Plant Health Care - Unaudited Interim Results
27/09/2023 07:00
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RNS Number : 7365N Plant Health Care PLC 27 September 2023
27 September 2023
Plant Health Care plc
("Plant Health Care", the "Group" and the "Company")
Unaudited Interim Results
Strong second half of 2023 expected to drive material revenue growth
Plant Health Care(®) (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 2023 ("H1
2023").
Financial Highlights:
· Overall revenue increased 1% to $5.6 million (H1 2022: $5.5 million)
· Revenue in Brazil was up 48%, driven by in-market demand for
H2Copla(®) (up 29% on-ground) and Saori(®) (up 38%). Revenue in Mexico was
up 12%, while sales in Europe were flat.
· In the US, distributors delayed purchases of all agricultural inputs
in H1 2023 to drive down inventories in a negative market. Accordingly, US
sales were down 56% in the period, resulting in low inventories in the
channel, pointing to strong sales in H2 2023. Customer on-ground sales in
the field grew strongly, with Employ(®) up 35% and FASTAND up 9%.
· Cash used in operations increased 33% to $2.8 million (H1 2022: $2.1
million) due to higher trade receivables and lower accounts payable offset by
inventory improvement. The Group's cash burn is typically significantly higher
in the first half than in the second half.
· In June 2023, the Group raised $3.3 million (net of expenses). Cash
as at 30 June 2023 was $5.7 million (2022: $6.3 million).
Operational Highlights:
Distributor agreements
· Signed exclusive distribution agreement with Novozymes to launch
Harpinαβ in Indian sugar cane production. First commercial sales are
expected once registration is achieved, expected in H1 2024.
· Following the registration of PHC279 in the USA earlier this year, a
distribution agreement was concluded with Wilbur Ellis(®) Agribusiness.
OBRONA(®) was launched in June of 2023 as a foliar fungicide for fruits,
nuts, vegetables, and row crops. The Company is now selling PREtec products on
three continents.
New product registrations
· A new PREtec product PHC68949 for the control of soil nematodes
received the first regulatory approvals for commercial use in Brazil. Full
registration is expected in late 2023 or early 2024, ahead of launch into
soybeans in 2024. The Group expects to introduce PHC68949 to other crops in
Brazil subsequently.
· Achieved three significant country registrations for Harpinαβ in
Europe (Poland, France and Cyprus); plans are advancing for product launches
in these geographies, anticipated in 2024.
Outlook:
· Strong second half of 2023 expected with material revenue growth
anticipated, resulting in revenue for the year in line with market
expectations.
· On track to achieve revenue of $30 million by 2025 through continued
growth in Harpinαβ and the launch of new peptides, supported by current and
new distributor relationships. This will deliver a fast-growing, profitable
and cash generative business.
Jeff Tweedy, CEO, Plant Health Care, commented: "Market conditions in H1 2023
have been very challenging for traditional agricultural input businesses, with
most large companies reporting significant reduction in revenue. The US has
been particularly difficult, with all distributors sharply reducing inventory
to reduce the impact of price volatility and slow demand. Most of the
agribusiness companies saw significant revenue decline in the first half of
2023 as compared to last year.
In that context, growth outside the US allowed the Group to grow revenue
marginally; importantly, profit margins were maintained. Strong on ground
sales growth in our core markets gives us confidence in robust revenue growth
in H2.
The Group's first-half performance was driven by the growing demand for
Harpin𝜶β and Saori in Brazil. The Brazilian market for Saori is
significant, with potential for $10 million in revenue. We expect a strong
second half revenue performance, which will underpin the Group's target to
deliver $30 million in revenue in 2025.
The Group continues to register new products. We received the first PREtec
approval from the US EPA with the product being marketed under the brand name
OBRONA. With the launch of PREzym(®) and OBRONA we now market PREtec on
three continents, which is a significant accomplishment. We plan to launch
new PREtec products for the next three years. Our strategy of expanding
relationships with major global distribution partners is on track.
During the first half of the year, we signed a new agreement with Novozymes in
India and a new commercial agreement for OBRONA with Wilbur-Ellis.
