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Trading Statement

29 Jan 2016 07:00

RNS Number : 3769N
Plant Health Care PLC
29 January 2016
 

 

 

PLANT HEALTH CARE plc

 

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

 

 

Trading Update

 

Plant Health Care, a leading provider of novel patent-protected biological products to the global agriculture markets, issues the following post year-end trading update ahead of the announcement of the Company's audited full year financial results for the year ended 31st December 2015, which is expected no later than the first week of April. All results provided are preliminary and subject to completion of the 2015 audit.

 

The Company is pleased to report strong financial performance in FY2015 in line with expectations. Progress with our Plant Response Elicitor technology ("PREtec") platform has accelerated.

 

Financial and Commercial Highlights

- Revenue of approximately $7.5m; growth year over year at constant currency was 15%; 9% growth in US$, largely due to the weakness of the Mexican peso

- Sales of the core Harpin products increased by 22%, driven by strong sales in the United States and Europe; Harpin and Myconate® products represented 57% of sales in 2015 (2014: 53%)

- Gross Margin increased to 62% in 2015 from 51% in 2014

- Cash and cash equivalents at 31st December 2015 were $8.4m

- Revenue growth in Mexico of approximately 14% in local currency

- In conjunction with a significant increase in R&D investment to $5.7m in 2015, the overall operating result was a loss of approximately $7.3m in 2015 as compared to $6.1m in 2014

- A roughly two-fold increase in sales to Sym-Agro, a key partner in the Pacific North West

- Achieved the Company's first product registration in Brazil; now preparing for a launch in sugar cane

 

PREtec Highlights

- Signed four evaluation agreements with major players in the agriculture industry for our first family of PREtec peptides, Innatus 3G

- Completed third year of field trials in corn with Innatus 3G, including one peptide variant with three years of field trial data delivering an average yield increase of 9.6 bushels per acre when applied as a seed treatment compared with industry standard treatments alone, with a win rate of 79%, with data from 19 of 20 sites analyzed to date

- Very promising early results on additional peptide families beyond Innatus 3G

- Significantly strengthened the R&D team in Seattle and our licensing capability; moved into expanded laboratories in 3Q

 

Paul Schmidt, CEO, commented:

"2015 was a pivotal year for Plant Health Care. We made substantial progress in growing our commercial business and advancing our PREtec platform.

We are engaging actively with our evaluation partners for Innatus 3G, our first PREtec peptide family, and are encouraged by positive early results. Field and laboratory trials continue and are anticipated to further reinforce the initial promise of this family.

 

Our expanded research team in Seattle is making rapid strides, and we are very encouraged by the early results of studies on other peptide families beyond Innatus 3G. We intend to continue to evaluate and advance these additional peptide families and anticipate presenting at least one new family to potential partners during 2016.

On the commercial side, sales of Harpin αβ continued to grow; we have recorded 22% CAGR from 2012 to 2015, excluding license payments. This is despite strong headwinds in the agriculture industry due to low commodity prices. Increased demand for both Harpin αβ and Myconate in specialty crops has led to strong sales growth in our Mexico subsidiary as well as via Sym-Agro in the Pacific North West. In Brazil, our partner is conducting a further year of trials in sugar cane, prior to its anticipated launch of Harpin αβ.

 

This is an exciting time for Plant Health Care. We are advancing in line with our strategy and confident in our future direction."

 

 

For further information, please contact:

 

Plant Health Care plc

Paul Schmidt, Chief Executive Officer Tel: +1 919 926 1600

Jeffrey Hovey, Chief Financial Officer

 

Liberum Capital - Nomad and Broker

Clayton Bush / Chris Clarke Tel: +44 (0) 20 3100 2000

 

LHA

Ed McGregor / Jody Burfening Tel: +1 (212) 838 3777

 

Company website: www.planthealthcare.com

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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