Plant Health Care PLC
21 January 2008
For release: 21 January 2008
PLANT HEALTH CARE PLC
('Plant Health Care' or 'the Company')
Trading Update
Plant Health Care (AIM: PHC.L), a leading provider of natural products for
plants and soil, provides a post year end update for 2007, ahead of the
announcement of its Preliminary Results in late March/early April 2008.
The Company has also announced today that following the 2007 Myconate(R) trial
results, Bayer CropScience has confirmed that it will move forward with the
second year of Myconate(R) testing. Bayer CropScience will be making a milestone
payment to Plant Health Care for the continuation of the cooperation into the
second year.
In addition, the Company has announced today that following very encouraging
results of its 2007 Myconate(R) testing programme in cereal crops it is moving
forward, in 2008, with further testing and commercialisation activities for the
application of Myconate(R) on cereal grain crops with several large,
international agrichemical and/or seed companies.
Plant Health Care's turnover for the year ended 31 December 2007 is expected to
be $18.4 million, up 35% on the prior year. Following significant investment in
market development of Myconate(R) and Harpin, the operating loss for the period
is expected to be approximately $4.4 million. In addition, it is expected that
there will be non-operating charges of approximately $0.8 million of which
approximately $0.4 million relates to amortisation of the value of executive
share incentives awarded and is a non-cash item. As a result, the loss before
tax for the period is expected to be approximately $5.3 million. At 31 December
2007, the Company had cash and cash equivalents of approximately $10.8 million.
In terms of turnover, 5% relates to licensing and milestone payments from
partners. The marginally higher than expected operating loss in 2007 is largely
due to an important Harpin deal being delayed. The directors now anticipate that
this deal, with one of the world's leading agrichemical companies, will be
completed in the first half of 2008.
Commenting, John Brady, Chief Executive of Plant Health Care said: 'In January
2007 we signed our first development and commercialisation agreement for
Myconate(R) with Bayer CropScience and in December we secured our first
agreement for our EPA-registered Harpin technology with Monsanto. These two
agreements represent very significant progress for our Company.
'I am very pleased with the advance made during 2007 as our Company continues to
move forward in its efforts of establishing the necessary channels to extract
considerable value from our natural technologies.'
-Ends-
For further information please contact:
Plant Heath Care plc Tavistock Evolution Securities Limited
Communications
John Brady, Chief Executive Jeremy Carey/Matt Tim Worlledge/ Tim Redfern
Ridsdale
Tel: 020 7920 3150 Tel: 020 7920 3150 Tel: 020 7071 4300
(21 - 25 January)
Tel: 001 603 525 3702
(Thereafter)
This information is provided by RNS
The company news service from the London Stock Exchange
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