TIDMPHC
RNS Number : 6898V
Plant Health Care PLC
10 April 2019
Plant Health Care plc
Results for the year ended 31 December 2018
Plant Health Care(R) (AIM: PHC), a leading provider of novel
patent-protected biological products to the global agriculture
markets, announces its preliminary results for the full year ended
31 December 2018.
Highlights
Operational
-- Harpin <ALPHA>ß was launched into sugarcane in Brazil
in February 2018, which is a 10 million hectares opportunity. Over
20,000 hectares treated so far, a promising start.
-- Harpin <ALPHA>ß was launched into US corn in September
2018, which is a 90 million acre market. First use in the field
will be in the second quarter of 2019.
-- The Company won the global award of Best New Biological Product for work on citrus in Spain.
-- Nine companies, including all five of the top global
agrochemical/seed companies, tested peptides from our PREtec
platforms during 2018.
-- PREtec product pipeline defined, targeting $5 billion market opportunities.
-- Regulatory submission to EPA for first PREtec peptide made in August 2018.
-- Substantial progress made in developing cost-effective production of PREtec peptides.
-- New strategy for commercialisation of PREtec: both technology
licensing and direct sales to distributors.
Financial
-- Revenue from commercial products in 2018 increased by 5% to
$8.1 million (2017: $7.7 million); Strong external sales growth in
the Americas (up 105%) was offset by weaker sales in Rest of World
due to slower draw-down of inventory.
-- Sales of core Harpin <ALPHA>ß products increased by 10%
(8% in constant currency*), driven by broadly based growth in many
countries. Harpin <ALPHA>ß and Myconate(R) products
represented 68% of sales in 2018 (2017: 69%).
-- Gross Margin increased to 65% (2017: 62%).
-- Adjusted LBITDA** reduced to $5.4 million (2017: $5.5 million)
-- Cash, cash equivalents and investments at 31 December 2018
were $4.3 million (2017: $3.9 million).
-- On 27 February 2018, the Group successfully raised $6.7
million (net of costs) which was well supported by existing
shareholders and brought in a number of new institutional
investors.
*: constant currency is defined below.
**: Adjusted LBITDA: Loss before Interest, tax, depreciation,
amortisation, share based payments and intercompany foreign
exchange
Chris Richards, Executive Chairman & Interim CEO,
comments:
"Plant Health Care continued to make good progress in 2018,
under challenging conditions.
The launch of our new corn product in the US holds great promise
for future sales growth. With the expected level of grower sales in
2019, we anticipate strong sales growth thereafter. Sales of our
new soy product, which we had expected our channel partner to
launch before the end of 2018, have now started on a modest scale,
as our partner introduces the product to the market. We expect
sales to be comparable to the corn product, over time.
Our Commercial team in Brazil has got off to an impressive
start. The launch of H2Copla into sugarcane with our partner
Coplacana has gone well, with over 20,000 hectares treated to date.
With growers reporting yield increases of up to 20% and an ROI of
up to 20 times, we have strong expectations for growth in 2019 and
progress towards our target of 500,000 Ha treated in four to five
years' time. The launch of Harpin <ALPHA><BETA> as a
soy seed treatment in Brazil holds out the prospect of sales
comparable to those in sugarcane.
While 2018 trials of Innatus 3G in Brazil did not show
commercially useful levels of disease control, they did show
significant improvement in yield. A total of nine companies tested
PREtec peptides in 2018, including all of the five major
agrochemical/seed companies. We are now planning to commercialise
these peptides both through technology licensing and through direct
sales to distributors.
Within the Company, we have made strong progress in production
methods, which gives us great confidence in our ability to produce
PREtec peptides at low cost. At the same time, the submission for
registration by the EPA in the US holds out the prospect of fast
track registration as early as 2020, with registration in Brazil
following later.
The Company's cash reserves remain sufficient to take us to cash
positive in 2020."
Inside information
This announcement contains inside information which is disclosed
in accordance with the Market Abuse Regulation.
For further information, please contact:
Plant Health Care plc
Christopher Richards, Executive Chairman & Interim Chief
Executive Officer Tel: +1 919 926 1600
Arden Partners plc (Nomad and Broker) Tel: +44 (0) 20
John Llewellyn-Lloyd / Dan Gee-Summons (Corporate 7614 5900
Finance)
Fraser Marshall (Equity Sales)
Company website: www.planthealthcare.com
Chairman's letter
Overview
Plant Health Care(R) is a leading provider of proprietary
agricultural biological products and technology solutions focused
on improving crop performance.
The Group made further good progress in 2018 in both our
commercial operations and continued development of our new
technology. In the Commercial business, the launches of Harpin
<ALPHA>ß in US corn and in Brazilian sugarcane during 2018
are confidently expected to substantially accelerate revenue growth
in 2019 and beyond. In New Technology, we are transforming the
PREtec peptide platforms into a rich product development pipeline
with fast track to launches as early as 2021, reaching growers both
through technology licences and through direct sales to
distributors.
Commercially, sales growth was 5%, as increased sales in the US
and Brazil were offset by materially reduced sales in South Africa.
Gross Margin improved to 65%, as Harpin <ALPHA>ß rose to 66%
of sales; Harpin <ALPHA>ß has now grown at 20% CAGR (Compound
Annual Growth Rate) since we re-launched the business in 2013.
Increasing numbers of growers are discovering the benefits of
Harpin <ALPHA>ß, as a biological product which delivers
exceptional additional yield with favourable environmental
profile.
In New Technology, nine companies, including the top five global
agrochemical/seed companies conducted PREtec field trials during
2018. Peptide evaluation in greenhouse and field trials has now
enabled us to define specific products for target markets; these
markets have a total value in excess of $5 billion. Submissions
have been made to the EPA, the relevant regulatory department in
the USA, which are expected to result in first product
registrations during 2020. We have advanced production methods for
our lead peptides, which will provide cost-effective products in
time for launches in 2021 and beyond. To accelerate market entry,
we are now developing plans to enter markets not only through
technology licensing but also for direct sales to distribution
partners in key markets; this new approach to commercialisation is
expected to bring PREtec peptide products to market more rapidly
and enhance the Group's margins.
The Group successfully completed an equity raise in February
2018, raising $6.7 million (net of costs). We are confident that
our cash reserves and income from our commercial sales are
sufficient to take the Group to cash positive, no later than the
end of 2020.
We report here separately on the two areas of focus for the
business: Commercial and New Technology. We are organised in these
two lines of business and report our Commercial business in three
geographic segments - Americas, Mexico and Rest of World. We report
our New Technology business in a single segment.
Commercial
Our Commercial business sells our proprietary products worldwide
through distributors and also distributes complementary third-party
products in Mexico.
Overall sales in 2018 were $8.1 million, an increase of 5% in
both actual and constant currency* over 2017 ($7.7 million). Strong
sales growth in the USA (up 31% to $2.1 million), Brazil ($1.1
million from nil in 2017), Spain (up 16%) and Mexico (up 9%) was
offset by reduced sales in Europe/Africa (down 46%), due to slower
draw-down of in-market inventory in South Africa.
Sales of core Harpin <ALPHA>ß products increased by 10%
(8% in constant currency). Harpin <ALPHA>ß and Myconate(R)
products represented 68% of sales in 2018 (2017: 69%). Harpin
<ALPHA>ß sales have now grown at 20% CAGR since 2013.
Sales in Brazil reached $1.1 million (nil in 2017). The launch
in March 2018 of H2Copla, the exclusive brand of our distributor
Coplacana into the 10 million hectare sugarcane market in Brazil
was well received, boosted by trials which showed an ROI (Return on
Investment) for growers of up to 20 times. Sales into sugarcane
during the year were $1.0 million. In October, Harpin
<ALPHA>ß was launched as a seed treatment in soy, with
initial sales ex Plant Health Care of $0.1 million. We anticipate
rapid sales growth in both markets during 2019.
In the USA, Harpin <ALPHA>ß was launched into the 35
million hectare corn market in 4Q 2018, through a very strong
distribution partner. Trials have shown an illustrative ROI of 7
times or more to growers and the launch was well received with
further demand anticipated in 2019. The Group sold $1.6 million in
2018, which is expected to be consumed in the spring of 2019. Total
sales for Harpin <ALPHA>ß in the USA reached $2.1 million
(2017: $1.6 million).
Sales in Mexico grew 9% to $3.1 million (10% in constant
currency), recovering from the effects of drought in 2017. In
Spain, the Group's work on the use of Harpin <ALPHA>ß to
improve the quality of citrus was recognised by the prestigious
global Agrow award for Best New Biological Product. Sales in Spain
increased by 16% to $0.6 million (2017: $0.5 million). In South
Africa, in-market sales in the 2017/18 season did not reach
ambitious targets and the 2018 early season was also hit by severe
drought; as a result, the Group had lower sales. This resulted in
sales being down by 46% in the UK/Africa region, to $1.7
million.
New Technology
New Technology is focused on novel proprietary biological
solutions using the Group's PREtec science and technology
capabilities (PREtec stands for Plant Response Elicitor
technology). PREtec is a novel, environmentally friendly approach
to protecting crops, based on peptides derived from natural
proteins. These proprietary peptides are stable and compatible with
mainstream agriculture practices such as seed treatment and foliar
sprays. By activating the innate growth and defence mechanisms of
plants, PREtec peptides lead to higher crop yields and better
protection against disease and environmental stresses such as
drought.
