consolidated statement of comprehensive income.  An impairment loss recognised for goodwill is not reversed.

 

Foreign currency

Foreign currency transactions of individual companies are translated into the individual company's functional currency.  Any differences are recognised in profit or loss.

 

On consolidation, the results of operations that have a functional currency other than US dollars are translated into US dollars at rates approximating to those ruling when the transactions took place. Statements of financial position are translated at the rate ruling at the end of the financial period. Exchange differences arising on translating the opening net assets at opening rate and the results of operations that have a functional currency other than US dollars at average rate are included within "other comprehensive income" in the consolidated statement of comprehensive income and taken to the foreign exchange reserve within capital and reserves.

 

Exchange differences recognised in profit or loss in Group entities' separate financial statements on the translation of long-term monetary items forming part of the Group's net investment in the overseas operation concerned are reclassified to other comprehensive income and accumulated in the foreign exchange reserve on consolidation.

 

On disposal of a foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to that operation up to the date of disposal are transferred to the consolidated statement of comprehensive income as part of the profit or loss on disposal.

 

Financial instruments

Trade receivables collectible within one year from date of invoicing are recognised at invoice value less provision for amounts the collectability of which is uncertain.  Trade receivables collectible after more than one year from date of invoicing are initially recognised at fair value, and subsequently carried at amortised cost using the effective interest rate method, less provision for impairment. 

 

Investments comprise short-term investments in notes and bonds having investment grade ratings.  These assets are actively managed and evaluated by key management personnel on a fair value basis in accordance with a documented investment strategy.  They are carried at fair value as determined by quoted prices on active markets, with changes in fair values recognised through profit or loss.

 

Cash and cash equivalents comprise cash on hand, demand deposits and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to insignificant risk of changes in value.

 

Trade and other payables are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method.

 

Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.  The Group's ordinary shares are classified as equity instruments.

 

Employee benefits

The Group maintains a number of defined contribution pension schemes for certain of its employees; the Group does not contribute to any defined benefit pension schemes. The amount charged to profit or loss represents the employer contributions payable to the schemes for the financial period.

 

The expected costs of all short-term employee benefits, including short-term compensated absences, are recognised during the period the employee service is rendered.

 

Equity share-based payments

Share-based payments issued to employees include share options and stock awards under a long-term incentive plan. Equity-settled share-based payments are measured at fair value (excluding the effect of non-market-based vesting conditions) at the date of grant.  The fair value determined at the date of grant is recognised as an expense with a corresponding increase in equity on a straight-line basis over the vesting period, based on the Company's estimate of the shares that will eventually vest and be adjusted for the effect of non-market-based vesting conditions.

 

Leased assets

Where assets are financed by leasing agreements that give rights approximating to ownership (finance leases), the assets are treated as if they had been purchased outright.  The amount capitalised is the present value of the minimum lease payments payable over the term of the lease.  The corresponding lease commitments are shown as amounts payable to the lessor.  Depreciation on the relevant assets is recognised in profit or loss.

 

Lease payments are analysed between capital and interest components.  The interest element of the payment is charged to income over the period of the lease and is calculated so that it represents a constant proportion of the balances of capital repayments outstanding.  The capital element reduces the amounts payable to the lessor.

 

All other leases are treated as operating leases.  Their annual rentals are charged to income on a straight-line basis over the lease term.

 

Property, plant and equipment

Items of property, plant and equipment are initially recognised at cost. Cost includes the purchase price and costs directly attributable to bringing the asset into operation. Depreciation is provided to write off the cost, less estimated residual values, of all property, plant and equipment over their expected useful lives.  It is calculated at the following rates:

 

Leasehold improvements

-

over the lesser of the asset's useful life or the length of the lease

Production machinery

-

10 - 20% per annum

Office equipment

-

20 - 33% per annum

Vehicles

-

20% per annum

 

 

Inventories

Inventories are initially recognised at cost, and subsequently at the lower of cost and net realisable value.  Cost comprises all costs of purchase and all other costs of conversion.

 

Deferred tax

Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the balance sheet differs from its tax base, except for differences on:

 

the initial recognition of goodwill;

the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects neither accounting nor taxable profit; and

investments in subsidiaries and jointly-controlled entities where the Group is able to control the timing of the reversal of the difference and it is probable that the difference will not reverse in the foreseeable future.

 

Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised.

 

The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the end of the financial period and are expected to apply when the deferred tax liabilities/(assets) are settled/(recovered).

 

Deferred tax assets and liabilities are offset when the Group has a legally enforceable right to offset current tax assets and liabilities and when they relate to income taxes levied by the same tax authority and the Group intends to settle its current tax assets and liabilities on a net basis.

