Half Yearly Report

 

TIDMPLNT 
 
RNS Number : 0001T 
Plantic Technologies Limited 
21 September 2010 
 

 
Regulatory News 
21 September 2010 
 
                          Plantic Technologies Limited 
                          ("Plantic" or "the Company") 
 
                Interim Results for 6 months ended 30 June 2010 
 
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, 2010. 
 
Plantic's novel polymer manufacturing technology is based on the use of 
highamylose 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. 
 
CHAIRMAN'S REPORT 
 
This report is written subsequent to Plantic Technologies Limited ("Plantic") 
entering into a Merger Implementation Agreement ("MIA") with Plantic's largest 
shareholder, Gordon Merchant No. 2 Pty Ltd ("GM"), which controls with its 
associates 18.9% of Plantic's shares.  Under the MIA it is proposed that GM will 
acquire all the shares in Plantic not already owned by it via a scheme of 
arrangement ("Scheme"), at an offer price of GBP0.08 per share, which values the 
entire share capital of Plantic at GBP6.38M. Gordon Merchant being a current 
director of Plantic and Luke McGrath being an alternate director, both being 
associated with GM, have absented themselves from all discussions relating to 
the MIA. 
 
While Plantic's revenues for the first 6 months to the end of June 2010 have 
increased to A$1.1m (2009 A$0.7m), the net loss for the first half of 2010 
increased to A$15.1m (2009: A$5.3m).  A major component of this loss was due to 
an A$9.8m non cash asset impairment charge and lower income from financing 
activities of A$0.2m (2009: A$0.4m) due to decreased interest income on cash 
held by Plantic. Under theproposed Share Scheme, GM will acquire all the Plantic 
Shares not already owned by it at an offer price of GBP0.08 per Share, which 
values the entire issued Share capital of Plantic at GBP6.38m.  The recoverable 
amount of the plant and equipment has been determined having regard to the value 
of Plantic implied by the offer by GM.  Plantic has consequently recognised an 
impairment charge of A$9.8m in the accounts for the six month period ended 30 
June 2010. 
 
The net loss of Plantic, excluding financing and impairment charge for the first 
half of 2010 was A$5.3m (2009: A$5.7m). Product sales in the first 6 months to 
the end of June have increased by approximately 180% compared to the second half 
of 2009, with revenues (including Government Grants) 100% higher. 
 
Cash used in operations for the first half of 2010 was A$5.0m compared to A$5.0m 
for the second half of 2009. Cash and cash equivalents as at 30 June 2010 was 
$9.45m (2009: A$21.6m).  Cash utilisation has continued to be a key issue for 
Plantic with low revenues and plant utilisation impacting on cash used in the 
first half of 2010 despite Plantic achieving a reduction of A$0.4m in overheads. 
 
In February 2010, DuPont and Plantic mutually agreed to terminate their 
distribution agreement for Plantic product, due to a number of issues including 
the ongoing impact of the global financial crisis and DuPont's inability to 
significantly grow sales of Plantic's biodegradable product.  Plantic replaced 
DuPont by entering into a wide-ranging agreement with Klöckner Pentaplast, a 
world leading producer of rigid film products. 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 in the 
future.  In addition, negotiations are currently underway with a global polymer 
compounder to distribute Plantic's eco Plastic(TM) and biodegradable resins for 
film, injection moulding and extrusion blow moulding markets globally. 
 
Plantic launched its eco Plastic(TM) resin product in February 2010, being a 
sustainable resin suitable for a range of applications including flexible film, 
injection moulding and extrusion blow moulding. 
 
The plan to establish a manufacturing plant in the USA, in collaboration with 
National Starch, has been progressing. If completed, it will deliver a number of 
cost reductions for Plantic but the establishment of this plant will require 
significant capital investment by Plantic.  Plantic would need to raise this 
capital from external sources. 
 
Plantic has recently added to its intellectual property portfolio by securing 
its fifth US patent to protect the technology behind its new rigid sheet 
material with improved impact resistance. 
 
We have recently announced that as a result of the entering into an MIA under 
which it is proposed that GM will acquire all of the ordinary shares in Plantic 
valuing the entire issued share capital of Plantic at GBP6.38m and in the 
absence of a superior proposal, the recoverable amount of the plant and 
equipment will be determined having regard to the value of the company implied 
by the offer by GM. 
 