There continues to be strong demand and interest in our products. The world
has an ever-increasing need for more food with sustainable agriculture at the
heart of meeting this need. Farmers face many challenges, including the
impacts of climate change such as drought, to ensure food security. Plant
Health Care helps farmers solve these problems. Our biological products
produce better quality crops and deliver higher yield, and we are well placed
to benefit as the need for our products increases."
Change of Name of Nominated Adviser and Joint Broker
The Company also announces that its Nominated Adviser and Broker has changed
its name to Cavendish Securities plc following the completion of its own
corporate merger.
Plant Health Care plc Tel: +1 919 926 1600
Jeffrey Tweedy - Chief Executive Officer
Jeffrey Hovey - Chief Financial Officer
Cavendish Securities plc - Nomad & Broker Tel: +44 (0) 131 220 9771
Neil McDonald / Peter Lynch
SEC Newgate (Financial Communications) Tel: +44 (0)7540 106366
Robin Tozer / George Esmond Email: phc@secnewgate.co.uk
About Plant Health Care
Plant Health Care offers products to improve the health, vigour and yield of
major field crops such as corn, soybeans, potatoes and rice, as well as
specialty crops such as fruits and vegetables. We operate globally through
subsidiaries, distributors and supply agreements with major industry partners.
Our innovative, patent-protected biological products help growers to protect
their crops from stress and diseases, and to produce higher quality fruit and
vegetables, with a favourable environmental profile.
Find out more at www.planthealthcare.com (http://www.planthealthcare.com)
Chief Executive Officer's Statement
Overview
Plant Health Care is at the heart of the movement toward sustainable food
production. Our core products are derived from naturally occurring proteins,
which make crops healthier, grow better and able to withstand stress such as
drought and disease. They provide growers with higher yield and
better-quality crops, while having a much lower impact on the environment than
conventional agricultural chemicals.
The last six months have seen difficult economic conditions around the globe,
including high interest rates, causing growers, particularly in the US, to
delay purchases of new supplies, and to focus on reducing existing
inventories. This meant our product consumption plans previously agreed with
distributors were not met as growers waited for prices to fall. Despite these
headwinds, revenue increased 1% to $5.6 million (H1 2022: $5.5 million). As in
previous years, annual revenue is second half weighted. Most of the
agribusiness companies saw significant revenue decline in the first half of
2023 as compared to last year. With lower inventories and strong customer
on-ground sales, we are expecting a strong second half of 2023 with material
revenue growth anticipated.
Our balance sheet is strong, with cash used in operations increasing 33% to
$2.8 million (H1 2022: $2.1 million) due to higher trade receivables and lower
accounts payable offset by inventory improvement. Cash burn is typically
significantly higher in the first half of the year than in the second half. In
June 2023, the Group raised $3.3 million (net of expenses). Cash as at 30 June
2023 was $5.7 million (2022: $6.3 million).
Products
While our sales to distributors declined, sales by our distributors to growers
(on-ground sales), increased for various products, including 9% for FASTAND,
35% for Employ, 29% for H2Copla, of which 27% is for sugar cane processers.
These are all Harpinαβ products. Sales of our first PREtec product, Saori,
increased 38%.
During the period, the Group began switching to our new European toll
manufacturer. Due to this, the Group paid for excess Harpinαβ inventory to
ensure that stock levels are adequate to meet the second half 2023 expected
demand.
Harpinαβ
Harpinαß is a recombinant protein that acts as a powerful biostimulant,
improving the yield and quality of crops. The Group sells Harpinαß through
specialist distributors around the world. During the first half of 2023, the
Group continued to see the accelerated adoption of Harpinαß in Brazil as
sales to sugar processors increased.
Harpin revenue in South America and Mexico increased but fell in North
America. This meant overall Harpin𝜶β revenue decreased by 15% to $2.8
million (H1 2022: $3.3 million). This decrease was due to severe drought in
the Midwest and delayed purchases by growers.
