Plant Health Care plc (LON: PHC) have seen their shares plummet on Thursday, as the firm gave shareholders a cautious update.
Plant Health Care is a leading provider of proprietary biological products to global agricultural markets.
They offer products to improve the health, vigor and yield of major field crops such as corn, soybeans, cotton and rice, as well as speciality crops such as fruits and vegetables. We operate globally through subsidiaries, distributors and supply agreements with major industry partners.
The firm saw its shares plummet 12.28% on Thursday morning, to trade at 7p. 19/12/19 11:26BST.
Plant Health Care said for 2019, revenue is expected to be $6.5 million, a 20% fall from $8.1 million the prior year.
The firm said that the decline would be caused by the delayed of supply of H2Copla until an import licence is granted by the Brazilian authorities, and postponed sales of Harpin for corn seed in the US, as Plant Health’s channel partner deals with working capital pressures.
The firm did compensate shareholders in saying that underlying market demand remains robust, and the firms additional operations had not been hampered.
The firm further reassured shareholders by swung that it expects prospects for Brazilian sugarcane to remain strong, and expects to win a licence in early 2020. Certainly, the optimistic should please shareholders and the firm can expect a strong start to 2020.
“In 2019, as in 2018, last minute customer and logistical issues will result in revenue falling short of expectation. However, the delay in sales is principally a matter of phasing. Underlying growth prospects are as strong as ever,” said Chief Executive Officer Chris Richards.
“The board intends to address sales phasing during 2020, which will make it easier for investors to track revenue growth. Costs are under tight control and we recently received a capital injection, so are well positioned to capitalize on the shift of revenue into the next financial year,” Richards added.
