27th Oct 2014 08:47
LONDON (Alliance News) - Plant Impact PLC shares rose early Monday after it reported a sharply narrowed loss, as revenue more than doubled thanks to the first year of commercial sales of Veritas in Brazilian soy and strong sales of Ametros in European apples, and it gave a bullish outlook.
The company, which makes crop enhancement and specialty nutrition products, reported a pretax loss of GBP853,000 for the 12 months to July 31, compared with a loss of GBP1.9 million in the prior 16 months.
It said gross profit in the year rose to GBP1.8 million, from GBP0.8 million in the directly comparable previous 12 months, as revenue more than doubled to GBP2.5 million, from GBP1.2 million, and its gross margin rose to 71%, from 68%. Its net loss in the comparable years narrowed to GBP0.7 million, from a GBP1.2 million loss.
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.
"The group looks forward to a substantial improvement in sales in the first quarter and first half of the 2015 financial year, as we increase shipments of Veritas to meet demand in Brazil. Sales in the second half of the financial year are also expected to increase, as lower channel inventories within European distributors at the end of 2014 give us good visibility of increased growth in the 2015 growing season," Chief Executive John Brubaker said in a statement.
Last month, the company had said most of the revenue increase was coming from the launch of Veritas for Brazilian soybeans, although demand for its products in Europe and the Middle East was also growing and sales to distributors were up, and it expects these regions to contribute more to overall growth in the current financial year.
It said Monday that European sales grew 51% to GBP789,000, with half of that down to the launch of Ametros. UK revenue rose 118% and Benelux 48%, with more modest growth in most other European countries.
Revenue fell 53% in the Middle East as it was hit by the political crisis in Egypt, but it predicted a return to pre-2013 levels in the current year as customer demand remains strong.
Sales in the Americas rose by 228% on the back of the pilot launch of Veritas, a foliar spray that claims to enhance the soybean and dry bean plants? ability to fixate flowers and pods, thus contributing to filling grains at critical stages of their development.
Last month Plant Impact signed a long-term commercial agreement with Bayer CropScience Brazil for the marketing of Veritas in the country. The deal covers exclusive marketing of the product beginning with the 2014/15 growing season.
Plant Impact is also working on new products. It spent GBP1.1 million on research and development during the last financial year, up from GBP0.7 million in the previous 12 months, and said a second crop enhancement product for soy showed technical promise while it has third and fourth products at early stage development. It also has new soy and wheat products to be commercially piloted by 2016.
Plant Impact shares were up 7.2% at 31.10 pence early Monday, one of the best-performing stock on the AIM All-Share index.
By Steve McGrath; [email protected]; @stevemcgrath1
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