PHC.L Regulatory News (PHC)

27 Jan 2010 07:00



For release: 7am, 27 January 2010 

PLANT HEALTH CARE PLC

("Plant Health Care" or "the Company")

Trading Update

Plant Health Care (AIM: PHC.L), a leading provider of naturally derived products to the agriculture and landscape industries, provides the following post year end update for 2009, ahead of the announcement of its full year results, which is expected on 15 February 2010.

The Company is pleased to announce that it has continued to make excellent progress with its strategic priorities, particularly in its relationships with Monsanto and Scotts. Furthermore, despite difficult trading conditions in the United States as a result of the recessionary economic climate and following the pre-tax loss of $3.9 million incurred in the first half of the year, the Company has traded profitably in the last six months. In consequence, the Company expects to report a significantly reduced full year loss, in line with market expectations.

The Company has continued to make excellent progress in its partnership with Monsanto with significantly larger orders placed for Harpin (for use on Soybean), during 2009, than had originally been expected. Moreover, it continues to be in discussions regarding the use of Harpin on other crops than soybean and remains confident of reaching a conclusion to those discussions before the end of the Summer, with a consequent positive impact on the company's earnings in 2010.

As relationships with the Company's major customers have developed it has become clear that in the future, they will wish to align the timing of their purchasing of Harpin and other products more closely with their use. The Board is therefore adjusting its market guidance for 2010, and beyond, to recognise that at least one third of sales previously expected to fall in 2010 are now likely to fall in to the following year.

The cash position as at 31 December 2009 was $15.9 million (2008: $7.3 million), benefitting from tight cash management and the £10.5 million of new funds raised from the placing in May 2009.

The Company continues to be in advanced discussions with a wide variety of potential partners for both Harpin, as a foliar spray in combination with herbicides and fungicides, and for Myconate and remains confident that it will be in a position to conclude partnership deals on both these products before the end of 2010. 

John Brady, Chief Executive of Plant Health Care said: "2009 was an excellent year for Plant Health Care. For the first time one of our natural technologies will be on millions of acres and interest in our sustainable, naturally derived technologies is high. I look forward to providing more detail to our shareholders in February.

-Ends-

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