Plant Impact PLC Trading update (0537B)

TIDMPIM

RNS Number : 0537B

Plant Impact PLC

14 June 2016

For Immediate Release 14 June 2016

Plant Impact plc

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

Trading update

On track for Full Year Trading

Plant Impact plc (AIM: PIM) researches and develops 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 trading update for the nine-month period ended 30 April 2016.

Unaudited Trading Results

The Board are pleased to report that the Group is on track to achieve its full year expectations. Trading and product development prospects in the Latin American soybean growing regions continue to develop, offsetting some softness in European agricultural markets.

Revenue for the nine months to 30 April 2016 remains significantly ahead of last year at GBP4.7m (2015: GBP3.1m). Revenue in Q3, which was GBP0.5m (2015: GBP0.6m), came primarily from sales to European customers in advance of the 2016 summer growing season. These were adversely impacted by the weak European agricultural market and reduced business from the Middle East. Revenue from the newly launched cocoa product Banzai(R), although small in absolute terms, was in line with expectations.

The Group retains a strong balance sheet with a cash balance at 30 April 2016 of GBP7.1m (2015: GBP8.1m). There are no Group borrowings (2015: GBPnil).

Outlook

Following very successful sales growth of our Veritas(R) product in the 2015/16 Brazil soybean season, we have conducted extensive market research and post-campaign analysis to inform the coming 2016/17 season marketing campaign and volume planning. Recent improvements in the global soybean price and a more stable Brazilian currency provide an improving foundation for the 2016/17 Brazil growing season, leading the Group and its marketing partners to anticipate a significant promotional campaign for Veritas(R). As last year, the Board expects to dispatch early season orders for shipment of Veritas(R) before Plant Impact's 2015/16 financial year end. The total invoiced volumes of Veritas(R) in Brazil for the full 2016/17 growing season will be a function of the success of the marketing campaign, underlying market conditions and existing channel inventories, all of which we expect to be clearer by the time we make our preliminary announcement of this year's results in October.

John Brubaker, CEO of Plant Impact, commented:

"I am pleased that Plant Impact continues to make significant progress towards its goals. Results from R&D and commercial trials remain encouraging on a number of fronts. We are working hard with our commercial partners to maximise the returns from products already commercialised and we have made a number of key recent hires around the world to ensure we have the management team in place to deliver on our ambitious plans. We look forward to sharing further news of our developing business in the near future."

For more information please contact:

Plant Impact plc www.plantimpact.com

John Brubaker, Chief Executive Officer Tel: [phone]

Richard Amos, Chief Financial Officer

Ailish Tracy, Global Communications Manager

Peel Hunt - Nominated Adviser and Broker

Dan Webster Tel: [phone]

Adrian Trimmings

George Sellar

Buchanan

Charles Ryland Tel: [phone]

Sophie Cowles

Jane Glover

 
  Investor Open Day - Friday 1 
   July 2016 
 

The Company is hosting an Open Day on Friday 1 July 2016 for current and prospective investors, analysts and press at its research facilities and head office at the Rothamsted Centre for Research and Enterprise, Harpenden, Hertfordshire, AL5 2JQ. The event will run from 10.00am to 2.15pm.

Prospective attendees are requested to pre-register by emailing the Company at [e-mail]

This information is provided by RNS

The company news service from the London Stock Exchange

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June 14, 2016 02:00 ET (06:00 GMT)