Plant Impact Regulatory News (PIM)

For Immediate Release 9 February 2015

Plant Impact plc

Trading Update

Significant Progress

Plant Impact plc (AIM: PIM) ("Plant Impact" or the "Group"), an agricultural bioscience company that develops and markets crop enhancement and speciality nutrition products, announces the following trading update for the six months to 31 January 2015.

The Directors are pleased to report significant progress in trading. Turnover for the six month period more than doubled to £2.5m (2014: £1.2m). The increased turnover was primarily generated from sales growth of Veritas®, the Group's soy product that increases the crop's yield in the Brazilian market. The Middle East business, which is typically invoiced in the period ending 31 January each year, also performed well, with shipments made to new distributors in Turkey and Jordan. As expected, the European markets remain quiet during their winter season.

The Group achieved the significant milestone of "break-even" on a twelve-month rolling basis last October and has continued in modest profit since that time. The Board expects to report a net profit after tax of £0.2m in the six month period ended 31 January 2015, compared with a net loss after tax of £0.5m in the comparable prior period.

The Group's cash balance at 31 January 2015 increased to £0.7m, compared with £0.5m at 31 July 2014, which is encouraging as the business has continued to increase investment in R&D to accelerate new product introductions and despite January being one of two seasonal low points in our annual cash cycle.

The 2014/2015 season marks the first year of full commercialisation of Veritas® and given the scale of opportunity, it is already the Group's most important market. Growing conditions for soy production in Brazil have been favorable for the product's commercial expansion, despite reduced soy commodity prices and dry weather in some regions. We are now in the middle of the spraying season and demand from growers for Veritas® is on track. The commitment of our marketing and distribution partners to the product is high, and our extensive pre-season field training is proving its value in facilitating grower adoption. The Group will have full visibility on the outcome of the soy season before the end of its July 2015 financial year, following which prospects for selling into Brazil for the second full commercial year will be more apparent.

The outlook for the coming European growing season and shipment cycle is consistent with market expectations, with further sales growth anticipated in the Middle East as well as continued modest sales expansion in northern European markets. The Group's core products of InCa®, eNTiton®, Ametros® and iNTrench® continue to be well-received both by grower and distribution customers. Ametros®, launched into the tree fruit markets in 2013 and 2014, is meeting the technical expectations of growers, although these growers are facing a weaker end-market for their crops which may moderate the rate of Ametros® consumption growth in the 2015 growing season. This is most relevant in the Netherlands, where grower profitability has been significantly impacted by the ongoing Russian boycott of European apples. These potential factors are not expected to impact the Group's overall sales outturn for the full year, and the Directors believe the business will trade in line with expectations.

New product R&D continues to progress as planned. In Brazil soy, the Group is implementing the largest technical and field trials programme in its history during this 2014/2015 crop season, testing multiple new product prototypes in laboratory, glasshouse and small field-plot trials. Early results from soy pipeline products continue to be encouraging and represent strong year-on-year progress.

The Directors are also pleased to report additional technical progress in the Group's wheat programmes, with successes in additive compound screening for enhancement of new wheat prototype products. New products are expected to move to both field and commercial trials over the next 2-3 growing seasons.

With continued commercial and technical success, the Group is also recruiting additional high calibre staff, with key R&D specialist roles having been recently filled in the United Kingdom and Brazil. More announcements can be expected regarding new hires at the commercial and functional levels that will reinforce the Group's ability to accelerate its strategy and meet its portfolio and commercial objectives in the important crop targets of soy and wheat.

The Group will announce its unaudited Interim Results for the six month period ended 31 January 2015 in late March.

John Brubaker, CEO of Plant Impact commented, "I am pleased to report success across all areas of our strategy: commercial, technical and financial. In 2011, we outlined a measured strategy to expand our technology beyond its European origins and into global broad acre crops. These results confirm our strategy and also demonstrate successful implementation as we continue to meet our commitments to our customers, partners and shareholders."

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