AIM-listed agricultural products business Plant Health Care (LON:PHC) saw its share price drop by 5.14% to 16.60p (as of 12:50 GMT) despite posting a 9% increase in revenues for 2020. Management said that COVID had some impact during the second half but overall gross margins remained flat.
CEO Chris Richards commented: “The strong growth of on-ground Harpin α sales in our key markets is most encouraging. While the combination of Covid-19 and reduction in distributor inventory held back sales ex PHC in 2020, we expect in-market sales growth to translate into revenue growth in 2021. The reduced cash burn in 2020 represents important progress towards our goal of reaching Group cash positive. It is significant that the Commercial business was both profitable and cash generative in 2020, for the first time.
“Progress with bringing the first products from the PREtec platform to market has been outstanding. The Company intends to invest in bringing the benefits of PHC279 to growers in Brazil, with initial sales in the second half of 2021. PREtec product launches will follow in the U.S. from 2022 onwards.
“It has been a long haul. But after more than eight years and over $20m invested, the benefits of PREtec peptide products will soon be widely available to growers in Brazil, the U.S. and elsewhere“.