PREtec generates the possibility of many peptide product
candidates across several platforms; we have so far characterised
and presented to our partners peptides from three related families
of peptides, each of which is a platform for product development:
Innatus(TM) 3G, T-Rex 3G and Y-Max 3G. A fourth platform has also
been characterised.
The Group believes PREtec has substantial potential to support
farmers to increase yields and productivity. Our vision is for
growers to apply a PREtec peptide on every hectare or acre of
agricultural land in combination with conventional agricultural
products to improve their performance, reduce their environmental
impact, reduce the development of disease resistance to chemical
pesticides, and increase yields.
In 2017, the Group initiated field trials of PREtec peptides for
the control of Asian Soybean Rust (ASR) in Brazil, together with
partners. While earlier results had given promising results for ASR
control, the trials in the 2017/18 crop did not show results
sufficient to convince partners to move to license PREtec for soy
in 2018. However, low doses of PREtec peptides did show significant
yield increases and work continues on this target crop in the
2018/19 season, with encouraging early results.
During 2018, the Group conducted a full review of the potential
product pipeline emerging from PREtec and of the routes to market
for those products. The Group expects to launch the first products
from PREtec as early as 2021.
The target markets for our current pipeline of PREtec peptides
include corn and soy (yield increase through seed treatment),
control of Asian Soybean Rust (ASR) and other diseases, sugarcane
(yield and disease), enhanced plant nutrition, and nematode control
in fruit and vegetable crops; most of the larger target markets are
in North and South America. These markets are very large for both
disease control and yield enhancement products. The Group's product
pipeline will be addressing markets worth in excess of $5 billion.
The increasing presence and relationships we have in both the USA
and Brazil with Harpin <ALPHA>ß gives us a great advantage in
these markets for new PREtec products.
For each of these target markets, we have identified a lead
peptide and a back-up. The Group has made submissions for product
regulatory approval in the USA, which are anticipated to result in
first registration during 2020. Registration in Brazil will
follow.
Strong progress has been made in developing efficient production
methods for PREtec peptides. During 2018, the target production
efficiency for PHC398 was comfortably achieved. Work on production
methodology for other peptides is also promising. This gives the
Group confidence that PREtec peptides will be cost-effective in the
field and provide a competitive advantage. Preliminary estimates
suggest margins could be comparable to those which the Group
currently enjoys with Harpin <ALPHA>ß.
Work continues with evaluation partners to develop both
technical profiles and routes to commercialisation. The Group
expects to access the market through technology licences for
several products. However, following the review of
commercialisation strategy and recognising the growing strength of
the Group's commercial relationship with distributors, some of the
products are now expected to be commercialised directly with
in-country distribution. We believe that this sales route will take
products to market more rapidly and result in higher margins being
retained by the Group.
What is PREtec?
PREtec works by inducing natural defensive and metabolic
responses in crop plants so that they suffer less harm from the
usual stresses (like nematodes or disease) faced during a growing
season. This is achieved by designing peptides that mimic the
active sites of larger naturally-occurring proteins to which plants
are evolved to respond defensively. These peptides are generally
accepted as being safe to handle and having negligible toxicity.
They do not leave any detectible residue and rapidly degrade so
that they do not persist on the plant after application. For these
reasons, PREtec peptides should be generally easier, cheaper and
quicker to register for commercial use than most other agricultural
chemicals.
Intellectual Property Protection of PREtec
Novel variations in peptide structures and their use in
agriculture are patentable. It is possible to design a very large
number of closely related peptide variants. Our first proprietary
peptide platform, Innatus 3G, was introduced to partners in
2014-15. In 2016, we presented the next two platforms - T-Rex 3G
and Y-Max 3G each of which has biological activity which is
distinct from but complements Innatus 3G. We continue to design
peptides which will be evaluated and launched in due course.
Plant Health Care has an extensive global portfolio consisting
of more than 40 patent applications pending worldwide which cover
the various PREtec platforms and their use in agricultural
applications. The patent applications also include the genes that
code for those peptides in order to, for example, create crops
having increased innate defensive responses to disease. The Group's
IP estate covers a significant share of the 'space' available for
using peptides in agricultural production.
Financial and corporate
Net cash used in operations was $6.3 million (2017: $6.1
million). Included in the cash used in operations is an increase in
the Group's inventory offset by lower accounts receivable and
accounts payable balances. The delay in the launch of the soy
product caused the Group's inventory to be $0.6 million higher than
expected. The Group anticipates that this inventory will be
consumed in the second half of 2019.
Constant currency
We evaluate our results of operations on both an as reported and
a constant currency basis. The constant currency presentation,
which is a non-IFRS measure, excludes the impact of fluctuations in
foreign currency exchange rates. We believe providing constant
currency information provides valuable supplemental information
regarding our results of operations, consistent with how we
evaluate our performance. We calculate constant currency
percentages by converting our prior-period local currency financial
results using the current period exchange rates and comparing these
adjusted amounts to our current period reported results.
Board changes
I have had the honour to act as Interim Chief Executive Officer,
as well as Executive Chairman, since November 2016. The Board
reviews these arrangements regularly and has requested that I
continue as Interim CEO for the time being. The Board will review
the situation periodically and may initiate a search for a new CEO
in due course.
Dr Richard Webb stepped down from his role as Executive Director
for New Technology at the end of 2018. From that date, he resumed
his earlier role as Non-executive Director.
Outlook
Agriculture markets are generally stable at present. Demand for
agrochemicals is unlikely to grow significantly until commodity
prices increase. However, growers are increasingly adopting
biological products, because of their potential to improve
productivity while reducing environmental impact. Based on various
reports, we expect growth in the demand for biological products to
increase at approximately 10% per annum from 2018 to 2020. We are
confident that Harpin <ALPHA>ß sales will continue to grow
significantly faster than the market for biological products as a
whole over the medium term. However, sales in any one period will
be subject to seasonal factors such as weather, timing of
registrations and requirements of distributor partners.
Furthermore, we sell our products into our distributors in advance
of the growing season with the next year's demand in large part
driven by the conditions during that season. As a result, Group
sales may not follow a strictly linear trend and in some cases can
see short delays which can switch sales in some markets from one
calendar year to the next.
We are confident of strong revenue growth in 2019, based on the
successful launches of Harpin <ALPHA>ß in sugarcane and soy
in Brazil and in US corn. In addition, we are launching a product
for soy seed treatment in the USA in 2019, through the same
distribution partner which launched the corn product in 2018. The
combination of these product launches, on top of growth in existing
markets, is in our view likely to accelerate our revenue growth
over the coming years.
In PREtec we are focusing on accelerating product development,
with a view to launching products from 2021 onwards. We expect to
generate revenue in the coming years through both technology
licensing and direct sales approaches.
Plant Health Care has a clearly defined strategy, which we are
implementing effectively. 2019 will be a decisive year for the
Group, which we enter with confidence.
In closing, I would like to thank the entire Plant Health Care
team for all their hard work during the year. Strong results come
from great people, working towards shared goals. As Interim CEO, I
am proud of the Group's impressive team of highly motivated
professionals, in whom I have the greatest confidence.
Our products and technologies
Harpin <ALPHA>ß
Harpin <ALPHA>ß is an exceptionally powerful biostimulant,
which stimulates the plant's natural defence systems. The result is
increased yield, quality and improved resistance to soil pests and
disease. Harpin <ALPHA>ß is a recombinant protein, developed
from the original research by the Company's Chief Science Officer
Dr Zhongmin Wei on naturally occurring Harpin proteins.
Sales of Harpin <ALPHA>ß have grown at 20% CAGR over the
six years to 2018, since we adopted a strategy of expanding
registrations and developing distribution through new partners. We
are now able to sell Harpin <ALPHA>ß in more than 14
countries. Sales were developed initially in a range of fruit and
vegetable crops in the USA, Mexico, Europe and Africa. The focus
over the last three years has been to enter into larger scale
arable or row crops (such as corn, soy and sugarcane), which
provide much larger sales opportunities.
In Mexico, Harpin <ALPHA>ß is now well-established as a
biostimulant for vegetables such as bell peppers, which are grown
in greenhouses for export to the USA. The Company is a significant
player in the application of Harpin <ALPHA>ß in the bell
pepper market in the Sinaloa/Baja California area of Mexico,
delivering increased yield of higher quality product. The Group now
sells in excess of $0.5 million of Harpin <ALPHA>ß in
Mexico.
In Spain, the Group has been developing Harpin ß to improve the
quality of citrus fruits over the last five years. Studies in
co-operation with Barcelona University have shown that applications
of Harpin <ALPHA>ß result in more uniform skin formation and
colour. The practical result is that growers have a higher
proportion of their fruit which grades as export quality, thereby
increasing their economic returns. This work was recognised in
November 2018 in the prestigious Agrow Awards, which evaluates
agricultural inputs from all around the world; the Company was
awarded Best New Biological Product. The Group now makes sales of
$0.6 million in Spain.
After four years of trials, the Group launched Harpin
<ALPHA>ß into sugarcane in Brazil in February 2018. There are
10 million hectares of sugarcane in Brazil, of which more than 50%
are in Sao Paulo State. Demonstration trials have shown very
substantial yield improvements, with average yield increase up to
20%, from a single foliar application of Harpin <ALPHA>ß. The
product was launched under the brand H2Copla, exclusively in Sao
Paulo state by Coplacana, the leading sugarcane co-operative, which
services more than 70% of the sugarcane hectares in Sao Paulo
State. The launch was very well received; the Group sold
approximately $1.0 million into this market in 2018.
