Plant Health Care reports good global growth, though US disappoints

Agricultural biological products provider Plant Health Care issued a post year-end trading update ahead of its audited full year financial results for the year ended 31 December, which is expected no later than the second week of April.

The AIM-traded company reported revenue of about $6.3m, although sales in the United States decreased by approximately $1.1m, due to the decision to reduce in-market inventories.

Growth outside the United States was 15% at constant currencies.

Sales of core ‘Harpin αβ’ products decreased by roughly 12%, driven by lower sales in the US, although ‘Harpin αβ’ sales outside the US increased by approximately 23%.

‘Harpin αβ’ and ‘Myconate’ products represented 59% of sales in 2016, up from 57% in 2015.

Gross Margin remained steady at 62%, with cash and cash equivalents at year-end of $10.1m.

Revenue growth in Mexico was approximately 9% in local currency.

New distribution agreements were signed during the second half of 2016, showing potential for growth in commercial sales during 2017.

In August 2016, the company successfully raised £7.6m - or $10m - and the board said it is well funded to execute its plan.

“In 2016, Plant Health Care continued to show solid progress towards our key strategic objectives,” said interim CEO Chris Richards.

“We are excited by the strong field data that our evaluation partners have generated in their 2016 trials of Innatus 3G.

“It has been rewarding to see their enthusiasm building through the year as they come to understand the power of our technology and its potential value to them.”

Chris Richards said the company’s partners were beginning to focus their attention on preparing for the planned competitive licensing process of first rights in early 2018.

“We look forward to an expanded programme of evaluation in 2017.”