Final Results
Plant Health Care PLC
10 April 2006
Embargoed until 7am 10 April 2006
Plant Health Care plc
('PHC' or 'the Company')
Preliminary Results for the Year Ended 31 December 2005
Plant Health Care plc (AIM: PHC.L), a leading provider of natural products for
plants and soil, announces its preliminary results for the full year ended 31
December 2005.
Plant Health Care was established in 1995 in Pittsburgh (Pennsylvania) in the
United States. Its products are aimed at the horticulture, agriculture, turf
grass, commercial landscaping, forestry and land reclamation industries. The
Directors believe the products are both environmentally beneficial and on the
whole, more cost effective than synthetic chemical alternatives. Through the
commercialisation of these products, Plant Health Care is capitalising on
current long-term trends toward natural systems and biological products for
plant care and soil and water management uses.
Highlights
•Turnover up 19% to $10.2 million (2004: $8.6m)
•Gross profit up 37% to $5.0 million (2004: $3.7m)
- Gross profit margin 49% (2004: 42%)
•Loss before tax $2.9 million (2004: $2.9m)
•US distribution deals signed with major landscaping companies and
organisations
•Mexican and European turnover grew 42% and 64% respectively
•New products launched to enhance offering to customers
•Positioned for changing legislation for the increased use of
non-chemical products
•Current trading ahead of 2005
•Successful Myconate(R) trials
•Announced today capital fund raising of approximately £6.0 million (net
of expenses) to support commercialisation of Myconate
Commenting on the results, Chief Executive John Brady said, 'The Group made very
good progress during 2005. As evidenced by the above financial information we
made significant strides in almost all aspects of our business. Sales and gross
margins each experienced double digit growth and fixed costs stabilised in the
second half of the year. Most importantly, the second half of the year saw
revenues climb 34% over the same period of the prior year and gross margins also
responded accordingly.
'Following the successful completion of the Myconate trials, we today announced
a fund raising of approximately £6.0 million to support the commercialisation of
the product, for which we are very excited.'
Plant Health Care plc Tavistock Communications
John Brady, Chief Executive Jeremy Carey/Christian Taylor-Wilkinson
10-11 April - Tel: 020 7920 3150 Tel: 020 7920 3150
Thereafter: 001 603 525 3702 Email: ctaylor-wilkinson@tavistock.co.uk
Embargoed until 7am 10 April 2006
Plant Health Care plc
('PHC' or 'the Company')
Preliminary Results for the Year Ended 31 December 2005
CHAIRMAN'S STATEMENT
During 2005 Plant Health Care experienced a marked improvement in several key
financial indicators. Sales grew 19% as a result of new distribution channels
and new product offerings, and we improved our gross margins from 42% to 49%.
Operating expenses stabilised in the second half of 2005 as we continued to
operate at approximately the same cost level since our admission to AIM in July
2004. Although the net result for the full year was in line with 2004, the
second half provided evidence of the growth in the business and improvement in
profitability for which we have been investing.
Our agriculture-led businesses in Mexico and Europe experienced exceptional
sales growth and the new products endorsed in those markets are now opening the
door to the very significant US agricultural market. In our US landscaping
business, new distribution and marketing agreements with some of the largest
distributors in the market have built a solid platform for continued growth.
Across all of our operating companies, our products are gaining market share and
we are building brand awareness as a leading player in the rapidly emerging
'green' market for sustainable growing practices.
In addition to this progress in our established businesses, in 2005 our new
Myconate technology, a crop yield enhancing application, continued to generate
exceptional test results and is now ready for the first stages of commercial
rollout.
Financial Results
The full year results, which saw turnover for the year rising by 19% to $10.2
million and an operating loss of $2.8 million (2004: loss $2.6 million), mask a
significant improvement in performance in the second half in comparison with the
similar period last year. Second half turnover rose by 34% to $5.5 million and
second half margins were 52% (2004: 42%), while overhead expenses increased by
only 6%. The operating loss before exceptional items for the second half was
$0.7 million (2004: loss of $1.6 million). The Chief Executive's report, which
follows this statement, provides more detail and background to this substantial
improvement.
