Trading Update
16 February 2009 - 6:00PM
UK Regulatory
TIDMPLNT
RNS Number : 3533N
Plantic Technologies Limited
16 February 2009
16 FEBRUARY 2009
PLANTIC TECHNOLOGIES LIMITED
("Plantic" or "the Company")
Unaudited results for year ended 31 December 2008
Healthy cash position, strong customer engagement and improved operational base
Plantic (AIM:PLNT), the technology company engaged in the development and
commercialisation of a range of environmentally friendly plastics from renewable
resources, today provides an update on trading for the year ended 31 December
2008.
Plantic's novel polymer manufacturing technology is based on the use of
high-amylose corn starch, a material derived from annual harvesting of
specialized (hybrid) corn. The unique chemical and film-forming properties of
this type of cornstarch allow for development of a range of applications across
conventional plastics markets. In addition to being renewably sourced, users can
take advantage of excellent end-of-life properties such as biodegradability and
compostability.
Plantic has several patents covering its technologies, formulations and
applications. The Company's objective is to commercialise its plastic
technologies across a broad range of applications, with a particular focus on
the packaging industry. Its first product, the "Plantic tray" is sold
commercially in the UK, Continental Europe, Australia and New Zealand. Injection
Moulding resins are sold via DuPont globally excluding Australia and New
Zealand.
HIGHLIGHTS OF 2008 (unaudited results)
* Closing cash position at 31 December 2008 was A$26.4m, net cash outflow reduced
to A$4.5m in the second half of 2008 compared to A$7.9m for the same period in
2007, and A$7m in the first half of 2008.
* Plantic's unaudited net loss for 2008 was A$9m (2007 A$10.3m), less than market
expectations and lower than 2007, boosted by increased sales and favorable
changes in exchange rates. The unaudited net loss in the second half of 2008 was
$3.4m compared to A$5.8m for the same period in 2007 and A$5.6m in the first
half of 2008.
* Sales revenue increased to A$3.6m, 145% higher than 2007 (2007: A$1.5m). Second
half sales were A$2.8m, 295% higher than the same period in 2007.
* Sales volumes (in metric tonnes) increased by 120% for the full year of 2008
compared to 2007.
* Sales volumes (in metric tonnes) increased by 170% in the second half of 2008,
compared to the same period in 2007, and 120% compared to the first half of
2008.
* Plantic's first stage investment in the manufacturing plant in Jena in Germany
has been completed on time and budget and has led to increased customer interest
in Europe. German government subsidies of approximately A$1m are expected to be
received during the course of 2009 as a result of this investment by the
company.
* Weaker global economic conditions are expected to impact negatively on Plantic
in 2009, compared to current market expectations. Whilst Plantic's growth is
driven largely by continuing projects with major brand owners, the speed and
rate of adoption of Plantic products may be affected by the overall state of the
global economy.
Plantic's results for 2008 have seen strong sales growth on the back of further
stocking orders from DuPont and continued customer adoptions. Marks & Spencer
and Sainsbury's adopted Plantic products and projects with major brand owners in
the USA and Europe continue to progress. In addition, during 2008 DuPont
extended their rigid sheet distribution agreement to include South America and
Japan along with North America. This will further expand Plantic's product
reach.
Plantic's operational performance improved in the second half of 2008.
Significant investments were made in new plant and equipment designed to improve
the quality of Plantic products and to improve the output and efficiency of the
production process. Whilst the commissioning of this new equipment and the resin
line impacted negatively on our manufacturing efficiencies and output during the
2nd and 3rd quarters of 2008, the improvements delivered a 300% increase in
demonstrated capacity by the final quarter. In addition, Plantic was able to
convert its sheet extrusion line into a multipurpose production line making both
sheet and resin products. This provides greater manufacturing flexibility in our
plant in Australia.
Plantic enters 2009 with improved manufacturing processes and product
quality. The priority for the current year is to cement these improvements and
drive the efficiency gains which will be reflected in reduced cost of sales.
The global economic environment has deteriorated significantly. This will
inevitably affect Plantic's growth and performance in 2009. However, the
Directors remain confident about the long-term prospects for the company and its
technology. Plantic's strong cash reserves, improvements in plant capacity in
Australia and our new production facilities in Europe provide a platform to
continue to develop and improve products during this period of economic
downturn.
FURTHER INFORMATION:
+-------------------------------------+-------------------------------------+
| Plantic Technologies: | |
+-------------------------------------+-------------------------------------+
| Brendan Morris, Chief Executive | +61(0)3 9353 7983 |
| Officer | |
+-------------------------------------+-------------------------------------+
| | |
+-------------------------------------+-------------------------------------+
| Nomura Code Securities Limited: | |
+-------------------------------------+-------------------------------------+
| Juliet Thompson | +44 (0)20 7776 1204 |
+-------------------------------------+-------------------------------------+
| | |
+-------------------------------------+-------------------------------------+
| Pelham PR: | |
+-------------------------------------+-------------------------------------+
| Archie Berens | +44 (0)207 743 6679 / +44 (0)7802 |
| | 442486 |
+-------------------------------------+-------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTIIFLRFDIRLIA
Plantic Technologies (LSE:PLNT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Plantic Technologies (LSE:PLNT)
Historical Stock Chart
From Jul 2023 to Jul 2024
Real-Time news about Plantic Tech. (London Stock Exchange): 0 recent articles
More Plantic Technologies News Articles