TIDMPHC
RNS Number : 9612Q
Plant Health Care PLC
18 September 2017
RNS
18(th) September 2017
Plant Health Care plc
("Plant Health Care", the "Group" and the "Company")
INTERIM RESULTS 2017
Plant Health Care(R) (AIM: PHC.L), a leading provider of novel
patent-protected biological products to global agriculture markets,
announces its unaudited interim results for the six months ended 30
June 2017.
Financial Highlights
- Revenue increased 8% to $3.1 million in the six months ended
30 June 2017 (2016: $2.9 million). In constant currency, sales
increased 13%. Strong sales growth in Europe/Africa (up 202%; 231%
in constant currency) was partially off-set by weaker sales in
Mexico and North America.
- Sales of Harpin 𝜶<BETA> increased by 16.4%
in USD; by 21% in constant currency.
- Gross margin remained steady at 58% (2016:59%).
- Operating expenses, exclusive of translational gains and
losses, decreased $1.8 million to $5.6 million (2016: $8.4 million)
due to the one-time costs in 2016 related to a potential US listing
($1.1m) and expense savings overall ($0.7 million).
- Operating loss decreased to $2.9 million versus $6.6 million
for the same period last year. This improvement was due to cost
savings ($1.8 million) and to an increase in the non-cash value of
Sterling loans from our UK subsidiary ($1.9m) in 2017.
Operational Highlights
- Revenue growth in Europe (especially Spain and Italy), where
sales into fruit and vegetable crops grew strongly, and in
Africa.
- Sales in Mexico (of both Harpin 𝜶<BETA> and
third-party products) were down 19% due to low crop prices. Sales
in North America were down 56% due to drought in the Pacific
Northwest and continued correction of channel inventory.
- Evaluation of our first PREtec platform, Innatus(TM) 3G, continues to expand. The four
major agrochemical corporations with whom we signed evaluation
agreements in 2015 have increased the scale of their trials in
2017. Three other companies have signed evaluation agreements and
are conducting field trials.
- There is particular interest in the potential use of Innatus
3G peptides to support the control of resistant diseases in soya in
Brazil. The majors have been formally approached and a timetable is
currently under discussion with them for an auction of rights in
this sector following conclusion of their field trials in the
second quarter of 2018.
- Two newer PREtec platforms (T-Rex 3G and Y-Max 3G) have been
presented to partners. A total of eight agreements have also now
been signed to evaluate these platforms and trials have
started.
- Plant Health Care continues to successfully strengthen its
capability to make, formulate and register the lead candidate
PREtec peptides, in preparation for anticipated product launches by
our licensees. The Board has approved an increase in spending on
New Technology with effect from July 2017 to support this
effort.
- The Group is working on a small number of PREtec product
development projects, linked to future licences and to be funded by
partners. One or more of these is expected to be agreed in 2017,
providing concrete validation of our technology.
Dr. Christopher Richards, Executive Chairman, commented:
"During the first six months of 2017, we have made solid
progress in building the sales momentum of Commercial Products.
Sales of Harpin 𝜶<BETA> have resumed their growth
track. The pipeline of new distribution agreements for Harpin
𝜶<BETA> is now the most encouraging we have
seen.
"In New Technology, we now have evaluation agreements with eight
companies, including four of the largest agrochemical corporations;
all are conducting trials of PREtec peptides, with results which
continue to be encouraging."
In this document, references to "the Company" are to Plant
Health Care plc. References to "Plant Health Care", "the Group",
"we" or "our" are to Plant Health Care plc and its subsidiaries and
lines of business, or any of them as the context may require. The
Plant Health Care name and logo, Myconate, and Innatus and other
names and marks appearing herein and on company literature are
trademarks or trade names of Plant Health Care. All other third
party trade mark rights are acknowledged.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014
Plant Health Care plc
Chris Richards - Executive Chairman
and Interim CEO
Jeffrey Hovey - Chief Financial
Officer +1 919 926 1600
Liberum - Nomad and Broker
Clayton Bush
Chris Clarke +44 (0) 203 100 2000
Company website: www.planthealthcare.com
Chairman's statement
Introduction
I am pleased to report the interim results for the six months
ended 30 June 2017. During the six months, we have made further
substantial progress in establishing Plant Health Care as a leading
provider of novel biological products for the agriculture industry.
