TIDMPLNT
RNS Number : 1881Z
Plantic Technologies Limited
17 September 2009
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Regulatory News
17 September 2009
Plantic Technologies Limited
("Plantic" or "the Company")
Half Year Report for 6 months ended 30 June 2009
Plantic (AIM:PLNT), the technology company engaged in the development and
commercialisation of a range of environmentally friendly plastics from renewable
resources announces its half year report for the 6 months ended 30 June 2009.
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 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.
OVERVIEW
The six month period to 30 June 2009 has been challenging. The global economic
downturn led to a reduction in demand and also affected the timing of some
customer projects. However, in the last couple of months momentum has picked up
substantially in terms of developing and proving Plantic products with leading
consumer brand owners in the UK, Continental Europe, Australia, New Zealand, and
North and South America. We have also been successful in promoting several
industrial applications with our Injection Moulded resins. The demand for
renewable and biodegradable products is beginning to re-emerge as the economy
strengthens.
The commissioning of our Jena Facility was completed on time and budget in
February 2009, and it has boosted interest in Plantic and its products. European
manufacturing is a key platform for establishing our rigid packaging, allowing
Plantic to produce low cost packaging, rapid prototyping and an improved supply
chain. Using this facility, Plantic has recently secured a significant new
long-term contract from a leading German food manufacturer to supply traditional
packaging. This endorses our strategy to commission the Jena manufacturing
facility. It provides a one-stop solution for customer requirements and ensures
that a high level of cost-competitive service is provided.
Sales activity with DuPont in the first of 2009 was slower than we had
originally expected, and this is likely to have an impact on the outcome for the
full year. Against a backdrop of the severe global economic downturn, DuPont has
had to undergo internal restructuring and headcount reduction. This meant
development of products and commercial launches of Plantic-based applications
took longer to complete. Since the half year end, we have seen the release of
DuPont's first US application for Plantic, further details of which we will
shortly be announcing.
The development of our flexible film structures has progressed. There has been
an encouraging level of interest in a number of different applications from end
users.
Financial Performance
The consolidated loss of the group for the half year ended 30 June 2009 was
A$5,334,987 (2008: six months loss A$5,613,949). Consolidated sales revenue for
the half year was A$680,112 (2008: six months A$871,666). Volume was lower than
the same period last year caused by the economic conditions with destocking by
customers and the discontinuation of a customer product line. This led to the
reduction in Plantic sales.
Financial performance in the first half of the current financial year was in
line with market expectations. Although volumes were lower, improved mix of
product meant revenue expectations were met.
Our business has been re-structured to achieve cost savings and improved
efficiencies, enabling us to improve our future competitiveness. Plantic has
continued to devote more resources to sales as our product matures and our
geographic and product expansion continues.
Plantic's financial position remains healthy, with a half year end cash position
of A$21.6 million. Net cash flows used in operating activities for the six
months ended 30 June 2009 decreased to A$3.6m compared to A$6.9 in the first
half of 2008. This improvement is on the back of reduced costs and working
capital and the collection of German Government Grants relating to Capital
Expenditure made by Plantic in 2008 for its Jena facility.
Finance revenue from cash on deposit for the 6 months ended 30 June 2009 was
A$0.4 million (2007: A$1.1 million).
The net loss incurred by Plantic for the 6 months ended 30 June 2009 decreased
by A$0.3m compared to the same period in 2008. Included in the 2009 loss were
the following significant or non-recurring expenses:
* redundancy expenses A$0.2m (2008: A$0.2m);
* share based payment expense relating to the IPO $0.3m (2008: A$0.6m); and
* volume related manufacturing and engineering inefficiencies A$1.8m (2008:
A$1.3m).
The loss attributable to ordinary equity holders remained constant at A$0.07 per
share for the 6 months ended 30 June 2009 (2008: A$0.07 per share).
Outlook
The recent momentum in activity experienced in all our markets has been
encouraging. The Board remains confident in Plantic's long term growth prospects
and success.