Also in Brazil, the Group is developing sales into soy, which is
grown on 35 million hectares. Harpin <ALPHA>ß is applied as a
seed treatment in soy and results in increased yields. Initial
sales were made in the fourth quarter of 2018, through GAIA, a
strong distributor in the Mato Grosso.
After several years of trials, the Group launched Harpin
<ALPHA>ß into corn in September 2018. In this case, Harpin
<ALPHA>ß is sold as a mixture product for on-farm seed
treatment. The product is being sold by a leading distributor of
inputs to corn growers, which supplies products into the 90 million
acre US corn market. The Group sold $1.6 million for this launch in
2018; this product will be used on farm during the spring of
2019.
The Group is now launching Harpin <ALPHA>ß into soy,
through the same distributor in the USA. The product was introduced
into the market on a small scale (a soft launch) in early 2019; if
results are promising, the product is expected to be sold on a
larger scale in the latter part of 2019.
Benefits of Harpin <ALPHA>ß in Brazil
-- There are 10 million hectares of sugarcane in Brazil*
-- There are 5 million hectares of sugarcane in Sao Paulo State
-- Coplacana, our distributor, is the largest supplier of inputs
for sugarcane in Sao Paulo state
-- Applications of H2Copla (Harpin <ALPHA>ß) have been
shown to increase sugarcane yield by as much as 20% resulting in a
possible 20 times return for the grower**
-- Coplacana launched the H2Copla brand in February 2018.
* Based on 2016 sugarcane harvested data and 2017/2018 projected
data from USDA Foreign Agricultural Service's GAIN report dated 19
April, 2017.
** Yield increase based on Plant Health Care field trials
conducted on sugarcane in Brazil in 2017; Value and ROI based on
cost data from Agrianual 2016 FNP - Informa report.
PREtec
PREtec (Plant Response Elicitor technology) is our core new
technology, inspired by harpin proteins found in nature. Based on
our unique understanding of how key amino acid sequences elicit a
desired response in target crops, we are able to design families of
peptides (chains of amino acids) that when applied to crops provide
increased growth, disease resistance and other benefits for
farmers. We have so far designed and filed patent applications for
four peptide platforms from our research; three of these have been
named and launched with partners. Each family of related peptides
is considered its own platform, all covered by extensive patent
filings. In the chart below, 3G signifies third generation product
candidates (distinct from the second generation commercial Harpin
<ALPHA>ß products). In addition, we have a fourth generation
(4G) platform, consisting of the use of custom genes within plants
and microbes to express the desired PREtec protein.
PREtec: three patented platforms
Since 2012, the Group has conducted extensive laboratory,
greenhouse and field trials in our own facilities, with
co-operators and with more than 10 evaluation partners. These
trials have demonstrated the potential of our lead PREtec peptides
in a wide range of crops to deliver targeted agronomic benefits,
such as stronger root growth, resistance to attack by fungi and
soil pests (nematodes) and improved recovery from the effects of
drought. In parallel, we are well advanced in development of
production methods, which hold out the promise of PREtec peptides
being cost-effective in the field. In August 2018, the Group
submitted an application for registration with the EPA in the USA
for approval to sell PHC398 as a biopesticide and expect to receive
approval during 2020; registration of other peptides in the USA
will follow, permitting the first launches of PREtec peptides in
2021. Registrations in Brazil will follow.
Within each 3G platform, we are able to modify the peptide
sequence in order to customise the performance of peptides in
various ways. For example, to make them better at inducing
resistance to pests and diseases in plants, to improve the
tolerance of plants to drought or to accelerate root growth.
Furthermore, we can optimise the physical and chemical stability of
peptides, so that they are stable in mixtures with agrochemicals.
Our 3G peptides are designed to be combined with standard crop
protection products through both seed treatment and foliar
applications.
PREtec: Moving from platforms to products
Innatus 3G was our first platform. It delivers a range of
disease and yield benefits to growers and has amassed the most
comprehensive database of compelling crop use-cases in the Group's
testing and in tests conducted by partners. It has been under
evaluation with four of the top global agricultural/seed
companies.
T-Rex 3G is a platform developed to protect crop plants against
pest nematodes. It also shows good effects in limiting the loss of
yield caused by drought stress. Y-Max 3G behaves as a biostimulant,
promoting vigour and yield by regulating growth genes in the plant.
As a biostimulant, Y-Max 3G has the potential to be registered very
quickly in the USA on a state-by-state basis and will appeal to
that segment of the industry focusing on the development and
marketing of crop biostimulants. T-Rex 3G and Y-Max 3G were
introduced to selected partners in the latter part of 2016.
Our fourth platform of 3G peptides offers a tool for improved
resistance to drought, a major and increasing challenge for farmers
in many parts of the world. This platform, which has not yet been
named, is now being introduced to partners.
We are in the early stages of development of our 4G peptide
platform. This platform entails the incorporation of genetic
sequences in the plant enabling it to express peptides internally,
thereby gaining the benefits of improved disease control and
abiotic stress tolerance without the need to apply PREtec to the
surface of the plant.
In New Technology, nine companies, including the top five global
agrochemical/seed companies, conducted PREtec field trials during
2018. For some of these companies, 2018 was their third or even
fourth year of PREtec field trials. Further testing by partners
will continue in 2019. The Group expects to engage in detailed
discussions with some of these companies in late 2019 and 2020
concerning commercial terms of access to select PREtec peptides for
use in key crops and geographies. These discussions are expected to
lead to one or more significant commercial transactions in due
course. However, given the uncertain timing of concluding licences,
the Group is actively seeking additional routes to market, with a
view to launching products soon after first registrations are
granted. These additional routes will include direct sales to
distributors in the USA and Brazil. Relationships which we have
established with large distributors for the sale of Harpin ß are
developing in a very positive manner; these and other partners are
highly interested in commercialising PREtec peptides. We anticipate
that sales into certain markets through large distributors will
allow us to launch products more quickly and to retain higher
margins within the Group. We anticipate that a series of commercial
collaborations will be finalised in due course, which will target
launches of products from 2021 onwards.
Our laboratory, glasshouse and field trials, and a number of
other trials run for us by university groups and other specialists,
have continued to demonstrate that PREtec peptides from the Innatus
3G, T-Rex 3G and Y-Max 3G families can deliver targeted agronomic
benefits, such as stronger root growth, resistance to attack by
fungi and soil pests (nematodes), and improved recovery from the
effects of drought. All of these benefits lead to increased crop
yield and quality which translates directly into higher financial
return for growers.
Financial review
A summary of the financial results for the year ended 31
December 2018 with comparatives for the previous financial year is
set out below:
2018 2017
$'000 $'000
---------------------- ------- -------
Revenue 8,128 7,685
Gross profit 5,271 4,732
65% 62%
Operating loss (8,033) (5,801)
Finance income (net) 89 85
Net loss for the year (7,944) (5,716)
---------------------- ------- -------
Revenues
Revenues in 2018 increased by 5% to $8.1 million (2017: $7.7
million) as a result of strong growth in our Americas segment. The
gross margin increased 3% to 65% (2017: 62%) due to level of
margins achieved on strong sales in North America.
Americas
This segment includes activities in both North and South America
but is exclusive of Mexico.
External revenue in the Americas segment increased 105% to $3.3
million (2017: $1.6 million). The increase in revenue was primarily
due to increased sales of Harpin <ALPHA>ß in corn in North
America and sugarcane in South America. The initial launch of our
soy product in North America was delayed, but sales have started on
a modest scale in early 2019. Revenue in the Americas is
predominantly from Harpin <ALPHA>ß sales.
Mexico
A significant portion of the Group's revenue continues to come
from Mexico. Revenue from the Mexican segment increased 9% (10% in
local currency) to $3.1 million (2017: $2.9 million). This was due
to the rebound of produce prices in the north-west portion of
Mexico. Revenue in Mexico includes sales of Harpin <ALPHA>ß,
Myconate and third-party products.
Rest of World
External revenue in the Rest of World segment decreased 46% (48%
in constant currency) to $1.7 million (2017: $3.2 million). The
decrease was primarily due to slower draw-down of in-market
inventory in the South African region partially offset by a sales
increase of 16% in Spain. Revenue in the Rest of World segment is
predominantly from Harpin <ALPHA>ß and some Myconate
sales.
Operating expenses
Operating expenses increased to $13.3 million from $10.5
million. The increase was principally due to a non-cash expense in
relation to Sterling loans within our UK subsidiary resulting in a
foreign currency loss of $1.2 million (2017: foreign currency gain
of $1.3 million). The foreign currency loss was charged to
Administration expenses. During 2018, the Group agreed to transfer
stock from our original distributor to a new distributor in South
Africa in order to strengthen its sales position in this region.
The transfer of stock has been accounted for by the Group recording
a sale of $0.6 million to the new distributor and a write-off of
receivables with the original distributor of $0.6 million.
In addition, we have set out in Note 6 the separate category of
expenditure relating to Business Development, which decreased to
$0.5 million in 2018 (2017: $0.6 million). This relates to reduced
personnel costs and other costs relating to customer support and
market research.
Unallocated corporate expenses increased $3.2 million to $2.9
million (2017: $0.3 million gain). The increase was attributable to
the decrease in the value of Sterling loans from our UK subsidiary
due to the appreciation of the Pound.
Balance sheet
At 31 December 2018 and 2017, investments, cash and cash
equivalents were $4.3 million and $3.9 million respectively.
