Trading Update

RNS Number : 3075H

Plant Health Care PLC

26 May 2011

 



26 May 2011                                                                                        

Plant Health Care plc

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

Trading Update

The Directors of Plant Health Care (AIM: PHC), a leading provider of naturally-derived products to the agriculture industry, have noted the recent weakness in the Company's share price and wish to reassure shareholders that current trading is in line with the board's and the market's expectations for the current financial year and provide the following update.

Current Trading

The Board is pleased to report that following the sale of the US retail and landscape business in January 2011, the Group is showing, on a like for like basis, for the first 4 months of the year to 30 April 2011, an uplift in sales of over 20% compared with the same period last year.  There has been a particularly strong contribution from Europe and Mexico and, partly as a result of the decision to cease the early order programme to generate higher margin sales, an overall 4% improvement in gross margin compared with 2010. We have also achieved a reduction in overhead costs of approximately 7%, resulting in a reduction in losses at the EBITDA level (excluding share based payments) of around 20% for the period.

In particular, Plant Health Care has realised significant advances in its Harpin and Myconate based cherry and potato business with new markets opening for it, in Australia and the US.  The Mexican business has had a strong start to the year with a significant increase, albeit from a low base, in Harpin sales into the vegetable crop markets.  Overall, our product sales business is performing well.

Cash

The Company currently has cash, or cash equivalents of approximately $18.0 million, compared to $13.0 million at the year end and $18.2 million in mid February, following the sale of the US retail and landscape business. The Directors consider that the cash resources are sufficient to enable the Company to fulfill its current strategy of securing licensing agreements with strong partners and to reach profitability.

Discussions

Plant Health Care is currently in discussions on a significant number of potential agreements with major international agri-chemical businesses and seed distribution companies, in the US, Europe, Africa and Asia. These discussions concern both Harpin and Myconate as standalone products and in combination with herbicides, pesticides and fungicides on a wide variety of crops, including sugarcane, corn, cotton, soybeans and vegetables and fruits. These agreements will be mainly on a non-exclusive basis.

Several of the discussions are now at an advanced stage and the Company will update the market on the status of these agreements in its half year report in mid August.  Plant Health Care will also provide a comprehensive update on trading for the six months to 30 June 2011, in July ahead of the announcement of its half year report.

- ENDS -

For further information, please contact:

Plant Health Care plc
John Brady, Chief Executive Officer
Tel: [phone]
[e-mail]

Evolution Securities	Tavistock Communications
Jeremy Ellis / Tim Redfern	Jeremy Carey/Simon Compton
Tel: [phone]	Tel: [phone]
[e-mail] [e-mail]	[e-mail] [e-mail]

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 industries 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 and soil and water management. Further information is available at: www.planthealthcare.com.

 

END

 

 

TSTUVONRAWAVUAR