PREtec
The Company's PREtec technology platform (Vaccines for Plants™) continues
to develop. Derived from natural proteins, PREtec is an environmentally
friendly technology which stimulates crop growth and ability to withstand a
variety of abiotic stresses as well as to improve disease control, plant
health and yield. PREtec is compatible with mainstream agricultural
practices.
The Group is building on the successful launch of our first PREtec product,
Saori used in Brazil for the prevention and treatment of soybean
diseases. Saori was fully launched in Brazil in the second quarter of 2022
and has generated revenue of $1.8 million. Overall sales of PREtec products
are $2.0 million.
After ten years and an investment of more than $25 million, the Group has
launched PREtec on three continents with new launches planned every year for
the next three years pending regulatory approvals.
The Group is extending the development of PREtec products in Europe and
elsewhere over the coming years. Europe is the world's largest market for
sustainable agriculture with annual sales of over $2 billion and is,
therefore, an attractive opportunity for PREtec. Substantial opportunities
also exist for PREtec products in other countries across South and Central
America, Mexico, Australia, and Asia. These markets will be pursued as
resources permit.
Geographic growth
During the period, the Group continued to expand and deepen its presence
across the world, focusing on the largest agricultural producers, in North and
South America, Europe, and most recently, India.
North America
Total revenue in North America was $0.6 million (2022: $1.4 million) which
follows 2022 which was the best year in North America in the Group's history.
Delayed grower purchases reduced first half purchases of our products by
distributors. However, Harpin on-ground sales in North America were up 52%
versus 2022.
In June, the Group concluded a distribution agreement with
Wilbur-Ellis(®) Agribusiness, one of the largest US retailers of
agricultural products. The agreement will support commercial sales of OBRONA,
a foliar fungicide recently approved by the US EPA. In June of 2023, the Group
had its first sale of OBRONA generating revenue of $0.1 million to
Wilbur-Ellis. OBRONA is a unique product developed to help growers control a
wide range of fungal and bacterial plant pathogens in fruits, nuts,
vegetables, and row crops.
Plant Health Care and Wilbur-Ellis have been working together in an exclusive
partnership since 2020 to evaluate and develop PHC279, the active ingredient
in OBRONA, for high value specialty and row crop markets. PHC279 is the first
product from the Company's PREtec technology platform that is available to US
farmers.
Looking ahead, we expect growth in the US, especially for our OBRONA and
Employ products used for row crops.
South America
The Group is present in Brazil, Argentina, and Chile with plans to launch in
Uruguay by 2024. Total revenue was $1.9 million (2022: $1.3 million),
primarily driven by increased sales of Saori onto soybeans and continued
strong demand for H2Copla (Harpinαβ) from sugar cane processors. In the
2023/24 season, the area planted with sugar cane in Brazil is forecast to be
9.8 million hectares, and in the 2022/23 season, sugar cane was planted on 8.3
hectares.
In May 2022, Plant Health Care and Nutrien Soluções Agrícolas, the retail
business of Nutrien in Brazil, signed a five-year commercial agreement under
which the Group will supply Saori for Nutrien's use on soybeans in Brazil.
Nutrien is the world's largest provider of crop inputs and services. Nutrien
expects to expand Saori use to more than one million hectares by 2025. The
Company's revenue from sales of Saori to Nutrien is expected to grow to more
than $5 million by 2025.
In May, our new PREtec product PHC68949 received the first stage of
regulatory approval for commercial use in Brazil. This is a novel technology
that amplifies a plant's natural defence against damaging nematodes, resulting
in increased plant health and yield in a variety of crops. Nematodes are
microscopic parasitic worms living in the soil where they feed on plant roots,
killing plants and reducing crop yields. Globally, nematodes have been
estimated to cause up to 12.3% of annual crop loss, worth approximately $157
billion per year.
After its initial launch for use in soybeans, the Group expects to introduce
PHC68949 in other crops in Brazil. According to a recently published report by
Kynetec, the use of nematicides in Brazil has increased 10-fold since 2015,
with soybeans accounting for 52% of the use, followed by sugarcane at 23%,
with the remainder on corn, cotton, coffee, potatoes and 14 other crops.