In New Technology, we have substantially expanded the number of
partners working on our lead PREtec peptides, across three
platforms (Innatus 3G, T-Rex 3G and Y-Max 3G). In parallel, we are
working internally to ensure that our partners are able to launch
products based on our peptides as quickly as possible, by advancing
the ability to make, formulate and register products based in
PREtec peptides. At the same time, sales of Harpin-based products
were, up more than 16% on the same period last year; the pipeline
of new distribution agreements promises continued growth over the
coming years.
New Technology
PREtec
New Technology is focused on the discovery, development and
out-licensing of novel PREtec peptides and genetics. The Group has
built its technology capabilities in the field of plant response
elicitors, where it has a strong proprietary position which is
recognized throughout the industry.
PREtec signifies "plant response elicitor technology" and has
its roots in earlier experience with the discovery and development
of Harpins under the leadership of the Chief Science Officer, Dr.
Zhongmin Wei.
There are now three PREtec platforms under evaluation with
partners. Further peptides are in discovery phase within PHC. Each
platform is a "design space" of possible peptides, whose structures
are defined by the patent criteria. On contact with plants such
peptides act as signal molecules, eliciting responses that are
exquisitely determined by their molecular structure. In this way,
each platform includes an array of related peptides, with
customisable effects.
Innatus 3G, T-Rex 3G & Y-Max 3G
The first platform, introduced in late 2014, is Innatus 3G.
Peptides derived from this have a common mode of action and show
great potential in delivering yield improvements and in invoking
disease and pest resistance in crop plants.
The second platform, introduced in 2016, is T-Rex 3G. Peptides
derived from this have a somewhat different mode of action and show
most promise in suppressing populations of nematode pests.
Nematodes lower agricultural yields and render affected plants
susceptible to fungal diseases and drought stress. They are also
hard to control.
The third platform, also introduced in 2016, is Y-Max 3G.
Peptides derived from this have a distinctive mode of action, and
elicit growth and metabolic (rather than defensive) responses in
plants. That makes them useful as biostimulants where they improve
crop yield and harvest quality but are subject to less onerous
regulatory requirements.
Evaluation partners
In 2015, four partners, from among the six largest corporations
in the agrochemical and seed industries, signed agreements to
evaluate Innatus 3G. Field trials run in 2016 expanded on early
results in 2015 and showed some very impressive results. All four
are conducting further field trials in 2017.
By early 2017 we had added three more evaluation partners, so we
now have seven in total currently conducting trials with Innatus
3G. Although we have expanded our own field and laboratory trials,
the aggregate scale of our partners' trials now greatly exceeds our
own, in terms of crops, diseases, area treated, material applied
and resources deployed.
In addition to their Innatus 3G programs, all four of the early
industry partners signed agreements to evaluate one or more of our
new platforms: T-Rex 3G and Y-Max 3G. A further four industry
partners have by now signed agreements to evaluate these platforms.
That means we have eight partners conducting trials in 2017. As
with Innatus 3G, the aggregate scale and breadth of partner
activities substantially exceeds our own programme.
Foliar sprays
Trials in previous years have focused on performance delivered
by means of seed treatments. In 2017 we are increasingly including
foliar sprays, which represent a much larger market. Studies
conducted to assess the physical stability of peptides have given
us confidence that degradation and incompatibility will not be
problems in normal use. Our estimate of future costs of production
suggest that we will be able to offer peptides for foliar use at
competitive prices.
From platforms to commercial products
Following investigation of each of the three platforms, we have
now moved to focus evaluation on a shortlist of "lead peptides",
each of which is on a path towards becoming an end product. The
most cost-effective means of production is likely to be by
fermentation, and we are developing the process technology that
will allow us to manufacture at a large scale. By mid-2017 we were
producing experimental quantities of 3 peptides by fermentation,
and had achieved very promising advances in yield. Peptides
produced by this means are now undergoing extensive testing to
confirm their potency and stability. They will enter field trials
in the second half of the year.
Licensing timelines
We are on track to license Innatus 3G into the first of many
sectors defined by crop and region in 2018 and are already engaging
with our partners on the auction process.
