21st Nov 2013 15:29
LONDON (Alliance News) - Plant Impact PLC Thursday reported a narrowed operating loss for its fiscal first quarter and the previous 16 month period, while revenues started rising once more in the most recent quarter as it launched operations in Brazil.
The maker of plant protection and yield optimisation products has changed its financial year and hence reported results for a 16 month financial year before giving a first quarter trading update. 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.
For the 16 months to July 31, the company reported an operating loss of GBP1.8 million compared with a loss of GBP1.9 million in the year to end-March 2012 as it cut research and development costs by almost a half. However, revenues were GBP1.6 million, down from GBP1.9 million in the shorter period, which it blamed on growers being put off from investing in new products due to the bad weather that hit yields. That meant stockists didn't re-order from Plant Impact because they didn't manage to sell existing stocks.
However, the company said in a statement that it has made progress in making growers more aware of its products and expects this to translate into sales in coming seasons.
The company reported a turnaround in the three months to end October as it starting selling products for soybean, fruit and vegetable growers in Brazil. It said revenue jumped to GBP738,00, from GBP105,000 in the July-October period last year, and its operating loss narrowed to GBP75,000, from GBP400,000.
"These first year Southern Hemisphere results reflect three years of hard work by the company to develop and field test novel crop enhancement products for Brazilian growers of soybeans, dry beans and fruits and vegetables," Chief Executive John Brubaker said in the trading update.
"Through our partnerships with leading agrochemical partners, we are beginning to see commercial traction for our products Veritas and Meliora. This is a strong foundation for our future growth in the world's fastest growing agricultural market," he added,
Plant Impact had cash of GBP1.27 million at the end of July, down slightly from GBP1.35 million at the end of March 2012, but it had no borrowings.
The company had earlier Thursday put out a statement warning markets that it would report weak results for the full year but an improvement in the first quarter. That had sent its shares down heavily, hitting a low of 14 pence a share. After the detailed announcements were released, the stock was still down 21.1% at 14.50 pence, the second-biggest faller on AIM.
By Steve McGrath; [email protected]; @stevemcgrath1
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