After the period-end in August, the Group's biochemical fungicide, PHC279, for
the control of sugar cane and coffee disease received federal approval in
Brazil. As well as being the world's largest producer of sugar cane, Brazil
is also the biggest coffee producer. In the 2023/24 season, the area planted
with coffee was more than 2.5 million hectares. In the 2021/22 season,
Brazilian farmers spent more than US$127 million on the control of coffee
diseases.
Overall, South America has performed well despite significant market
headwinds. We expect significant growth to continue as more products are
approved.
Mexico
In Mexico, the Group also distributes third-party biological products. In
Mexico, revenue was up 12% to $2.0 million (H1 2022: $1.7 million) due to
continued expansion into the agave and avocado markets. In September, Plant
Health Care submitted applications to the Mexican regulatory agency for
approval to commercialise the newest products derived from the Company's
PREtec technology platform (Vaccines for PlantsTM), PHC25279 and PHC68949,
for use on major crops
EMEAA
Revenue in EMEAA was flat at $1.2 million (2022: $1.2 million) due to drought
conditions in Spain.
Following the initial regulatory approval of Harpinαβ in France in October
2022, Plant Health Care has pursued Mutual Recognition to expand the use of
Harpinαβ across Europe. Europe is the world's largest market for
sustainable agriculture with annual sales of over $2 billion.
In August, Harpinαβ successfully achieved Mutual Recognition in Poland. This
is a major milestone for the Group and permits immediate sales of Harpinαβ
in Poland. Poland is the sixth largest agricultural producer in the European
Union, and the second largest potato producer behind Germany, growing around
322,000 hectares.
The Group launched PREzym in Portugal, and last year, announced a trials
agreement with Agrii UK under which Agrii evaluated the
Group's PREtec technology. Studies indicated promising results with
PREtec products in potatoes, resulting in improved potato quality and yield,
with significantly lower environmental impact than many agrochemical
treatments.
In January 2023, the Group signed an agreement for the exclusive distribution
of Harpinαβ for use in sugar cane production in India with Novozymes South
Asia Pvt. Ltd. First commercial sales are expected to commence in the first
half of 2024, after receipt of the required regulatory approvals. This is the
first product introduced into India by the Group. India is the world's
second largest producer of sugar cane with about five million hectares under
cultivation.
Looking ahead, the Group will continue to expand across Europe and India and
is exploring new opportunities in Asia.
Outlook
We are expecting a strong second half of 2023 with material revenue growth
anticipated. The Board expects to achieve full-year market expectations
despite macro-level, market-driven challenges like inflation and increasing
interest rates.
The continued expansion of Plant Health Care's relationships with large
distributors has given us greater visibility of on-ground sales, which
improves our ability to forecast demand, plus broad access to specialty and
row crop markets.
The Board remains confident about the prospects of building a growing,
profitable commercial business, as sales of Harpinαβ continue to increase
due to market expansion and new registrations.
We are on track to achieve revenue of $30 million by 2025 through the launch
of new PREtec peptides, and organic business growth through current and future
distributor relationships.
Jeffrey
Tweedy
Chief Executive
Officer
27 September 2023
Chief Financial Officers Statement
Summary of financial results
Financial highlights for the six months ended 30 June 2023, with comparatives
for the six months ended 30 June 2022, are set out below:
2023 2022
$'000 $'000
Revenue
5,603 5,554
Gross profit 3,386 3,411
Research and development (1,357) (1,433)
Sales and marketing (2,202) (2,136)
Administrative (1,553) (1,630)
Non-cash expenses (831) (787)
Foreign exchange gain/ (loss) *** 18 (3,607)
Total operating expenses (5,925) (9,593)
Operating loss (2,539) (6,182)
Net finance (expense)/ income 24 (105)
Net loss for period before tax (2,515) (6,287)
*** - includes non-cash currency gain of $18 thousand primarily related to
inter-group loans with subsidiaries and other payments in foreign currencies
(H1 2022: $3.6 million currency losses).
Cash operating expenses decreased $0.1 million to $5.1 million (H1 2022: $5.2
million).
