Plant Health Care eyes cash positivity, tumbles on Brazil soy hitch

Biological products provider Plant Health Care reported that it was on track to achieve full-year revenue growth of 30% but revealed that the license auction for soy in Brazil has been cancelled for the year.

The AIM-traded firm said the main focus had been on field trials of Innatus 3G, added to chemical sprays for the control of Asian soybean rust (ASR) in Brazil.

In contrast to previous years, it noted that conventional chemical sprays worked well this season, so Innatus 3G added only marginal value to disease control. Results had indicated that Innatus 3G increased soybean yield by between 6% and 7%, however, even at low application rates.

The company said it was in discussion with partners on plans for further trials in South American soybeans in the 2018/19 season, and as a result, it no longer expected to conclude a licence for rights to Innatus 3G in South American soybeans in 2018.

Plant Health Care added that it was working with “multiple” partners evaluating PREtec on more than 10 different crops in three regions around the world. It said it continued to have “high confidence” in the value of PREtec.

Elsewhere in its portfolio, the company successfully launched ‘Harpin αβ’ in sugarcane in Brazil, supported by a demonstration plot yield increase of 20% or more with expectations for “significant progress” from that crop over the coming years.

It also signed a contract for a Harpin αβ product to be used on corn in the US, leading to significant first sales in the second half of 2018.

Cash reserves at 30 June were $6.1m, and the board stated confidence of growing this organically in coming years.

“Strong growth of our commercial business in 2017, together with new launches in 2018, give us confidence that the company will be cash positive in 2020, within existing cash reserves, and is not reliant on income from new technology to achieve this.”

Plant Health Care said it expected to announce its interim results for the period ended 30 June in mid-September.