Plant Impact Share Discussion Threads

[mthead1968] 23/11/2016 16:42

Rlivsey.
-35% only if you bought in at £0.60.
My aggregate is £0.315 so I am still in the black !
GLA

[rlivsey] 23/11/2016 15:53

Gone through support now too

[rlivsey] 23/11/2016 15:52

This is horrible!!! Down 35%

[bigglesbingham] 22/11/2016 19:16

Think it's just lack of news . Apathy leads to sells. I'd like more rns's on trail results to show we are going in the right direction.

[mthead1968] 22/11/2016 16:48

Maybe we have investors even less happy than I am ?

[bigglesbingham] 22/11/2016 16:31

Down 5.7% on no news anyone any ideas???

[cerrito] 11/11/2016 19:29

I have had a canter through the A R
An interview with Steve Adams, head of R&D where he emphasizes the wheat R&D.A page on the Scientific Advisory Network. A reminder that R&D expenditure doubled to £2.9m and I note that the R&D tax credit for this year is anticipated to be £526k.
I was interested to read in the Page 17 discussion on accumulated tax losses that quote Directors do not consider there is sufficient certainty over the timing of future taxable profits to crystallise the deferred tax asset. Unquote which is realistic.
Page 18 has a good comment on strategy; from page 20 the report goes through 7 risks two of which are increasing and one-FX-is decreasing. The risks that are increasing are the important ones of commercialization((they say Evidence from the first years of commercialisation of our products suggests that although the long-term prospects are good, in the short-term it will prove challenging to gain the necessary traction to achieve sustainable revenues at commercially acceptable levels.) and customer concentration(where the repeat what they said in the Investor day the risk that Bayer will get bogged down with Monsanto).
Overall I thought their assessment of the risks sensible and sober.
In terms of shareholders no great change since Feb 16 16 though I see we seem to have lost WH Ireland who then had 4.39%; incidentally I see we have a Richard Sneller a fund manager at B Gifford who has just bought a lot in another holding of mine HAYT.
I see that Chairman Jones’ emoluments is £150k-up from £121k and he must be hands on to get such a large amount for an AIM company-but for now at least I do not begrudge him this amount.
At the top of page 45 a comment that still some way to go before they can trigger further payments from Bayer for new products-need to bring myself up to speed on this.
Note 17 tells us what we suspect namely that just under 90% of receivables at 7.16 in US$
In conclusion good professional team and there are a lot of risks to navigate before they get to the promised land.

[cerrito] 11/11/2016 18:34

It would appear from this USDA Nov 9 report that so far him upstairs is on side for now at least
2 - SOUTH AMERICA
Frequent, locally heavy showers increased moisture
for summer crop germination in central Argentina,
following a drying trend that began in July. Similarly,
periods of heavy rain increased moisture for cotton in
key northeastern production areas. In Brazil, October
rainfall provided timely moisture for planting
soybeans, corn, and cotton, although periods of
heavy rain were untimely for wheat harvesting in
southern production areas.

[mthead1968] 11/11/2016 14:21

I am uncomfortable with the fact that currently 90% of sales all sit with Bayer. It is still not clear how much of these 'sales' now make up the 'buffer inventories' in Brazil/Argentina/Paraguay. Our retreat from the European market also disappoints me. So much for assurances regarding strength of our brand. Not happy with the way we are accounting for share based expenses either. For me, the only genuine ray of hope from this statement is the recent registration of bugoil in California. I have said before, there is too much reliance on Veritas/Fortalis (Inca) which appears to have little or no protection.

[wan] 04/11/2016 08:11

Everyone to their own, but I was impressed with how PI performed in a tough market, for me that adds a level of comfort in terms of both awareness and capability. Furthermore, that learning curve has meant they fully appreciate what is needed to deliver and also maintain momentum, and not just in Brazil, so I think that is what we can expect.

I was more than comfortable with the outlook statement, which indicates growth in revenues from Brazil and importantly from outside of Brazil.

[bigglesbingham] 04/11/2016 07:17

So do you feel any better Cerritos?

[cerrito] 03/11/2016 22:02

I have been slow in putting down my thoughts when I read the results on Monday. Basically for whatever reason I was not a happy camper and sold down about 20% of my holding that morning.
I started feeling uncomfortable when both the Chairman and the CEO told us how difficult the Brazilian market was in 15/16. True that there were both political and economic issues in Brazil but this is the first time PIM has mentioned it-not a sniff of it in MARCH 21 Interim report nor in the Investor Day.
I was expecting more guidance in the Outlook section for sales in this 16/7 Brazilian season ; ie we know by July 31 the £2.3m receivables were predominantly of sales of Veritas to Brazil. We are now about to enter the peak planting period; my notes tells me that Veritas is used with Bayer’s Fox in the flowering period. Basically I would have thought they would have a pretty good handle on sales by now.
The £1m provision for share based payment costs was a surprise-although on looking at the interims I see that £0.4m was incurred in the first half. I appreciate that accounting for this is probably as whimsical as IAS19-pension accounting- and that if all the companies we invested in are run by people as good as Brubaker, we would all be rich; that said it is 14% approx. of total revenues and PIM was in a loss making situation before these share based expenses.
I note that they had 14 staff embedded in their distributors to give product support; as an ANP shareholder reminded me that this is exactly what ANP are doing.