Ian Wightwick
Chairman
17 September 2009
Statement of comprehensive income (Unaudited)
for the half year ending 30 June 2009
+---+--+------------------------------+------+----------------+-+----------------+-----+
| | | | | CONSOLIDATED | |
+---+--+------------------------------+------+-----------------------------------+-----+
| | | | | 6 months | | 6 months | |
+---+--+------------------------------+------+----------------+-+----------------+-----+
| | | | | 2009 | | 2008 | |
+---+--+------------------------------+------+----------------+-+----------------+-----+
| | | |Note | $ | | $ | |
+---+--+------------------------------+------+----------------+-+----------------+-----+
| Sales revenue | | 581,087 | | 798,492 | |
+-------------------------------------+------+----------------+-+----------------+-----+
| Government grants | | 99,025 | | 73,174 | |
+-------------------------------------+------+----------------+-+----------------+-----+
| Cost of sales | | (575,805) | | (922,022) | |
+-------------------------------------+------+----------------+-+----------------+-----+
| Engineering and manufacturing | | (1,805,884) | | (1,339,550) | |
| scale up costs | | | | | |
+-------------------------------------+------+----------------+-+----------------+-----+
| Gross Profit | | (1,701,577) | | (1,389,906) | |
+-------------------------------------+------+----------------+-+----------------+-----+
| Finance revenue | 2a | 443,512 | | 1,100,580 | |
+-------------------------------------+------+----------------+-+----------------+-----+
| Other revenue | 2b | 6,748 | | - | |
+-------------------------------------+------+----------------+-+----------------+-----+
| Other expenses | 2c | (6,680) | | (696,917) | |
+-------------------------------------+------+----------------+-+----------------+-----+
| Administrative & selling expenses | | (2,383,107) | | (2,620,258) | |
+-------------------------------------+------+----------------+-+----------------+-----+
| Research and development expenses | | (1,253,974) | | (1,281,938) | |
+-------------------------------------+------+----------------+-+----------------+-----+
| Share based payment expense | | (330,547) | | (588,929) | |
+-------------------------------------+------+----------------+-+----------------+-----+
| Finance costs | | (109,362) | | (136,581) | |
+-------------------------------------+------+----------------+-+----------------+-----+
| Loss before income tax | | (5,334,987) | | (5,613,949) | |
+-------------------------------------+------+----------------+-+----------------+-----+
| Income tax | | - | | - | |
+-------------------------------------+------+----------------+-+----------------+-----+
| NET LOSS FOR THE PERIOD | | (5,334,987) | | (5,613,949) | |
+-------------------------------------+------+----------------+-+----------------+-----+
| | | | | | | | |
+---+--+------------------------------+------+----------------+-+----------------+-----+
| Other comprehensive expenses | | | | | |
+-------------------------------------+------+----------------+-+----------------+-----+
| Foreign currency translation | | (619,273) | | (139,476) | |
| reserve movement | | | | | |
+-------------------------------------+------+----------------+-+----------------+-----+
| Other comprehensive expenses for the | (619,273) | | (139,476) | |
| period net of tax | | | | |
+--------------------------------------------+----------------+-+----------------+-----+
| | | | | | | | |
+---+--+------------------------------+------+----------------+-+----------------+-----+
| Total comprehensive loss for the | | (5,954,260) | | (5,753,425) | |
| period | | | | | |
+-------------------------------------+------+----------------+-+----------------+-----+
| | | | | | | | |
+---+--+------------------------------+------+----------------+-+----------------+-----+
| | | | | Cents | | Cents | |
+---+--+------------------------------+------+----------------+-+----------------+-----+
| Loss per share for loss attributable to | | | | |
| the ordinary | | | | |
+--------------------------------------------+----------------+-+----------------+-----+
| equity holders of the company | | | | | |
+-------------------------------------+------+----------------+-+----------------+-----+
| Basic loss per share | | (6.68) | | (7.04) | |
+-------------------------------------+------+----------------+-+----------------+-----+
| Diluted loss per share | | (6.68) | | (7.04) | |
+-------------------------------------+------+----------------+-+----------------+-----+
| | | | | | | | |
+---+--+------------------------------+------+----------------+-+----------------+-----+
Statement of financial position (Unaudited)
as at 30 June 2009
+---+--+----------------------+------+-----------------+----------+----------------+
| | | | | CONSOLIDATED |
+---+--+----------------------+------+---------------------------------------------+
| | | | | 30 June | | 31 December |
+---+--+----------------------+------+-----------------+----------+----------------+
| | | | | 2009 | | 2008 |
+---+--+----------------------+------+-----------------+----------+----------------+
| | | | | | | (Audited) |
+---+--+----------------------+------+-----------------+----------+----------------+
| | | |Note | $ | | $ |