T-Rex 3G and Y-Max 3G will be open for initial licensing
activity during 2017, following interest expressed by certain
partners. Although less performance data has been accumulated for
these technologies, there is some enthusiasm to move quickly. We
expect to achieve our first revenue-generating licensing event by
the end of 2017.
There have been further expressions of interest in our fourth
generation (4G) technology, based on genetics rather than
chemistry, which would take longer to market than the 3G
peptides.
Investment in Research and Development
To support this activity, investment in New Technology remained
steady at $2.4 million in the first half of 2017 (2016: $2.5
million). We plan to increase spending in the second half of 2017.
Our Seattle R&D Centre is running well, we have expanded our
network of specialist suppliers (mostly universities) and our
intellectual property portfolio has been further strengthened in
2017.
Commercial Products
Our Commercial business markets our proprietary products
worldwide through distributors and also distributes complementary
third party products in Mexico. The Group has a portfolio of
existing products, based on our proprietary Harpin
𝜶<BETA> and Myconate(R) technologies.
Harpin-based products are now well established in certain markets.
For example, Harpin 𝜶<BETA> is now used to
support more than 35% of high value export vegetable production in
the Northwest of Mexico, where it is a core product ensuring
superior plant growth and fruiting. In Italy, our partner Sipcam
has demonstrated using Harpin 𝜶<BETA> produces
outstanding improvement in achieving high grade colour and
sweetness in black table grapes; this is driving strong sales
growth in that sector. Extending this type of position into other
crops and geographies will ensure future growth of Harpin
𝜶<BETA> over the coming years.
During the first half of 2017, overall product sales were $3.1
million ($2.9 million in 2016). Constant currency sales increased
by 13%. Harpin 𝜶<BETA> sales grew by 16% in US$
to $1.9m, reaching 61% of total sales (57% in 2016). The gross
margin fell slightly to 58% compared to 59% over the same period,
due to increased sales in lower priced markets.
Sales in Europe/Africa grew by 203% (231% in constant currency),
principally through growth of Harpin 𝜶<BETA>.
This growth came from all areas, particularly South Africa, Spain
and Italy. Sales in Spain have now grown at 49% pa over the last
three years, as we established Harpin 𝜶<BETA> in
key crops such as citrus, stone fruit and rice. In Italy, our
partner Sipcam launched Harpin 𝜶<BETA> on table
grapes in 2016 and the outstanding results have driven promising
sales growth. Sipcam is now evaluating Harpin
𝜶<BETA> in more than 20 countries and we
anticipate reaching agreements on extending their distribution
rights during 2018.
Sales in North America were disappointing, down by 56%. This was
mainly due to slower sales growth than anticipated in the Pacific
North West; sales were affected by poor weather in the region,
resulting in higher inventory than forecasted. New uses continue to
be developed, including the novel use of Harpin
𝜶<BETA> as an additive to seed lubricants; we are
currently selling through Talc USA for this use and anticipate
widening the offer before the end of 2017. Work continues in
Florida in citrus and other crops and we are progressing with
registration for the critical California fruit and vegetable
market. We are placing strong emphasis on the timing of sales,
ensuring that the channel has optimal inventory; while we believe
that this process is largely complete, there remain some areas
where we may need to make further adjustments, depending on the
in-market sales growth achieved during the balance of 2017.
Sales in Mexico decreased by 19% in local currency. The prices
of vegetable crops fell very substantially, due to one-off
over-production and this caused growers to cut all inputs
drastically. Sales were close to forecast in June and vegetable
prices have now normalised, so we anticipate some recovery in the
second half of 2017.
Market development activities continue to advance in Brazil,
following the Group's first product registration there in 2015. The
Group is establishing its own legal entity and we anticipate first
sales in sugar cane before the end of 2017.
Sales by the Group in any one period will be subject to a number
of seasonal and market-related factors, as well as the terms of
agreements with third parties and the timing of product
registrations. As a result, the Group's sales may not follow a
strictly linear trend. Historically, Group sales have been heavily
weighted towards the second half of the year. With the growth of
sales in Europe/Africa, sales are better balanced geographically
and through the year. Nonetheless, the Group expects revenues to be
weighted more to the second half of the year, as in previous
years.