 

Provisions

Provisions are recognised for liabilities of uncertain timing or amount that have arisen as a result of past transactions and are discounted at a pre-tax rate reflecting current market assessments of the time value of money and the risks specific to the liability.

 

Non-current assets held for sale and disposal groups

Non-current assets and disposal groups are classified as held for sale when:

 

they are available for immediate sale;

management is committed to a plan to sell;

it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn;

an active programme to locate a buyer has been initiated;

the asset or disposal group is being marketed at a reasonable price in relation to its fair value; and

a sale is expected to complete within 12 months from the date of classification.

 

 

Non-current assets and disposal groups classified as held for sale are measured at the lower of:

 

their carrying amount immediately prior to being classified as held for sale in accordance with the Group's accounting policy; and

fair value less costs to sell.

 

Following their classification as held for sale, non-current assets (including those in a disposal group) are not depreciated.

 

The results of operations disposed during the year are included in the consolidated statement of comprehensive income up to the date of disposal.

 

A discontinued operation is a component of the Group's business that represents a separate major line of business or geographical area of operations or is a subsidiary acquired exclusively with a view to resale, that has been disposed of, has been abandoned, or that meets the criteria to be classified as held for sale.

 

Discontinued operations are presented in the consolidated statement of comprehensive income as a single line which comprises the post-tax profit or loss of the discontinued operation along with the post-tax gain or loss recognised on the re-measurement to fair value less costs to sell or on disposal of the assets or disposal groups constituting discontinued operations.

 

3.   Revenue

 

Revenue arises from:

2010

$'000

 

   2009 

As restated 

  $'000 

(Note 8)







Sale of goods

6,389

11,126 

Fee income

696

5,552 





7,085

16,678 

 

 

4.   Operating loss

 

 

 

Note

2010

$'000

2009

$'000

Operating loss is arrived at after charging:

 

 

 

 

Share-based payment expense

 

487

622

Depreciation

 

212

222

Amortisation of intangibles

10

244

510

Impairment of intangibles

10

272

-

Operating lease expense


528

520

Loss on disposal of property, plant and equipment


-

66

Foreign exchange losses


120

-

 

 

 

 

Auditor's remuneration:

 

 

 

Fees payable to the Company's auditor and its associates for the audit of the Company's annual accounts

 

88

89

 

 

 

 

Fees payable to the Company's auditor and its associates for other services:

Audit of the Company's subsidiaries


 

 

58

 

 

83

 

 

 

 

Total auditor's remuneration


146

172

 

 

 

 

 

 

5.   Segment information

 

The segregation shown within the segment analysis below has been re-aligned to provide greater consistency with the manner in which management internally monitors and reports on the Group's performance.  The product segment includes the revenue and costs associated with the sale of all inventory items produced and sold by the Group.  The partnering segment includes the revenue and costs associated with all technology agreements pursued and entered into by the Group.

 

 

 

 

 

 

 

 

Year ended 

31 Dec 

2010 

US$'000 

Year 

ended 

31 Dec 

2009 

US$'000 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

Products

 

 

 

 

13,680 

15,176 

 

Partnering

 

 

 

 

1,109 

9,112 

 

Elimination of intra-Group revenue

 

 

 

 

(1,653)

(1,074)

 

 

 

 

 

 

13,136 

23,214 

 

Discontinued operations

 

 

 

 

(6,051)

(6,536)

 

Consolidated revenue

 

 

 

 

7,085 

16,678 

 

 

 

 

 

 

 

 

 

Segment operating loss

 

 

 

 

 

 

 

Products

 

 

 

 

481 

(73)

 

Partnering

 

 

 

 

(3,955)

3,405 

 

Elimination

 

 

 

 

52 

(80)

 

Unallocated corporate expenses*

 

 

 

 

(4,316)

(5,657)

 

 

 

 

 

 

(7,738)

(2,405)

 

Discontinued operations

 

 

 

 

(137)

577 

 

 

 

 

 

 

 

 

Consolidated operating loss

 

 

 

 

(7,875)

(1,828)

 

* These expenses relate to public company expenses, such as directors' fees, legal fees, share-based payment expense and other corporate expenses.