Plant Health Care's Expansion
Of particular note in 2005, was the growth in our agriculture-led businesses in
Mexico and Europe, which saw sales growth of 42% and 64% respectively. In
Mexico, new distribution channels opened up new territories for us. In Europe,
our new Spanish subsidiary was profitable in its first year of operation and we
increased our presence in Italy and Greece. Complementing this growth in our
geographic reach, we introduced two new products which have had an impact in the
agricultural market. Pre-Tect(TM) and Sentry(TM) are attracting new business
which allows us to present a full range of products for customer needs. In the
UK, for example, PHC agricultural products hold leading positions in the UK high
value agriculture market according to the Specialist Plant Growers Association.
This proven range of products has enabled us to initiate discussions with major
potential distributors and customers in the lucrative US agricultural market.
In the US landscaping business, our investments made in sales and marketing
personnel are beginning to pay off. We have significant distribution and
licensing deals with leading companies in the landscaping industry, including
John Deere Landscapes and Ewing Irrigation, and expect these new arrangements to
generate significant growth for us during 2006.
Myconate(R)
Our strategy of producing 'naturally better' products that are effective and
economically attractive for the farmer and professional landscaper is now
gaining traction in Plant Health Care's markets, worldwide. One of our core
strengths is having the know-how to adapt and react to new opportunities. These
skills were applied to the technology and intellectual property we secured when
we acquired VAMTech LLC in 2004. Further development and extensive testing have
now led to our unique and proprietary product, Myconate, the potential of which
is underwritten by the positive outcome of trials to date, conducted by
independent farmers, agrichemical and seed coating companies worldwide. The
Directors believe Myconate is now ready for commercialisation. We intend to
launch Myconate in controlled regional markets during 2006 and 2007, while
continuing trials and pursuing discussions with the world's leading agrichemical
and seed companies to seek agreements which would create worldwide distribution
for this very exciting product.
To support the commercial roll-out of Myconate, your Board announced today that
it proposes to raise £6.5 million (before expenses) by way of a Placing of
10,000,000 new ordinary shares at a price of 65 pence per share. The net
proceeds of the Placing will be used primarily to develop the market for
Myconate. This Placing is conditional upon the approval of shareholders. A
circular providing more background to, and details of, the Placing and notice of
the Extraordinary General Meeting to approve the Placing is being sent to
shareholders today.
Our People
The Directors believe the management team at Plant Health Care has proven its
strength by its ability to deal with an ever changing environment and its skill
in collaborating with large and diverse companies. These skills have positioned
the Company for rapid future growth. I would like to personally thank the
management and staff for the hard work they have put into growing Plant Health
Care over the past ten years. I would also like to thank all shareholders for
their continued and valued support.
Outlook
I believe Plant Health Care is well on its way to establishing itself as the
world's foremost provider of natural products which promote plant growth and
health. Current trading conditions remain positive throughout Plant Health
Care's businesses and the improvement in the second half of 2005 has continued
into 2006. We view the future with confidence and look forward to our successful
journey into the future together.
Dr Albert Fischer
Non-Executive Chairman
10 April 2006
CHIEF EXECUTIVE'S REPORT
Financial Results
Sales
2005 was a strong year for Plant Health Care as the Company experienced
significant growth in all areas of its operations. Sales increased by 19% to
$10.2 million (2004: $8.6 million), and more importantly second half sales
increased by 34% to $5.5 million compared to the same period in 2004. 2005 was
the first year in the Company's history that second half sales exceeded those of
the first half. This is largely attributable to the accelerated growth of our
agriculture businesses in Mexico and Europe which had exceptionally strong
second half performances, penetrating new markets, adding new customers in
existing markets and increasing sales to existing customers.
Sales breakdown and growth:
Year ended
31 December 2005 2004 Increase
-------------------------------------
$'000 $'000
US 6,503 6,154 +6%
Mexico 1,933 1,365 +42%
Europe 1,787 1,092 +64%
-------------------------------------
10,223 8,611 +19%
-------------------------------------
Operating margins
A highlight of our 2005 operating performance was the improvement in our gross
margin. The gross margin for 2005 was 49% compared with 42% in 2004. A
sales focus on our higher margin products complemented production efficiencies
from our re-located manufacturing facility to deliver this increase. Management
believes this increase is not only sustainable, but with PHC's improved
manufacturing efficiencies and closely managed raw material purchasing, can be
further increased in 2006.
This combination of increasing sales and maintaining strong margins will be the
key driver to the Company reaching profitability.
Operating costs
The operating costs (excluding exceptional costs) increased from $5.8 million in
2004 to $7.3 million in 2005 largely as a result of our earlier investments in
sales and marketing personnel to drive our sales growth, and also the full year
impact of operating as a public company, in particular the increased expenses
for accounting, legal and other necessary compliance costs.
