PLNT Plantic Tech.

 

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 
 
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