The Independent Board Committee appointed to evaluate the offer from GM ("IBC") 
considered the need for Plantic to raise significant equity in order to proceed 
with its previously announced commercial objectives and the advice that, 
following the global financial crisis, the availability of equity capital for 
companies similar to Plantic in the early stages of commercial business 
development was limited.  Therefore, any equity raising by Plantic (if 
successful) would have needed to occur at a substantial discount to the pre 
offer price of Plantic's securities and was likely to be significantly 
dilutionary to existing Plantic investors should they not subscribe. 
 
The IBC  also considered that, if it proceeded with a capital raising after 
rejecting GM's proposal, it could not have any certainty that GM would have 
supported any such capital raising, and as such, would have a limited chance of 
being successful.  In those circumstances, the IBC considered that, in the 
absence of a superior proposal, the premium offered by GM and the certainty of 
GM's cash offer is sufficient to warrant its unanimous recommendation. 
 
As no superior bid has been received to this point, the group has recognised an 
impairment charge of A$9.8m in the accounts for the six month period ended 30 
June 2010. In the past and in the absence of the MIA the valuation of these 
assets would have been under a normal on-going business basis and assessed 
according to future expected earnings 
 
The MIA with GM was announced on 29 July 2010.  Since that date, Plantic has 
been working intensely with GM to finalise the details of the Scheme to be put 
to Plantic shareholders.  GM has also on 8 September 2010 proposed an option 
scheme of arrangement, offering to acquire the options in Plantic held by the 
option holders for an amount valued using the Black Scholes Method. 
 
The next phase of the process is for Plantic to obtain the approval of the 
Supreme Court of Victoria to put the schemes to the shareholders and option 
holders.  Once this approval is obtained, Plantic will send to all shareholders 
and option holders a scheme booklet detailing all the material issues relevant 
to the making of a decision by shareholders and option holders (including an 
independent expert report) and calling separate meetings of shareholders and 
option holders to vote on the schemes. 
 
It is currently anticipated that the meetings for both schemes will be held in 
early to mid November 2010 at Plantic's offices.  If the shareholders and option 
holders vote in favour of the scheme, Plantic will return to the court to obtain 
final approval for the schemes.  On receiving final approval, GM will make the 
payments owed to the shareholders and option holders.  It is important to note 
that the share scheme is not conditional on the option scheme.  This means that 
if the shareholders vote in favour of the share scheme but the option holders 
vote against the option scheme, Plantic will still return to the court to obtain 
approval for the share scheme. 
 
Following the successful implementation of the share scheme, GM will own all of 
the shares in Plantic. 
 
Statement of comprehensive income (Unaudited) for the half year ending 30 June 
2010 
 