Exceptional costs in 2005 of $0.5 million relate to the transfer of the
Company's manufacturing to a newer, more efficient facility and to the costs
associated with changes in senior management.
FINANCING
In the year to 31 December 2005 the Company was financed primarily by equity -
this has been the case since PHC's flotation and admission to AIM in July 2004.
For the purposes of this analysis, the Company does not classify short-term
debtors and creditors as financing instruments.
At 31 December 2005 the Company had cash and short-term investments of $1.1
million, and total borrowings of $0.8 million, of which $0.5 million related to
interest-free notes payable arising from the acquisition of VAMTech LLC in
October 2004. All borrowings were denominated in US dollars apart from some
€25,000 of finance leases.
It is, and has been throughout the period under review, PHC's policy that no
trading in financial instruments shall be undertaken.
Given the nature and small amounts of the Company's non-equity financing, PHC
does not have established policies regarding interest, currency and liquidity
risks but the Board considers each potential borrowing situation on a
case-by-case basis as it arises.
Operational Review
The Company's business is expanding in all market segments and geographic
regions, with especially significant growth in our agriculture business.
Agriculture
During the 2005 year the Company continued to extend successfully its
geographical reach outside its main landscaping market in the US.
In Mexico new distribution agreements led to sales increasing by 42% to
$1.9 million.
We also signed new distribution agreements in Europe, launched new operations in
Spain and expanded services in Italy and Greece. New products (see below) also
played an important part. All of these activities fuelled strong sales growth in
Europe, with revenue up by 64% to $1.8 million.
We see great potential for the Company from the lucrative agriculture market
worldwide. In 2005 we saw strong growth in sales of two new products initially
targeted at Europe. Pre-Tect and Sentry were developed in response to customer
demand for natural solutions to protect crops and extend shelf life of produce:
•Sentry is a foliar leaf wash containing natural soaps that discourage
fungal growth
•Pre-Tect is a foliar feed product that increases the growth of salad
crops and also increases shelf life by up to five days.
The success with which these products have been introduced into the European
market has exceeded our expectations. We now have agreements in place with the
suppliers to a leading UK supermarket chain, which has stipulated the use of
these products on all salad produce they purchase. It is our intention to
commercialise Pre-Tect and our Organic Plant Food in the US during 2006, which
we expect to increase sales in the important US agriculture market.
Landscaping and turf
Within the Company's US operations, the potential for our landscape business was
aided by several significant business wins, with large strategic multi-branch
distributors. These were:
•John Deere Landscapes: The Company signed a 10 year distribution
agreement with John Deere Landscapes ('JDL') in August 2005. PHC is the
exclusive provider of all biological products to JDL's 300+ wholesale
landscape distribution centres. Additionally JDL and PHC will together offer
an exclusive, innovative, industry-wide three-year tree and shrub warranty
programme that incorporates the use of our Tree Saver product. The agreement
calls for minimum purchases of $40 million over the life of the agreement in
order for JDL to maintain exclusivity.
•Symbiot: The Company is now the exclusive provider of natural products to
the Symbiot network of landscape contractors and distributors. This allows
us access to the entire Symbiot community which numbers approximately 500
landscape contractors and a large number of distributors in the US.
•Ewing Irrigation: In September, we announced the addition of Ewing
Irrigation as a distributor of the Company's turf, landscape and water
management products through their network of 150 outlets. Ewing Irrigation
is one of the largest distributors to golf courses in the USA.
•Ball Horticultural: In November 2005, we entered into a joint research
agreement with Ball Horticultural Company ('Ball'), a world leader in the
commercial development and production of ornamental plant and seed
varieties. Ball has operations in 21 countries on six continents and is the
largest horticultural seed company in the US. Under the agreement, we will
provide products and expertise to assist Ball in the exploration of new
production techniques using sustainable natural products and practices.
These developments further reinforce our position as a leader in the natural
plant health and growth industry, and we continue to participate in discussions
with several other biological based companies about forming strategic alliances
or joint venturing opportunities.
Reclamation
Our reclamation business achieved profitability in 2005. It is expected to
achieve some sales growth in 2006. However, given the potential the Company has
in its other markets, PHC's efforts in 2006 will be channelled in those areas.
Retail
Following a major restructuring within the Scotts Group, it has declined to
invest in, and pursue as planned, the joint project to deliver our natural
products to its customer base. Accordingly we are negotiating the termination of
our agreement with Scotts and seeking payment of monies due to us.
