RNS Number : 4951C
Plantic Technologies Limited
02 September 2008
02 September, 2008
PLANTIC TECHNOLOGIES LIMITED
("Plantic" or "the Company")
Interim Results for 6 months ended 30 June 2008
Plantic (AIM:PLNT), the technology company engaged in the development and commercialisation of a range of environmentally friendly
plastics from renewable resources announces its interim results for the 6 months to the 30th June, 2008.
Plantic's novel polymer manufacturing technology is based on the use of high-amylose corn starch, a material derived from annual
harvesting of non-GM, but specially selected (hybrid) corn.
The unique chemical and film-forming properties of this type of starch allows 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.
OVERVIEW
The six month period to 30 June 2008 has seen a number of significant developments for Plantic in the areas of new product development,
sales and manufacturing. During this time, we have extended our global distribution and development agreement with DuPont Packaging and
Industrial Polymers for injection moulding resins and sheet in the US to include Japan and continued to progress our conversion partnerships
with Amcor and Bemis in the key flexible packaging markets.
The commercial milestones achieved in the first half of 2008 have been:
* Sales volume of Plantic� material increased by 52% compared to the same period in 2007. Plantic finished the half year with a
strong orderbook, significantly higher than the same period in 2007. This was, in major part, to fulfill orders from DuPont to enable the
major launch of their Plantic� injection moulding resin and sheet under the DuPont* Biomax� TPS brand.
* Extension of the DuPont distribution agreement to cover Japan.
* Implementation of a number of major manufacturing process improvements
* Launch of the new high performance sheet grade at the Interpack Exhibition, Germany: first orders received.
* Ongoing business from major global brand owners and leading retailers including Cadbury, Marks & Spencer and Sainsbury's.
* Continuing R&D and joint customer development to perfect and bring to commercial readiness Plantic's film and barrier resins.
Financial Performance
The consolidated loss of the group for the six months ended 30 June 2008 was A$5,613,949 (2007: six months loss A$4,460,770).
Consolidated sales revenue (excluding grant revenue) for the six months was A$798,492 (2007: six months A$774,488).
Plantic's financial position remains strong, with a half year end cash position of A$31 million.
Finance revenue from cash on deposit increased for the 6 months ended 30 June 2008 to A$1,100,580 (2007: A$539,966)
The net loss incurred by Plantic for the 6 months ended 30 June 2008 increased by A$1.15m compared to the same period in 2007. Included
in the 2008 loss were the following significant or non-recurring expenses:
* redundancy provision A$0.2m (2007: $Nil);
* share based payments relating to the IPO $0.6m (2007: A$0.4m); and
* unrealised foreign currency losses A$0.7m (2007: A$0.3m).
The loss attributable to ordinary equity holders decreased to A$0.07 per share for the 6 months ended 30 June 2008 (2007: A$0.09 per
share)
Throughout 2008, the Company continued its focus on research and development with total expenses incurred relating to research and
development were $1,281,938 (2007: $1,559,195).
Rationalisation and consolidation of the research and development delivered cost reductions in the period with a heightened focus on our
key development projects. In addition, the commissioning of the resin manufacturing line completed in 2008 increased our engineering and
manufacturing scale up costs resulting in additional cost of sales in the period, having an adverse impact on gross profit. Cost of sales
for the months ended 30 June 2008 was A$922,022 (2007: A$653,521)
Order Book
The amount of product sold to customers increased by 52% in 2008. Furthermore, Plantic finished the half year with a strong order book
due in major part to DuPont first orders for market development purposes.
The strength of the order book is extremely encouraging, as it not only underpins sales in 2008, but also demonstrates belief on the
part of our customers and partners in the importance and relevance of our products.
Leadership
In March 2008, Mr. Brendan Morris was appointed to the position of Chief Executive Officer. During this time, Mr. Morris has worked
closely with the board to review our strategy, resulting in his renewed focus on the key strategic initiatives, including manufacturing,
product development and sales targets, and achieving a significant reduction in our fixed cost base.
Shareholding
In April 2008 Plantic announced Mr. Gordon Merchant's agreement to extend his share lock-up agreement for a further period of one year
from 29 April 2008. Mr. Merchant is a Non-Executive Director of the Company and a holder of 18.4% of the Company's issued share capital.
Outlook
Plantic enjoys strong and established relationships with a number of large international corporations in the chemicals, industrial
packaging and retail sectors. These organisations have recognised the importance of being able to offer their own customers a product that
reduces damage to the environment and have embraced Plantic's technology as a viable and commercially attractive solution to this challenge.
Our strategy will be to maintain and grow this base of commercial supporters, focusing on driving sales and increasing the range and
functionality of our products by sharing our respective technological expertise.
The Board remains confident in Plantic's long term growth prospects and success.