 

 

External revenue by location of customer is as follows:

 

 

2010

 

 

USA

$'000

 

 

Mexico

$'000

 

 

Europe and Other

$'000

 

 

Total

$'000

Revenue










External sales

1,502

2,431

3,152

7,085

 

 

 

2009

 

 

USA

$'000

 

 

Mexico

$'000

 

 

Europe and

Other

$'000

 

 

Total

$'000

Revenue










External sales

10,312

2,640

3,726

16,678

 

Other segment information:

 

 

 

2010

 

 

 

 

Products

$'000

 

 

Partnering

$'000

 

Unallocated/

Elimination*

$'000

 

Held for

sale

$'000

 

 

Total

$'000

 

 

 

 

 

Segment assets

9,502

7,611

9,342

1,949

28,404

Segment liabilities

1,849

     447

678

560

3,534

143

-

-

-

143

 

 

 

 

 

174

-

23

15

212

27

217

-

-

244

46

181

233

27

487

 

 

2009

 

 

 

Products

$'000

 

 

Partnering

$'000

 

Unallocated/

Elimination*

$'000

 

Held for

sale

$'000

 

 

Total

$'000

 

 

 

 

 

 

Segment assets

12,789

9,808

14,160

-

36,757

Segment liabilities

3,616

253

  1,140

-

5,009

Capital expenditure

249

-

19

-

268

Non-cash expenses:

 

 

 

 

 

  Depreciation

193

-

29

-

222

  Amortisation

293

217

-

-

510

  Share-based payment

105

213

304

-

622

 

* These amounts represent intercompany amounts and public company expenses for which there is no reasonable basis by which to allocate the amounts across the Group's segments.

 

Segment assets include all operating assets used by a segment and consist principally of operating cash, receivables, inventories, property, plant and equipment and intangible assets, net of allowances and provisions. Segment liabilities include all operating liabilities and consist principally of trade payables and accrued liabilities.

 

Unallocated assets and liabilities include assets and liabilities attributable to the general entity, including cash and short-term investments, property plant and equipment, income tax payable, borrowings and trade payables and accrued expenses.

 

All material non-current assets are located in the US.

 

 

6.   Finance income and expense

 

 

2010

$'000

2009

$'000

 

 

 

Finance income

 

 

Interest on deposits and investments

239

249

Exchange rate gains

-

954

 

239

1,203

 

 

 

Finance expense

 

 

Finance leases

9

13

Notes payable

4

12

Unwinding of discount on provisions

-

29

Total interest expense

13

54

 

 

7.   Tax expense

 

The tax expense is comprised of corporation tax and income tax on profits and was $40,000 (2009: $85,000).  

 

The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the UK applied to profits for the year are as follows:

 

 

 2010 

 $'000 

 2009 

$'000 

 

 

 

Loss before tax - continuing operations

(7,649)

(679)

Profit/(loss) before tax - discontinued operations

136 

(582)

 

(7,513)

(1,261)

 

 

 

Expected tax credit based on the standard rate of corporation tax in the UK of 28% (2009: 28%)

(2,104)

(353)

Disallowable (income)/expenses

(72)

63 

Utilisation of previously-unrecognised tax losses

(327)

Share-based payment expense per accounts

136 

177 

Share-based payment expense per tax returns

(420)

(184)

Losses in year not relieved against current tax

2,065 

461 

Amortisation of intangibles

(36)

(6)

Other temporary differences

471 

254 

Actual tax charge for the year

40 

85 

 

At 31 December 2010, the Group had a potential deferred tax asset of $15,005,000, which includes tax losses available to carry forward of $14,572,000 (being actual losses of $54,910,000) arising from historical losses incurred, anticipated tax relief on share-based payments of $213,000 and other timing differences of $220,000.

 

8.   Discontinued operations

 

In May 2010, the Group sold the trade, assets and liabilities relating to its subsidiary, PHC Reclamation, Inc.  In January 2011, it sold the trade and certain assets and liabilities of its US Landscape and Retail business.  The results of these businesses for 2010 are shown under "Profit/(loss) of discontinued operations, net of tax" in the Consolidated statement of comprehensive income.  In accordance with IFRS 5, the comparatives for the year ended 31 December 2009 are restated to reflect the same treatment of these businesses.

 

(a) PHC Reclamation: profit on disposal

 

In May 2010, the Group sold the trade and those assets and liabilities relating to its subsidiary, PHC Reclamation, Inc. for cash consideration of $225,000.

 

The post-tax loss on disposal of discontinued operations was determined as follows:

 

 

  2010 

$'000 

 

 

Cash received

225 

Deferred consideration receivable

160 

 

385 

 

 

Cash disposed of

(82)

 

 

Net assets disposed (other than cash):

 

Property, plant and equipment

(79)

Trade and other receivables

(292)

Trade and other payables and other financial liabilities

68 

 

 

Profit on disposal of discontinued operations

 

During the year $80,000 of the deferred consideration was received.

