11th Sep 2014 11:14
LONDON (Alliance News) - Plant Impact PLC Thursday said its net loss narrowed in its last financial year, as revenue more than doubled after strong takeup of its new Veritas foliar spray for soybeans in Brazil.
In a trading update, the company said its net loss in the 12 months to July 31, its new financial year, narrowed to about GBP0.7 million, from a GBP1.2 million loss in the previous 12 months. Revenue rose to GBP2.5 million, from GBP1.2 million, more than offsetting a GBP0.6 million rise in operating expenses to GBP2.7 million as it ramped up operations in Brazil.
The maker of plant protection and yield optimisation products has changed its financial year so that it now ends July 31. That means it now earns most of its money in the northern hemisphere in the first half of the year, and from the southern hemisphere in the second half, reflecting the growing seasons.
It said the revenue increase was mainly due to its launch of Veritas for Brazilian soybeans. However, demand for its products in Europe and the Middle East is also growing and sales to distributors are up, and it expects these regions to contribute more to overall growth in the current financial year.
Plant impact said it had has achieved appreciable market share for Ametros, its recently-launched product that improves the post-harvest quality of high-value tree fruit such as apples, in its key markets of the UK and Netherlands.
It said its cash balance on July 31 was GBP0.5 million, although it has since increased to about GBP0.7 million of cash on hand.
"Month-to-month fluctuations in the cash balance continue to trend upward as a result of the company's careful focus on working capital management. Current and projected cash balances remain sufficient for the company's operational needs over the coming twelve months, and cash management capability has been greatly improved due to Plant Impact having entered into a receivables-based working capital financing facility of up to GBP1.0 million with HSBC," it said in a statement.
Plant Impact shares were down 0.6% at 26.08 pence midday Thursday.
By Steve McGrath; [email protected]; @stevemcgrath1
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