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LONDON (Alliance News) - Agricultural biochemistry firm Plant Health Care PLC Monday said its losses widened in the full-year, after being hit by GBP2.1 million in restructuring costs.
The company posted pretax losses of USD6.9 million for 2013, compared with a loss of USD6.5 million, even through revenue rose 21% to USD7.5 million, from USD6.2 million a year earlier.
Operating expenses increased to USD12.1 million from USD10.1 million of which USD2.1 million related to restructuring costs.
"These costs relate principally to the severance costs of directors, the cost of closing the Pittsburgh office and associated staff severance costs, and the set-up of the new administrative head office in Raleigh (North Carolina)," the firm said.
Plant Health Care attributed its improved revenue to higher sales at USD3.8 million compared with USD2.5 million in 2012 for its distribution businesses - Harpin and Myconate.
The firm said the gross margin increased to 69% of sales in 2013, an improvement from 58% in 2012, as a result of an increased contribution from Harpin in the sales mix, as well as license/milestone payments.
It said product sales at Harpin and Myconate have increased as a percentage of total sales in the past year to 50% from 41%, a trend the company said it expects to continue in 2014.
During the period, the company divested its Netherlands subsidiary to local management. It said this leaves it with a European presence in the UK and Spain focused entirely on Harpin and Myconate-related activities.
In April the company also completed a GBP20.3 million fundraising to invest in research and development (R&D).
"Our R&D efforts have produced very positive early indicators, particularly for third-generation Harpins, and we are receiving renewed interest from third parties in the possibilities of Myconate," Chief Executive Paul Schmidt said in a statement.
"With the creation of a business development function, we have enhanced our ability to take existing and future products to market and are starting to deliver new distribution and license agreements, which will drive increased sales," he added.
The stock was trading at 63.00 pence Monday morning, up 4.00 pence or 6.8%.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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