Plant Health Care PLC delivers revenue growth, narrows losses in 2020 as

() reported revenue growth and narrower losses in 2020 as the company hailed its commercial business turning earnings and cash positive for the first time.

In its results for the year to December 31, the provider of biological products to agricultural markets reported adjusted losses (LBITDA) of US$3.3mln compared with US$3.8mln in 2019, while revenues rose to US$6.6mln from US$6.4mln.

WATCH: Plant Health Care raises $10m for regulatory approval for products in Europe and ‘rich pipeline’

The firm attributed the revenue increase to “strong growth” in the sugar cane and citrus markets in Brazil and Spain, respectively, adding that its margins had remained steady at 56% despite cost increases in China as a result of US tariffs.

The group also reported that in-market sales in the US and Brazil had doubled during the year, adding that its cash balance at the end of the year stood at US$4.1mln compared to US$2.4mln the year before.

Looking ahead, the firm said it is “well positioned for growth in 2021” with its Harpin α product “gaining traction” in the market alongside a rebound in prices of agricultural commodities.

Plant Health Care also said the pipeline for its PREtec product is looking stronger following its first product launch in Brazil, and that with regulatory submissions in the US and South America the schedule of product launches “is taking shape, with profitable sales building from there”.

The company also said its recent £6.6mln fundraise in March will allow it to accelerate growth as well as enter Europe “the largest market in the world for sustainable agriculture”.

“I am proud to report that Plant Health Care rose to the challenge in this most challenging of years. Our staff adapted swiftly and creatively to find effective ways to work around the global restrictions caused by COVID-19. Despite all the disruption, we delivered year on year revenue growth in 2020. Operating cost savings were also delivered, and a further improvement in working capital over 2020,” Plant Health Care’s chairman Richard Webb said in a statement.

“The outcome was that our commercial operations were EBITDA and cash positive for the first time. In a year when revenues grew and our development programme accelerated, PHC still reduced cash burn by more than expected. We ended the year with over US$4mln of cash equivalents and investments in hand. This is a great credit not only to the executive leadership, but also to our loyal and hard-working staff in five countries,” he added.