+--------+--------+--------+--------+----------------------------+--------------------------+--------+ 
|        |        |        |        |                                                       |        | 
|        |        |        |        |                     CONSOLIDATED                      |        | 
+--------+--------+--------+--------+-------------------------------------------------------+--------+ 
|        |        |        |        |                            |                          |        | 
|        |        |        |        |                      6mths |                    6mths |        | 
+--------+--------+--------+--------+----------------------------+--------------------------+--------+ 
|        |        |        |        |                       2010 |                     2009 |        | 
+--------+--------+--------+--------+----------------------------+--------------------------+--------+ 
|        |        |        |  Note  |                         $  |                       $  |        | 
+--------+--------+--------+--------+----------------------------+--------------------------+--------+ 
|  Sales revenue           |        |                   926,705  |                 581,087  |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
|  Government grants       |        |                   151,454  |                  99,025  |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
|  Cost of sales           |        |               (1,052,626)  |               (575,805)  |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
| Engineering and          |        |               (1,749,051)  |             (1,805,884)  |        | 
| manufacturing scale up   |        |                            |                          |        | 
| costs                    |        |                            |                          |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
|  Gross Profit            |        |               (1,723,518)  |             (1,701,577)  |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
|  Finance revenue         |  2a    |                  177,029   |                443,512   |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
|  Other revenue           |  2b    |                    15,464  |                   6,748  |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
|  Other expenses          |  2c    |                  (19,060)  |                 (6,680)  |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
| Administrative &         |        |               (2,543,619)  |             (2,383,107)  |        | 
| selling expenses         |        |                            |                          |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
| Research and             |        |               (1,024,527)  |             (1,253,974)  |        | 
| development expenses     |        |                            |                          |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
| Fixed Asset impairment   |        |               (9,796,096)  |                          |        | 
| charge                   |        |                            | -                        |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
| Share based payment      |        |                  (30,763)  |               (330,547)  |        | 
| expense                  |        |                            |                          |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
|  Finance costs           |        |                 (141,559)  |               (109,362)  |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
|  Loss before income tax  |        |              (15,086,649)  |             (5,334,987)  |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
|  Income tax              |        |                            |                          |        | 
|                          |        | -                          | -                        |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
| NET LOSS FOR THE PERIOD  |        |              (15,086,649)  |             (5,334,987)  |        | 
|                          |        |                            |                          |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
|        |        |        |        |                            |                          |        | 
+--------+--------+--------+--------+----------------------------+--------------------------+--------+ 
| Other comprehensive      |        |                            |                          |        | 
| expenses                 |        |                            |                          |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
| Foreign currency         |        |                 (467,213)  |               (619,273)  |        | 
| translation reserve      |        |                            |                          |        | 
| movement                 |        |                            |                          |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
| Other comprehensive expenses for  |                 (467,213)  |               (619,273)  |        | 
| the period net of tax             |                            |                          |        | 
+-----------------------------------+----------------------------+--------------------------+--------+ 
|        |        |        |        |                            |                          |        | 
+--------+--------+--------+--------+----------------------------+--------------------------+--------+ 
| Total comprehensive      |        |              (15,553,862)  |             (5,954,260)  |        | 
| loss for the period      |        |                            |                          |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
|        |        |        |        |                            |                          |        | 
+--------+--------+--------+--------+----------------------------+--------------------------+--------+ 
|        |        |        |        |                      Cents |                    Cents |        | 
|        |        |        |        |                            |                          |        | 
+--------+--------+--------+--------+----------------------------+--------------------------+--------+ 
| Loss per share for loss           |                            |                          |        | 
| attributable to the ordinary      |                            |                          |        | 
+-----------------------------------+----------------------------+--------------------------+--------+ 
| equity holders of the    |        |                            |                          |        | 
| company                  |        |                            |                          |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
|  Basic loss per share    |        |                    (18.91) |                   (6.68) |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
|  Diluted loss per share  |        |                    (18.91) |                   (6.68) |        | 
+--------------------------+--------+----------------------------+--------------------------+--------+ 
|        |        |        |        |                            |                          |        | 
+--------+--------+--------+--------+----------------------------+--------------------------+--------+ 
 