Working capital increased to $8.6 million in 2018 (2017: $7.2
million). The increase is primarily due to increased inventory of
$1.4 million. Other contributors to the working capital increase
was lower accounts receivable and accounts payable balances. The
Group made significant Harpin <ALPHA>ß and other inventory
purchases ($1.0 million) in the second half of 2018. The Group
expects this inventory to be consumed in the first half of 2019.
The launch of a new product for the soy crop in the USA was
delayed, with its associated revenues, until 2019. This delay
caused our inventory levels to be $0.6 million higher than
anticipated. The Group expects the inventory for the soy product to
be used during 2019.
Translation of the results of foreign subsidiaries for inclusion
within the consolidated Group results resulted in an exchange gain
of $1.1 million recorded within Other Comprehensive Income and
Foreign Exchange Reserves (2017: loss of $1.3 million).
Cash flow and liquidity
Net cash used in operations was $6.3 million (2017: $6.1
million). Included in the cash used in operations is an increase in
the Group's inventory offset by lower accounts receivable and
accounts payable balances. The delay in the launch of the soy
product caused the Group's inventory to be $0.6 million higher than
expected. The Group anticipates that this inventory will be
consumed in the second half of 2019.
Net cash provided by investing was $0.9 million in 2018 (2017:
$2.6 million). The Group holds surplus cash in several bond and
money market funds. The movement in these funds was used to further
invest in the New Technology business and fund the Commercial
business.
Net cash provided by financing activities was $6.7 million for
2018 (2017: $nil). The difference is due to a $6.7 million (net of
costs) fundraise concluded in February 2018 from new and existing
investors.
Consolidated statement of comprehensive income
for the year ended 31 December 2018
2018 2017
Note $'000 $'000
--------------------------------------------------------- ---- ------- -------
Revenue 4 8,128 7,685
Cost of sales (2,857) (2,953)
--------------------------------------------------------- ---- ------- -------
Gross profit 5,271 4,732
Research and development expenses (4,090) (5,127)
Business development expenses (501) (623)
Sales and marketing expenses (3,154) (2,995)
Administrative expenses (5,559) (1,788)
--------------------------------------------------------- ---- ------- -------
Operating loss 5 (8,033) (5,801)
Finance income 7 90 87
Finance expense 7 (1) (2)
--------------------------------------------------------- ---- ------- -------
Loss before tax (7,944) (5,716)
Income tax credit 8 252 262
--------------------------------------------------------- ---- ------- -------
Loss for the year attributable to the equity holders
of the parent company (7,692) (5,454)
Other comprehensive income:
Items which will or may be reclassified to profit
or loss:
Exchange difference on translation of foreign operations 1,120 (1,282)
--------------------------------------------------------- ---- ------- -------
Total comprehensive loss for the year attributable
to the equity holders of the parent company (6,572) (6,736)
--------------------------------------------------------- ---- ------- -------
Basic and diluted loss per share 9 $(0.05) $(0.04)
--------------------------------------------------------- ---- ------- -------
Consolidated statement of financial position
at 31 December 2018
2018 2017
Note $'000 $'000
------------------------------ ---- -------- --------
Assets
Non-current assets
Intangible assets 10 1,692 1,898
Property, plant and equipment 701 968
Trade and other receivables 11 140 134
------------------------------ ---- -------- --------
Total non-current assets 2,533 3,000
------------------------------ ---- -------- --------
Current assets
Inventories 2,975 1,536
Trade and other receivables 11 3,357 4,311
Tax receivable 400 377
Investments 1,825 2,719
Cash and cash equivalents 2,459 1,175
------------------------------ ---- -------- --------
Total current assets 11,016 10,118
------------------------------ ---- -------- --------
Total assets 13,549 13,118
------------------------------ ---- -------- --------
Liabilities
Current liabilities
Trade and other payables 12 2,404 2,879
Finance leases 13 - 8
------------------------------ ---- -------- --------
Total current liabilities 2,404 2,887
------------------------------ ---- -------- --------
Total liabilities 2,404 2,887
------------------------------ ---- -------- --------
Total net assets 11,145 10,231
------------------------------ ---- -------- --------
Share capital 2,586 2,237
Share premium 86,126 79,786
Foreign exchange reserve 731 (389)
Accumulated deficit (78,298) (71,403)
------------------------------ ---- -------- --------
Total equity 11,145 10,231
------------------------------ ---- -------- --------
Consolidated statement of changes in equity
for the year ended 31 December 2018
Foreign
Share Share exchange Accumulated
capital premium reserve deficit Total
$'000 $'000 $'000 $'000 $'000
------------------------------------------- --------- --------- --------- ------------ -------
Balance at 1 January 2017 2,237 79,786 893 (66,885) 16,031
------------------------------------------- --------- --------- --------- ------------ -------
Loss for the year - - - (5,454) (5,454)
Exchange difference arising on translation
of foreign operations - - (1,282) - (1,282)
------------------------------------------- --------- --------- --------- ------------ -------
Total comprehensive income/(loss) - - (1,282) (5,454) (6,736)
Shares issued - - - - -
Share-based payments - - - 936 936
Options exercised - - - - -
------------------------------------------- --------- --------- --------- ------------ -------
Balance at 31 December 2017 2,237 79,786 (389) (71,403) 10,231
------------------------------------------- --------- --------- --------- ------------ -------
Loss for the year - - - (7,692) (7,692)
Exchange difference arising on translation
of foreign operations - - 1,120 - 1,120
------------------------------------------- --------- --------- --------- ------------ -------
Total comprehensive income/(loss) - - 1,120 (7,692) (6,572)
Shares issued 349 6,340 - - 6,689
Share-based payments - - - 797 797
Options exercised - - - - -
------------------------------------------- --------- --------- --------- ------------ -------
Balance at 31 December 2018 2,586 86,126 731 (78,298) 11,145
------------------------------------------- --------- --------- --------- ------------ -------
Consolidated statement of cash flows
for the year ended 31 December 2018
Restated
*
2018 2017
Note $'000 $'000
----------------------------------------------------- ---- ------- --------
Cash flows from operating activities
Loss for the year (7,692) (5,454)
Adjustments for:
Depreciation 382 393
Amortisation of intangibles 10 206 264
Share-based payment expense 797 936
Finance income 7 (90) (87)
Finance expense 7 1 2
Foreign exchange on intercompany 14 1,120 (1,261)
Income taxes credit (252) (262)
Decrease/(increase) in trade and other receivables 11 961 (1,024)
Gain on disposal of fixed assets (7) (4)
Increase in inventories (1,439) (291)
(Decrease)/increase in trade and other payables (475) 771
Income taxes /received/(paid) 216 (121)
----------------------------------------------------- ---- ------- --------
Net cash used in operating activities (6,272) (6,138)
----------------------------------------------------- ---- ------- --------
Investing activities
Purchase of property, plant and equipment (115) (125)
Sale of property, plant and equipment 7 4
Finance income 7 90 87
Purchase of investments (3,994) (2,258)
Sale of investments 4,887 4,888
----------------------------------------------------- ---- ------- --------
Net cash provided by investing activities 875 2,596
----------------------------------------------------- ---- ------- --------
Financing activities
Finance expense 7 (1) (2)
Issue of ordinary share capital 6,689 -
Repayment of finance lease principal (7) (8)
----------------------------------------------------- ---- ------- --------
Net cash provided/(used) by financing activities 6,681 (10)
----------------------------------------------------- ---- ------- --------
Net increase/(decrease) in cash and cash equivalents 1,284 (3,552)
Cash and cash equivalents at the beginning of period 1,175 4,727
----------------------------------------------------- ---- ------- --------
Cash and cash equivalents at the end of period 2,459 1,175
----------------------------------------------------- ---- ------- --------
*- See note 14
1. Basis of Preparation
The financial information set out in this document does not
constitute the Group's statutory accounts for the years ended 31
December 2017 or 2018. Statutory accounts for the years ended 31
December 2017 and 31 December 2018, which were approved by the
directors on 9 April 2019, have been reported on by the Independent
Auditors. The Independent Auditor's Reports on the Annual Report
and Financial Statements for each of 2017 and 2018 were
unqualified, did not draw attention to any matters by way of
emphasis, and did not contain a statement under 498(2) or 498(3) of
the Companies Act 2006.
Statutory accounts for the year ended 31 December 2017 have been
filed with the Registrar of Companies. The statutory accounts for
the year ended 31 December 2018 will be delivered to the Registrar
in due course and will be communicated to shareholders shortly, and
thereafter will be available from the Company's registered office
at 1 Scott Place, 2 Hardman Street, Manchester M3 3AA and from the
Group's website www.planthealthcare.com.
The financial information set out in these results has been
prepared using the recognition and measurement principles of
International Accounting Standards, International Financial
Reporting Standards and Interpretations adopted for use in the
European Union (collectively Adopted IFRSs). The accounting
policies adopted in these results have been consistently applied to
all the years presented and are consistent with the policies used
in the preparation of the financial statements for the year ended
31 December 2017, except for those that relate to new standards and
interpretations effective for the first time for periods beginning
on (or after) 1 January 2018. New standards impacting the Group
that have be adopted in the annual financial statements for the
year ended 31 December 2018 are IFRS 9 Financial Instruments and
IFRS 15 Revenue from contracts with customers. Other new standards,
amendments and interpretations to existing standards, which have
been adopted by the Group have not been listed, since they have no
material impact on the financial statements. The Group's financial
statements have been presented in US Dollars.
