Plant Impact : Q1 Trading Update

Plant Impact plc

("Plant Impact" or the "Group")

Q1 Trading Update

Plant Impact plc (AIM: PIM), an agricultural bioscience group that develops and markets crop enhancement and specialty nutrition products,today announces a trading update for the three months ended 31 October 2014, the first quarter of its 2015 financial year.

Over the past financial year, Plant Impact made good progress in sales and in preparing the Group for growth.  The Group invested in capability in research and business development.  This progress has continued into Q1 2015 and has been strengthened further with the appointment of five field technical development employees in Brazil. There are current searches for further senior roles in both the UK and Brazil.

During the quarter, an exclusive distribution agreement was signed with Bayer CropScience for Brazil, this signalled Plant Impact's first entry into a large world crop sector.  The Group has already benefitted from a significant first year of Veritas®, a product for Brazilian soy. Turnover for the three month period ended 31 October 2014 more than doubled to £1.9 million from £0.7 million in the comparable prior period - Q1 2014. 

In the current, 2014/15 Brazilian soy season, the Group and its local marketing partners, are launching Veritas® broadly across Brazil, expanding the distribution footprint of the product in the main growing regions of the Cerrado and the southern regions of Parana and Rio Grande do Sul.

Net income in the period was approximately £0.7 million compared with a net loss of £0.2 million in the comparable prior period, and operating expenses increased to £0.9 million from £0.6 million as the Group continued to invest in Brazilian operations and R&D. 

The Group's cash balance, generated entirely from operations, was £1.2 million at 31 October 2014 compared with £0.5 million at 31 July 2014 and £0.9 million at 31 October 2013.

Outlook

The Directors note that - given the growing importance of its Brazilian business - Q1 turnover is a peak seasonal selling period for the Group.  The critical Brazilian business is gearing up now for sales through distribution to growers.  In order to ensure usage on farm, the Plant Impact technical field team have trained 1,700 agronomists and field technicians.  Additionally, the Brazilian R&D team is conducting the next series of field trials for an enhanced product pipeline.

The European selling season will not start until February / March 2015.  The Group is planning for good growth in its European and Middle Eastern businesses and anticipates trading in line with expectations for the remainder of the 2015 financial year.

John Brubaker, Plant Impact CEO commented;

"I am pleased to report that over the past four financial quarters, the Group has achieved cumulative positive net income and positive cash flow from operations.  This important milestone of 'break-even' has been reached whilst we are still expanding our investment in additional Brazilian staff and increasing our R&D programme substantially.  I am grateful for the support of our key commercial and supplier partners in sustaining our journey, and - most of all - for the commitment and dedication of all our staff at Plant Impact."

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