Plant Impact Share Discussion Threads

[freddie01] 20/11/2014 12:59

Thank you for the update timbo003

[timbo003] 20/11/2014 12:49

This year’s AGM was held earlier today at Peel Hunt’s offices, 120 London Wall, which are just a short walk from Bank and Moorgate tube stations. The meeting started promptly at 9.00 and went on until around 10.15 if you include questions at the end.

Apart from the directors there were only two shareholders present, myself and the fund manager from New City Investments (who hold 13.9%). There were a couple of Peel Hunt guys and two young ladies from PR. I was the only one who asked any questions.

We began with questions on the accounts which was followed by the formal meeting (I had more questions on resolution 7), when the formal meeting ended I had the chance to chat to all three directors and ask other questions.

Nuggets (in no particular order) were as follows:

The analyst's forecast for this financial year is sales of £4.5M and breakeven, the following year sales should roughly double.

No further fund raising is required for current operations, if there were a fundraising it would be to expand R&D activities for further work on Soya and wheat products.

There are currently 4 technologies (CaT, PiNT, Alethea and TGT-101), this number may expand in the next year or two through R&D initiatives.

Looking 2-3 years into the future, CaT is expected to be the largest technology (by sales and importance) followed by PiNT and TG-101

The formulations for Veritas, InCa and Ametros are all slightly different, but they all use CaT technology. All three are concentrates (1L sufficient for 1 hectare). The farmers then dilute the product before use.

In the case of Veritas in Brasil the concentrate and Bayer’s Fox (Fungicide) are mixed together in the same solution and diluted. PIM have conducted extensive work on this combo to demonstrate that the two products are compatible. When used together they are at least additive (possibly synergistic?) with respect to improvements in performance.

PiNT is protected by trade secret, there is no special know how regarding its method of manufacture. A whistle blower could make the trade secret public, but they would risk legal action from PIM.

Veritas is actually sold to Bayer, then Bayer sell it to distributers who sell it to the farmers.

In the agricultural industry (South American only?) it is common for payment terms to be 300 days following invoice, Bayer pay up on more normal terms (30 or 60 days, need to clarify.

The profit margins quoted in the annual report 67% - 72% includes the sales of Veritas to Bayer (i.e. they are not the aggregate of Bayer’s margin and PIM’s margin).

The group has carried over tax losses of £8.1M, they should also be able to get tax relief through the UK patent box tax concession (profits only taxed at 10% rather than 21%) for product sales where products have with patent protection (work leading to patent needs to have been conducted in the UK).

The BOD cannot possibly speculate on whether David Marks is behind the opposition proceedings for the Veritas patent. They are aware of the bulletin board discussions on the subject.

When asked to apportion importance to the intellectual components of Veritas, the response was 20% patent, 80% branding and accompanying data package.

California typically take 12-24 months to assess a new data package for insecticides such as TGT-101. Federal EPA registration was granted in the USA in 2012 (Presumably a similar data package is being used for California registration?)

There are likely to be 4 individual recipients of the new share options, only one of the recipients currently works for the company (i.e. JB), the others are yet to be recruited (probably all from large Agri Chem corporates).

There were quite a few votes against the new performance share plan resolution 7 (14M for, 4M against), all other resolutions were passed by a much larger margin

[venture traveller] 20/11/2014 08:46

This share seems to be stuck under the radar. Trading volume is very disappointing.

Given all the optimistic news coming out, I would expect analysts to be writing about this company any time soon. A nice write up in IC would do the trick.

[wan] 20/11/2014 08:35

No doubt some will be tempted to sell some this morning, but I will be interesting to see what Peel Hunt do with the target price given the trading update/delivery (and the AGM later this morning). They previously had a buy and 50p target, so I would think there is now good evidence/reason to lift this, not to mention the options vesting levels: 50p, 70p, 90p. 110p, 130p and 150p and the gross profit criteria being voted on today.

[here and there] 20/11/2014 08:08

OK, so comparing last year's and this year's trading statements

Nov. 2013 Nov.2014 March 2014 March 2015

£ 700,000 £1,900,000 £1,160,000 ?

Could be pushing £2.5-3 million by March 2015 if sales follow through statistically as per last year

[freddie01] 20/11/2014 08:06

Excellent news this morning.

[q1w2e3r4t5] 20/11/2014 07:57

£0.7m + £0.9m = £1.6m GP on £1.9m sales. 80% GPM or thereabouts.

Have to upgrade my 2017 estimates given I only had 75% in.

£1.9m from small farms re-ordering or large farms trialling. Wedge - end - thin ?

And Alethea in the pipeline.

;-)

[jaf111] 20/11/2014 07:53

yes agreed, things certainly seem to be developing nicely which more than justifies the price action in 2014....certainly hope that the share option vesting levels come into play over the next 12 months

[here and there] 20/11/2014 07:42

Well done the team at Plant Impact. A great re-build of the company under JB's stewardship.More than doubled the revenues and that magic word 'break even'. Was wondering if I would ever this word in connection to PIM. Very good to see them invest properly in brazilian staff. Their communications with distributors and growers seemed key in seeing the product applied in the right way.

[wan] 20/11/2014 07:30

Break-even achieved during a period of expansion and increased R&D.

Management delivering on the commentary...........excellent and very refreshing.

A very positive way to start the AGM!