[cerrito] 03/11/2016 17:38

A share radio interview with Brubaker

Main takeaway for me was his statement that yield enhancement is on average 5% ie a grower would get an extra $75/$100 per hectare.

[visionon] 01/11/2016 18:19

thanks Wan.

Likewise Biggles my initial reading of results was a bit negative but re-reading for detail today I feel more encouraged. share price is not cheap at 4 x 2017 f/cast revenue but has been pretty stable in the 46-50p range.

A few points from results:

Americas (i.e. Brazil) operating profit dropped from 59% to 54% i.e. 10% increase in costs. i guess that reflects the sales resources required.

Europe revenue dropped 59% creating a 362k loss at operating level. thus the strategy change. Europe revenue now only 4% of total.

Veritas sales up 83%. This was seen as a $20m R opportunity in Brazil alone. So a lot more potential there.

Given USA coming on stream and Banzai on target then c£12m revenue for 2017 doesn't seem silly. But clearly they need to throw resources at it to grab market share in USA and continue growing Brazil.

Might be another slow-burn till next summer but if they find a buyer for BugOil that might give the share price a boost. Certainly the money would be useful given that PIM still have 7m to invest over the coming years under the Bayer agreement and company has fallen back into losses.

I remain an enthusiastic holder, notwithstanding that the share price has drifted since the 2015 investor day. one step back, two steps forward. But I don't see any M&A until they have at least 2 more products and are also established in wheat for more diversity. that could be 2yrs away.

[wan] 01/11/2016 07:37

31st Oct 2016, by Agrimoney.com

Plant Impact to expand into 'very tough' US market

Plant Impact revealed the launch into fresh countries of its headline brands, and further products on the way, as the crop enhancement group unveiled a rejig which will see it focus on its strongest markets.

"The group has announced new product launches in Argentina and Paraguay and anticipates first material sales in the US," the biggest soybean-producing country.

'Very tough place'

The US launch is expected in spring, in time for orders ahead of the key summer application period, Mr Brubaker told Agrimoney.com.

He added that a "big challenge in the US is that nobody has heard of us", meaning a public relations offensive, and despite the fact that Mr Brubaker himself is a US citizen, and Yale University graduate.

The US market place, while big, was a "very tough place" thanks to strong competition, but "if you can demonstrate the value of what you are offering to customers, they will buy", he said.

Full story -

With the US launch firmly in mind, from the Results commentary -
"We anticipate introducing our technologies into this market in the 2017 growing season, pending the outcome of a significant 2016 grower field trial programme on more than one hundred commercial farms across the United States. These trials are expected to confirm that the yield enhancements we have seen from our technology in Brazil are repeatable in the different growing conditions that exist for soybean growers in the United States."

The US Soybean harvest is in the final stages (some are complete), so the results from those field trials must be imminent and readers will note the expectation for, at the very least, confirmation of the yield enhancement seen in Brazil.

[bigglesbingham] 31/10/2016 20:48

Just reread comments and results, solid performance building a sound foundation. If they make a breakthrough in wheat then I think prime for takeover.

[bigglesbingham] 31/10/2016 09:52

Yes wan the bug oil comments were very encouraging I remember years ago and listening to Blezard saying bug oil was worth 15m well a proportion of that would be nice.

[wan] 31/10/2016 09:10

A very good performance given the market backdrop (in Brazil), and reassuring given the Chairman's comment that the excellent performance on the ground in Brazil has created "momentum for the coming year", which in turn will be further aided by the geographical expansion outlined.

Very pleased indeed to see that we are transitioning into a phase of establishing Veritas as an "essential" input product and importantly in my view, "across the grower's entire farm production", which as far as I am aware has been predominantly on only part of the growers production. This aspect may also provide another reason to expect momentum.

Personally speaking, I am very pleased to see some strategic restructuring with regard to Europe and the Middle East, with the majority of the efforts in those areas now focused elsewhere, I am confident we will see the positive results gained from this change.

Clearly there is also positive progress and momentum in PI's R&D efforts and I look forward to future updates in this regard.

Interesting and positive commentary regarding TGT-101 (Bug Oil). The use of pesticides by California growers is highly regulated and monitored to ensure the health and welfare of growers, workers, the public, the environment and the consumer, so I see the Californian registration as a relatively big win in it's own right and potentially a big win financially. And given PI are refining the allocation of resources to focus on the geographies and crops where they see the greatest potential return on investment, it will be interesting to see what approach is taken in realising a return on PI's historic investments in TGT-101.

[jaf111] 31/10/2016 07:08

Looks like Peel Hunt on the mark.....Revenue £7.2m. £5.6m in bank

[bigglesbingham] 28/10/2016 17:34

Peel hunt anticipating 7.3m turnover from 4 m last year. 0.4m loss due to further investment. 5.7m in bank. Let's see

[rlivsey] 27/10/2016 22:56

Yes worried about results

[bigglesbingham] 27/10/2016 20:10

£25k isn't a lot of sells. Are you referring to results??

[rlivsey] 27/10/2016 18:00

Lots of sells today. I'm worried about Monday

[bigglesbingham] 27/10/2016 09:20

Thanks Wan appreciate the research you do, keep it coming