 
 Statement of financial position (Unaudited) as at 30 June 2010 
 
+---+---+-----------+--+-------------------------------+--------+-----------------------+ 
|   |   |           |  |                         CONSOLIDATED                           | 
+---+---+-----------+--+----------------------------------------------------------------+ 
|   |   |           |  |                       30 June |        |           31 December | 
+---+---+-----------+--+-------------------------------+--------+-----------------------+ 
|   |   |           |  |                          2010 |        |                  2009 | 
+---+---+-----------+--+-------------------------------+--------+-----------------------+ 
|   |   |           |  |                               |        |                       | 
+---+---+-----------+--+-------------------------------+--------+-----------------------+ 
|   |   |           |  |                            $  |        |                    $  | 
+---+---+-----------+--+-------------------------------+--------+-----------------------+ 
|  Assets           |  |                               |        |                       | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
| Cash and cash     |  |                  9,449,397    |        |        15,603,189     | 
| equivalents       |  |                               |        |                       | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
| Trade and other   |  |                     429,648   |        |             159,943   | 
| receivables       |  |                               |        |                       | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
|  Inventories      |  |                  4,397,254    |        |          4,250,085    | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
| Other current     |  |                     244,905   |        |             183,064   | 
| assets            |  |                               |        |                       | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
| Total Current     |  |                14,521,204     |        |        20,196,281     | 
| Assets            |  |                               |        |                       | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
| Plant and         |  |                  2,253,777    |        |        12,098,592     | 
| equipment         |  |                               |        |                       | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
| Total             |  |                 2,253,777     |        |        12,098,592     | 
| Non-current       |  |                               |        |                       | 
| Assets            |  |                               |        |                       | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
|  Total Assets     |  |               16,774,981      |        |        32,294,873     | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
|   |   |           |  |                               |        |                       | 
+---+---+-----------+--+-------------------------------+--------+-----------------------+ 
|  Liabilities      |  |                               |        |                       | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
| Trade and other   |  |                  1,658,810    |        |          1,186,578    | 
| payables          |  |                               |        |                       | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
| Interest bearing  |  |                     985,402   |        |          1,074,005    | 
| liabilities       |  |                               |        |                       | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
|  Provisions       |  |                     315,858   |        |             202,812   | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
| Total Current     |  |                  2,960,070    |        |          2,463,395    | 
| Liabilities       |  |                               |        |                       | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
| Interest bearing  |  |                  2,547,535    |        |          3,022,677    | 
| liabilities       |  |                               |        |                       | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
|  Provisions       |  |                       44,759  |        |               63,085  | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
| Total             |  |                  2,592,294    |        |          3,085,762    | 
| Non-current       |  |                               |        |                       | 
| Liabilities       |  |                               |        |                       | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
| Total             |  |                 5,552,364     |        |          5,549,157    | 
| Liabilities       |  |                               |        |                       | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
|  Net Assets       |  |               11,222,617      |        |        26,745,716     | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
|   |   |           |  |                               |        |                       | 
+---+---+-----------+--+-------------------------------+--------+-----------------------+ 
|  Equity           |  |                               |        |                       | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
|  Issued capital   |  |              76,314,128       |        |        76,314,128     | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
|  Reserves         |  |                1,217,323      |        |          1,653,773    | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
| Accumulated       |  |      (66,308,834)             |        |       (51,222,185)    | 
| Losses            |  |                               |        |                       | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
|  Total Equity     |  |              11,222,617       |        |      26,745,716       | 
+-------------------+--+-------------------------------+--------+-----------------------+ 
|   |   |           |  |                               |        |                       | 
+---+---+-----------+--+-------------------------------+--------+-----------------------+ 
 
 
 