We have opened discussions with other major organisations targeting the retail
market for natural plant health products.
Myconate(R)
In 2004 Plant Health Care purchased VAMTech LLC, a spin-off company from the
University of Michigan specialising in the synthesis of Formononetin, a compound
that stimulates the growth of mycorrhizal fungi already existing in the soil.
The compound, whose brand name is PHC Myconate, has been in extensive trials
around the world on a variety of crops and in a variety of conditions. The
results of these trials have now been received, confirming the Company's belief
in Myconate's potential to significantly increase yields in row crops,
specifically corn and soybeans, at a competitive price.
The results showed that Myconate consistently improved the yield of row crops
and higher value crops, such as tomatoes, in some cases, by as much as 30%. The
trials proved that Myconate can be applied as a mix with fertilizer or as a
coating applied directly to the seed. The spectacular increase in yield and the
ease of application has led a number of the world's top agrichemical and seed
companies to carry out further tests in 2006 with a view to entering into
commercial agreements with PHC regarding licensing and distribution.
The Board believes that Myconate could generate a significant proportion of
PHC's future revenues and that it is a major value driver. Accordingly, it
intends to commit substantial resources towards the first phase of
commercialising Myconate in 2006 and 2007.
Strategy
The Company's strategy is to provide natural solutions for the farming and
landscaping industry that the Directors' believe will be more effective than
synthetic chemical alternatives. The strategy is driven by government
legislation, the ever changing focus in market trends and needs and by the
overwhelming drive of the Company to provide a natural alternative to the
current chemical-based products available for agriculture, landscaping,
reclamation and general plant welfare.
Worldwide legislation banning harmful chemicals in agriculture and horticulture,
coupled with strong consumer demand for 'greener' products, is resulting in the
increasing acceptance and adoption of PHC's products. Europe, in particular, has
seen recent legislation governing the way in which chemicals are used in
farming. For example, in 2005 France removed the use of Syngenta's Gaucho, one
of the world's most widely used pesticides, from agricultural distribution. The
removal of such products creates a need for natural alternatives and represents
an increasing opportunity for us in the agriculture (agribusiness) industry. It
is with this in mind that the Company's future market emphasis is evolving
towards agribusiness.
Plant Health Care is raising awareness of its brand on a global scale and has
standardised its product names and packaging. The Directors believe that the
recent Myconate trials have also been instrumental in achieving this aim,
especially amongst the targeted agricultural/farming industries.
Outlook
While the US landscaping and horticultural markets generate the largest
percentage of our turnover, the rapid growth of our agribusiness in Europe and
Mexico will contribute significantly in our move towards future profitability.
Our strength lies in our unique and proven products, our top level distribution
agreements and the loyalty we command from our customers. The Board believes
these elements will drive growth as we roll-out more products and sign up more
partners.
The Board is particularly excited about the future of Myconate which we believe
will change the face of worldwide farming practices. The Board sees Myconate as
representing a paradigm shift in agricultural practices as we introduce seed
coating and fertilizer applied products that will allow farmers to significantly
increase crop yields while also reducing the amount of chemical inputs. The
success of the Myconate trials has given us the confidence to commence
commercialisation, first regionally in 2006 and subsequently on an international
scale. The Board has planned increased investments for this market penetration
and expects to see the first revenues from Myconate by the end of 2006.
The Board is excited about the prospects for Plant Health Care. We clearly see a
future of strong growth, new product launches and an increasing demand for our
products. Whilst Plant Health Care's products are economically viable as well as
being 'environmentally friendly', the market and legislative forces have created
the opportunity for more sustainable farming and growing practices. Plant Health
Care's products are at the forefront of this trend and we believe will make a
difference in the complexion of our environment. It is going to be an exciting
ride and we look forward to the future with confidence.
John Brady
Chief Executive
10 April 2006
Consolidated profit and loss account
for the year ended 31 December 2005
Note 2005 2004
$'000 $'000
Turnover 4 10,223 8,611
Cost of sales (5,219) (4,952)
---------------------------
Gross profit 5,004 3,659
Administrative expenses (7,847) (6,284)
---------------------------
Operating loss 5 (2,843) (2,625)
Other interest receivable and similar
income 64 44
Interest payable and similar charges 6 (96) (299)
---------------------------
Loss on ordinary activities before
taxation 7 (2,875) (2,880)
Taxation (121) (52)
---------------------------
Loss on ordinary activities after taxation (2,996) (2,932)
Minority interest (27) (14)
Loss for the period (3,023) (2,946)
===========================
Basic and diluted loss per share 8 (10.1c) (14.0c)
===========================
All amounts relate to continuing activities.
