18th Sep 2018 12:37
LONDON (Alliance News) - Plant Health Care PLC on Tuesday reported a widened interim loss on higher administrative costs and a slight drop in revenue.
The plant health and growth product seller almost doubled its pretax loss in the period to USD5.0 million from USD2.9 million.
Plant Health's revenue decreased to USD3.0 million from USD3.1 million.
The company's administrative expenses multiplied to USD2.3 million from USD687,000. The main driver behind the increase was a non-cash loss from its UK subsidiary of USD700,000 from a USD900,000 gain the year before.
Cash operating expenses increased to USD5.4 million from USD5.0 million due to increased sales and marketing costs as the company continued its expansion into the Brazilian market.
Looking ahead, the company expects to meet its revenue growth target of 30% for the full year.
Plant Health Care anticipates a "strong" second half and its confident of meetings its medium prospects and will be cash positive by 2020.
Executive Chairman & Interim Chief Executive Christopher Richards said: "The progress of our Commercial business in 2018 is not reflected in our first half sales, because of measures taken to reduce channel inventory in Africa.
"The launch into corn in the USA, together with exciting potential in sugar cane, underpin our confidence in meeting market expectations for the full year and delivering sustained growth in the medium term. We anticipate the Commercial business will generate cash during 2018, thereby reducing the group's cash burn."
Shares in Plant Health were down 0.8% Tuesday at 18.00 pence each.
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