Plant Health Care pleases as losses narrow

Plant Health Care, a producer of 'naturally derived' agricultural products, has reported flat revenue for the half year ended June 30th with sales of its Harpin and Myoconate products up 49 per cent in a period of 'significant change' for the sector.

By MoneyWeek

published 20 August 2012

in Features

The loss before tax for the period came in slightly lower than the same half the previous year at $3.55m (2011: $3.67m) on revenues of $3.49m compared to $3.52m for the corresponding six months. Losses per share increased $0.04 to $0.07.

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Chief Executive Officer John Brady said: "The sector is going through a period of significant change as worldwide growth in food consumption drives the need for more efficient methods of food production. We have witnessed a 49% increase in sales of our core Harpin and Myconate technology platforms and are looking forward to developing this further in the second half."

Sales of Harpin and Myconate now represent 27% of group revenues.

During the period the area of crops that were treated with the company's products increased significantly. An estimated 3.5m acres, mainly of soya, were planted with seed treated with Harpin in the first half of 2012 compared with 633,000 acres planted in 2011. In addition, 290,000 acres received foliar sprays of Harpin in the same period, compared with 180,000 acres last year.

The firm has a number of new products based on its Harpin platform in the pipeline and is planning to collect trial data at harvest. Good progress has also been made in developing further uses of Myconate. Field trials with several major companies have already shown that the product can enhance drought resistance in field crops, while company data indicates that use of Myconate can provide a tenfold return on investment and increase income per acre by nearly $60.

Christopher Richards, the newly appointed Chairman of the group, added: "Trading at the beginning of the second half has started positively. We plan to build on the solid progress of the first half with Harpin and Myconate and continue to implement the established strategy.

"In closing, I am very excited to have joined Plant Health Care. This is a high growth business with a significant pipeline of opportunities that is addressing the challenge of sustainable intensification of agriculture, to help feed the world. I expect great things from this business."

Cash at the period end was $5.31m, down from $11.81m the same date the year before.

The share price had risen 5% to 105p by 09:37.

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