AGM Statement & Trading Update

 

TIDMPLNT 
 
RNS Number : 9275N 
Plantic Technologies Limited 
21 June 2010 
 

21 JUNE 2010 
 
                          PLANTIC TECHNOLOGIES LIMITED 
                          ("Plantic" or "the Company") 
 
                    ANNUAL GENERAL MEETING AND TRADING UPDATE 
 
Plantic (AIM:PLNT), the technology company engaged in the development and 
commercialisation of a range of environmentally friendly plastics from renewable 
resources, will today hold its Annual General Meeting in Melbourne, Australia. 
 
Ian Wightwick, Plantic's Chairman, will make the following statement at the 
meeting: 
 
"Plantic has delivered a significantly improved performance in the first half of 
the current financial year.  Sales of product sold in the 5 months to the end of 
May have increased by approximately 80% compared to the second half of 2009, 
with revenues 50% higher. The mix of sales reflects higher sales of sheet and 
resin as opposed to finished packaging, in line with our strategy. The trading 
loss and cash position for the first half of the year are expected to be in line 
with market expectations.  We continue to reduce costs and improve efficiencies 
and have been careful to conserve our cash resources. Our cash position is 
expected to be approximately A$9.2m as at 30 June 2010. 
 
"In February, we entered into a wide-ranging agreement with Klöckner Pentaplast, 
the world's leading producer of rigid film products.  I am very pleased to 
report that Klöckner have been most efficient in progressing all areas of the 
agreement. Klöckner staff are now fully trained, have picked up servicing 
existing customers and are well advanced in the rolling out of Plantic's 
products branded as Pentafood  Biofilm(TM). Klöckner has engaged with several 
major multinational corporations in the USA promoting Plantic rigid sheet and 
has also advanced its plans to manufacture Plantic sheet under licence. Finally, 
negotiations are underway with Klöckner to distribute Plantic product in other 
territories outside of the USA. 
 
"We have also seen increased orders from a number of key customers in Europe, 
including Marks & Spencer, in the UK and a major German confectionery company. 
Our plant in Jena, Germany is delivering increased volumes of product into the 
European market. We have also made our first sales of injection moulded resins 
into the Australasian market, illustrating the value and importance of our 
product development programme. 
 
"In February, after completing a major product development programme, we 
launched our eco Plastic(TM)resin product.  We are currently negotiating a 
global distribution agreement for this product and expect a favourable 
conclusion in the near future. The roll out of eco Plastic resins for both film 
and injection moulding applications is also going well. Several multinational 
food and healthcare companies are evaluating eco Plastic(TM) for a range of 
applications. 
 
"A major strength for Plantic is its Intellectual Property, with many patents 
approved in major global markets.  We recently secured our fifth US Patent to 
protect the technology behind Plantic's new rigid sheet material with improved 
impact resistance. 
 
"We achieved improved manufacturing output and yields during the first half of 
2010. The plan to establish a manufacturing plant in the USA, in collaboration 
with National Starch, is progressing in line with expectations. Once complete, 
it will deliver significant cost reductions, not only in substantially reduced 
logistics costs but also from a more efficient manufacturing process. Plantic 
has also received several offers of government subsidies to support our 
investment in the USA, which we are currently evaluating. 
 
"In summary, the development of our strategy and agreements with new partners, 
together with increased sales, product development and manufacturing, has seen 
the most significant progress for Plantic since its inception.  The growth in 
the breadth of our product range and associated opportunities is pleasingly 
co-incident with renewed market confidence post the GFC, and an increasing 
aversion to hydrocarbon based products, accentuated by the ongoing environmental 
disaster in the Gulf of Mexico. The strategic steps we have taken leave us well 
placed to exploit these opportunities on better terms than had previously been 
possible.  We therefore remain confident of future success. 
 
"It is important for me to pay special tribute to our CEO, Brendan Morris, and 
the whole staff of Plantic.  It is one thing to lead a company enjoying steady 
market demand and good returns, but far greater demands are placed on Brendan 
and our senior staff as we secure our new partnerships, and ensure the proper 
promotion of our products in the USA and Europe, as well as Australia and New 
Zealand." 
 
 
FURTHER INFORMATION: 
 
+--------------------------------------+------------------+ 
| Plantic Technologies Limited         |                  | 
+--------------------------------------+------------------+ 
| Brendan Morris                       | [phone]   | 
|                                      | 7983             | 
+--------------------------------------+------------------+ 
|                                      |                  | 
+--------------------------------------+------------------+ 
| Matrix Corporate Capital LLP         |                  | 
+--------------------------------------+------------------+ 
| Stephen Mischler                     | [phone]  | 
|                                      | 7203             | 
+--------------------------------------+------------------+ 
| Tim Graham                           | [phone]  | 
|                                      | 7206             | 
+--------------------------------------+------------------+ 
|                                      |                  | 
+--------------------------------------+------------------+ 
| Pelham Bell Pottinger                |                  | 
+--------------------------------------+------------------+ 
| Archie Berens                        | [phone]  | 
|                                      | 3112             | 
+--------------------------------------+------------------+ 
 
 
NOTES FOR EDITORS 
 
Plantic Technologies is based in Australia, where its head office, principal 
manufacturing and research and development facilities are located. In addition 
the company has a rigid packaging manufacturing plant in Jena, Germany together 
with sales offices in Germany, the United Kingdom and the USA. Plantic employs 
approximately 65 people internationally. 
 
Plantic's novel polymer technology is based on the use of high-amylose corn 
starch, a material derived from annual harvesting of specialized non-GM (hybrid) 
corn and supplied by National Starch.  The unique chemical and film-forming 
properties of this type of starch allow for development of a range of 
applications across conventional plastics markets.  Plantic materials have a 
renewable bio-content of approximately 85%.  In addition to being 
renewably-sourced, Plantic materials are biodegradable, home compostable, water 
dispersible and compostable to American (ASTM 6400) and European (EN 13432) 
standards. 
 
Plantic Technologies has won numerous international awards for their innovation 
in biodegradable plastics. Plantic is listed on the London Stock Exchange (AIM) 
under the symbol 'PLNT'. 
 
For more information visit the company's website www.plantic.com.au. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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