Market Update

RNS Number : 6649Z

Plant Health Care PLC

11 March 2013

 



11 March 2013

PLANT HEALTH CARE PLC

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

Market Update

Plant Health Care (AIM:PHC), a leading provider of naturally derived products to the agriculture industry, announces that the Board has conducted a review of its partnership discussions and is providing the following update.

Partnerships are an important source of future revenue for PHC. We are involved in multiple discussions with industry partners who are interested in commercialising our products and intellectual property, and in particular our Harpin and Myconate platforms. PHC remains confident that it can deliver substantial value to shareholders through the successful implementation of its partnership agreements. Nonetheless, the Board recognises that the precise timing of agreements and revenues can be subject to a number of uncertainties because of factors such as the outcome of field trials and the progress of registration processes for new products.

The Board has resolved to adopt a more cautious approach to budgeting for future revenues from its partnership discussions. We believe this should give investors a better understanding of PHC's prospects in the short and medium terms.

In accordance with this new policy, we are today announcing that:

•   PHC has entered into a multi-year distribution agreement with Dalgety Agra Polska to market Plant  
    Health Care's Myconate for both seed treatment and foliar application in Poland. This agreement
    follows several years of successful trials in Poland, which is an important producer of corn, potato and
    wheat. The agreement will generate revenues in the current financial year.

•   The partnership agreement for foliar harpin, referenced in the January 2013 trading update, is expected
    to be completed shortly.

•   The Board anticipates good growth in partnership revenues in the current year and in 2014, but at
    lower levels than currently indicated by market forecasts.

A further update will be made as part of the Company's 2012 full year results, expected by the end of March 2013.

For further information, please contact:  

Plant Health Care plc
John Brady, Chief Executive Officer	[phone]
[e-mail]
Stephen Weaver, Finance Director	[phone]
[e-mail]
Nomura Code Securities	[phone]
Clare Terlouw / Chris Golden
www.nomuracode.com
Powerscourt	[phone]
Paul Durman / Nick Dibden / Sophie Moate

About Plant Health Care:  Plant Health Care plc (AIM:PHC) is a leading provider of patent-protected, environmentally-beneficial biological products aimed at the agriculture industry.  Through the commercialisation of these products, Plant Health Care is capitalising on current long-term trends towards natural systems and biological products for plant care and soil and water management.  www.planthealthcare.com

About Myconate: Myconate is a patented, synthetic compound, which encourages plant growth by stimulating existing mycorrhizal fungi in the soil and creating a larger root mass.  Years of successful field testing has proven that Myconate can increase crop yields by up to 30%, depending on crop and location.  Dalgety Agra Polska expects Myconate to become a standard element of farmer's seeding and planting programmes in Poland.

About Dalgety Agra Polska: Dalgety Agra Polska is a subsidiary of Origin Enterprises (AIM:ESM) and provides agronomy advice, products and solutions to farm businesses throughout Poland.  The business combines an extensive arable research and development capability with a major sales, marketing and distribution focus, delivering a superior advisory and inputs offering to leading growers.  Dalgety Agra Polska is a leading supplier of seeds, agronomic advice and agrochemicals, also acting as seed merchants for the finished crop.  The company has operations throughout Poland. http://www.originenterprises.com/our-businesses/dalgety.asp

 

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