Summary of financial results
Financial highlights for the six months ended 30 June 2017, with
comparatives for the six months ended 30 June 2016, are set out
below:
2017 2016
$'000 $'000
Revenue 3,142 2,922
Gross profit 1,827 1,736
Research and development (2,358) (2,503)
Business development (333) (500)
Sales and marketing (1,359) (1,316)
Administrative* (687) (4,066)
------------------------------- ---------- ----------
Total administrative expenses (4,737) (8,385)
Operating loss (2,910) (6,649)
------------------------------- ---------- ----------
Net finance income 44 38
Net loss for period (2,866) (6,611)
------------------------------- ---------- ----------
*In 2016, Administrative expenses include $1.1 million of
one-time costs related to a potential US listing, together with
$1.0 million of foreign exchange losses in non-US dollar
denominated inter-company funding and $0.3 million of share-based
payment expenses (both of which are non-cash items). In 2017,
Administration expenses included $0.9 million of foreign exchange
gains in non-US dollar denominated inter-company funding.
Revenue
Revenues for the six month period ended 30 June 2017 were $3.1
million (2016: $2.9 million) producing a gross profit of $1.8
million (2015: $1.7 million) and the loss before tax was $2.9
million (2016: $6.6 million). The gross profit margin was 58%
(2016: 59%).
Operating expenses
Operating expenses decreased by $3.7 million for the six month
period to $4.7 million. The factors driving the decrease in
operating expenses were due to reduced administrative expenses of
$0.7 million and a non-cash gain in the value of Sterling loans
from our UK subsidiary of $0.9 million (2016: loss of $1.0
million). In the first half of 2016, there were exceptional costs
of approximately $1.1 million incurred in association with
evaluating the possibility of a US listing.
Cash position and liquidity
As of 30 June 2017, the Group had cash and investments of $6.3
million (2016: $3.8 million).
The primary components of the cash movements in the first six
months of 2017 was the sale of investments of $1.2 million (2016:
$4.8 million) to help fund operations and operating cash outflow of
$3.2 million (2016: $5.1 million).
Current trading and outlook
The Board remains confident about both the prospects for our New
Technology and on sustained growth of Harpin
𝜶<BETA>. PREtec has now delivered no fewer than
three platforms of distinctive peptide technology, with a total of
eight lead peptides, which represent product candidates entering
development. There are further families of peptide designs to come.
Our expanding intellectual property portfolio provides a strong
foundation for Plant Health Care's leadership in this exciting
field of technology.
Progress on evaluation of Innatus 3G, T-Rex 3G and Y-Max 3G with
our partners has accelerated substantially during the first half of
2017. With a total of eight partners working on lead peptides from
one or more of our PREtec platforms, the scale and pace of work is
of a different order compared with 12 months ago.
With various partners, we are starting to map out the critical
path to first sales. This includes the discussion of joint product
and market development programmes, to be financed by the partners.
We expect at least one programme to be agreed by the end of 2017,
constituting a concrete third party endorsement of PREtec.
With the majors we have formally initiated discussions of the
timing and format of a competitive licensing event for Innatus 3G
in South American soybeans. Bidding will not start before field
trials data come in during the second quarter of 2018 but we will
continue to engage with them over the coming months, to establish
the basis for the auction.
The wave of industry consolidation in the agrochemical sector is
now coming to a head; while this does not provide the ideal
conditions for licensing our technology, we are designing our
licensing approaches to accommodate these conditions as far as we
can. As we progress with licensing, we will consistently seek to
optimise long term shareholder value over short term
considerations.
First half revenue from our Commercial Products was positive,
especially in light of head-winds in Mexico. A continuation of the
same trends will allow us to meet expectations in the full
year.
We have taken active steps to reduce Operating Expenses and this
discipline will continue. However, the increase in spend on R&D
authorised by the Board will impact cash flow in the second
half.