+---+--+----------------------+------+-----------------+----------+----------------+
| Assets | | | | |
+-----------------------------+------+-----------------+----------+----------------+
| Cash and cash equivalents | | 21,585,658 | | 26,400,386 |
+-----------------------------+------+-----------------+----------+----------------+
| Trade and other | | 487,513 | | 2,108,158 |
| receivables | | | | |
+-----------------------------+------+-----------------+----------+----------------+
| Inventories | | 3,779,554 | | 3,865,580 |
+-----------------------------+------+-----------------+----------+----------------+
| Other current assets | | 279,291 | | 835,080 |
+-----------------------------+------+-----------------+----------+----------------+
| Total Current Assets | | 26,132,016 | | 33,209,204 |
+-----------------------------+------+-----------------+----------+----------------+
| Plant and equipment | | 12,121,977 | | 12,133,610 |
+-----------------------------+------+-----------------+----------+----------------+
| Total Non-current Assets | | 12,121,977 | | 12,133,610 |
+-----------------------------+------+-----------------+----------+----------------+
| Total Assets | | 38,253,993 | | 45,342,814 |
+-----------------------------+------+-----------------+----------+----------------+
| | | | | | | |
+---+--+----------------------+------+-----------------+----------+----------------+
| Liabilities | | | | |
+-----------------------------+------+-----------------+----------+----------------+
| Trade and other payables | | 1,057,271 | | 2,168,237 |
+-----------------------------+------+-----------------+----------+----------------+
| Interest bearing | | 2,439,008 | | 2,604,318 |
| liabilities | | | | |
+-----------------------------+------+-----------------+----------+----------------+
| Provisions | | 229,068 | | 143,951 |
+-----------------------------+------+-----------------+----------+----------------+
| Total Current Liabilities | | 3,725,347 | | 4,916,506 |
+-----------------------------+------+-----------------+----------+----------------+
| Interest bearing | | 1,954,381 | | 2,234,797 |
| liabilities | | | | |
+-----------------------------+------+-----------------+----------+----------------+
| Provisions | | 44,895 | | 38,428 |
+-----------------------------+------+-----------------+----------+----------------+
| Total Non-current | | 1,999,276 | | 2,273,225 |
| Liabilities | | | | |
+-----------------------------+------+-----------------+----------+----------------+
| Total Liabilities | | 5,724,623 | | 7,189,731 |
+-----------------------------+------+-----------------+----------+----------------+
| Net Assets | | 32,529,370 | | 38,153,083 |
+-----------------------------+------+-----------------+----------+----------------+
| | | | | | | |
+---+--+----------------------+------+-----------------+----------+----------------+
| Equity | | | | |
+-----------------------------+------+-----------------+----------+----------------+
| Issued capital | | 76,314,128 | | 76,314,128 |
+-----------------------------+------+-----------------+----------+----------------+
| Reserves | | 1,960,311 | | 2,299,157 |
+-----------------------------+------+-----------------+----------+----------------+
| Accumulated Losses | | (45,745,069) | | (40,460,202) |
+-----------------------------+------+-----------------+----------+----------------+
| Total Equity | | 32,529,370 | | 38,153,083 |
+-----------------------------+------+-----------------+----------+----------------+
| | | | | | | |
+---+--+----------------------+------+-----------------+----------+----------------+
Statement of cash flow (Unaudited)
for the half year ending 30 June 2009
+---+--+------------------------------------------+---------+----------------+-+----------------+-+
| | | | | CONSOLIDATED | |
+---+--+------------------------------------------+---------+-----------------------------------+-+
| | | | | 6 months | | 6 months | |
+---+--+------------------------------------------+---------+----------------+-+----------------+-+
| | | | | 2009 | | 2008 | |
+---+--+------------------------------------------+---------+----------------+-+----------------+-+
| | | | Notes | $ | | $ | |
+---+--+------------------------------------------+---------+----------------+-+----------------+-+
| Receipts from customers and related parties | | 3,189,334 | | 1,187,475 | |
+-------------------------------------------------+---------+----------------+-+----------------+-+
| Grants received | | 99,025 | | 73,174 | |
+-------------------------------------------------+---------+----------------+-+----------------+-+
| Payments to suppliers and employees | | (6,906,728) | | (8,186,321) | |
+-------------------------------------------------+---------+----------------+-+----------------+-+
| | | | | | | | |
+---+--+------------------------------------------+---------+----------------+-+----------------+-+
| Net cash flows used in operating activities | | (3,618,369) | | (6,925,672) | |
+-------------------------------------------------+---------+----------------+-+----------------+-+
| | | | | | | | |
+---+--+------------------------------------------+---------+----------------+-+----------------+-+
| Purchase of property, plant and equipment | | (825,991) | | (1,417,687) | |
