14th Sep 2015 08:58
LONDON (Alliance News) - Plant Health Care PLC Monday reported a narrowed pretax loss for the first half of 2015, benefiting from an improved gross profit margin and lower operating costs.
Plant Health provides biological products for the agriculture markets. For the half year to end-June the company reported a pretax loss of USD3.0 million, narrowed from a pretax loss of USD3.7 million, as a slight decline in revenue to USD3.2 million from USD3.3 million was offset by lower sales and marketing and administrative costs.
Gross profit margin increased to 63% from 53%, as a result of higher pricing and improvements in the cost of goods.
In the US, revenue fell 4.3%, hit by a weak corn environment and a highly competitive foliar fungicide market, whilst revenue outside of the US rose 13% at constant currency and excluding milestone payments.
The company said that its first half revenue from its commercial products was in line with expectations, and it expects a strong second half, boosted by seasonal uplift in the last quarter and a replenishment of stocks in the distribution channel.
"During the first six months of 2015, we have made further substantial progress in establishing Plant Health Care as a leading provider of novel biological products for the agriculture industry. [Chief Executive Officer] Paul Schmidt has continued to strengthen his team, both to expand revenues with the company's current portfolio and in developing the technology platform," said Executive Chairman Christopher Richards in a statement.
Shares in Plant Health were untraded Monday morning. It last closed at 96.85 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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