The full Interim Report is available on the Company's website www.plantic.com.au. Copies will be available from that date from the
Company's office, 51 Burns Road, Altona, VIC, 3018, Australia and from the offices of Pelham Public Relations, No. 1 Cornhill, London EC3V
3ND, United Kingdom.
Ian Wightwick
Chairman
2 September 2008
Further information
Plantic Technologies:
Brendan Morris, Chief +44 (0)20 7743 6679 (today) or +61 (0)3 9353 7983
Executive Officer
Nomura Code:
Juliet Thompson +44 (0)20 7776 1204
Media enquiries:
Pelham PR:
Archie Berens +44 (0)207 743 6679
Candice Sgroi +44(0)207 743 6376
Income Statement (Unaudited)
for the half year ending 30 June 2008
CONSOLIDATED
6 months 6 months
2008 2007
Notes $ $
Sales revenue 798,492 774,488
Government grants 73,174 287,573
Cost of sales (922,022) (653,521)
Engineering and manufacturing scale up costs (1,339,550) (642,300)
Gross Profit (1,389,906) (233,760)
Finance revenue 2 1,100,580 539,966
Other expenses 2 (696,917) (330,811)
Administrative & selling expenses (2,620,258) (2,002,576)
Research and development expenses (1,281,938) (1,559,195)
Share based payment expense (588,929) (374,022)
Loss before income tax and finance costs (5,477,368) (3,960,398)
Finance costs (136,581) (500,372)
Loss before income tax (5,613,949) (4,460,770)
Income tax - -
Net loss (5,613,949) (4,460,770)
Cents Cents
Loss per share for loss attributable to the ordinary equity holders of the
company
Basic loss per share (7.04) (8.68)
Diluted loss per share (7.04) (8.68)
Statement of Changes in Equity (Unaudited)
for the half year ended 30 June 2008
Other reserves Share based Issued Capital Foreign currency Accumulated losses
Total
payments reserve translation reserve
CONSOLIDATED $ $ $ $ $
$
Balance at 1 January 2007 100,134 172,508 21,520,977 (158,739) (21,307,419)
327,461
Foreign currency translation - - - 267,957 -
267,957
Total income and - - 267,957 -
267,957
expense for the period
recognised directly in equity
Net loss for the period - - - - (4,460,770)
(4,460,770)
Total income and - - - 267,957 (4,460,770)
(4,192,813)
expense for the period
EquityTransactions:
Share Based Payment - 374,021 - - -
374,021
Conversion of convertible (100,134) - 10,697,543 - -
10,597,409
notes
Increase in share capital - - 48,152,190 - -
48,152,190
Less transaction costs - - (4,126,716) - -
(4,126,716)
Balance at 30 June 2007 - 546,529 76,243,994 109,218 (25,768,189)
51,131,552
Balance at 1 January 2008 - 1,205,515 76,261,380 (190,982) (31,573,810)
45,702,103
Foreign currency translation - - - (139,476) -
(139,476)
Total income and - - - (139,476) (5,613,949)
(5,753,425)
expense for the period
recognised directly in equity
Net loss for the period - - - -
-
Total income and - - - (139,476) (5,613,949)
(5,753,425)
expense for the period
EquityTransactions:
Share Based Payment - 513,127 - - -
513,127
Conversion of convertible - - -
-
notes
Increase in share capital - - 75,802 - -
75,802
Less transaction costs - - - - -
-
Balance at 30 June 2008 - 1,718,642 76,337,182 (330,458) (37,187,759)
40,537,607
Balance Sheet (Unaudited)
as at 30 June 2008
CONSOLIDATED
30 June 31 December 30 June
2008 2007 2007
(Audited)
$ $ $
Assets
Cash and cash equivalents 30,967,095 38,002,376 45,864,672
Trade and other receivables 880,396 1,652,400 722,171
Inventories 4,243,067 3,294,014 2,585,835
Other current assets 335,789 524,295 490,766
Total Current Assets 36,426,347 43,473,085 49,663,444
Plant and equipment 8,914,404 8,034,931 7,222,922
Total Non-current Assets 8,914,404 8,034,931 7,222,922
Total Assets 45,340,751 51,508,016 56,886,366
Liabilities
Trade and other payables 1,263,583 1,719,035 1,484,100
Interest bearing liabilities 679,325 706,760 560,123
Provisions 130,078 308,699 154,661
Total Current Liabilities 2,072,986 2,734,494 2,198,884
Interest bearing liabilities 2,697,978 3,047,605 3,532,116
Provisions 32,180 23,814 23,814
Total Non-current Liabilities 2,730,158 3,071,419 3,555,930
Total Liabilities 4,803,144 5,805,913 5,754,814
Net Assets 40,537,607 45,702,103 51,131,552
Equity
Issued capital 76,337,182 76,261,380 76,243,994
Reserves 1,388,184 1,014,533 655,747
Accumulated Losses (37,187,759) (31,573,810) (25,768,189)
Total Equity 40,537,607 45,702,103 51,131,552
Cash Flow Statement (Unaudited)
for the half year ended 30 June 2008
CONSOLIDATED
6 months 6 months
2008 2007
$ $