2. Accounting policies
Going concern
In assessing whether the going concern basis is an appropriate
basis for preparing the 2018 Annual Report, the Directors have
utilised its detailed forecasts which take into account its current
and expected business activities, its cash and cash equivalents
balance and investments of $4.3 million as shown in its balance
sheet at 31 December 2018, the principal risks and uncertainties
the Group faces and other factors impacting the Group's future
performance.
Various sensitivity analyses have been performed to reflect
possible downside scenarios as referred to above. Even in the worst
case scenario whereby the Group achieves reduced revenues for the
twelve months following the date of this Annual Report, the Group
has sufficient resources to continue in operational existence for
the foreseeable future. In order to provide sufficient headroom the
Directors have identified costs savings associated with the
reduction in revenues and have the ability to identify further cost
savings if necessary.
Basis of measurement
The consolidated financial statements have been prepared on a
historical cost basis, except for financial instruments designated
at fair value through the profit and loss.
New standards impacting the Group that have been adopted in the
annual financial statements for the year ended 31 December 2018,
and which have given rise to changes in the Group's accounting
policies are:
-- IFRS 9 Financial Instruments; and
-- IFRS 15 Revenue from Contracts with Customers
Details of the impact of these two standards are given
below.
IFRS 9 Financial Instruments
IFRS 9 has replaced IAS 39 Financial Instruments: Recognition
and Measurement, and has had an effect on the Group in the
following area:
-- The impairment provision on financial assets measured at
amortised cost (such as trade and other receivables) have been
calculated in accordance with IFRS 9's expected credit loss model,
which differs from the incurred loss model previously required by
IAS 39. This has not resulted in a material change to the
impairment provision at 1 January 2018.
IFRS 15 Revenue from Contract with Customers
-- IFRS 15 has replaced IAS 18 Revenue and IAS 11 Construction
Contracts as well as various Interpretations previously issued by
the IFRS Interpretations Committee, noting the Group has adopted
the modified retrospective approach.
The Group has reviewed and refined its revenue recognition
policy in accordance with the new accounting standard. As part of
this review the Group now recognises any marketing support payments
provided in conjunction with sales contracts as a reduction to
revenue (previously recorded as marketing expenditure, however
payments made under these initiatives in prior years were
immaterial such that no adjustment to opening reserves has been
recorded).
Additional disclosure has also been provided regarding the
nature, amount, timing and uncertainty of revenue and cash
flows.
Basis of consolidation
These consolidated financial statements incorporate the
financial statements of the Group and the entities controlled by
the Group. Control exists when the Group has (i) power over the
investee, (ii) exposure, or rights, to variable returns from its
involvement with the investee, and (iii) the ability to use its
power over the investee to affect the amount of the investor's
returns. The financial statements of subsidiaries are included in
the consolidated financial statements from the date that control
commences until the date that control ceases. All significant
intercompany transactions, balances, revenues and expenses have
been eliminated.
The consolidated financial statements incorporate the results of
business combinations using the purchase method. In the
consolidated statement of financial position, the acquiree's
identifiable assets, liabilities and contingent liabilities are
initially recognised at their fair values at the acquisition date.
The results of acquired operations are included in the statement of
comprehensive income from the date on which control is obtained.
They are deconsolidated from the date control ceases.
Revenue
The Group recognises revenue at the fair value of consideration
received or receivable. Sales of goods to external customers are at
invoiced amounts less value-added tax or local tax on sales. The
Group currently generates revenue solely within its Commercial
business through the sale of its proprietary and third-party
products, as well as from granting certain licences for the use of
its intellectual property. Credit terms provided to customers also
affects the recognition of revenue where a significant financing
component is considered to exist.
The majority of the Group's revenue is derived from selling
goods with revenue recognised at a point in time when control of
the goods has transferred to the customer. This is generally when
the goods are delivered to the customer. However, for some sales,
control might also be transferred when delivered either to the port
of departure or port of arrival, depending on the specific terms of
the contract with a customer. There is minimal judgement needed in
identifying the point control passes to the customer: once physical
delivery of the products to the agreed location has occurred, the
group no longer has physical possession, usually will have a
present right to payment (as a single payment on delivery) and
retains none of the significant risks and rewards of the goods in
question.
In the limited situations where the Group offers a product
rebate to the customer, it records the fair value of the product
rebate as a reduction to product revenue. An accrued liability for
these product rebates is estimated and recorded at the time the
revenues are recorded.
Licence/milestone payment income is recognised when the Group
has no remaining obligations to perform under a non-cancellable
contract which permits the user to act freely under the terms of
the agreement and the collection of the resulting receivable is
reasonably assured. To date the Group has not achieved the
performance obligations for any milestone payments.
Sales support payments to customers are considered a reduction
in transaction price and are recognised as a reduction to revenue
as incurred.
Goodwill
Goodwill is measured as the excess of the cost of an acquisition
over the net fair value of the identifiable assets, liabilities and
contingent liabilities, plus any direct costs of acquisition for
acquisitions before 1 January 2010. For business combinations
completed on or after 1 January 2010, direct costs of acquisition
are recognised immediately as an expense.
Goodwill is capitalised as an intangible asset with any
impairment in carrying value being charged to administrative
expenses in the consolidated statement of comprehensive income. The
Group performs annual impairment tests for goodwill at the
financial year end.
Other intangible assets
Externally-acquired intangible assets are initially recognised
at cost and subsequently amortised on a straight-line basis over
their useful economic lives. The amortisation expense is included
within administrative expenses in the consolidated statement of
comprehensive income.
Intangible assets are recognised on business combinations if
they are separable from the acquired entity or give rise to
contractual or other legal rights, and are initially recognised at
their fair value.
Expenditure on internally-developed intangible assets
(development costs) are capitalised if it can be demonstrated
that:
-- it is technically feasible to develop the product for it to be sold;
-- adequate resources are available to complete the development;
-- there is an intention to complete and sell the product;
-- the Group is able to sell the product;
-- sale of the product will generate future economic benefits; and
-- expenditure on the project can be measured reliably.
Development expenditure not satisfying the above criteria and
expenditure on the research phase of internal projects are
recognised in profit or loss.
Capitalised development costs are amortised over the periods of
the future economic benefit attributable to the asset. The
amortisation expense is included within administrative expenses in
the consolidated statement of comprehensive income. The Group has
not capitalised any development costs to date.
The significant intangibles recognised by the Group and their
estimated useful economic lives are as follows:
Licences - 12 years
Registrations - 5-10 years
Impairment of goodwill and other intangible assets
Impairment tests on goodwill are undertaken annually at the
financial year end. Other non-financial assets are subject to
impairment tests whenever events or changes in circumstances
indicate that their carrying amount may not be recoverable. Where
the carrying value of an asset exceeds its recoverable amount (that
is the higher of value in use and fair value less costs to sell),
the asset is written down accordingly.
Impairment charges are included within administrative expenses
in the consolidated statement of comprehensive income. An
impairment loss recognised for goodwill is not reversed.
Foreign currency
Foreign currency transactions of individual companies are
translated into the individual company's functional currency at the
rate on the date the transaction occurs.
At the year end, non-functional currency monetary assets and
liabilities are translated at the year-end rate with the
differences being recognised in the profit or loss.
On consolidation, the results of operations that have a
functional currency other than US Dollars are translated into US
Dollars at rates approximating to those ruling when the
transactions took place. Statements of financial position are
translated at the rate ruling at the end of the financial period.
Exchange differences arising on translating the opening net assets
at opening rate and the results of operations that have a
functional currency other than US Dollars at average rate are
included within "other comprehensive income" in the consolidated
statement of comprehensive income and taken to the foreign exchange
reserve within capital and reserves.
Operating segments
Operating segments are reported in a manner consistent with the
internal reporting provided to the Group's chief operating decision
maker (CODM). The CODM, who is responsible for allocating resources
and assessing performance of the operating segments, has been
identified as the Chief Executive Officer.
Financial instruments
Trade receivables collectible within one year from the date of
invoicing are recognised at invoice value less provision for
expected credit losses. Trade receivables collectible after more
than one year from the date of invoicing are initially recognised
at fair value, and subsequently carried at amortised cost using the
effective interest rate method, less provision for impairment.
Investments comprise short-term investments in notes and bonds
having investment grade ratings. Investments are designated as at
fair value through profit and loss upon initial recognition when
they form part of a group of financial assets which is actively
managed and evaluated by key management personnel on a fair value
basis in accordance with the Company's documented investment
strategy that seeks to improve the rate of return earned by the
Company on its excess cash while providing unrestricted access to
the funds. The Company's investments are carried at fair value as
determined by quoted prices on active markets, with changes in fair
values recognised through profit or loss.
Cash and cash equivalents comprise cash on hand, demand deposits
and other short-term highly liquid investments that are readily
convertible to a known amount of cash and are subject to
insignificant risk of changes in value.
Trade and other payables are initially recognised at fair value
and subsequently carried at amortised cost using the effective
interest method.
The Group applies both the simplified and general approaches
under IFRS 9 to measure expected credit losses using a lifetime
expected credit loss provision for trade receivables. Under the
simplified approach, expected credit losses on a collective basis,
trade receivables are grouped based on credit risk and aging. Under
the general approach, trade receivables that have payment terms
over 180 day are reviewed.
The expected loss rates are based on the Group's historical
credit losses experienced over the three year period prior to the
period end. The historical loss rates are then adjusted for current
and forward-looking information on factors affecting the Group's
customers.
Equity instruments issued by the Company are recorded at the
proceeds received, net of direct issue costs. The Group's ordinary
shares are classified as equity instruments.