[timbo003] 19/11/2014 22:00

I've just been browsing the annual report and subsequently dug up a few links which may be useful for the AGM tomorrow, should the subject of IP and patents come up (again):

Plant Impact 2014 Annual report:



David Marks LinkedIn page:



Levity Crop Science:



Plant Impact Patent Attorney:



ESPACENET (Plant Impact Patent Portfolio):



Veritas PCT Patent Spec:



Veritas EU Patent correspondence:



IPO (UK priority patent applications filed by Plant impact in the last 8 years):




Compounds relating to Veritas Patent application:

Auxin (3-indolacetic acid)







Auxin Mimic (DPU)






.

[here and there] 19/11/2014 19:08

AGMs' used to be in Preston……;…

9.00am in Broker's offices in London is pretty standard fare

[jaf111] 19/11/2014 19:05

Whatever the timing issue surely the more substantial point concerns the share options themselves. IMO whilst the number of options seems pretty high I am more than comfortable with the proposal on the basis of the vesting levels being well above the current share price (which in any event has performed very well over the past 12 months. I will certainly not be complaining if directors exercise their 150p options!!!!

[coincall] 19/11/2014 18:52

here and there,

Lets hope all is well. I'm afraid I have been around too long and been bitten a few times over similar issues. With important financial votes like this they should have given more consideration to those who would like to vote and you are right, vote by proxy is OK but not as upfront and countable as by a poll. As you said an 11.00am meeting would have been more convenient for all and I am afraid I question why a 9.00am meeting was necessary - perhaps one of the directors has a dental appointment for later in the morning!

[here and there] 19/11/2014 18:29

TBH Coincall they have done nothing underhand. An 11.00am AGM time would have been more convenient though. You can attend or vote by proxy i believe but you would have to have made these arrangements ahead of time

[coincall] 19/11/2014 18:23

I can't see why they feel this time in the morning is fair to all shareholders and it would seem to be timed to make sure the options are voted for! If the targets in the future are met then fair play, but I do not like to see a vote for increases in future total salary to be pushed through in what appears to be an underhand way - there is no excuse and they should give shareholders a fair and honest chance to attend the meeting and vote.

[horace_h] 19/11/2014 18:11

Agreed - if they attract high quality personnel deserving of such reward and we gain from those rises I'll be extremely happy - so it will get my vote if I can stand the rail journey at silly o'clock...

Looking forward to a trading update and the progress with Soya into other regions (USA/Argentina etc) and the addition of the appearance of the wheat-dedicated product to complement Veritas.

One assumes/hopes this afternoon's rise reflects what's to come in the morning.

[here and there] 19/11/2014 18:06

Yes, i think it reads OK. I would like to know what these minimum gross profit targets are and do they need to hit both targets to get options? I gather the options are to incentivise the CEO even more (he already was given a lot of options when he signed on, if memory serves me accurately) and to attract more senior management to the company. The strike price seems fine to me….one can dream...

[timbo003] 19/11/2014 18:00

9 O'clock is a diabolically early start for any shareholder who doesn't live within commuting distance of London (i.e. most shareholders). I'm not looking forward to it much and I am based in Woking!

Reading the AGM blurb, I see that there is likely to be some time taken up on the proposed (amended) Performance share plan.

They will be asking for shareholder authority to grant 12 million options (over time) to senior management and directors which will comprise of 2 million at 6 different vesting levels: 50p, 70p, 90p. 110p, 130p and 150p,

As well as share price reaching these targets (and remaining at or above the target for 20 days) there will also be minimum gross profit targets that need to be met before the options vest.

Sounds good to me.

[here and there] 19/11/2014 17:40

I cannot make it either. Couldn't change my appointments which was disappointing. I would welcome any feed back from anybody attending

[visionon] 19/11/2014 17:13

me neither but would appreciate a brief write-up if anyone were willing to do so. share price has perked up again today in readiness...

[wan] 19/11/2014 14:08

Timbo003...Unfortunately I cannot make it, but I would be very interested to read yours and others feedback.

[timbo003] 19/11/2014 08:35

AGM tomorrow (Thursday 20th), bit of an early start (09.00) but it's scheduled for 2 hours, so they are going to have quite a bit to say, I plan to go along. Anyone else?

[wan] 18/11/2014 09:34

The tweets keep coming regarding the use of Inca and the yield/quality improvements on a variety of UK crops -
17th November 2014
Carrots treated with InCa for increased marketable yield, less cavity spot/canker


Interesting Bayer development in Brazil
Translated -

Bayer CropScience establishes partnership with CESBs - Strategic Committee Soybean Brazil
17/11/14 - 09:30
Bayer CropScience has established a partnership with Strategic Committee Soybean Brazil (CESBs), an organization that develops programs to mobilize agents of the soy production chain and increase productivity with economic, social and environmental sustainability of culture in Brazil, aiming to help Brazilian soybean producer to produce more and better.

According to Cassius Greghi, Director of Strategic Marketing at Bayer CropScience Brazil Soy, "which prompted Bayer to sign this agreement, was the opportunity to work even closer to farmers, understanding, developing and multiplying good agricultural practices that will enable productivity increase in soy. Increasingly working with organizations like CESBs, involving professionals and companies from various areas, allow interactions of great value that will certainly contribute to the success of soybean production in Brazil. "

"Considering that the main objectives and strategies CESBs are creating an environment for the diffusion and use of technology to farmers, raise the average national soybean yield and to develop a technology platform as a reference for high productivity with sustainability, it is possible notice the synergy of objectives, making the deal with natural, distinctive and important to Bayer, "said Luiz Antonio da Silva, executive director of CESBs.

With the partnership, will become part of the council's CESBs representing Bayer CropScience, Cassio Greghi, Director of Strategic Marketing Soybeans and Renato Seraphim, Director of Customer Marketing.