Dr. Christopher Richards
Chairman
18 September 2017
Consolidated statement of comprehensive income
FOR THE SIX MONTHSED 30 JUNE 2017
Six months Six months
to 30 June to 30 June
2017 2016
(Unaudited) (Unaudited)
Continuing Operations Note $'000 $'000
Revenue 3,142 2,922
Cost of sales (1,315) (1,186)
----------------------------- ----- ----------------------------- ------------------
Gross profit 1,827 1,736
Research and development (2,358) (2,503)
Business development (333) (500)
Sales and marketing (1,359) (1,316)
Administrative expenses (687) (4,066)
----------------------------- ----- ----------------------------- ------------------
Operating loss 4 (2,910) (6,649)
Finance income 45 39
Finance expense (1) (1)
----------------------------- ----- ----------------------------- ------------------
Loss before tax (2,866) (6,611)
Income tax expense - -
----------------------------- ----- ----------------------------- ------------------
Net loss for the period (2,866) (6,611)
----------------------------- ----- ----------------------------- ------------------
Other comprehensive
(loss)/income:
Exchange difference
on translation of foreign
operations 579 818
----------------------------- -----
Total comprehensive
loss for the period (2,287) (5,793)
============================= ===== ============================= ==================
Basic and diluted loss
per share 6 $(0.02) $(0.09)
============================= ===== ============================= ==================
Consolidated statement of financial position
AT 30 JUNE 2017
30 June 31 December
2017 2016
(Unaudited) (Audited)
Note $'000 $'000
Assets
Non-current assets
Intangible assets 2,030 2,162
Property, plant
and equipment 1,140 1,236
Trade and other
receivables 71 131
------------------
Total non-current
assets 3,241 3,529
----------------------------- ----- ------------------------ ------------------
Current assets
Inventories 1,814 1,245
Trade and other
receivables 3,559 3,284
Investments 3 4,107 5,349
Cash and cash equivalents 2,179 4,727
----------------------------- ----- ------------------------ ------------------
Total current assets 11,659 14,605
----------------------------- ----- ------------------------ ------------------
Total assets 14,900 18,134
----------------------------- ----- ------------------------ ------------------
Liabilities
Current liabilities
Trade and other
payables 1,974 2,088
Borrowings 8 8
------------------------ ------------------
Total current liabilities 1,982 2,096
----------------------------- ----- ------------------------ ------------------
Non-current liabilities
Borrowings 3 7
Total non-current
liabilities 3 7
----------------------------- ----- ------------------------ ------------------
Total liabilities 1,985 2,103
----------------------------- ----- ------------------------ ------------------
Total net assets 12,915 16,031
============================= ===== ======================== ==================
Capital and reserves
attributable to
owners of the Company
Share capital 2,237 2,237
Share premium 79,786 79,786
Foreign exchange
reserve 314 893
Retained earnings (69,422) (66,885)
----------------------------- -----
Total equity 4 12,915 16,031
============================= ===== ======================== ==================
Consolidated statement of cash flows
FOR THE SIX MONTHSED 30 JUNE 2017
Six months Six months
ended ended
30 June 30 June
2017 2016
(Unaudited) (Unaudited)
$'000 $'000
Cash flows from operating
activities
Loss for the year (2,866) (6,611)
Adjustments for:
Depreciation 192 169
Amortisation of intangibles 133 137
Share-based payment expense 329 576
Finance income (45) (39)
Finance expense 1 1
Income taxes expense - -
(Increase)/decrease in
trade and other receivables (216) 1,328
Loss on disposal of fixed - -
assets
(Increase)/decrease in
inventories (569) (113)
Decrease in trade and other
payables (114) (502)
Income taxes paid - -
-------------------------------- ------------ ------------
Net cash used in operating
activities (3,155) (5,054)
-------------------------------- ------------ ------------
Investing activities
Purchase of property, plant
and equipment (76) (405)
Sale of property, plant - -
and equipment
Finance income 45 39
Purchase of investments (1,399) (4,432)
Sale of investments 2,641 9,260
-------------------------------- ------------ ------------
Net cash provided by investing
activities 1,211 4,462
-------------------------------- ------------ ------------
Financing activities
Finance expense (1) (1)
Issue of ordinary share - -
capital
Repayment of borrowings (4) (4)
-------------------------------- ------------ ------------
Net cash provided by financing
activities (5) (5)
-------------------------------- ------------ ------------
Net (decrease)/increase
in cash and cash equivalents (1,949) (597)
Effects of exchange rate
changes on cash
And cash equivalents (599) 818
Cash and cash equivalents
at beginning of period 4,727 948
-------------------------------- ------------ ------------
Cash and cash equivalents
at end of period 2,179 1,169
================================ ============ ============
Notes to the unaudited financial information
1 General information
Plant Healthcare plc is a company domiciled in England. The
interim financial information of the Company for the six months
ended 30 June 2017 comprise the Company and its subsidiaries
(together referred to as the "Group").