| (net of subsidies) | | | | | |
+-------------------------------------------------+---------+----------------+-+----------------+-+
| | | | | | | | |
+---+--+------------------------------------------+---------+----------------+-+----------------+-+
| Net cash flows used in investing activities | | (825,991) | | (1,417,687) | |
+-------------------------------------------------+---------+----------------+-+----------------+-+
| Interest paid | | (109,362) | | (136,581) | |
+-------------------------------------------------+---------+----------------+-+----------------+-+
| Interest received | | 449,079 | | 1,961,197 | |
+-------------------------------------------------+---------+----------------+-+----------------+-+
| Repayment of borrowings | | (445,726) | | (377,062) | |
+-------------------------------------------------+---------+----------------+-+----------------+-+
| Net cash flows from/(used in) financing | | (106,009) | | 1,447,554 | |
| activities | | | | | |
+-------------------------------------------------+---------+----------------+-+----------------+-+
| Net increase/(decrease) in cash and cash | | (4,550,369) | | (6,895,805) | |
| equivalents | | | | | |
+-------------------------------------------------+---------+----------------+-+----------------+-+
| | | | | | | | |
+---+--+------------------------------------------+---------+----------------+-+----------------+-+
| Cash and cash equivalents | | | | | |
+-------------------------------------------------+---------+----------------+-+----------------+-+
| | - net foreign exchange differences | | (264,359) | | (139,476) | |
+---+---------------------------------------------+---------+----------------+-+----------------+-+
| Cash | | | | | |
+-------------------------------------------------+---------+----------------+-+----------------+-+
| | - at beginning of the half year | | 26,400,386 | | 38,002,376 | |
+---+---------------------------------------------+---------+----------------+-+----------------+-+
| | - at end of the half year | | 21,585,658 | | 30,967,095 | |
+---+--+------------------------------------------+---------+----------------+-+----------------+-+
Statement of Changes in Equity (Unaudited)
for the half year ending 30 June 2009
+---+--+---------------------------+--------------+---------------+-------------+----------------+---------------+
| | | | Share | Issued | Foreign | Accumulated | Total |
| | | | based | Capital | currency | losses | |
| | | | payments | |translation | | |
| | | | reserve | | reserve | | |
+---+--+---------------------------+--------------+---------------+-------------+----------------+---------------+
| CONSOLIDATED | $ | $ | $ | $ | $ |
+----------------------------------+--------------+---------------+-------------+----------------+---------------+
| Balance at | | | | | |
+----------------------------------+--------------+---------------+-------------+----------------+---------------+
| 1 January 2008 | 1,205,515 | 76,261,380 | (190,982) | (31,573,810) | 45,702,103 |
+----------------------------------+--------------+---------------+-------------+----------------+---------------+
| Total comprehensive loss | - | - | (139,476) | (5,613,949) | (5,753,425) |
| for the half year, net of tax. | | | | | |
+----------------------------------+--------------+---------------+-------------+----------------+---------------+
| | | | | | | | |
+---+--+---------------------------+--------------+---------------+-------------+----------------+---------------+
| Changes in equity for the half | | | | | |
| year to 30 June 2008 | | | | | |
+----------------------------------+--------------+---------------+-------------+----------------+---------------+
| Share Based Payment | 513,127 | - | - | - | 513,127 |
+----------------------------------+--------------+---------------+-------------+----------------+---------------+
| Increase in share capital | - | 75,802 | - | - | 75,802 |
+----------------------------------+--------------+---------------+-------------+----------------+---------------+
| Balance at | | | | | |
+----------------------------------+--------------+---------------+-------------+----------------+---------------+
| 30 June 2008 | 1,718,642 | 76,337,182 | (330,458) | (37,187,759) | 40,537,607 |
+----------------------------------+--------------+---------------+-------------+----------------+---------------+
| | | | | | | | |
+---+--+---------------------------+--------------+---------------+-------------+----------------+---------------+
| Balance at | | | | | |
+----------------------------------+--------------+---------------+-------------+----------------+---------------+
| 1 January 2009 | 1,966,665 | 76,314,128 | 332,492 | (40,460,202) | 38,153,083 |
+----------------------------------+--------------+---------------+-------------+----------------+---------------+
| Total comprehensive loss | - | - | (619,273) | (5,334,987) | (5,954,260) |
| for the half year, net of tax. | | | | | |
+----------------------------------+--------------+---------------+-------------+----------------+---------------+
| | | | | | | | |
+---+--+---------------------------+--------------+---------------+-------------+----------------+---------------+
| Changes in equity for the half | | | | | |
| year to 30 June 2009 | | | | | |