Employee benefits
The Group maintains a number of defined contribution pension
schemes for certain of its employees; the Group does not contribute
to any defined benefit pension schemes. The amount charged to
profit or loss represents the employer contributions payable to the
schemes for the financial period.
The expected costs of all short-term employee benefits,
including short-term compensated absences, are recognised during
the period the employee service is rendered.
Equity share-based payments
The Group operates a number of equity-settled, share-based
payment plans, under which it receives services from employees and
non-employees as consideration for the Group's equity instruments,
in the form of options or restricted stock units ("awards"). The
fair value of the award is recognised as an expense, measured as of
the grant date using a binomial option pricing model. The total
amount to be expensed is determined by reference to the fair value
of instruments granted, excluding the impact of any service and
non-market performance vesting conditions. Non-market vesting
conditions are included in assumptions about the number of options
that are expected to vest. The total expense is recognised over the
vesting period, which is typically the period over which all of the
specified vesting conditions are to be met.
Leased assets: lessee
Where assets are financed by leasing agreements that give rights
approximating to ownership (finance leases), the assets are treated
as if they had been purchased outright. The amount capitalised is
the lower of fair value and present value of the minimum lease
payments payable over the term of the lease. The corresponding
lease commitments are shown as amounts payable to the lessor.
Depreciation on the relevant assets is recognised in profit or loss
over the shorter of useful economic life and lease term.
Lease payments are analysed between capital and interest
components. The interest element of the payment is charged to
income over the period of the lease and is calculated so that it
represents a constant proportion of the balances of capital
repayments outstanding. The capital element reduces the amounts
payable to the lessor.
All other leases are treated as operating leases. Their annual
rentals are charged to income on a straight-line basis over the
lease term.
Property, plant and equipment
Items of property, plant and equipment are initially recognised
at cost. Cost includes the purchase price and costs directly
attributable to bringing the asset into operation. Depreciation is
provided to write off the cost, less estimated residual values, of
all property, plant and equipment over their expected useful
lives.
It is calculated at the following rates:
Production machinery - 10 - 20% per annum
Office equipment - 20 - 33% per annum
Vehicles - 20% per annum
Leasehold improvements - 25% per annum
Inventories
Inventories are initially recognised at cost, and subsequently
at the lower of cost and net realisable value. Cost is based upon a
weighted average cost method. The Group compares the cost of
inventory to its net realisable value and writes down inventory to
its net realisable value, if lower than its cost. Cost comprises
all costs of purchase and all other costs of conversion. Net
realisable value is the estimated selling price in the ordinary
course of business, less applicable variable selling expenses. The
inventory provision is based on which products have been determined
to be obsolete.
Taxation
Current tax is the expected tax payable on the taxable income
arising in the period reported on, calculated using tax rates
relevant to the financial period.
Companies within the group may be entitled to claim special tax
allowances in relation to qualifying research and development
expenditure (e.g. R&D tax credits). The Group accounts for such
allowances as tax credits which means they are recognised when it
is probable that the benefit will flow to the group and that the
benefit can be reliably measured. R&D tax credits reduce
current tax expense and to the extent the amounts are due in
respect of them and not settled by the balance sheet date, reduce
current tax payable.
Deferred tax
Deferred tax assets and liabilities are recognised where the
carrying amount of an asset or liability in the statement of
financial position differs from its tax base, except for
differences on:
-- the initial recognition of goodwill;
-- the initial recognition of an asset or liability in a
transaction which is not a business combination and at the time of
the transaction affects neither accounting nor taxable profit;
and
-- investments in subsidiaries and joint arrangements where the
Group is able to control the timing of the reversal of the
difference and it is probable that the difference will not reverse
in the foreseeable future.
Recognition of deferred tax assets is restricted to those
instances where it is probable that taxable profit will be
available against which the difference can be utilised.
The amount of the asset or liability is determined using tax
rates that have been enacted or substantively enacted by the end of
the financial period and are expected to apply when the deferred
tax liabilities/(assets) are settled/(recovered).
Deferred tax assets and liabilities are offset when the Group
has a legally enforceable right to offset current tax assets and
liabilities and when they relate to income taxes levied by the same
tax authority and the Group intends to settle its current tax
assets and liabilities on a net basis.
3. Critical accounting estimates and judgements
In preparing its financial statements, the Group makes certain
estimates and judgements regarding the future. Estimates and
judgements are continually evaluated based on historical experience
and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. In the future,
actual experience may differ from estimates and assumptions. The
estimates and judgements that have a risk of causing a material
adjustment to the carrying amounts of assets and liabilities within
the next financial year are discussed below.
Revenue
The Group recognises revenue at the fair value of consideration
received or receivable. Sales of goods to external customers are at
invoiced amounts less value-added tax or local tax on sales. The
Group currently generates revenue solely within its Commercial
business through the sale of its proprietary and third-party
products, as well as from granting certain licences for use of its
intellectual property. When the Group makes product sales under
contracts / agreements which may be inclusive of additional
performance obligations, different payment terms and associated
rebate or support payments judgement can be required in the
assessment of the transaction price.
Impairment of goodwill
The Group tests whether goodwill has suffered any impairment on
an annual basis. The recoverable amount is determined based on
value-in-use calculations. The use of this method requires the
estimation of future cash flows and the choice of a discount rate
in order to calculate the present value of the cash flows. Actual
outcomes may vary. Additional information on carrying values is
included in note 10.
Impairment of intangible assets (excluding goodwill)
At the end of the financial period, the Group reviews the
carrying amounts of its definite lived intangible assets to
determine whether there is any indication that those assets have
suffered any impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated to determine the
extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs to
sell and value in use. In assessing the value in use, the estimated
future cash flows are discounted to their net present value using a
pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset.
If the recoverable amount of an asset is estimated to be less
than its carrying amount, the carrying amount of the asset is
reduced to its recoverable amount. An impairment loss is recognised
immediately within administrative expenses in the consolidated
statement of comprehensive income. Additional information on
carrying values is included in note 10.
Recoverability of trade receivables
The Group applies both the simplified and general approaches
under IFRS 9 to measure expected credit losses using a lifetime
expected credit loss provision for trade receivables. Under the
simplified approach, expected credit losses on a collective basis,
trade receivables are grouped based on credit risk and aging. Given
the Group has a low history of default limited judgement is
required for trade receivables in this grouping.
The Group then separately reviews those receivables with payment
terms over 180 days using the general approach. Under this approach
judgements are required in the assessment of the risk and
probability of credit losses and the quantum of the loss in the
event of a default. The Group has debtors with a gross value
(before provisioning but after the assessment of financing
components) of $1.3 million within this grouping.
4. Revenue
2018 2017
Revenue arises from: $'000 $'000
--------------------- ------ ------
Proprietary products 5,581 5,344
Third-party products 2,547 2,341
--------------------- ------ ------
Total 8,128 7,685
--------------------- ------ ------
The following table gives an analysis of revenue according to
sales with payment terms of less than or more than 180 days:
Year to 31 December 2018:
Sales contracts Sales contracts
with payment with payment
terms less terms greater
than 180 than 180
days days Total
Segment ($'000) ($'000) ($'000)
-------------- --------------- --------------- -------
Mexico 3,127 - 3,127
Americas 3,270 - 3,270
Rest of World 769 962 1,731
-------------- --------------- --------------- -------
7,166 962 8,128
-------------- --------------- --------------- -------
Sales contracts Sales contracts
with payment with payment
terms less terms greater
than 180 than 180
days days Total
Timing of transfer of goods ($'000) ($'000) ($'000)
---------------------------------------------- --------------- --------------- -------
Point in time (delivery to port of departure) 7,079 282 7,361
Point in time (delivery to port of arrival) 87 680 767
---------------------------------------------- --------------- --------------- -------
7,166 962 8,128
---------------------------------------------- --------------- --------------- -------
Year to 31 December 2017:
Sales contracts Sales contracts
with payment with payment
terms less terms greater
than 180 than 180
days days Total
Segment ($'000) ($'000) ($'000)
-------------- --------------- --------------- -------
Mexico 2,880 - 2,880
Americas 444 1,155 1,599
Rest of World 1,139 2,067 3,206
-------------- --------------- --------------- -------
4,463 3,222 7,685
-------------- --------------- --------------- -------
Sales contracts Sales contracts
with payment with payment
terms less terms greater
than 180 than 180
days days Total
Timing of transfer of goods ($'000) ($'000) ($'000)
---------------------------------------------- --------------- --------------- -------
Point in time (delivery to port of departure) 4,157 1,278 5,435
Point in time (delivery to port of arrival) 306 1,944 2,250
---------------------------------------------- --------------- --------------- -------
4,463 3,222 7,685
---------------------------------------------- --------------- --------------- -------
Financing component of sales contracts ($'000)
----------------------------------------------------- -------
At 1 January 2018 -
Financing components recognised 324
Financing components unwound to the income statement (20)
----------------------------------------------------- -------
At 31 December 2018 304
----------------------------------------------------- -------
5. Operating loss
2018 2017
Note $'000 $'000
--------------------------------------------------------- ----- ------ -------
Operating loss is arrived at after charging/(crediting):
Share-based payment charge 797 936
Depreciation 382 393
Amortisation of intangibles 10 206 264
Operating lease expense 420 446
Gain on disposal of property, plant and equipment (7) (4)
Impairment of trade receivables 174 -
Employee termination costs 308 228
Foreign exchange losses/gains 1,485 (1,432)
--------------------------------------------------------- ----- ------ -------
Auditor's remuneration:
Amounts for audit of parent company and consolidation 95 79
Amounts for audit of subsidiaries 41 34
--------------------------------------------------------- ----- ------ -------
Total auditor's remuneration 136 113
--------------------------------------------------------- ----- ------ -------
6. Segment information
The Group's CODM views, manages and operates the Group's
business segments according to its strategic business focuses
-Commercial and New Technology. The CODM further analyses the
results and operations of the Group's Commercial business on a
geographical basis; and therefore the Group has presented separate
geographic segments within its Commercial business below:
Commercial - Americas (North and South America, other than Mexico);
Commercial - Mexico; and Commercial - Rest of World. The Rest of
World segment includes the results of the United Kingdom and
Spanish subsidiaries, which together operate across Europe and
South Africa. The Group's Commercial segments are focused on the
sale of biological products and are the Group's only revenue
generating segments. The Group's New Technology segment is focused
on the research and development of the Group's PREtec platform.