2 Accounting policies
Basis of preparation
These interim consolidated financial statements have been
prepared using accounting policies based on International Financial
Reporting Standards (IFRS and IFRIC Interpretations) issued by the
International Accounting Standards Board ("IASB") as adopted for
use in the EU. They do not include all disclosures that would
otherwise be required in a complete set of financial statements and
should be read in conjunction with the 31st December 2016 Annual
Report. The financial information for the half years ended 30th
June 2017 and 30th June 2016 does not constitute statutory accounts
within the meaning of Section 434 (3) of the Companies Act 2006 and
both periods are unaudited.
The annual financial statements of Plant Healthcare plc are
prepared in accordance with IFRS as adopted by the European Union.
The comparative financial information for the year ended 31st
December 2016 included within this report does not constitute the
full statutory Annual Report for that period. The statutory Annual
Report and Financial Statements for 2016 have been filed with the
Registrar of Companies. The Independent Auditors' Report on the
Annual Report and Financial Statements for the year ended 31st
December 2016 was unqualified, did not draw attention to any
matters by way of emphasis, and did not contain a statement under
498(2) - (3) of the Companies Act 2006.
After making enquiries, the directors have concluded that the
Group has adequate resources to continue operational existence for
the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the half-yearly consolidated
financial statements.
The same accounting policies, presentation and methods of
computation are followed in these interim consolidated financial
statements as were applied in the Group's 31st December 2016 annual
audited financial statements. In addition, the IASB have issued a
number of IFRS and IFRIC amendments or interpretations since the
last Annual Report was published. The directors have not yet
considered whether any of these will have a material impact on the
Group. The Board of Directors approved this interim report on 18th
September 2017.
3 Investments
Investments comprise short-term investments in notes and bonds
having investment grade ratings. These assets are actively managed
and evaluated by key management personnel on a fair value basis in
accordance with a documented investment strategy. They are carried
at fair value as determined by quoted prices on active markets,
with changes in fair values recognised through profit and loss.
4 Operating loss
Six months Six months
to to
30 June 30 June
2017 2016
(unaudited) (unaudited)
$'000 $'000
Operating loss is stated
after charging:
Depreciation 192 169
Amortisation 133 137
Share-based payment expense 329 576
================================ ================= =============
5 Segment information
The Group views, manages and operates its business according to
geographical segments. Revenue is generated from the sale of
agricultural products across all geographies.
Six months to 30 June 2017
(unaudited)
Rest
of Total New
Americas Mexico World Elimination Commercial Technology Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Revenue*
Proprietary
product sales 357 166 1,597 - 2,120 - 2,120
Third-party
product sales 21 997 4 - 1,022 - 1,022
Inter-segmental
product sales 793 - 83 (876) - - -
Total revenue 1,171 1,163 1,684 (876) 3,142 - 3,142
--------- ------- ------- ------------ ------------ ------------ --------
Group consolidated
revenue 1,171 1,163 1,684 (876) 3,142 - 3,142
--------- ------- ------- ------------ ------------ ------------ --------
Cost of sales (890) (621) (680) 876 (1,315) - (1,315)
Research and
development - - - - - (2,050) (2,050)
Business
development (292) - - - (292) (41) (333)
Sales and
marketing (557) (318) (484) - (1,359) - (1,359)
Administration (391) (171) (23) - (585) (107) (692)
Non-cash expenses:
Depreciation (15) (27) (3) - (45) (147) (192)
Amortisation (127) - (6) - (133) - (133)
Share-based
payment (28) (2) (8) - (38) (234) (272)
--------- ------- ------- ------------ ------------ ------------ --------
Segment operating
(loss)/profit (1,129) 24 480 - (625) (2,579) (3,204)
Corporate expenses
**
Wages and
professional
fees (489)
Administration
*** 783
Operating loss (2,910)
Finance income 45
Finance expense (1)
--------- ------- ------- ------------ ------------ ------------ --------
Loss before
tax (2,866)
--------- ------- ------- ------------ ------------ ------------ --------
* Revenue from one customer within the Rest of World segment
totalled $705,000 or 22% of Group revenues.
