Plant Impact Regulatory News (PIM)

Plant Impact plc

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

Unaudited Consolidated Interim Financial Statements for the six months ended 31 January 2015

Plant Impact (AIM: PIM), an agricultural bioscience company that develops and markets crop enhancement and specialty nutrition products, announces its unaudited results for the six months ended 31 January 2015.

Highlights

· A successful six months for the Group

· First full commercial season for Veritas® in Brazil

· Turnover increased to £2.5m (31 January 2014: £1.2m)

· Gross profit of £1.9m (31 January 2014: £0.9m)

· Operating profit was £0.1m (31 January 2014: loss of £0.6m)

· Cash balance £0.7m (31 January 2014: £0.5m)

Post-Interim Highlights

· Expanded partnership with Bayer CropScience for soy portfolio in the Americas; $3.0m initial cash already received with a further $6m milestone potential in the next four years.

· Equity placing raised £6.2m at 41.5p per share, a premium to the prevailing market share price at that time

· Cash balance at date of publication £8.3m; bridges the Group into substantially cash generative operations

John Brubaker, CEO of Plant Impact commented, "I am pleased to report continued progress with our plan to expand our technologies into global broad acre crops. The recently-announced partner commitments and additional financial support from shareholders, validates this progress and provides us with sufficient resource to secure the right level of product development for our ambitions in soy and wheat."

Chairman's Statement

The Directors are pleased to report continued significant progress in trading during the six month interim period ending 31 January 2015. Turnover more than doubled to £2.5m (2014: £1.2m) and cash generation and operating profit were both positive, with operating profit of £205k (2014: loss of £508k). Gross profit margins held consistent with prior periods at 77% (2014: 76%). Expenses remained tightly controlled but with some planned increased investment (£1.8m versus £1.4m in 2014) principally in R&D to support investment in wheat, the Group's second strategic global crop targets. This performance is encouraging as it demonstrates clearly that management is capable of achieving the essential 'double' of progressive improvement in operational performance whilst simultaneously investing appropriately to realise the Group's growth objectives.

Events immediately following this interim period have been exceptionally positive. Plant Impact had a Sales and Marketing agreement at the Regional level in Latin America with Bayer Crop Science. In March 2015, the Group entered into a further partnership with Bayer CropScience, on this occasion with the global R&D team in Germany. This new agreement covers the development of additional soy products and extends our marketing arrangements from a start in Brazil to all the Americas. The new contract includes a meaningful upfront payment and staged milestone payments. Funds will be spent at Plant Impact's discretion but will be directed towards these new products and markets. Shortly after this event, the Group completed an equity placing that was well supported by existing and new shareholders. These two events increase our cash balances to a current level of £8.3m which, coupled with expected cash generation from operations, fully funds the Group's recently-announced, three-year £11.0m investment programme in R&D and geographical expansion.

The increase in turnover reported today is due overwhelmingly to sales growth of Veritas®, the Group's Brazil soy product. Additionally, in spite of many difficulties in the Middle East markets, this region of the business performed well, reinforced by new distributors appointed in Turkey and Jordan. This interim period is not a high sales season for Europe, which will be reported fully at the year-end.

Trading Outlook

The 2014/2015 Brazil soy growing season marks the first season of full commercialisation of Veritas®, and given the scale of the opportunity, it is already the Group's most important market and product. The 2014/2015 Brazil soy spray season is now finished, but there is an appreciable opportunity in dry beans spraying yet to complete (May/June). Management is working closely with our commercial partners in Brazil to understand the full outcome this season, paying particular regard to grower adoption and distributor sales effectiveness. This analysis will drive prospects for the 2015/2016 season order. This work will be complete before the end of the Group's July 2015 financial year, however preliminary indications are satisfactory and the Group expects additional significant growth in sales next financial year.

The current European season, which, as noted above, falls into the Group's second half, is expected to deliver further, albeit modest, sales growth, in both the Middle East and Northern European markets. The Group will continue to add new distributors in several markets in these territories.

The Group faces difficult market conditions for its new tree fruit product, Ametros, as a consequence of the Russian import ban from the EU. This will reduce 2015 orders vs. the Group's internal marketing objectives.

In aggregate, these factors are expected to deliver an overall sales outturn for the full year in line with expectation.

Over the coming weeks and months, the Group will be reporting on progress in recruiting additional high calibre staff in R&D, product management and field support capability.

I join with my colleague Martin Robinson in congratulating the management for their exciting achievements over these last few months. These underpin the evolution of the Group in the direction so explicitly predicted in our strategy. The Group is now fully funded and can do more in the crop enhancement field.

David Jones

25 March 2015

Plant Impact plc

Unaudited Group Statement of Comprehensive Income

For the six months ended 31 January 2015

The Group has no items to be recognised in the "Condensed Statement of Comprehensive Income" and consequently this statement has not been shown.

All results are from continuing activities.

The notes are an integral part of these unaudited consolidated six month results.

Plant Impact plc

Unaudited group statement of financial position

At 31 January 2015

The notes are an integral part of these condensed unaudited consolidated six month results.

Plant Impact plc

Unaudited group statement of changes in equity

For the six months ended 31 January 2015

Plant Impact plc

Unaudited consolidated statement of cash flows

For the six months ended 31 January 2015

Notes to the consolidated interim financial statements

 1. Nature of operations and general information

The Group's principal activities include the research, development, manufacturing and sale of crop nutrients and crop pest control products and technologies.

Plant Impact plc is the Group's ultimate parent company. It is incorporated and domiciled in the United Kingdom. The address of Plant Impact's registered office, which is also its principal place of business, is Rothamsted, West Common, Harpenden, Hertfordshire, AL5 2JQ, United Kingdom. Plant Impact's shares are quoted on AIM, a market operated by London Stock Exchange plc.

Plant Impact's unaudited consolidated six month results are presented in Pounds Sterling (£), which is also the functional currency of the parent company. All values are rounded to the nearest thousand ('000) except where otherwise indicated.

These unaudited consolidated half year results have been approved for issue by the Board of Directors on 25 March 2015.

The financial information set out in this unaudited consolidated six month results statement does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 July 2014, prepared under IFRS, have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain any statement under Section 237(2) of the Companies Act 2006.

2. Basis of preparation

These unaudited consolidated results are for the six months ended 31 January 2015. They have not been prepared in accordance with IAS 34, Interim Financial Reporting. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 July 2014.

The Group's existing financial resources together with contractual arrangements with certain economic partners in different geographical areas provides a sound platform for launching the Group's products and generating future sales and revenues. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully despite the current uncertain economic outlook.

The Group's forecasts and projections, which have been prepared for the year to 31 July 2016, including sensitivity analysis, and taking account of reasonably possible changes in performance and achievement of certain regulatory milestones, show that the Group should be able to operate within the level of its current cash resources.

After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the unaudited consolidated six month results.

These unaudited consolidated interim financial statements have been prepared in accordance with the accounting policies expected to be adopted in the next annual financial statements for the year to 31 July 2015.

The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these unaudited consolidated six month results.

3. Profit/(loss) per ordinary share

The calculations of loss per ordinary share are based on the following profits/(losses) and weighted average number of shares in issue during the period:

The exercise of outstanding share options in the periods would have the effect of reducing the profit/(loss) per ordinary share and are not therefore dilutive under the terms of IAS 33.