Plant Impact Regulatory News (PIM)

For Immediate Release 4 September 2015

Plant Impact plc

("Plant Impact" or the "Company" and,

together with its subsidiaries, the "Group")

Trading Update

Continued Progress in FY15 Trading; Outlook for FY16 Trading

Plant Impact plc (AIM: PIM), an agricultural bioscience company that develops and markets crop enhancement and speciality nutrition products, announces the following trading update for the three and twelve month periods ended 31 July 2015.

FY2015

The Directors are pleased to report that the Group continues to make progress in trading. Revenue for the twelve month period increased substantially to £4.5m (2014: £2.5m) and revenue in the three month period was £1.4m (2014: £0.8m). This fourth quarter revenue included shipments to the Group's European and Northern Hemisphere customers as well as some early shipments to customers in Brazil for the 2015/16 growing season. This overall sales result was in line with market expectations for the FY2015 period.

On a regional basis, the Group's Brazil business continued to grow strongly, led by the flagship product Veritas®, marketed across Brazil under an exclusive agreement with Bayer CropScience. In the 2014/2015 growing season, the product was marketed in the primary Cerrado growing region via certain regional distributors and test-marketed with key growers in the Southern growing region. In the 2015/16 growing season, Veritas will be promoted in all growing regions and via all appropriate distribution channels.

Against an otherwise positive picture, certain of the Group's distributors in Northern Europe did not perform well in the 2015 season, reducing the expected growth in sales in that region. As announced in March 2015, sales of Ametros®, the Group's new product for tree fruit, did not meet internal marketing objectives. This was due to difficult underlying conditions for growers - in particular the ongoing Russian boycott of European produce.

In July, the Group announced the launch of Banzai, a new product to improve cocoa yield. This will be marketed in West Africa by Arysta LifeScience, a multinational agrochemical business. Arysta LifeScience holds a leading position in the West African cocoa market, the world's primary growing region for cocoa production.

The Group traded profitably through the full 2015 financial year: net profit after tax in the twelve month period ended 31 July 2015 is expected to be £0.1m (2014: loss of £0.7m). The Directors are pleased to report that this result is ahead of market expectations.

The Group's cash balance at 31 July 2015 was £7.6m (2014: £0.5m). During the twelve month period, £1.94m of cash was received from Bayer CropScience following the announcement in February 2015 of a soy product development agreement, as well as £5.85m from the placing in March 2015. 

Audited financial results are expected to be released before the end of October 2015.

FY2016 outlook

The Directors have a positive sales outlook for the 2016 financial year. Substantial growth is anticipated in Brazilian markets, as Veritas® will continue to expand its reach to soy growers in all parts of that country. As of the date of this Trading Update, the Group has received firm orders for most of the Group's expected Veritas® sales in the 2015/16 Brazilian soy season. Production and shipments to Brazil will continue through the first six months of the 2016 Financial Year.

In Northern Europe, the smaller of the Group's sales regions, the Group's products continue to enjoy consistent, year-round use by growers of key horticultural crops. The Group has recently recruited additional senior commercial and marketing leadership for this area of the business, and continues to review and expand its distribution channels. These initiatives, along with a reinvigorated product offering for turf and a selected white label product launch with a major distributor, create a modest growth expectation for FY2016 in this region.

Middle-Eastern sales are expected to continue to expand, as Plant Impact extends its reach in the significant Turkish market and sees continued growth from its important customer in Egypt.

The first commercial year of Banzai® is also expected to be successful, starting in Cameroon and the Ivory Coast and exploiting the strong cocoa grower network already serviced by Arysta LifeScience in these locations.

The Group's operating plans for FY2016 include significant expansion of both commercial and R&D programmes, in line with plans announced in March. These programmes involve further growth in Brazil and Latin American staffing to secure Veritas® sales in Brazil and develop the product's potential in other soy growing countries. The Group will also expand its support for Banzai in West Africa and for new distributors in Turkey and France. 

Product development (R&D) investment is also planned to increase in FY2016, as the Group retains additional scientific talent to deliver its previously-announced, multi-year programme to develop and launch new crop enhancement products for soy and wheat. In addition, field trial programmes for key pipeline projects will expand across the Americas and in select European and West African markets.

John Brubaker, CEO of Plant Impact, commented: "FY2015 has been a transformational year for the Group, and I am delighted to announce this trading performance. It demonstrates our continued delivery against our business strategy and highlights the capability we have established to continue to accelerate our geographic expansion, product portfolio development and sales growth. FY2016 is an important year for multiple growth programmes, and we are confident that our strategy will continue to deliver for our customers and our shareholders in the coming years."

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