Statement of cash flow (Unaudited) for the half year ending 30 June 2010 
 
+-----------+-----------+---------------+--+---------------+-------+----------------+ 
|           |           |               |  |             CONSOLIDATED               | 
+-----------+-----------+---------------+--+----------------------------------------+ 
|           |           |               |  |             6 |       |              6 | 
|           |           |               |  |        months |       |         months | 
+-----------+-----------+---------------+--+---------------+-------+----------------+ 
|           |           |               |  |          2010 |       |           2009 | 
+-----------+-----------+---------------+--+---------------+-------+----------------+ 
|           |           |               |  |  $            |       |  $             | 
+-----------+-----------+---------------+--+---------------+-------+----------------+ 
| Receipts from customers and related   |  |   1,037,158   |       |     3,189,334  | 
| parties                               |  |               |       |                | 
+---------------------------------------+--+---------------+-------+----------------+ 
|  Grants received                      |  |      151,454  |       |        99,025  | 
+---------------------------------------+--+---------------+-------+----------------+ 
|  Payments to suppliers and employees  |  |  (6,144,157)  |       |   (6,906,728)  | 
+---------------------------------------+--+---------------+-------+----------------+ 
|           |           |               |  |               |       |                | 
+-----------+-----------+---------------+--+---------------+-------+----------------+ 
| Net cash flows used in operating      |  |  (4,955,545)  |       |   (3,618,369)  | 
| activities                            |  |               |       |                | 
+---------------------------------------+--+---------------+-------+----------------+ 
|           |           |               |  |               |       |                | 
+-----------+-----------+---------------+--+---------------+-------+----------------+ 
| Purchase of property, plant and       |  |  (564,650)    |       |     (825,991)  | 
| equipment                             |  |               |       |                | 
| (net of subsidies)                    |  |               |       |                | 
+---------------------------------------+--+---------------+-------+----------------+ 
|           |           |               |  |               |       |                | 
+-----------+-----------+---------------+--+---------------+-------+----------------+ 
| Net cash flows used in investing      |  |    (564,650)  |       |     (825,991)  | 
| activities                            |  |               |       |                | 
+---------------------------------------+--+---------------+-------+----------------+ 
|  Interest paid                        |  |    (141,559)  |       |     (109,362)  | 
+---------------------------------------+--+---------------+-------+----------------+ 
|  Interest received                    |  |      176,363  |       |       449,079  | 
+---------------------------------------+--+---------------+-------+----------------+ 
|  Repayment of borrowings              |  |    (563,742)  |       |     (445,726)  | 
+---------------------------------------+--+---------------+-------+----------------+ 
| Net cash flows from/(used in)         |  |    (528,938)  |       |     (106,009)  | 
| financing activities                  |  |               |       |                | 
+---------------------------------------+--+---------------+-------+----------------+ 
| Net increase/(decrease)  in cash and  |  |  (6,049,133)  |       |   (4,550,369)  | 
| cash equivalents                      |  |               |       |                | 
+---------------------------------------+--+---------------+-------+----------------+ 
|           |           |               |  |               |       |                | 
+-----------+-----------+---------------+--+---------------+-------+----------------+ 
|  Cash and cash equivalents            |  |               |       |                | 
+---------------------------------------+--+---------------+-------+----------------+ 
|           | - net foreign exchange    |  |    (104,659)  |       |     (264,359)  | 
|           | differences               |  |               |       |                | 
+-----------+---------------------------+--+---------------+-------+----------------+ 
|  Cash                                 |  |               |       |                | 
+---------------------------------------+--+---------------+-------+----------------+ 
|           | - at beginning of the     |  |   15,603,189  |       |    26,400,386  | 
|           | half year                 |  |               |       |                | 
+-----------+---------------------------+--+---------------+-------+----------------+ 
|           | - at end of the half      |  |    9,449,397  |       |    21,585,658  | 
|           | year                      |  |               |       |                | 
+-----------+-----------+---------------+--+---------------+-------+----------------+ 
 
 
 
Statement of Changes in Equity (Unaudited) for the half year ending 30 June 2010 
+----------+----------+-----------------------+--------------+-------------+--------------+--------------------+------------------+ 
|          |          |                       |    Share     |   Issued    |   Foreign    |    Accumulated     |      Total       | 
|          |          |                       |    based     |  Capital    |  currency    |      losses        |                  | 
|          |          |                       |  payments    |             | translation  |                    |                  | 
|          |          |                       |   reserve    |             |   reserve    |                    |                  | 
+----------+----------+-----------------------+--------------+-------------+--------------+--------------------+------------------+ 
|  CONSOLIDATED                               |      $       |     $       |      $       |         $          |        $         | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
| Balance at                                  |              |             |              |                    |                  | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
| 1 January 2009                              |   1,966,665  | 76,314,128  |     332,492  |      (40,460,202)  |      38,153,083  | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
|  Net loss for the period                    |              |             |              |       (5,334,987)  |     (5,334,987)  | 
|                                             |            - |           - |            - |                    |                  | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
|  Other comprehensive (expenses)/income      |              |             |   (619,273)  |                    |       (619,273)  | 
|                                             |            - |           - |              |                  - |                  | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
|  Total comprehensive loss for the period    |              |             |   (619,273)  |       (5,334,987)  |     (5,954,260)  | 
|                                             |            - |           - |              |                    |                  | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
|          |          |                       |              |             |              |                    |                  | 
+----------+----------+-----------------------+--------------+-------------+--------------+--------------------+------------------+ 
| Transactions with owners in their capacity  |              |             |              |                    |                  | 
| as owners                                   |              |             |              |                    |                  | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
|  Share Based Payment                        |     330,547  |             |              |                    |         330,547  | 
|                                             |              |           - |            - |                  - |                  | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
|   Vested options not being exercised        |    (50,120)  |             |              |            50,120  |                  | 
|                                             |              |             |            - |                    |                - | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
| Balance at                                  |              |             |              |                    |                  | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
| 30 June 2009                                | 2,247,092    | 76,314,128  |   (286,781)  |      (45,745,069)  |  32,529,370      | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
|          |          |                       |              |             |              |                    |                  | 
+----------+----------+-----------------------+--------------+-------------+--------------+--------------------+------------------+ 
| Balance at                                  |              |             |              |                    |                  | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
| 1 January 2010                              |   2,273,562  | 76,314,128  |   (619,789)  |      (51,222,185)  |      26,745,716  | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
|  Net loss for the period                    |              |             |              |      (15,086,649)  | (15,086,649)     | 
|                                             |            - |           - |            - |                    |                  | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
|  Other comprehensive (expenses)/income      |              |             |   (467,213)  |                    |       (467,213)  | 
|                                             |            - |           - |              |                  - |                  | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
|  Total comprehensive loss for the period    |              |             |   (467,213)  |      (15,086,649)  |  (15,553,862)    | 
|                                             |            - |           - |              |                    |                  | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
|          |          |                       |              |             |              |                    |                  | 
+----------+----------+-----------------------+--------------+-------------+--------------+--------------------+------------------+ 
| Transactions with owners in their capacity  |              |             |              |                    |                  | 
| as owners                                   |              |             |              |                    |                  | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
|  Share Based Payment                        |      30,763  |             |              |                    |          30,763  | 
|                                             |              |           - |            - |                  - |                  | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
| Balance at                                  |              |             |              |                    |                  | 
+---------------------------------------------+--------------+-------------+--------------+--------------------+------------------+ 
| 30 June 2010                                | 2,304,325    | 76,314,128  |(1,087,002)   |      (66,308,834)  |  11,222,617      | 
+----------+----------+-----------------------+--------------+-------------+--------------+--------------------+------------------+ 
 
