PHC.L Regulatory News (PHC)

21 Jan 2008 07:01

Plant Health Care PLC21 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 forplants and soil, provides a post year end update for 2007, ahead of theannouncement of its Preliminary Results in late March/early April 2008. The Company has also announced today that following the 2007 Myconate(R) trialresults, Bayer CropScience has confirmed that it will move forward with thesecond year of Myconate(R) testing. Bayer CropScience will be making a milestonepayment to Plant Health Care for the continuation of the cooperation into thesecond year. In addition, the Company has announced today that following very encouragingresults of its 2007 Myconate(R) testing programme in cereal crops it is movingforward, in 2008, with further testing and commercialisation activities for theapplication 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 tobe $18.4 million, up 35% on the prior year. Following significant investment inmarket development of Myconate(R) and Harpin, the operating loss for the periodis expected to be approximately $4.4 million. In addition, it is expected thatthere will be non-operating charges of approximately $0.8 million of whichapproximately $0.4 million relates to amortisation of the value of executiveshare incentives awarded and is a non-cash item. As a result, the loss beforetax for the period is expected to be approximately $5.3 million. At 31 December2007, the Company had cash and cash equivalents of approximately $10.8 million. In terms of turnover, 5% relates to licensing and milestone payments frompartners. The marginally higher than expected operating loss in 2007 is largelydue to an important Harpin deal being delayed. The directors now anticipate thatthis deal, with one of the world's leading agrichemical companies, will becompleted in the first half of 2008. Commenting, John Brady, Chief Executive of Plant Health Care said: "In January2007 we signed our first development and commercialisation agreement forMyconate(R) with Bayer CropScience and in December we secured our firstagreement for our EPA-registered Harpin technology with Monsanto. These twoagreements represent very significant progress for our Company. "I am very pleased with the advance made during 2007 as our Company continues tomove forward in its efforts of establishing the necessary channels to extractconsiderable 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