Business

Plantic Technologies, the Australian developer of plastics made from renewable resources, has said sales volumes rose by 90% in the first half of 2006 as it made inroads in the packaging market.

The firm, which has developed technology to make polymers based on high-amylose corn starch, said today (4 September) that its packaging materials had attracted a number of active customers, including Marks & Spencer.

Brand owner evaluation of its first flexible packaging films also started in the first six months of the year, and Plantic has appointed a European manager based in Frankfurt to drive further growth.

The firm, which raised £20m when it floated on the Alternative Investment Market in May, said a "significant reduction" in its government funding had caused revenue to fall 11% from £486,000 (AUS$1.19m) to £434,000 for the six months to 30 June.

Its loss before tax and finance costs increased by almost a third, to £1.62m, due to higher research and development spending.

However, product revenue grew by almost a third to £317,000 as it changed its strategy in Australia from selling finished packaging to selling materials to third-party packaging converters.

Plantic still has £18.8m in cash reserves. Its share price rose by more than 4% this morning to 68p following the results. However, it has been in gradual decline since it peaked at 82p in late May.