 

 

(b) US landscape and retail: assets and liabilities classified as held for sale

 

The following major classes of assets and liabilities related to the US landscape and retail business have been classified as held for sale in the Consolidated statement of financial position as at 31 December 2010:

 

 

 

 

 

 

 

Year ended

31 December

2010

$'000

 




Property, plant and equipment



64

Intangible assets



140

Trade and other receivables



1,180

Inventory



565

 



1,949

 




Trade and other payables



560

 

 

 

Profit/(loss) on discontinued operations

 

(c) The profit/(loss) of both discontinued operations, net of tax, was determined as follows:

 

 

 Reclamation

$'000

Landscape/retail 

Business 

$'000 

 Total 

$'000 

2010

 

 

 

 

 

 

 

Revenue

414

5,637 

6,051 

Expense other than finance costs

(420)

(5,494)

(5,914)

Finance costs

(1)

(1)

Tax expense

-

 

(7)

143 

136 

 

 

 

 

2009

 

 

 

 

 

 

 

Revenue

1,306 

5,230 

6,536 

Expense other than finance costs

(1,195)

(5,918)

(7,113)

Finance costs

(5)

(5)

Tax expense

-

 

106

(688)

(582)

 

 

 

 

 

Earnings per share from discontinued operations

 

 

 

2010

$

2009 

 

 

 

 

Basic earnings/(loss) per share

 

0.00

(0.01)

Diluted earnings/(loss) per share

 

0.00

(0.01)

 

(d) Cash flows on discontinued operations

 

Cash flows attributable to operating, investing and financing activities of the above discontinued operations equal:

 

 

 

 

 

 

Year ended

31 December

2010

$'000

Year ended

31 December

2009

$'000

 




Operating inflows


71

103

Investing inflows


72

30

Financing inflows


-

-

 

 




 




 

9.   Loss per share

 

Basic loss per ordinary share has been calculated on the basis of the loss for the year of $7,553,000 (2009: loss of $1,346,000) and the weighted average number of shares in issue during the period of 52,800,972 (2009: 49,731,214).  Basic loss per share from continuing operations has been calculated with a numerator of $7,689,000 loss (2009: $764,000) and basic earnings/(loss) per share from discontinued operations has been calculated with a numerator of $136,000 (2009: $582,000 loss).  The weighted average number of shares used in the above calculation is the same as for total basic loss per ordinary share. Equity instruments of 3,683,998 (2009: 3,613,749), which includes share options and LTIPs, that could potentially dilute basic earnings per share in the future have been considered but not included in the calculation of diluted earnings per share because they are anti-dilutive for the periods presented.  This is due to the Group incurring a loss on continuing operations for the year.

 

 

10.  Intangible assets

 

 

 

Goodwill

$'000

Licenses 

and 

registrations 

$'000 

Trade name

and

 customer

relationships

$'000

Total 

$'000

Cost

 

 

 

 

Balance at 1 January 2009

1,620

2,837 

159

4,616 

Additions - externally acquired

-

469 

-

469 

Balance at 31 December 2009

1,620

3,306 

159

5,085 

Additions - externally acquired

-

175 

-

175 

Less disposal group classified

 

 

 

 

as held for sale

-

(379)

-

(379)

Balance at 31 December 2010

1,620

3,102 

159

4,881 


 

 

 

 


 

 

 

 

Accumulated amortisation

 

 

 

 

Balance at 1 January 2009

-

506 

24

530 

Amortisation charge for the year

-

506 

4

510 

Balance at 31 December 2009

-

1,012 

28

1,040 

Amortisation charge for the year

-

233 

11

244 

Impairment

-

152 

120

272 

Less disposal group classified

 

 

 

 

as held for sale

-

(239)

-

(239)

Balance at 31 December 2010

-

1,158 

159

1,317 


 

 

 

 

Net book value

 

 

 

 

At 31 December 2009

1,620

2,294 

131

4,045 

At 31 December 2010

1,620

1,944 

-

3,564 

 

The intangible asset balances have been tested for impairment using discounted budgeted cash flows, a pre-tax discount rate of 18% and performance projections over five years with residual growth assumed at 2%.

 

Goodwill

Goodwill comprises of a net book value of $1,432,000 related to the 2007 acquisition of the assets of Eden Bioscience and $188,000 related to an acquisition of VAMTech LLC in 2004.  The entire amount is allocated to Harpin a cash generating unit within the Partnering segment.   No impairment charge is considered necessary, and no reasonable possible change in key assumptions used would lead to an impairment in the carrying value of goodwill. 