The reconciliation of operating loss to LBITDA is as follows:
2023 2022
($'000) ($'000)
Operating loss (2,539) (6,182)
Depreciation/amortisation 338 322
Share-based payments 473 465
Intercompany foreign exchange (gain) / loss (18) 3,607
Adjusted LBITDA (1,746) (1,788)
Revenue
Revenues for the six-month period ended 30 June 2023 were $5.6 million (H1
2022: $5.5 million) producing a gross profit of $3.4 million (H1 2022: $3.4
million) and the loss before tax was $2.5 million (H1 2022: $6.3 million).
The gross profit margin was 60% (H1 2022: 61%). The decrease in gross margin
was due to decreased sales into the North American market due to market severe
drought in the Midwest and excess inventory in the channel, offset by higher
margin Saori sales in South America. Harpinαβ revenue decreased 15% (19%
constant currency) to $2.8 million (H1 2022: $3.3 million). Harpinαβ
revenues were primarily lower than prior year due to severe drought in the
Midwest and excess inventory in the channel in the US specialty markets,
offset by increased sales of 68% into the sugar cane market in Brazil. Saori
revenues increased 38% to $1.1 million (H1 2021: $0.8 million) in Brazil due
to increased demand from soybean producers.
Cash operating expenses
Operating expenses, excluding non-cash items, decreased $0.1 million to $5.1
million (H1 2022: $5.2 million) due to decreased Administration expenses
offset by increased sales and marketing expenses associated with the expansion
of the commercial business globally. Adjusted LBITDA decreased $0.1 million
to $1.7 million (H1 2021: $1.8 million) primarily due to decreased operating
expenses and gross margin was consistent with the prior year.
Operating expenses
Operating expenses decreased by $3.7 million for the six-month period to $5.9
million (2021: $9.6 million). This is primarily due to $3.6 million of
non-cash currency losses primarily related to a Pound Sterling loan with a
subsidiary company (H1 2022: $3.6 million currency losses).
Cash position and liquidity
As of 30 June 2023, the Group had cash and investments of $5.7 million.
Cash, working capital and costs continue to be tightly controlled.
Net cash outflows from operating activities increased 33% to $2.8 million (H1
2022: $2.1 million and H2 2022: $0.6 million). The increase is due to
increased inventory payments due to the switch to a new toll manufacturer to
ensure adequate stock to meet second half demand and increased receivable
balance due to delay in payment from a North American customer.
Net cash used in financing activities increased $3.4 million (H1 2022: $9.2
million net cash flows from financing activities). The increase is due to
the June 2023 equity raise of $3.3 million (net of costs).
Jeffrey
Hovey
Chief Financial
Officer
27 September 2023
Consolidated statement of comprehensive income
FOR THE SIX MONTHS ENDED 30 JUNE 2023
Six months Six months
to 30 June to 30 June
2023 2022
(Unaudited) (Unaudited)
Note $'000 $'000
Revenue 5,603 5,554
Cost of sales (2,217) (2,143)
Gross profit 3,386 3,411
Research and development (1,546) (1,740)
Sales and marketing (2,221) (2,136)
Administrative expenses (2,158) (5,717)
Operating loss 3 (2,539) (6,182)
Finance income 68 11
Finance expense (44) (116)
Loss before tax (2,515) (6,287)
Income tax expense (73) (50)
Net loss for the period (2,588) (6,337)
Other comprehensive income:
Exchange difference on translation of foreign operations 290 (446)
Total comprehensive loss for the period (2,298) (2,811)
Basic and diluted loss per share 6 $(0.01) $(0.01)
Consolidated statement of financial position
AT 30 JUNE 2023
30 June 31 December
2023 2022
(Unaudited) (Audited)
Note $'000 $'000
Assets
Non-current assets
Intangible assets 1,985 1,620
Property, plant and equipment 588 644
Right-of-use assets 367 586
Trade and other receivables 159 146
Total non-current assets 3,099 2,996
Current assets
Inventories 3,072 3,371
Other receivables 2,520 1,801
Cash and cash equivalents 5,745 5,656
Total current assets 11,337 10,828
Total assets 14,436 13,824
Liabilities
Current liabilities
Trade and other payables 2,508 3,235
Borrowings 167 55
Lease liabilities 289 437
Total current liabilities 2,964 3,727
Non-current liabilities
Borrowings 188 215
Long term lease liabilities 108 192
Total non-current liabilities 296 407
Total liabilities 3,260 4,134
Total net assets 11,176 9,690
Capital and reserves attributable to owners of the Company
Share capital 4,788 4,352
Share premium 103,734 100,859
Foreign exchange reserve 3,146 2,856
