Plant Impact Regulatory News (PIM)

Plant Impact plc

("Plant Impact" or the "Company")

Trading Update

Today Plant Impact announces a trading update for the three and nine months ending 30 April 2014. This update provides visibility of the first nine months of the first full financial year reported on the company's revised, 31 July year-end. Shareholders will recall that the change in year-end to 31 July was implemented to provide discrete visibility of the Southern Hemisphere business in the first half of the financial year and the Northern Hemisphere businesses in the second half of the year. This trading update provides prior period comparison data for the nine months ending 30 April 2013, which have not previously been released to investors.

The Directors are pleased to report continued progress in trading. Turnover for the nine month period was £1.73m compared to £0.71m in the comparable prior period. Turnover in the three month period ending 30 April 2014 was £0.58m compared to £0.36m in the three month period ending 31 April 2013. The increased turnover over the nine-month period is principally due to the Company's launch of its new product Veritas™ in Brazilian soybeans. Improvements in turnover in the last three months are the result of increased sales of newly launched products in key European markets and the appointment of new distributors in the United Kingdom, Europe and the Middle East.

The Company's net loss in the period narrowed to £0.77m compared to £1.00m in the nine month period to 31 January 2013. Operating expenses in the nine month period ending 31 April 2014 increased to £1.97m from £1.48m in the prior period. The increase was entirely a consequence of planned resourcing of new business in Brazil.

At 31 May, the company has approximately £0.59m of cash on its balance sheet, vs. £0.51m at 31 January 2014. This modest improvement in cash reflects the company's careful management of operating expenses and working capital over the first months of its European season. Cash balances are expected to continue to rebuild modestly through the remaining months of the Company's financial year. In addition, the Directors are pleased to report that Plant Impact has entered into a receivables-based working capital financing facility of up to £1.00m with HSBC, which will allow the company, at its discretion, to comfortably support any short-term working capital requirements related to the upcoming Southern Hemisphere season.

John Brubaker, Plant Impact CEO commented, "The results of the last three months are a result of our determination to expand our European business in the 2014 growing season. We are particularly pleased by our distributors' and grower customers' support for the expansion of Ametros®, our new product for high-value tree fruit production. Growers who used Ametros® in the 2013 pilot launch year achieved excellent results, and we are anticipating greater adoption throughout 2014."

Outside of its Northern Hemisphere businesses, the Company remains very positive about the outlook for its Brazilian business, in particular the prospects for Veritas™ in the current dry bean and upcoming 2014/15 soy season. From the foundation of a successful commercial launch in Mato Grosso in the recently-completed 2013/14 season, the Company and its commercial partners are now planning a Brazil-wide sales campaign to support a significant increase in on-farm sales in the 2014/15 season. The Company will announce any material agreements with our partners in Brazil as they occur.

The Company will host an Investor Day at its research facilities and head office at the Rothamsted Centre for Research and Enterprise, West Common, Harpenden, Hertfordshire, AL5 2LG. The event will be held on 11 July 2014, from 10:00am to 1:30pm and will focus on the Company's strategy for expansion in broad acre crops (e.g. soya and wheat), as well as its current and prospective research pipeline. Attendees are requested to pre-register by emailing the Company at investorrelations@plantimpact.com.

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