Below is information regarding the Group's segment loss
information for the year ended:
Rest
of Total New
Americas Mexico World Elimination Commercial Technology Total
2018 $'000 $'000 $'000 $'000 $'000 $'000 $'000
-------------------------------- -------- ------- ------- ----------- ----------- ----------- --------
Revenue*
Proprietary product sales 3,244 606 1,731 - 5,581 - 5,581
Third-party product sales 26 2,521 - - 2,547 - 2,547
Inter-segment product sales 1,539 - 67 (1,606) - - -
-------------------------------- -------- ------- ------- ----------- ----------- ----------- --------
Total revenue 4,809 3,127 1,798 (1,606) 8,128 - 8,128
-------------------------------- -------- ------- ------- ----------- ----------- ----------- --------
Group consolidated revenue 4,809 3,127 1,798 (1,606) 8,128 - 8,128
-------------------------------- -------- ------- ------- ----------- ----------- ----------- --------
Cost of sales (2,242) (1,574) (647) 1,606 (2,857) - (2,857)
Research and development - - - - - (3,487) (3,487)
Business development (478) - - - (478) (23) (501)
Sales and marketing (1,302) (805) (1,047) - (3,154) - (3,154)
Administration** (786) (250) (1,001) - (2,037) (193) (2,230)
Non-cash expenses:
Depreciation (25) (51) (4) - (80) (302) (382)
Amortisation (201) - (5) - (206) - (206)
Share-based payment (17) - (61) - (78) (395) (473)
-------------------------------- -------- ------- ------- ----------- ----------- ----------- --------
Segment operating (loss)/profit (242) 447 (967) - (762) (4,400) (5,162)
Corporate expenses***
Wages and professional fees (1,334)
Administration**** (1,537)
-------------------------------- -------- ------- ------- ----------- ----------- ----------- --------
Operating loss (8,033)
Finance income 90
Finance expense (1)
-------------------------------- -------- ------- ------- ----------- ----------- ----------- --------
Loss before tax (7,944)
-------------------------------- -------- ------- ------- ----------- ----------- ----------- --------
* Revenue from one customer within the Americas segment totalled
$1,611,000, or 20% of Group revenues.
Revenue from one customer within the Mexico segment totalled
$1,089,000 or 14% of Group revenues.
Revenue from one customer within the Rest of World segment
totalled $1,100,000 or 14% of Group revenues.
** The Administration expense for the Rest of World segment
includes a charge of $600,000 for the write-off of receivables.
During 2018, the Group transferred stock from our original
distributor to a new distributor in South Africa in order to
strengthen its sales position in this region. This transfer of
stock has been accounted for by the Group recording a write-off of
receivables with the original distributor of $600,000.
*** 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 payment expense of $324,000
attributed to corporate employees who are not affiliated with any
of the Commercial or New Technology segments.
Other segment Information
Rest
of Total New
Americas Mexico World Eliminations Commercial Technology Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000
-------------------- -------- ------- ------ ------------ ----------- ----------- ------
Segment assets 8,369 2,103 2,501 - 12,973 576 13,549
Segment liabilities 1,630 414 168 - 2,212 192 2,404
Capital expenditure 14 58 - - 72 43 115
-------------------- -------- ------- ------ ------------ ----------- ----------- ------
Rest
of Total New
Americas Mexico World Elimination Commercial Technology Total
2017 $'000 $'000 $'000 $'000 $'000 $'000 $'000
-------------------------------- -------- ------- ------- ----------- ----------- ----------- --------
Revenue*
Proprietary product sales 1,574 570 3,200 - 5,344 - 5,344
Third-party product sales 25 2,310 6 - 2,341 - 2,341
Inter-segment product sales 1,608 - 85 (1,693) - - -
-------------------------------- -------- ------- ------- ----------- ----------- ----------- --------
Total revenue 3,207 2,880 3,291 (1,693) 7,685 - 7,685
-------------------------------- -------- ------- ------- ----------- ----------- ----------- --------
Group consolidated revenue 3,207 2,880 3,291 (1,693) 7,685 - 7,685
-------------------------------- -------- ------- ------- ----------- ----------- ----------- --------
Cost of sales (1,978) (1,440) (1,228) 1,693 (2,953) - (2,953)
Research and development - - - - - (4,350) (4,350)
Business development (561) - - - (561) (62) (623)
Sales and marketing (1,277) (688) (1,030) - (2,995) - (2,995)
Administration (860) (318) (58) - (1,236) (188) (1,424)
Non-cash expenses:
Depreciation (30) (55) (7) - (92) (301) (393)
Amortisation (255) - (9) - (264) - (264)
Share-based payment (83) (3) (70) - (156) (632) (788)
-------------------------------- -------- ------- ------- ----------- ----------- ----------- --------
Segment operating (loss)/profit (1,837) 376 889 - (572) (5,533) (6,105)
Corporate expenses**
Wages and professional fees (1,048)
Administration*** 1,352
-------------------------------- -------- ------- ------- ----------- ----------- ----------- --------
Operating loss (5,801)
Finance income 87
Finance expense (2)
-------------------------------- -------- ------- ------- ----------- ----------- ----------- --------
Loss before tax (5,716)
-------------------------------- -------- ------- ------- ----------- ----------- ----------- --------
* Revenue from one customer within the Americas segment totalled
$1,001,000, or 13% of Group revenues.
Revenue from one customer within the RoW segment totalled
$1,958,000, or 25% of Group revenues.
Revenue from one customer within the Mexico segment totalled
$989,000, or 13% 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 payment expense of $148,000
attributed to corporate employees who are not affiliated with any
of the Commercial or New Technology segments.
Other segment information
Rest
of Total New
Americas Mexico World Eliminations Commercial Technology Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000
-------------------- -------- ------- ------ ------------ ----------- ----------- ------
Segment assets 7,014 1,997 3,198 - 12,209 909 13,118
Segment liabilities 1,630 251 420 - 2,301 586 2,887
Capital expenditure - 34 4 - 38 87 125
-------------------- -------- ------- ------ ------------ ----------- ----------- ------
Segment assets include all operating assets used by a segment
and consist principally of operating cash, receivables,
inventories, property, plant and equipment and intangible assets,
net of allowances and provisions. Segment liabilities include all
operating liabilities and consist principally of trade payables and
accrued liabilities.
Geographic information
The Group operates in three principal countries - the United
Kingdom (country of domicile), the US and Mexico.
The Group's revenues from external customers by location of
operation are detailed below:
Year Ended Year Ended
31 December 31 December
2018 2017
--------------- ---------------
Amount Amount
$'000 Percent $'000 Percent
--------------- ------ ------- ------ -------
United Kingdom 1,126 14 2,687 35
United States 2,101 26 1,598 21
Mexico 3,127 38 2,880 37
All other 1,774 22 520 7
--------------- ------ ------- ------ -------
Total 8,128 100 7,685 100
--------------- ------ ------- ------ -------
The Group's non-current assets by location of assets are
detailed below:
Year Ended Year Ended
31 December 31 December
2018 2017
--------------- ---------------
Amount Amount
$'000 Percent $'000 Percent
--------------- ------ ------- ------ -------
United Kingdom 16 1 31 1
United States 2,307 91 2,782 93
Mexico 201 8 180 6
All other 9 - 7 -
--------------- ------ ------- ------ -------
Total 2,533 100 3,000 100
--------------- ------ ------- ------ -------
7. Finance income and expense
2018 2017
$'000 $'000
----------------------------------------- ------ ------
Finance income
Interest on deposits and investments 70 87
Financing component of revenue contracts 20 -
----------------------------------------- ------ ------
90 87
----------------------------------------- ------ ------
Finance expense
Interest on finance leases (1) (2)
----------------------------------------- ------ ------
8. Tax credit
2018 2017
$'000 $'000
-------------------------------------------------------------- ------- -------
Current tax on loss for the year (239) (256)
Deferred tax - origination and reversal of timing differences (13) (6)
-------------------------------------------------------------- ------- -------
Total tax credit (252) (262)
-------------------------------------------------------------- ------- -------
The reasons for the difference between the actual tax charge for
the year and the standard rate of corporation tax in the UK applied
to profits for the year are as follows:
2018 2017
$'000 $'000
-------------------------------------------------------------- -------- -------
Loss before tax (7,944) (5,716)
-------------------------------------------------------------- -------- -------
Expected tax credit based on the standard rate of corporation
tax in the UK of 19.0% (2017: 19.3%) (1,509) (1,100)
Effect on tax rates in foreign jurisdictions 48
Disallowable expenses 7 31
Share-based payment expense per accounts 151 180
Prior period R&D credit (419) (360)
Losses available for carryover 1,365 1,225
Losses utilised in the year - (398)
Capital allowances in excess of amortisation (79) (80)
Other temporary differences 184 240
-------------------------------------------------------------- -------- -------
Actual tax credit (252) (262)
-------------------------------------------------------------- -------- -------
Deferred
taxation
Deferred tax asset $'000
---------------------------------------- ----------
At 1 January 2018 66
Credited to the profit and loss account 13
---------------------------------------- ----------
At 31 December 2018 79
---------------------------------------- ----------
The deferred tax asset comprises sundry timing differences.