+----------------------------------+--------------+---------------+-------------+----------------+---------------+
| Share Based Payment | 330,547 | - | - | - | 330,547 |
+----------------------------------+--------------+---------------+-------------+----------------+---------------+
| Vested options not being | (50,120) | - | - | 50,120 | - |
| excercised | | | | | |
+----------------------------------+--------------+---------------+-------------+----------------+---------------+
| Balance at | | | | | |
+----------------------------------+--------------+---------------+-------------+----------------+---------------+
| 30 June 2009 | 2,247,092 | 76,314,128 | (286,781) | (45,745,069) | 32,529,370 |
+----------------------------------+--------------+---------------+-------------+----------------+---------------+
| | | | | | | | |
+---+--+---------------------------+--------------+---------------+-------------+----------------+---------------+
Notes to the Financial Statements
1. 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 2009 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 | | 6 |
| | | | | | months | | months |
+----+---------------+---------+---------+---------+------------+--+--------------+
| | | | | |30/06/2009 | | 30/06/2008 |
+----+---------------+---------+---------+---------+------------+--+--------------+
| | | | | | $ | | $ |
+----+---------------+---------+---------+---------+------------+--+--------------+
| | | | | | | | |
+----+---------------+---------+---------+---------+------------+--+--------------+
| 2a | Finance revenue | | | | | |
| | | | | | | |
+----+-------------------------+---------+---------+------------+--+--------------+
| | Interest | | | | 443,512 | | 1,100,580 |
| | revenue | | | | | | |
+----+---------------+---------+---------+---------+------------+--+--------------+
| | Total finance revenue | | | 443,512 | | 1,100,580 |
+----+-------------------------+---------+---------+------------+--+--------------+
| | | | | | | | |
+----+---------------+---------+---------+---------+------------+--+--------------+
| 2b | Other revenue | | | | | |
| | | | | | | |
+----+-------------------------+---------+---------+------------+--+--------------+
| | Rental income | | | 6,748 | | - |
+----+-------------------------+---------+---------+------------+--+--------------+
| | | | | | | | |
+----+---------------+---------+---------+---------+------------+--+--------------+
| | Total other | | | | 6,748 | | - |
| | revenue | | | | | | |
+----+---------------+---------+---------+---------+------------+--+--------------+
| | | | | | | | |
+----+---------------+---------+---------+---------+------------+--+--------------+
| | | | | | | | |
+----+---------------+---------+---------+---------+------------+--+--------------+
| 2c | Other expenses | | | | | |
| | | | | | | |
+----+-------------------------+---------+---------+------------+--+--------------+
| | Foreign exchange loss | | | (6,680) | | (696,917) |
+----+-------------------------+---------+---------+------------+--+--------------+
| | | | | | | | |
+----+---------------+---------+---------+---------+------------+--+--------------+
| | Total other | | | | (6,680) | | (696,917) |
| | expenses | | | | | | |
+----+---------------+---------+---------+---------+------------+--+--------------+
3. Segment Information
As this is the first time the Group has adopted AASB 8 Operating Segments the
accounting policies have been provided so as readers of the segment information
have a complete understanding of the disclosures.
Identification of reportable Segments
The group has identified its operating segments based on the internal reports
that are reviewed and used by the chief executive officer and his management
team(the chief operating decision makers) in assessing performance and in
determining the allocation of resources.
The operating segments are identified by management based on the manner in which
products are sold and the country of origin. Discrete financial information
about each of these operating businesses is reported to the chief executive
officer and his management team on at least a monthly basis.
The reportable segment is based on the aggregated operating segments determine
by the similarity of the products produced and/or sold as these are the sources
of the Groups major risks and have the most effect on the rates of return.
Therewith, the Group has determined that only one reportable segment exists and
thus reportable segment results are the same as those presented in the financial
report for the Group.
4. The Directors do not recommend the payment of a dividend.
5. The full Interim Report is available on the Companys
website www.plantic.com.au. Copies will be available from that date from the
Companys office, 51 Burns Road, Altona, VIC, 3018, Australia and from the
offices of Pelham Public Relations, No. 1 Cornhill, London EC3V 3ND, United
Kingdom.
Further information
Plantic Technologies:
Brendan Morris, Chief Executive Officer
+61 (0)3 9353 7983
Nomura Code:
Juliet Thompson +44 (0)20 7776 1204
Media enquiries:
Pelham PR:
Archie Berens +44 (0)20 7337 1509
This information is provided by RNS
The company news service from the London Stock Exchange
END
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