Receipts from customers and related parties 1,187,475 1,068,771
Grants received 73,174 287,573
Other income - 20,182
Payments to suppliers and employees (8,186,321) (6,163,736)
Net cash flows used in operating activities (6,925,672) (4,787,210)
Purchase of property, plant and equipment (1,417,687) (69,589)
(net of finance leases)
Net cash flows used in investing activities (1,417,687) (69,589)
Interest paid (136,581) (146,297)
Interest received 1,961,197 519,784
Repayment of borrowings (377,062) (336,298)
Proeeds from borrowings - 138,747
Proceeds from issue of shares - 48,152,190
Payments of share issue costs - (4,126,716)
Net cash flows from/(used in) financing 1,447,554 44,201,410
activities
Net increase/(decrease) in cash and cash (6,895,805) 39,344,611
equivalents
Cash and cash equivalents
(139,476) 267,957
Cash
- at beginning of period 38,002,376 6,252,104
- at end of period 30,967,095 45,864,672
Notes to the Financial Statements
* The Interim Report has been subject to a review by the company's auditors Ernst & Young (which was not an audit). During the
review they did not become aware of any matter that would make them believe that the Interim Financial Report of Plantic Technologies
Limited and the entities it controlled during the half-year, is not in accordance with:
(a) the Australian Corporations Act 2001, including:
(i) giving a true and fair view of the consolidated entity's financial position as at 30 June 2008 and of its
performance for the half-year ended on that date, and;
(ii) complying with Accounting Standard AASB134 Interim Financial Reporting Corporations Regulations
2001
(b) other mandatory financial reporting requirements in Australia.
2. Analysis of Revenue
CONSOLIDATED
6 months 6 months
30/06/08 30/06/07
$ $
Finance revenue
Interest revenue 1,100,580 519,784
Other finance revenue - 20,182
Total finance revenue 1,100,580 539,966
Other expenses
Foreign exchange loss (696,917) (330,811)
Total other expenses (696,917) (330,811)
3. Segmental Analysis
The Group operates in two geographical segments being Australia and Europe and one business segment being the plastics
industry.
The geographical segments are determined on the location of the Group's assets.
Geographical segments
The following tables present revenue and profit information and certain asset and liability information regarding geographical
segments for the half years ended 30 June 2008 and 30 June 2007.
CONSOLIDATED
For the six months ended Australia Europe Total
30 June 2008 $ $ $
Revenue
Sales to external customers 691,980 106,512 798,492
Inter Segment Sales 134,216 36,404 170,620
Government grants 73,174 - 73,174
Total segment revenue 899,370 142,916 1,042,286
Inter-segment elimination (134,216) (36,404) (170,620)
Total consolidated revenue 765,154 106,512 871,666
Result
Segment results (5,909,687) (668,261) (6,577,948)
Loss before income tax and (5,909,687) (668,261) (6,577,948)
finance revenue & finance cost
Interest revenue 1,068,030 32,550 1,100,580
Finance costs (136,581) - (136,581)
Loss before income tax (4,978,238) (635,711) (5,613,949)
Income tax expense - - -
Net loss for the half year (4,978,238) (635,711) (5,613,949)
CONSOLIDATED
For the six months ended Australia Europe Total
30 June 2007 $ $ $
Revenue
Sales to external customers 453,901 320,587 774,488
Inter Segment Sales 159,292 56,506 215,798
Government grants 287,573 - 287,573
Total segment revenue 900,766 377,093 1,277,859
Inter-segment elimination (159,292) (56,506) (215,798)
Total consolidated revenue 741,474 320,587 1,062,061
Result
Segment results (3,825,638) (674,726) (4,500,364)
Loss before income tax, (3,825,638) (674,726) (4,500,364)
finance revenue and finance cost
Finance revenue 539,966 - 539,966
Finance costs (500,372) - (500,372)
Loss before income tax (3,786,044) (674,726) (4,460,770)
Income tax expense - - -
Net loss for the half year (3,786,044) (674,726) (4,460,770)
4. The Directors do not recommend the payment of a dividend.
5. The full Interim Report is available on the Company's website www.plantic.com.au. Copies will be available from that date from
the Company's office, 51 Burns Road, Altona, VIC, 3018, Australia and from the offices of Pelham Public Relations, No. 1 Cornhill, London
EC3V 3ND, United Kingdom.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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