Plant Health Care PLC (LON:PHC) said its full year revenue will miss market forecasts due to the delayed launch of a new product in the US and a prolonged drought in South Africa.
Shares plunged 29.65% to 7p in morning trading.
The company, which provides plant proteins to crops, said it now expects revenue for the year to be broadly flat on 2017 and “materially below” market expectations.
The launch of a new product for soy crop has been delayed until 2019 following a discussion with its US partner.
In its key market of South Africa, a long-running drought has resulted in a slower drawdown in market inventory than expected. Plant Health Care has subsequently decided to restrict sales until inventory has been worked off.
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Elsewhere it was more positive with the company saying sales in Brazil were continuing a “positive trend” in sugarcane in line with expectations.
The group said its Harpin protein technology has been launched into corn with its US partner and this has made a "very encouraging start" with sales to date close to US$1.5mln.
"While the shortfall against expectations is extremely disappointing, our expectations for sales in 2019 are unchanged," said Chris Richards, executive chairman and interim chief executive.
"We are very encouraged by progress in the US and Brazil.
"The shortfall in 2018 does not affect the board's confidence in the company becoming cash positive no later than 2020, within our existing cash reserves."