Consolidated statement of total recognised gains and losses
for the year ended 31 December 2005
2005 2004
$'000 $'000
Loss for the financial year (3,023) (2,946)
Exchange translation differences on
consolidation (21) 43
---------------------------
Total recognised gains and losses for the year (3,044) (2,903)
===========================
Consolidated balance sheet
at 31 December 2005
2005 2004
$'000 $'000
Fixed assets
Intangible assets 2,769 2,810
Tangible assets 790 453
---------------------------
3,559 3,263
---------------------------
Current assets
Stock 1,582 1,124
Debtors 2,989 2,192
Short term investments 252 -
---------------------------
Cash at bank and in hand 894 4,812
---------------------------
5,717 8,128
Creditors: amounts falling due
within one year (3,332) (1,771)
---------------------------
Net current assets 2,385 6,357
---------------------------
Total assets less current liabilities 5,944 9,620
Creditors: amounts falling due after one year (523) (615)
---------------------------
Net assets 5,421 9,005
===========================
Capital and reserves
Called up share capital 542 538
Share premium 10,847 10,700
Merger reserve 11,195 11,913
Profit and loss account (17,353) (14,309)
---------------------------
Shareholders' funds - equity 5,231 8,842
Minority interests - equity 190 163
---------------------------
5,421 9,005
===========================
Company balance sheet
at 31 December 2005
2005 2004
$'000 $'000
Fixed assets:
Fixed asset investments 23,791 20,959
---------------------------
Current assets:
Debtors 16 24
---------------------------
Cash at bank and in hand 181 4,217
---------------------------
197 4,241
Creditors: amounts falling due within
one year (290) (123)
---------------------------
Net current (liabilities)/assets (93) 4,118
---------------------------
Net assets 23,698 25,077
===========================
Capital and Reserves
Called up share capital 542 538
Share premium 10,847 10,700
Merger reserve 14,453 14,453
Profit and loss account (2,144) (614)
---------------------------
Shareholders' funds - equity 23,698 25,077
===========================
Consolidated cash flow statement
for the year ended 31 December 2005
Note 2005 2004
$'000 $'000
Net cash outflow from operating
activities 9 (2,833) (3,256)
---------------------------
Returns on investments and servicing of
finance:
Interest paid - other (66) (192)
Interest paid - finance leases (19) (13)
Interest received 64 44
---------------------------
Net cash outflow from returns on
investments and servicing of finance (21) (161)
---------------------------
Taxation:
Current tax on foreign income for the
year (39) (45)
---------------------------
Capital expenditure and financial
investment:
Purchase of tangible fixed assets (549) (217)
Proceeds on sale of fixed assets 21 -
Purchase of licences - (37)
Purchase of short term investments (252) -
---------------------------
Net cash outflow from capital
expenditure and financial investment (780) (254)
---------------------------
Acquisition of subsidiary
Purchase of subsidiary undertaking - (1,986)
---------------------------
Cash outflow before financing (3,673) (5,702)
---------------------------
Financing
Issuing of ordinary share capital for cash - 10,386
Exercise of warrants - 205
Increase of convertible redeemable loan stock - 775
Issue of new borrowings 98 25
Redemption of loan stock - (1,000)
Repayment of borrowings (148) (212)
Repurchase of minority interest's shares
by subsidiary (309) -
---------------------------
(359) 10,179
---------------------------
(Decrease)/Increase in cash (4,032) 4,477
===========================
Notes forming part of the financial statements
for the year ended 31 December 2005
1. Statutory information
The abridged financial information set out above has been extracted from
financial statements approved by the directors on 10 April 2006, which received
an unqualified report by the Company's auditors, and which will be delivered to
the Registrar of Companies following the Company's annual general meeting. The
financial information does not constitute statutory accounts as defined in
section 240 of the Companies Act 1985, and has been prepared on the basis of the
accounting policies set out in the financial statements for the year ended
31 December 2004.
2. Basis of preparation
The financial statements have been prepared under UK GAAP and are presented in
US dollars. The directors believe that it is more appropriate to use US dollars
as a currency for presentation, given that the majority of the Group's
operations are denominated in that currency.
3. 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 substance of the
combination was that Plant Health Care, Inc. acquired Plant Health Care plc in
a reverse acquisition.