 
 
Notes to the Interim Results for the 6 months ended 30 June 2010 
 
1.     The interim financial report has been prepared on a going concern basis 
based on the fact that Plantic Technologies ("Plantic") has entered into a 
Merger Implementation Agreement ("MIA") with Gordon Merchant No. 2 Pty Ltd 
("GM") under which it is proposed that GM will acquire all of the ordinary 
shares in Plantic that it does not already own via a Scheme of Arrangement 
("Scheme"). However, the consolidated entity continues to incur net losses and 
has negative cash flows from operations.  The consolidated entity's operations 
are subject to considerable risks due primarily to the nature of the 
commercialisation being undertaken and injection of capital within the next 
twelve months is crucial to the continuing commercialisation of Plantic and the 
development of the business. 
For the going concern basis to remain appropriate, it is assumed that this 
Scheme will be implemented and sufficient funding will be injected into the 
consolidated entity by GM as required within the next 12 months, to facilitate 
the successful execution of its commercialisation plans. 
In forming this view the directors note: 
 
·              Management's confidence that the business growth will continue 
·              The consolidated entity has been and continues to be in a 
positive net asset position 
·              The consolidated entity has cash of $9,449,397 on hand as at 30 
June 2010 
 
The recoverable amount of the consolidated entity's plant and equipment has been 
assessed based on the valuation of the company implied by the Scheme, the 
successful execution of the commercialization plan and raising of additional 
capital. 
 
In the event that such arrangements are not entered into, there is significant 
uncertainty whether the company and the consolidated entity will continue as a 
going concern and therefore, whether they will realise their assets and 
extinguish their liabilities in the normal course of business at the amounts 
stated in the financial report. 
 
The financial report does not include any adjustments relating to the 
recoverability and classification of recorded asset amounts, in particular the 
plant and equipment and inventories, or to the amounts and classification of 
liabilities that might be necessary should the consolidated entity not be able 
to continue as a going concern. 
 
The half year financial report does not include all notes of the type normally 
included within the annual financial report and therefore cannot be expected to 
provide as full an understanding of the financial performance, financial 
position and financing and investing activities of the consolidated entity as 
the full financial report. 
 
It is recommended that the half year financial report be read in conjunction 
with the annual report for the year ended 31 December 2009 and considered 
together with any public announcements made by Plantic Technologies during or 
since the half year ended 30 June 2010 in accordance with the continuous 
disclosure obligations of the AIM listing rules. 
 