At 31 December 2018, the Group had a potential deferred tax
asset of $18,546,752 (2017: $17,557,554) which includes tax losses
available to carry forward of $17,793,692 (2017: $16,226,770)
(being actual federal, foreign and state losses of $98,786,744
(2017: $89,835,719)) arising from historical losses incurred and
other timing differences of $1,621,447.
9. Loss per share
Basic loss per ordinary share has been calculated on the basis
of the loss for the year of $7,692,000 (2017: loss of $5,454,000)
and the weighted average number of shares in issue during the
period of 168,850,278 (2017: 147,822,881).
Equity instruments of 14,098,057 (2017: 9,709,418), which
includes share options, the 2015 Employee Share Option Plan and the
2017 Employee Share Option Plan, that could potentially dilute
basic earnings per share in the future have been considered but 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 a loss on operations for the year.
10. Intangible assets
Trade
Licences name
and and customer
Goodwill registrations relationships Total
$'000 $'000 $'000 $'000
--------------------------------- --------- -------------- -------------- ------
Cost
Balance at 1 January 2017 1,620 3,342 159 5,121
Additions - externally acquired - - - -
--------------------------------- --------- -------------- -------------- ------
Balance at 31 December 2017 1,620 3,342 159 5,121
Additions - externally acquired - - - -
--------------------------------- --------- -------------- -------------- ------
Balance at 31 December 2018 1,620 3,342 159 5,121
--------------------------------- --------- -------------- -------------- ------
Accumulated amortisation
Balance at 1 January 2017 - 2,800 159 2,959
Amortisation charge for the year - 264 - 264
--------------------------------- --------- -------------- -------------- ------
Balance at 31 December 2017 - 3,064 159 3,223
Amortisation charge for the year - 206 - 206
--------------------------------- --------- -------------- -------------- ------
Balance at 31 December 2018 - 3,270 159 3,429
--------------------------------- --------- -------------- -------------- ------
Net book value
At 1 January 2017 1,620 542 - 2,162
--------------------------------- --------- -------------- -------------- ------
At 31 December 2017 1,620 278 - 1,898
--------------------------------- --------- -------------- -------------- ------
At 31 December 2018 1,620 72 - 1,692
--------------------------------- --------- -------------- -------------- ------
The intangible asset balances have been tested for impairment
using discounted budgeted cash flows of the relevant cash
generating units. For the years ended 31 December 2017 and 2018,
cash flows are projected over a five-year period with a residual
growth rate assumed at 0%. For the years ended 31 December 2017 and
2018, a pre-tax discount factor of 15.6% and 14.9% has been used
over the forecast period.
Goodwill
Goodwill comprises of a net book value of $1,432,000 related to
the 2007 acquisition of the assets of Eden Bioscience and $188,000
related to an acquisition of VAMTech LLC in 2004. The entire amount
is allocated to Harpin, a cash generating unit within the
Commercial - Americas segment. No impairment charge is considered
necessary, and no reasonable possible change in key assumptions
used would lead to an impairment in the carrying value of
goodwill.
Licences and registrations
These amounts represent the cost of licences and registrations
acquired in order to market and sell the Group's products
internationally across a wide geography. These amounts are
amortised evenly according to the straight-line method over the
term of the licence or registration. Impairment is reviewed and
tested according to the method expressed above. Licences and
registrations have a weighted average remaining amortisation period
of three years. No impairment charge is considered necessary, and
no reasonable possible change in key assumptions used would lead to
an impairment in the carrying value of licences and
registrations.
11. Trade and other receivables
2018 2017
$'000 $'000
---------------------------------------- ------ ------
Current:
Trade receivables 3,366 4,131
Less: provision for impairment (186) (52)
---------------------------------------- ------ ------
Trade receivables, net 3,180 4,079
Other receivables and prepayments 177 232
Current trade and other receivables 3,357 4,311
---------------------------------------- ------ ------
Non-current:
Other receivables 61 68
Less: provision for impairment - -
Deferred tax asset 79 66
---------------------------------------- ------ ------
Non-current trade and other receivables 140 134
---------------------------------------- ------ ------
3,497 4,445
---------------------------------------- ------ ------
The trade receivable current balance represents trade
receivables with a due date for collection within a one-year
period. The other receivable non-current balance represents lease
deposits.
The Group applies the IFRS 9 simplified approach to measuring
expected credit losses for sales contracts with 180 days or fewer
payment terms. To measure expected credit losses on a collective
basis, trade receivables and contract assets are grouped based on
similar credit risk and aging. The expected loss rates are based on
the Group's historical credit losses experienced over the three
year period prior to the period end. For contracts provided on
these terms, the credit risk and history of default is immaterial
such that no provision is assessed.
Sales contact receivables provided on terms greater than 180
days are at first discounted to recognise the financing component
of the transaction and then assessed using the "general approach".
Under this approach, the Group models and probability weights a
number of scenarios based on their assessment of the credit risk
and historical expected losses.
Considered Considered
under under
the simplified the general
approach approach
$'000 $'000
------------------------------ --------------- ------------
Trade receivables 2,068 1,298
Expected credit loss assessed (8) (178)
------------------------------ --------------- ------------
2,060 1,120
------------------------------ --------------- ------------
The receivables considered under the general approach relate to
two customers in the Rest of World segment. These receivables had
payment terms in excess of 12 months. The key considerations in the
assessment of the provision were the probability of default,
expected loss in the event of default and the exposure at the point
of default.
The maximum exposure to credit risk at the reporting date is the
fair value of each class of receivables set out above.
No transitional adjustment was assessed at 1 January 2018 owing
to the credit risk profile of trade receivables at this date.
Movements on the provision for impairment of trade receivables
are as follows:
2018 2017
$'000 $'000
----------------------------------------- ------ ------
Balance at the beginning of the year 52 51
Provided 775 (2)
Receivables written off as uncollectible (641) (1)
Foreign exchange - 4
----------------------------------------- ------ ------
Balance at the end of the year 186 52
----------------------------------------- ------ ------
The net value of trade receivables for which a provision for
impairment has been made is $1,306,000 (2017: $80,000).
The following is an analysis of the Group's trade receivables,
both current and past due, identifying the totals of trade
receivables which are not yet due and those which are past due but
not impaired.
2018 2017
$'000 $'000
--------------------- ------ ------
Current 2,608 3,927
Past due:
Up to 30 days 1 7
31 to 60 days 82 17
61 to 90 days 24 39
Greater than 90 days 465 89
--------------------- ------ ------
Total 3,180 4,079
--------------------- ------ ------
12. Trade and other payables
2018 2017
$'000 $'000
----------------------------- ------ ------
Current:
Trade payables 1,434 1,523
Accruals 918 1,292
Taxation and social security 50 62
Income tax liability 2 2
----------------------------- ------ ------
2,404 2,879
----------------------------- ------ ------
13. Finance leases
(a) Current borrowings
2018 2017
$'000 $'000
--------------- ------ ------
Finance leases - 8
--------------- ------ ------
Finance lease obligations are secured by retention of title to
the relevant equipment and vehicles.
(b) Due date for payment:
The contractual maturity of the Group's financial liabilities on
a gross basis is as follows:
Trade and other
payables Finance leases
----------------- ----------------
2018 2017 2018 2017
$'000 $'000 $'000 $'000
----------------------------------------------- -------- ------- ------- -------
In less than one year 1,681 1,863 - 8
In more than one year, but less than two years - - - -
----------------------------------------------- -------- ------- ------- -------
1,681 1,863 - 8
----------------------------------------------- -------- ------- ------- -------
14. Note supporting statement of cash flows
Finance Share Share
leases Capital Premium
$'000 $'000 $'000
Note Note Note Total
18 22 22 $'000
------------------------------------- ------- -------- -------- ------
At 1 January 2018 8 2,237 79,786 82,031
Cash Flows:
Repayment of finance lease principal (7) - - (7)
Finance expense (1) - - (1)
Issue of Ordinary Share Capital - 349 6,340 6,689
At 31 December 2018 - 2,586 86,126 88,712
------------------------------------- ------- -------- -------- ------
Foreign exchange losses of $1,120,000 (2017: $1,261,000 gain)
arising on intercompany balances within the consolidated statement
of cash flows, have been reclassified to within 'cash flows from
operating activities', so as to better reflect the nature of the
non-cash movement. This has had no impact on the closing cash
balances previously reported.
15. Cautionary statement
Plant Health Care has made forward-looking statements in this
press release, including: statements about the market for and
benefits of its products and services; financial results; product
development plans; the potential benefits of business relationships
with third parties; and business strategies. These statements about
future events are subject to risks and uncertainties that could
cause Plant Health Care's actual results to differ materially from
those that might be inferred from the forward-looking statements.
Plant Health Care can give no assurance that any forward-looking
statements will prove correct.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR UKVARKOASRUR
(END) Dow Jones Newswires
April 10, 2019 02:01 ET (06:01 GMT)
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