** These amounts represent public company expenses for which
there is no reasonable basis by which to
allocate the amounts across the Group's segments.
*** Includes net share-based payments expense of $57,000
attributed to corporate employees who are not affiliated with any
of the Commercial or New technology segments.
Six months to 30 June 2016
(unaudited)
Rest
of Total New
Americas Mexico World Elimination Commercial Technology Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Revenue*
Proprietary
product sales 806 352 527 - 1,685 - 1,685
Third-party
product sales 52 1,182 3 - 1,237 - 1,237
Inter-segmental
product sales 684 - - (684) - - -
Total revenue 1,542 1,534 530 (684) 2,922 - 2,922
--------- ------- ------ ------------ ----------- ----------- --------
Group
consolidated
revenue 1,542 1,534 530 (684) 2,922 - 2,922
--------- ------- ------ ------------ ----------- ----------- --------
Cost of sales (902) (778) (190) 684 (1,186) - (1,186)
Research and
development - - - - - (2,176) (2,176)
Business
development (500) - - - (500) - (500)
Sales and
marketing (520) (369) (427) - (1,316) - (1,316)
Administration (668) (114) (101) - (883) (146) (1,029)
Non-cash
expenses:
Depreciation (18) (26) (3) - (47) (122) (169)
Amortisation (127) - (10) - (137) - (137)
Share-based
payment (80) (2) - - (82) (388) (470)
--------- ------- ------ ------------ ----------- ----------- --------
Segment operating
(loss)/profit (1,273) 245 (201) - (1,229) (2,832) (4,061)
Corporate
expenses
**
Wages and
professional
fees (465)
Administration
*** (2,123)
Operating loss (6,649)
Finance income 39
Finance expense (1)
--------- ------- ------ ------------ ----------- ----------- --------
Loss before
tax (6,611)
--------- ------- ------ ------------ ----------- ----------- --------
* Revenue from one customer within the Americas segment totalled
$646,000 or 22% of Group revenues.
** These amounts represent public company expenses for which
there is no reasonable basis by which to
allocate the amounts across the Group's segments.
*** Includes net share-based payments expense of $106,000
attributed to corporate employees who are not affiliated with any
of the Commercial or New technology segments.
6 Loss per share
Basic loss per ordinary share has been calculated on the basis
of the loss for the period of $2,865,000 (loss for the six months
ended 30 June 2016: $6,611,000, and loss for the year ended 31
December 2016: $11,217,000) and the weighted average number of
shares in issue during the period of 147,822,881 (six months ended
30 June 2016: 71,855,085, and year ended 31 December 2016:
100,369,025).
The weighted average number of shares used in the above
calculation is the same as for total basic loss per ordinary share.
Instruments that could potentially dilute basic earnings per share
in the future have been considered, but were not included in the
calculation of diluted earnings per share because they are
anti-dilutive for the periods presented. This is due to the Group
incurring losses on continuing operations for the period.
7 Cautionary statement
This document contains certain forward-looking statements
relating to Plant health Care plc ('the Group'). The Group
considers any statements that are not historical facts as
"forward-looking statements". They relate to events and trends that
are subject to risk and uncertainty that may cause actual results
and the financial performance of the Group to differ materially
from those contained in any forward-looking statement. These
statements are made by the directors in good faith based on
information available to them and such statements should be treated
with caution due to the inherent uncertainties, including both
economic and business risk factors, underlying any such
forward-looking information.
Copies of this report and all other announcements made by Plant
Health Care plc are available on the Company's website at
www.planthealthcare.com/for-investors.
Plant Health Care plc
2626 Glenwood Avenue, Suite 350
Raleigh, NC 27608 USA
+1 (919) 926 1600
ir@planthealthcare.com
www.planthealthcare.com/for-investors
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SFWFMMFWSEFU
(END) Dow Jones Newswires
September 18, 2017 02:00 ET (06:00 GMT)
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