Shares digital

Plant Health Care (PHC:AIM) – Finals PTP: -$5.4m (-$2.9m) Divi: n/a (n/a)

Losses widened on the back of significant product investment as well as the costs associated with the first full year of operation in the US Agriculture market. But there was an ample supply of good news, with revenue up a healthy 34% to $18.3 million, and strong growth reported in the agriculture business in the US, Mexico and several European markets. The only letdown was the UK, where poor weather was said to have dampened growth.

The year also saw the successful signing of the first two major partnership deals for the group’s natural technologies. The first of these was signed last January, when Bayer Cropscience agreed to develop and commercialise the group’s Myconate seed treatment applications for corn, cotton, soybean and sunflowers.

Myconate helps to boost the rate of plant root colonisation by beneficial fungi, which extract nutrients from the soil to benefit the plant, allowing the plant to grow more quickly and with greater resistance to disease. Bayer is likely to launch its first Myconate-based product in 2010.

Plant Health Care also clinched a deal in December with Monsanto to evaluate, develop and commercialise certain applications of its Harpin-based technology suite. Harpin is a protein that causes the plant to believe it is under attack from pathogens, causing it to trigger natural defences.

Plant Health Care’s cash position was also strengthened last September after the company raised $10 million of new equity. The group now has no foreseeable need for further capital or borrowings to meet its plans. As at 31 December 2007, net cash stood at $9.8 million. The shares rose 2% to 267.5p.

Shares says: With the supply/demand balance for agricultural products remaining constrained, the potential for this technology remains huge.

by: Rachel Robson