Notes to the Interim Results for the 6 months ended 30 June 2010 cont) 
 
 
2.       Analysis of Revenue 
 
+----+-------------+----+-----+-------+-------+----------------+----------+---------------+ 
|    |                  |     |       |       |               CONSOLIDATED                | 
+----+------------------+-----+-------+-------+-------------------------------------------+ 
|    |                  |     |       |       |              6 |          |             6 | 
|    |                  |     |       |       |         months |          |        months | 
+----+------------------+-----+-------+-------+----------------+----------+---------------+ 
|    |                  |     |       |       |       30/06/10 |          |      30/06/09 | 
+----+------------------+-----+-------+-------+----------------+----------+---------------+ 
|    |                  |     |       |       |       $        |          |       $       | 
+----+------------------+-----+-------+-------+----------------+----------+---------------+ 
|    |                  |     |       |       |                |          |               | 
+----+------------------+-----+-------+-------+----------------+----------+---------------+ 
| 2a |  Finance revenue       |       |       |                |          |               | 
|    |                        |       |       |                |          |               | 
+----+------------------------+-------+-------+----------------+----------+---------------+ 
|    | Interest    |          |       |       |       177,029  |          |      443,512  | 
|    | revenue     |          |       |       |                |          |               | 
+----+-------------+----------+-------+-------+----------------+----------+---------------+ 
|    | Total finance revenue  |       |       |       177,029  |          |      443,512  | 
|    |                        |       |       |                |          |               | 
+----+------------------------+-------+-------+----------------+----------+---------------+ 
|    |             |          |       |       |                |          |               | 
+----+-------------+----------+-------+-------+----------------+----------+---------------+ 
| 2b |  Other revenue         |       |       |                |          |               | 
|    |                        |       |       |                |          |               | 
+----+------------------------+-------+-------+----------------+----------+---------------+ 
|    |  Rental income         |       |       |        15,464  |          |        6,748  | 
+----+------------------------+-------+-------+----------------+----------+---------------+ 
|    |                  |     |       |       |                |          |               | 
+----+------------------+-----+-------+-------+----------------+----------+---------------+ 
|    | Total other      |     |       |       |        15,464  |          |        6,748  | 
|    | revenue          |     |       |       |                |          |               | 
+----+------------------+-----+-------+-------+----------------+----------+---------------+ 
|    |                  |     |       |       |                |          |               | 
+----+------------------+-----+-------+-------+----------------+----------+---------------+ 
| 2c |  Other expenses        |       |       |                |          |               | 
|    |                        |       |       |                |          |               | 
+----+------------------------+-------+-------+----------------+----------+---------------+ 
|    | Foreign exchange loss  |       |       |      (19,060)  |          |      (6,680)  | 
|    |                        |       |       |                |          |               | 
+----+------------------------+-------+-------+----------------+----------+---------------+ 
|    |                  |     |       |       |                |          |               | 
+----+------------------+-----+-------+-------+----------------+----------+---------------+ 
|    | Total other      |     |       |       |      (19,060)  |  -       |      (6,680)  | 
|    | expenses         |     |       |       |                |          |               | 
+----+------------------+-----+-------+-------+----------------+----------+---------------+ 
|    |             |    |     |       |       |                |          |               | 
+----+-------------+----+-----+-------+-------+----------------+----------+---------------+ 
 