Retained deficit (100,492) (98,377)
Total equity 11,176 9,690
Consolidated statement of cash flows
FOR THE SIX MONTHS ENDED 30 JUNE 2023
Six months ended Six months ended
30 June 30 June
2023 2022
(Unaudited) (Unaudited)
$'000 $'000
Cash flows from operating activities
Loss for the year (2,589) (6,337)
Adjustments for:
Depreciation of property, plant and equipment 107 112
Depreciation of right-of-use assets 231 215
Amortisation of intangibles - 1
Share-based payment expense 474 465
Finance income (68) (11)
Finance expense 44 116
Foreign exchange (loss)/ gain (18) 3,607
Income taxes paid 73 49
Decrease in trade and other receivables (634) 180
Gain on disposal of fixed assets - -
(Increase)/decrease in inventories 432 (1,275)
Increase/(decrease) in trade and other payables (822) 560
Income taxes received (73) 179
Net cash used in operating activities (2,843) (2,139)
Investing activities
Purchase of property, plant and equipment (37) (286)
Sale of property, plant and equipment - -
Finance income 68 (85)
Purchase of investments - -
Sale of investments - 3,868
Investment in internally generated intangible assets (365) -
Net cash (used)/provided by investing activities (334) 3,497
Financing activities
Finance expense (31) (90)
Lease payments (260) (235)
Issue of ordinary share capital 3,311 -
Borrowings 252 -
Payment of borrowings (170) (14)
Net cash provided/(used) by financing activities 3,102 (339)
Net increase/(decrease) in cash and cash equivalents
(75) 1,019
Effects of exchange rate changes on cash
and cash equivalents 164 (58)
Cash and cash equivalents at beginning of period 5,656 1,005
Cash and cash equivalents at end of period 5,745 1,966
Notes to the unaudited financial information
1 General information
Plant Health Care plc is a company incorporated and domiciled in England. The
unaudited interim financial information of the Group for the six months ended
30 June 2023 comprise the Company and its subsidiaries (together referred to
as the "Group").
The Board of Directors approved this interim report on 26 September 2023.
2 Basis of preparation and accounting policies
These interim consolidated financial statements have been prepared using
accounting policies based on international accounting standards in conformity
with the requirements of the Companies Act 2006. 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 31 December 2022 Annual
Report. The financial information for the half years ended 30 June 2023 and 30
June 2022 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 Health Care Plc ('the Group') are
prepared in accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006. The statutory Annual Report
and Financial Statements for the year ended 31 December 2022 have been filed
with the Registrar of Companies. The Independent Auditors' Report on the
Annual Report and Financial Statements for this year end was unqualified, did
not draw attention to a matter by way of emphasis, and did not contain a
statement under 498(2) or 498(3) of the Companies Act 2006.
The Group has applied the same accounting policies and methods of computation
in its interim consolidated financial statements as in its 31 December 2022
annual financial statements, except for those that relate to new standards and
interpretations effective for the first time for periods beginning on (or
after) 1 January 2023 and will be adopted in the 2023 financial statements.
There are deemed to be no new and amended standards and/or interpretations
that will apply for the first time in the next annual financial statements
that are expected to have a material impact on the Group.
Going Concern
In assessing whether the going concern basis is appropriate for preparing the
interim results for 2023, the Directors have utilised the Group's detailed
forecasts, which take into account its current and expected business
activities, its cash and cash equivalents balance and investments of $6.3
million. The principal risks and uncertainties the Group faces and other
factors impacting the Group's future performance were considered. The
directors confirm that they have a reasonable expectation that the group will
have adequate resources to continue in operational existence for the next 12
months from approval of these financial statements and accordingly these
financial statements are prepared on a going concern basis, with no material
uncertainty over going concern. As such, the interim consolidated financial
statements have been prepared on a going concern basis.
