Share Name Share Symbol Market Type Share ISIN Share Description
Plant Impact LSE:PIM London Ordinary Share GB00B1F4K366 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 29.50p 29.00p 30.00p 29.50p 29.50p 29.50p 7,608 07:56:35
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Chemicals 7.2 -1.2 -0.9 - 24.10

Plant Impact PLC Full Year Trading Update & Potential Capital Raise

17/07/2017 7:00am

UK Regulatory (RNS & others)


Plant Impact (LSE:PIM)
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TIDMPIM

RNS Number : 2134L

Plant Impact PLC

17 July 2017

The Company considers that this announcement contains inside information for the purposes of the Market Abuse Regulation

For immediate release 17 July 2017

Plant Impact plc

("Plant Impact", the "Company" or together with its subsidiaries, the "Group")

Full Year Trading Update and Potential Capital Raise

Plant Impact plc (AIM: PIM) leads research and development in crop enhancement technology to create products that growers can rely on to increase the yield and quality of their crops. Today the Group announces a pre-close trading update for the year ending 31 July 2017 ("FY17").

On 19 June 2017, the Company announced that it was in contract discussions with Bayer CropScience Brazil ("Bayer"), the Company's partner in Brazil and the exclusive marketer of the Company's flagship soybean product, Veritas(R). These discussions aim to revise the structure of the Company's contract with Bayer to provide greater inventory purchase flexibility for Bayer and more predictable income and earnings visibility for the Company. The contract discussions continue to progress positively but are expected to take some time to conclude. Bayer remains fully committed to the commercial development of Veritas(R), which during its first four years of sales has grown to be the leading biostimulant in the Brazilian soybean market.

Bayer has set end-user sales targets for the 2017/18 growing season, which anticipate strong growth in grower usage of Veritas(R) building on Bayer's achievements of the past two growing seasons. This has driven an agreed plan for new purchases of Veritas(R) commencing in the first half of the Company's financial year ending 31 July 2018 ("FY18"). However, to reduce current stock levels in the market, the Company has agreed to cancel early season shipments previously anticipated for July 2017.

Consequently, the Company now expects revenue for FY17 of between GBP8.5m and GBP9.0m, compared with GBP7.2m in the previous year. Further to this, revenues for FY18 are expected, at this early stage, to be around GBP13m, based on the new purchasing plan agreed with Bayer and also the Group's growth expectations in other markets such as the United States and West Africa.

The Group's cash balance at 31 July 2017 is expected to be around GBP3.2m. The Company's commercial business plan for next year anticipates good cash flow generation before investments in research and development. The Company now has a significant number of product development projects in the final stages of pre-commercial testing, and the Board has determined that it is in the best interest of shareholders to sustain the momentum of the R&D supporting these projects. With this in mind, the Board is considering an equity fund-raise of a minimum of GBP2.0m, for which it has received an indicative commitment for the full amount from an existing institutional investor at a price of 31.0 pence per share. In addition to this commitment, the Board would consider placing an additional GBP2.0m of new funds at this price and as such the Company will be meeting with existing and prospective shareholders shortly to identify any additional interest.

For further information please contact:

 
Plant Impact plc                      Tel: +44 (0) 1582 465 
 John Brubaker, Chief Executive        540 
 Officer 
 Richard Amos, Chief Financial 
 Officer 
 Ailish Tracy, Global Communications 
 Manager 
Peel Hunt - Nominated Advisor         Tel: +44 (0) 207 418 
 and Broker                            8900 
 Adrian Trimmings                      Tel: +44 (0) 207 466 
 George Sellar                         5000 
 Buchanan - Financial PR 
 Mark Court 
 Sophie Cowles 
 Jamie Hooper 
 

Ends

This information is provided by RNS

The company news service from the London Stock Exchange

END

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(END) Dow Jones Newswires

July 17, 2017 02:00 ET (06:00 GMT)

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