Plant Health Care PLC
17 January 2007
Embargoed until 7:00am 17 January 2007
PLANT HEALTH CARE PLC
('PLANT HEALTH CARE' OR THE 'COMPANY')
Trading Update
Plant Health Care plc provides a post year end update on 2006 and current
trading.
It also announced today that it had entered into an agreement of up to ten years
with Bayer CropScience AG ('Bayer CropScience') to develop new seed treatment
solutions based upon Plant Heath Care's Myconate technology and Bayer
CropScience's seed treatment products.
Plant Health Care's turnover for the year ended 31 December 2006 was $13.7
million, marginally below previous expectations because of the need to hold back
Myconate sales pending the conclusion of an agreement with a development
partner. In consequence the Company will also be reporting a marginally higher
than expected loss for the year.
Good progress was made in all areas of the business during the period,
particularly in Europe, where sales have increased 44% year on year, and Mexico
where sales have increased 39% year on year. The reclamation activities showed
turnover growth of 33%, landscaping showed growth of 8% and our new venture in
2006, US Agriculture, showed sales of $0.8 million, mostly in the last two
months of the year.
In all of the operations, the strong trading experienced towards the end of 2006
has continued into the new year. At the year end, the Company had higher than
anticipated receivables, reflecting the high level of sales in December and
increased inventories by some $1.3 million in order to satisfy orders for
delivery early in 2007. These orders included a $0.5 million order to supply a
Terra-Sorb derived gel product to a Mexican customer for use as a balm in
infants' nappies.
It is the board's intention to develop Myconate for use in several further
applications including on small cereal grains such as wheat, oats and barley.
Plant Health Care also plans to develop and market Myconate for use on vegetable
and other speciality crops through its own sales force. Alternative application
methods for Myconate both in row crops and vegetables will be investigated. All
of these initiatives will be progressed over the ensuing months and it is the
board's belief that the potential market for these applications of Myconate is
considerable.
John Brady, CEO of Plant Health Care said: 'Having reached agreement with Bayer
CropScience for the development of our Myconate technology for use on corn,
soybean, cotton and sunflowers, we have increased confidence of its
attractiveness for other applications.'
-ends-
For further information contact:
Plant Health Care plc
John Brady, CEO; phone: +1 603 525 3702
E-Mail: jabrady@planthealthcare.com
Tavistock Comunications
Jeremy Carey/Matt Ridsdale, phone: +44 20 7920 3150
E-Mail: jcarey@tavistock.co.uk, mridsdale@tavistock.co.uk
Notes to Editors:
About Plant Health Care:
Plant Health Care plc ('PHC') is a leading provider of natural 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
US, Mexico, UK, Spain, and the Netherlands. The Company listed on the AIM market
of the London Stock Exchange in July 2004. Ticker symbol is PHC.
PHC's products are aimed at the landscape, agriculture and land reclamation
industries and are environmentally beneficial. Through the commercialization of
these products, PHC is capitalizing on current 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
This information is provided by RNS
The company news service from the London Stock Exchange
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