3 Operating loss
Six months to Six months to
30 June 30 June
2023 2022
(unaudited) (unaudited)
$'000 $'000
Operating loss is stated after charging:
Depreciation 338 327
Amortisation - 1
Share-based payment expense 474 465
Foreign exchange (gain)/loss (18) 3,607
4 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 2023 (unaudited)
Americas Mexico Rest of World Elimination Total New Technology Total
$'000 $'000 $'000 $'000 Commercial $'000 $'000
$'000
Revenue*
Proprietary product sales 2,541 460 1,101 - 4,102 - 4,102
Third-party product sales - 1,501 - - 1,501 - 1,501
Inter-segmental product sales 630 - 130 (760) - - -
Total revenue 3,171 1,961 1,231 (760) 5,603 - 5,603
Cost of sales (1,432) (1,038) (507) 760 (2,217) - (2,217)
Research and development - - - - - (1,125) (1,125)
Sales and marketing (1,294) (484) (460) - (2,238) (56) (2,294)
Administration (659) (205) (54) - (918) (95) (1,013)
Non-cash expenses:
Depreciation (93) (43) (13) - (149) (189) (338)
Amortisation - - - - - - -
Share-based payment (68) (1) (22) - (91) (213) (304)
Segment operating (375) 190 175 - (10) (1,678) (1,688)
(loss)/profit
Corporate expenses **
Wages and professional fees (824)
Administration *** (27)
Operating loss (2,539)
Finance income 69
Finance expense (45)
Loss before tax (2,515)
* Revenue from one customer within the Americas segment totalled $1,037,000 or
19% of Group revenues.
Revenue from one customer within the Americas segment totalled $862,000 or 15%
of Group revenues.
Revenue from one customer within the Americas segment totalled $784,000 or
14% 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 $170,000 attributed to
corporate employees who are not affiliated with any of the Commercial or New
technology segments.
Six months to 30 June 2022 (unaudited)
Americas Mexico Rest of World Elimination Total New Technology Total
$'000 $'000 $'000 $'000 Commercial $'000 $'000
$'000
Revenue*
Proprietary product sales 2,659 282 1,158 - 4,099 - 4,099
Third-party product sales 2 1,452 1 - 1,455 - 1,455
Inter-segmental product sales 857 - - (857) - - -
Total revenue 3,518 1,734 1,159 (857) 5,554 - 5,554
Cost of sales (1,752) (897) (351) 857 (2,143) - (2,143)
Research and development - - - - - (1,245) (1,245)
Sales and marketing (1,254) (375) (411) - (2,040) (106) (2,147)
Administration (630) (128) (49) - (807) (130) (937)
Non-cash expenses:
Depreciation (74) (41) (7) - (122) (200) (321)
Amortisation - - (1) - (1) - (1)
Share-based payment (80) - (23) - (103) (223) (326)
Segment operating (272) 293 317 - 338 (1,904) (1,566)
(loss)/profit
Corporate expenses **
Wages and professional fees (965)
Administration *** (3,651)
Operating loss (6,182)
Finance income 11
Finance expense (116)
Loss before tax (6,287)
* Revenue from one customer within the Americas segment totalled $1,146,000 or
21% of Group revenues.
* Revenue from one customer within the Americas segment totalled $775,000 or
14% 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 $80,000 attributed to
corporate employees
who are not affiliated with any of the Commercial or New technology segments.
Includes $0.4
million foreign exchange gains in non-US dollar denominated inter-company
funding.
6 Loss per share
Basic loss per ordinary share has been calculated on the basis of the loss for
the period of $2,588,000 (loss for the six months ended 30 June 2022:
$6,337,000) and the weighted average number of shares in issue during the
period of 310,423,602 (six months ended 30 June 2022: 304,662,482).
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.
(http://www.planthealthcare.com/for-investors.)
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