17th Jan 2007 07:01
Plant Health Care PLC17 January 2007 Embargoed until 7:00am 17 January 2007 PLANT HEALTH CARE PLC ("PLANT HEALTH CARE" OR THE "COMPANY") Trading Update Plant Health Care plc provides a post year end update on 2006 and currenttrading. It also announced today that it had entered into an agreement of up to ten yearswith Bayer CropScience AG ("Bayer CropScience") to develop new seed treatmentsolutions based upon Plant Heath Care's Myconate technology and BayerCropScience's seed treatment products. Plant Health Care's turnover for the year ended 31 December 2006 was $13.7million, marginally below previous expectations because of the need to hold backMyconate sales pending the conclusion of an agreement with a developmentpartner. In consequence the Company will also be reporting a marginally higherthan expected loss for the year. Good progress was made in all areas of the business during the period,particularly in Europe, where sales have increased 44% year on year, and Mexicowhere sales have increased 39% year on year. The reclamation activities showedturnover growth of 33%, landscaping showed growth of 8% and our new venture in2006, US Agriculture, showed sales of $0.8 million, mostly in the last twomonths of the year. In all of the operations, the strong trading experienced towards the end of 2006has continued into the new year. At the year end, the Company had higher thananticipated receivables, reflecting the high level of sales in December andincreased inventories by some $1.3 million in order to satisfy orders fordelivery early in 2007. These orders included a $0.5 million order to supply aTerra-Sorb derived gel product to a Mexican customer for use as a balm ininfants' nappies. It is the board's intention to develop Myconate for use in several furtherapplications including on small cereal grains such as wheat, oats and barley.Plant Health Care also plans to develop and market Myconate for use on vegetableand other speciality crops through its own sales force. Alternative applicationmethods for Myconate both in row crops and vegetables will be investigated. Allof these initiatives will be progressed over the ensuing months and it is theboard's belief that the potential market for these applications of Myconate isconsiderable. John Brady, CEO of Plant Health Care said: "Having reached agreement with BayerCropScience for the development of our Myconate technology for use on corn,soybean, cotton and sunflowers, we have increased confidence of itsattractiveness for other applications." -ends- For further information contact: Plant Health Care plcJohn Brady, CEO; phone: +1 603 525 3702E-Mail: jabrady@planthealthcare.com Tavistock ComunicationsJeremy Carey/Matt Ridsdale, phone: +44 20 7920 3150E-Mail: jcarey@tavistock.co.uk, mridsdale@tavistock.co.uk Notes to Editors: About Plant Health Care: Plant Health Care plc ("PHC") is a leading provider of natural products forplants and soil. Established in 1995 in Pittsburgh (Pennsylvania) in the UnitedStates, PHC currently has approximately 70 employees and has operations in theUS, Mexico, UK, Spain, and the Netherlands. The Company listed on the AIM marketof the London Stock Exchange in July 2004. Ticker symbol is PHC. PHC's products are aimed at the landscape, agriculture and land reclamationindustries and are environmentally beneficial. Through the commercialization ofthese products, PHC is capitalizing on current long-term trends toward naturalsystems and biological products for plant care and soil and water management.Further information is available at: www.planthealthcare.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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