Revenue shrinks and losses widen at Plant Health Care

14th Sep 2016 10:37

(ShareCast News) - Patent-protected biological products provider Plant Health Care announced its interim results for the six months to 30 June on Wednesday, with revenue at $2.9m against $3.2m for the six months to 30 June 2015.The AIM-traded firm said excluding a one-time milestone payment in 2015, revenue was flat in spite of a strong US dollar.Gross margin decreased to 59% from 63%, and operating expenses increased due to the one-time costs of $1.1m related to a potential US listing, $0.9m increased investment in new technology, and a non-cash decrease in the value of sterling loans from Plant's UK subsidiary.The company's operating loss increased to $6.6m, from $3.1m for the same period last year.Since period end, the company completed a successful capital raise of $10m in August."During the first six months of 2016, we have made further solid progress in building the sales momentum of Commercial Products," said executive chairman Dr Christopher Richards."Trading conditions have recently become increasingly challenging and we expect headwinds in the second half, with continuing revenue growth anticipated in 2017."Richards said the company is also making "great strides" in the development of its PREtec New Technology."With the completion of the $10m placement in August 2016, we are now confident of delivering first revenues from our PREtec peptide platforms and of bringing our Commercial business to profit, within our existing cash resources."