5th Jun 2014 11:40
LONDON (Alliance News) - Plant Impact PLC Thursday said its revenue rose in its new fiscal third quarter, as well as in the first nine months of its new financial year, driven by the launch of its new foliar spray for soybeans in Brazil and new products in Europe.
In a statement, the company said revenue was GBP0.58 million in the three months to April 30, from GBP0.36 million a year earlier, while revenue for the nine months to end-April was GBP1.7 million, up from GBP0.7 million.
It said the increase for the nine months was driven by the launch of Veritas in Brazil. This product helps soybean plants fix nitrogen while the pods fill, boosting yields. The growth in the fiscal third quarter was due to new product launches in Europe and the appointment of new distributors in the UK, Europe and the Middle East.
The revenue gain in the nine month period meant its loss during that period narrowed to GBP0.77 million, from GBP1.00 million in the nine months to January 31, even though operating expenses rose to GBP2 million, from GBP1.5 million due to the expansion of its business 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.
Plant Impact had about GBP0.59 million of cash on its balance sheet on May 31, up from GBP0.51 million at the end of January. It said it expects cash balance to continue rebuilding modestly over the rest of its new 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 GBP1.00 million 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," it said.
"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," Chief Executive John Brubaker said.
The company said it also remains "very positive" about the outlook in Brazil, particularly the prospects for Veritas in the current dry bean and upcoming 2014/15 soy 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," it said.
Plant Impact shares were up 3.3% at 19.75 pence Thursday.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Plant Impact