Revenue is up 13% on a cc basis and losses are down by a third.
Companies: Plant Health Care PLC
Plant Health Care (LON: PHC) has put out its interims today, which highlights the progress the Group has made in its European and African operations.
The US-based bioproducts company, who supplies its Harpin 𝜶β product to the agricultural industry, reported revenue up 13% on a cc basis, bolstered by strong sales growth in Europe and Africa - 202% and 231% growth respectively. This was partially offset by weaker sales in Mexico and North America.
Operational expenses decreased from $8.4m to $5.6m while operating losses decreased to $2.9m versus $6.6m for the same period last year.
Executive Chairman Dr. Christopher Richards, commented:
"During the first six months of 2017, we have made solid progress in building the sales momentum of Commercial Products. Sales of Harpin 𝜶β have resumed their growth track. The pipeline of new distribution agreements for Harpin 𝜶β 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."
Liberum released a research note following the interims, outlining their take on the Group:
We still expect PHC to generate FY17 sales of $8m driven by a recovery in the US (on more normalised channel inventories) and Mexico as well as further growth in Europe and Africa (especially Italy, Spain and South Africa). In the 1H17 results release, the company states R&D expenses will increase in 2H17. We estimate FY17 R&D expenses will amount to $5.5m versus $4.5m in FY16. We expect this to result in a FY17 net cash position of $5.4m. This should leave PHC sufficient cash available to finance the company's needs until end 2018.
Shares in PHC were marginally down in this morning's trading.
PHC currently trades at a market cap of c. £37m, with revenue for the five years to 2016 fluctuating during the period. Net Losses have doubled in the same five years, growing from a loss of £5m in 2011 to a loss of £11m in 2016. Consensus forecasts the Group's Net Loss to be c. £5.5m in FY17.
