9th Feb 2015 09:38
LONDON (Alliance News) - Plant Impact PLC said Monday it expects to post a swing to profit in its first half, as it revenue more than doubled due to sales growth from its Veritas soy product.
The company, which makes speciality nutrition products for crops, expects to report a net profit after tax of GBP200,000 for the half year to end-January, compared to a loss after tax of GBP500,000 a year before, on revenue of GBP2.5 million compared to GBP1.2 million.
In addition to Veritas, the company's Middle East business performed well and made shipments to new distributors in Turkey and Jordan, whilst European markets remained quiet over the winter season.
Plant Impact said growing conditions for soy production in Brazil have been favourable despite lower soy prices and dry weather in some regions. It expects to have full visibility on the outcome of the soy season before the end of the financial year, after which the "prospects for selling into Brazil for the second full commercial year will be more apparent."
It expects its European business will trade in line with expectations for the full year, although it warned that its Ametros product for tree fruits may see lower growth in the 2015 growing season due to a weaker end-market for the crops, and the ongoing Russian boycott of European apples hitting the Netherlands. It does not believe these potential factors will hit its sales for the current year.
Plant Impact had cash of GBP700,000 at the end of January, compared to GBP500,000 as at July 31, 2014. It continued to make progress in product development, implementing a technical and field trials programme, and making further technical progress in its wheat programmes. It expects to bring new wheat products to field and commercial trials over the next two to three growing seasons.
The company will announce its half-year results in late March, it said.
Shares in Plant Impact are trading up 8.0% at 36.30 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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