Renewable plastics technology company, Plantic Technologies (AIM:PLNT) fell 7% today despite reminding investors that its cash reserves are more than double the company’s market capitalisation.
Australia based, London listed Plantic released a trading statement for the twelve months ended 31 December 2008. Highlights included a closing cash position of A$26.4 million (£12.4 million), with net cash outflows reduced to A$4.5 million in the second half of 2008, from A$7.9 million in the same period in 2007, and down from A$7 million in the first half of 2008.
Plantic added that it expected to post a net loss of A$9 million for 2008 - better than market expectations - in part due to favourable currency movements. Meanwhile, sales increased by 145% to A$3.6 million and sales volumes increased 120% compared to 2007. The company also noted that sales volumes in the second half of 2008 were up 170% compared to the same period in 2007, and up 120% compared to the first half of 2008.
However, investors appeared to hone in Plantic’s guidance for 2009:
“The global economic environment has deteriorated significantly. This will inevitably affect Plantic's growth and performance in 2009.”
“However, the Directors remain confident about the long-term prospects for the company and its technology. Plantic's strong cash reserves, improvements in plant capacity in Australia and our new production facilities in Europe provide a platform to continue to develop and improve products during this period of economic downturn.”