(Alliance News) - Shares in Plant Health Care PLC dropped on Thursday as it expects revenue for 2019 to be below company expectations, and reflect a decline from the year before.
Shares in the Plant Health Care, which provide biological products that improve agricultural yield, were 12% lower at 7.50 pence on Thursday in London.
Plant Health Care said for 2019, revenue is expected to be USD6.5 million, a 20% fall from USD8.1 million the prior year.
The anticipated revenue decline was attributed to the delayed supply of H2Copla until an import licence is granted by the Brazilian authorities, and postponed sales of Harpin for corn seed in the US, as Plant Health's channel partner deals with working capital pressures.
However, the Raleigh, North Carolina-based company said underlying market demand remains robust, with the rest of its operations unaffected by the delays.
Looking ahead, Plant Health Care said its prospects for Brazilian sugarcane remain strong, and expects to be granted import licences for the country early in 2020.
"In 2019, as in 2018, last minute customer and logistical issues will result in revenue falling short of expectation. However, the delay in sales is principally a matter of phasing. Underlying growth prospects are as strong as ever," said Chief Executive Officer Chris Richards.
"The board intends to address sales phasing during 2020, which will make it easier for investors to track revenue growth. Costs are under tight control and we recently received a capital injection, so are well positioned to capitalize on the shift of revenue into the next financial year," Richards added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Plant Health (PHC)