 

Licenses and registrations

These amounts represent the cost of licenses and registrations acquired in order to market and sell the Group's products internationally across a wide geography.  These amounts are amortised evenly according to the straight-line method over the term of the license or registration.  Impairment is reviewed and tested according to the method expressed above.  During the year, certain registrations were deemed to be impaired and were fully written down, including an impairment charge of $152,000.  This was due to the sale of the US landscape and retail business as discussed in Note 13.  The entire remaining value associated with licenses and registrations has been allocated to the Group's Partnering segment.

 

Trade name and customer relationships

These amounts represent the cost assigned to the trade names of products and customer lists acquired via the Eden acquisition.  As the Group executes its strategy to develop the Partnering segment by entering into licensing deals, often with exclusivity clauses, with major industry players, the value associated with the product names and customer lists has been determined to be impaired and an impairment charge of $120,000 has been recorded.

 

 

11.  Trade and other receivables

 

 

2010 

$'000 

2009 

$'000 

Current:

 

 

Trade receivables

8,838 

14,493 

Less: provision for impairment

(1,560)

(1,578)

Trade receivables, net

7,278 

12,915 

Other receivables and prepayments

303 

661 

Current trade and other receivables

7,581 

13,576 

 

 

 

Non-current:

 

 

Trade receivables

123 

949 

Less: provision for impairment

Non-current trade and other receivables

123 

949 

 

 

 

 

7,704 

14,525 

 

The trade receivable current balance represents trade receivables with a due date for collection within a one year period.  The trade receivable non-current balance represents the present value of trade receivables with a collection period that exceeds one year.  

 

Movements on the provision for impairment of trade receivables are as follows:

 

 

2010 

$'000 

2009 

$'000 

 

 

 

Balance at the beginning of the year

1,578 

805 

Provided

75 

799 

Receivables written off as uncollectible

(20)

(26)

Reclassified as held for sale

(73)

 

 

 

Balance at the end of the year

1,560 

1,578 

 

The gross value of trade receivables for which a provision for impairment has been made is $3,139,000 (2009:  $4,314,000).

 

The maximum exposure to credit risk at the reporting date is the fair value of each class of receivables set out above.

 

 

The following is an analysis of the Group's trade and other receivables, both current and non-current, identifying the totals of trade and other receivables which are not yet due and those which are past due but not impaired.

 

 

 

2010

$'000

2009

$'000

 

 

 

Current

3,557

13,424

 

 

 

Past due:

 

 

    Up to 30 days

169

279

    31 to 60 days

3,709

348

    61 to 90 days

52

-

    Greater than 90 days

217

474

Total

7,704

14,525

 

 

The main factors used in assessing the impairment of trade receivables are the age of the balances and the circumstances of the individual customer. 

 

 

12.  Trade and other payables

 

 

2010

$'000

2009

$'000

 

 

 

Trade payables

842

1,368

Accruals

1,616

2,428

Deferred income

39

526

Taxation and social security

118

171

 

 

 

 

2,615

4,493

 

13.  Subsequent Events

 

On 14 January 2011, the Group announced that it had completed the disposal of its US landscape and retail business to Lebanon Seaboard Corporation, Pennsylvania for a cash consideration of approximately $4.65 million.  As a result of the disposal, the Group realised a net profit of approximately $2.2 million after reorganisation costs and transaction expenses of approximately $1.1 million.  This net profit will be included within the 2011 financial results.

 

 

 

$'000 

Cash received

 

4,250 

Deferred consideration receivable

 

     400 

Total consideration

 

4,650 

Net assets disposed:

 

 

Property, plant and equipment

 

(64)

Inventory

 

(555)

Trade receivables

 

(1,135)

Intangible assets

 

(140)

Trade payables

 

563 

 

 

(1,331)

Reorganisation costs and transaction expenses

 

(1,109)

 

 

 

Pre-tax profit on disposal of discontinued operations

 

2,210 

 

The reorganisation costs comprise severance costs of approximately $647,000  and costs related to the shut-down of the manufacturing facilities following the above sale of $156,000.  Transaction expenses comprise consulting and legal costs of $306,000.  

 

 

14.  Cautionary Statement

 

Plant Health Care has made forward-looking statements in this press release, including: statements about the market for and benefits of its products and services; financial results; product development plans; the potential benefits of business relationships with third parties; and business strategies. These statements about future events are subject to risks and uncertainties that could cause Plant Health Care's actual results to differ materially from those that might be inferred from the forward-looking statements. Plant Health Care can make no assurance that any forward-looking statements will prove correct. 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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