Accordingly, the directors adopted reverse acquisition accounting as the basis
of consolidation in order to give a true and fair view of the results for the
year.
As a consequence of applying reverse acquisition accounting, the results for
the year ended 31 December 2004 comprise the results of Plant Health Care, Inc.
for the year ended 31 December 2004 plus those of Plant Health Care plc from 6
July 2004, the acquisition date.
4. Segmental analysis
2005 2005 2005 2004 2004 2004
Turnover Pre-tax Net assets/ Turnover Pre-tax Net assets/
Profit/ (liabilities) Profit/ (liabilities)
(Loss) (Loss)
$'000s $'000s $'000s $'000s $'000s $'000s
US 6,503 (1,276) (634) 6,154 (1,471) 756
Mexico 1,933 257 765 1,365 123 628
Europe 1,787 71 (589) 1,092 (66) (700)
Group - (1,927) 5,879 - (1,466) 8,321
----------------------------------------------------------------------------
10,223 (2,875) 5,421 8,611 (2,880) 9,005
============================================================================
5. Operating loss
2005 2004
$'000s $'000s
Operating loss is arrived at after charging:
Research and development 295 170
Depreciation 190 150
Amortisation 41 41
Operating lease expense 399 365
Auditors' remuneration - audit services 167 151
- non audit services 19 3*
======================
Exceptional costs - plant relocation 280 189
- staff reorganization 223 -
- IPO costs - 247
----------------------
503 436
======================
In 2004, the auditors were also paid $393,000 in relation to the Company's
admission to AIM; these fees were capitalized.
Plant relocation expenses comprise a provision for the relocation of the
Pittsburgh, Pennsylvania manufacturing facility.
6. Interest payable and other charges
2005 2004
$'000s $'000s
On convertible redeemable loan stock - (154)
On finance leases (40) (33)
Other interest and finance charges (56) (112)
----------------------
(96) (299)
======================
7. Taxation
Taxation charge for the year comprises: 2005 2004
$'000s $'000s
Corporation tax:
Current tax charge on loss for the period (121) (52)
Deferred tax:
Origination and reversal of timing differences - -
----------------------
Taxation on loss on ordinary activities (121) (52)
======================
Taxation continued
The differences between the Group's expected current tax shown above and the
amount calculated by applying the Group's standard rate of UK corporation tax
is as follows.
2005 2004
$000s $000s
Loss on ordinary activities before tax (2,875) (2,625)
======================
Expected tax credit on loss on ordinary activities 863 788
Losses in year not relieved against current tax (984) (840)
----------------------
Tax charge for period (121) (52)
======================
The Group has significant tax losses available for carry-forward in several of
the jurisdictions in which it operates. The tax charge in future periods may be
affected by the utilisation of a deferred tax asset of approximately
$6.4 million (2004: $5.4 million) in respect of timing differences relating to
losses, not currently recognised as there is insufficient evidence related to
the recoverability of the asset. Future utilisation of these losses is subject
to suitable profits arising in the appropriate tax jurisdictions.
8. Loss per share
Loss per ordinary share has been calculated using the weighted average number
of shares in issue during the relevant financial periods. The weighted average
number of equity shares in issue is 30,048,252 (2004: 21,014,576) and the loss
after tax and minority interests is $3,023,000 (2004: $2,946,000). The weighted
average number of shares outstanding for 2004 prior to admission to Aim has
been adjusted to reflect the exchange of shares of Plant Health Care, Inc for
those of Plant Health Care plc.
9. Reconciliation of operating profit to net cash outflow from operating
activities
2005 2004
$'000s $'000s
Operating loss (2,843) (2,625)
Depreciation 190 150
Amortisation of intangibles 41 36
Loss on sale of fixed assets 1 -
Increase in stocks (458) (257)
Increase in debtors (830) (751)
Increase in creditors 1,066 191
----------------------
Net cash outflow from operating activities (2,833) (3,256)
======================
10. Post balance sheet event
The Company announced today that it proposes to raise £6.5 million (before
expenses) by way of a placing of 10,000,000 new ordinary shares at a price of
65 pence per share. The net proceeds of the Placing will be used primarily to
develop the market for Myconate(R). This placing is conditional upon the
approval of shareholders. A circular providing more background to and details
of the placing and notice of the Extraordinary General Meeting to approve the
placing is being sent to shareholders today.
This information is provided by RNS
The company news service from the London Stock Exchange
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