 
3.       Segment Information 
 
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 (the chief operating 
decision maker) 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 determined 
by the similarity of the geographical location and 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. 
 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
| Segment reporting for the half year ended 30   |                    CONSOLIDATED                     | 
| June 2010                                      |                                                     | 
+------------------------------------------------+-----------------------------------------------------+ 
|                               |          |     |    Australia    |    Europe      |      Total       | 
|                               |          |     |                 |                |                  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
|                               |          |     |       $         |       $        |        $         | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
|  Revenue                      |          |     |                 |                |                  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
|  Sales to external customers  |          |     |        362,793  |       563,912  |         926,705  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
|  Other revenue                |          |     |                 |        15,464  |          15,464  | 
|                               |          |     |               - |                |                  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
|  Government grants            |          |     |        122,907  |        28,547  |         151,454  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
|  Total external revenue       |          |     |        485,700  |       607,923  |       1,093,623  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
|  Total  segment revenue       |          |     |                 |                |       1,093,623  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
|                               |          |     |                 |                |                  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
|  Result                       |          |     |                 |                |                  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
|  Segment result               |          |     |    (4,359,983)  |     (966,040)  |     (5,326,023)  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
| Reconciliation of Segment result to net loss   |    (4,359,983)  |     (966,040)  |     (5,326,023)  | 
| before tax                                     |                 |                |                  | 
+------------------------------------------------+-----------------+----------------+------------------+ 
|  Impairment charge            |          |     |    (8,798,803)  |     (997,293)  |     (9,796,096)  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
|  Interest revenue             |          |     |        177,029  |                |         177,029  | 
|                               |          |     |                 |              - |                  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
|  Finance costs                |          |     |      (141,559)  |                |       (141,559)  | 
|                               |          |     |                 |              - |                  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
| Net Loss before tax per the statement of       |   (13,123,316)  |   (1,963,333)  |    (15,086,649)  | 
| comprehensive income                           |                 |                |                  | 
+------------------------------------------------+-----------------+----------------+------------------+ 
|                               |          |     |                 |                |                  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
|  Other segment information    |          |     |                 |                |                  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
|  Segment assets               |          |     |     16,106,987  |     2,729,273  |      18,836,260  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
|  Consolidation elimination    |          |     |                 |                |     (2,061,279)  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
|  Total assets                 |          |     |                 |                |      16,774,981  | 
+-------------------------------+----------+-----+-----------------+----------------+------------------+ 
 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
| Segment reporting for the half year ended 30   |                   CONSOLIDATED                   | 
| June 2009                                      |                                                  | 
+------------------------------------------------+--------------------------------------------------+ 
|                                  |          |  |   Australia    |    Europe     |      Total      | 
|                                  |          |  |                |               |                 | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
|                                  |          |  |       $        |       $       |       $         | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
|                                  |          |  |                |               |                 | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
|  Revenue                         |          |  |                |               |                 | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
|  Sales to external customers     |          |  |       561,090  |       20,158  |        581,248  | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
|  Other revenue                   |          |  |                |        6,748  |          6,748  | 
|                                  |          |  |              - |               |                 | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
|  Government grants               |          |  |        58,551  |       40,474  |         99,025  | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
|  Total external revenue          |          |  |       619,641  |       67,380  |        687,021  | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
|  Total  segment revenue          |          |  |                |               |        687,021  | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
|                                  |          |  |                |               |                 | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
|  Result                          |          |  |                |               |                 | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
|  Segment result                  |          |  |  (4,736,624)   |  (932,513)    |    (5,669,137)  | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
| Reconciliation of Segment result to net loss   |  (4,736,624)   |  (932,513)    |    (5,669,137)  | 
| before tax                                     |                |               |                 | 
+------------------------------------------------+----------------+---------------+-----------------+ 
|  Interest revenue                |          |  |       441,029  |        2,483  |        443,512  | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
|  Finance costs                   |          |  |   (109,362)    |               |      (109,362)  | 
|                                  |          |  |                |             - |                 | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
| Net Loss before tax per the statement of       |   (4,404,957)  |  (930,030)    |  (5,334,987)    | 
| comprehensive income                           |                |               |                 | 
+------------------------------------------------+----------------+---------------+-----------------+ 
|  Other segment information       |          |  |                |               |                 | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
|  Segment assets                  |          |  |    39,799,532  |    4,376,462  |     44,175,994  | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
|  Intersegment elimination        |          |  |                |               |    (5,922,001)  | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
|  Total assets                    |          |  |                |               |     38,253,993  | 
+----------------------------------+----------+--+----------------+---------------+-----------------+ 
 
 
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. 
 
 
 
Further information 
 
Plantic Technologies: 
Brendan Morris, Chief Executive Officer                            [phone] 
7900 
 
Matrix Corporate Capital LLP 
Stephen Mischler                                                           +44 
(0) 20 3206 7203 
Tim Graham                                                                  +44 
(0) 20 3206 7206 
 
Pelham Bell Pottinger 
Archie Berens                                                                +44 
(0) 20 7861 3112 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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