28th Apr 2014 12:00
LONDON (Alliance News) - Plant science innovation group Plant Impact PLC Monday said it narrowed its losses in the first half, as its investment in Brazil came to fruition.
The company, which develops products used by growers to improve crop quality and marketable yield, posted a pretax loss of GBP570,000 for six months ended January 30, compared with a GBP857,000 loss, while revenue rose to GBP1.2 million from GBP320,000 a year earlier.
Plant Impact attributed the increase in revenue to shipments from the commercial pilot of Veritas, the group's first product in the Brazilian soy market.
Gross margins increased to 76% from 64% due entirely to product mix, the firm said, meaning more sales of higher-margin than lower-margin products.
Operating expenses increased slightly to GBP1.5 million from GBP1.1 million as a result of increased staff for marketing and research and development in support of the group's activities in Brazil.
"With continued visibility of sales expansion into larger row crop markets such as soy, the group expects to increase overall spending to approximately GBP2.6 - GBP2.7 million per annum, from the level of GBP2.2 million at the beginning of the financial year," it said.
Plant Impact said this increase will fund investment in research and development and marketing resources, as well as permanent regional staff to secure and expand the "highest-potential growth opportunities", primarily in Brazil.
Financially, the firm said its cash balance at the period end stood at GBP512,000 compared with GBP1.7 million. Plant Impact said: "This is a seasonal low-point for the group, accompanied by higher than expected receivables balances related to shipments and collection timing in the first six months of the year."
Looking ahead, the firm said it plans to expand its European arm as well as its Northern Hemisphere businesses, while it remains confident for continued success in Latin America.
"These results demonstrate that management are delivering to promise; growing the European business and establishing a position in its first chosen major global crop; Brazil soy," Chairman David Jones said in a statement.
"There remains much to do, but I am pleased that the essential elements needed to secure growth, namely product field performance and grower and partner enthusiasm are now clearly established," he said.
The stock was trading at 20.68 pence Monday, up 1.18 pence or 6.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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