Final Results

For immediate release 27 October 2014

Plant Impact plc

("Plant Impact", "PI", or the "Group")

Preliminary results for the 12 months ended 31 July 2014

Plant Impact plc (AIM:PIM), an agricultural bioscience company that develops and markets crop enhancement and speciality nutrition products, today announces its unaudited preliminary results for the year ended 31 July 2014.

Financial

· Turnover doubled to £2.5m (2013*: £1.2m)

· Gross profit increased substantially to £1.8m (2013*: £0.8m)

· Gross margin increased from 67% to 71%

· Cash at 31 July 2014 was £0.5m (2013: £1.3m). Cash as at the date of publication was £1.1m

· Entered into a £1.0m receivables financing facility with HSBC

· R&D investment significantly increased to £1.1m (2013*: £0.7m)

Operational

· First year of commercial sales of Veritas® in Brazilian soy

· Long term commercial deal in Brazil with Bayer CropScience for Veritas®

· Strong sales of Ametros® in European apples

· Office opened in Sao Paulo, Brazil in January 2014

· Group's second crop enhancement product for soy shown technical promise; third and fourth products at early stage development

· New soy and wheat products to be commercially piloted by 2016

· £25m facilities upgrade at Rothamsted in 2015

* comparatives are for the twelve months ended 31 July 2013 (unaudited)

John Brubaker, CEO of Plant Impact, commented:

'We are delighted to announce further strategic, operational and financial progress in these past twelve months. Our launch of Plant Impact Brazil and key marketing wins in our European business are important milestones in the Group's strategic plan, and 2014 marks vital first steps towards Plant Impact achieving its ambition to become a leader in the global crop enhancement market.

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."

For further information, contact:

Plant Impact

John Brubaker, Chief Executive Tel: +44(0) 1582 465 540

Kate Barnes-Quinn, Finance Director

www.plantimpact.com

Peel Hunt - Nominated Advisor and Broker

Dan Webster Tel: +44 (0) 207 418 8900

Dan Harris

Richard Brown

Buchanan

Charles Ryland Tel: +44(0) 20 7466 5000

Sophie Cowles

Jane Glover

Business Overview

Plant Impact plc and its subsidiary companies (together 'the Group') develop and formulate Crop Enhancement products. This category enhances the capacity of crops to produce high quality yield in a variety of growing and climatic conditions. Crop Enhancement products work by beneficially stimulating a plant's physiological responses to stress factors such as heat, salinity, rapid growth, in-field rooting establishment, and the application of pesticides. Crop Enhancement products are distinct from fertilisers, which correct soil deficiency, as well as from conventional agrochemicals (pesticides), which protect crops from invasive pests, diseases or weeds.

The Group's products - which are all presently foliar chemical sprays applied on the farm by growers - are developed and registered by the Group and then marketed by regional agrochemical distributors or global strategic partners such as Bayer CropScience and Arysta LifeScience.

Plant Impact's products are derived from technologies which are proprietary to the Group, having been developed through the Group's internal scientific research efforts or via collaborations with academic and research institutes such as Lancaster University and Rothamsted Research. The Group protects its intellectual property and products through the use of patents, trade secrets and trademarks. Plant Impact conducts multi-year product efficacy trials which generate compelling data packages that are a key point of market differentiation and a significant barrier to competitive entrants.

These technologies and products include:

· CaTTM, a patented technology which combines a calcium salt with an active molecule that mobilises calcium throughout plant tissues. Getting calcium quickly and effectively to the right place produces an anti-stress response in the plant and - depending on the particular product formulation - can deliver higher yields, better quality produce, or reduced post-harvest losses. The Group has commercialised three CaTTM products: Veritas®, in Brazilian soy; InCa®, for European field vegetables; and Ametros® for European tree fruit. In addition to these Plant Impact brands, various distribution partners market private-label CaTTM technology brands.

· PiNT®, a trade secret formulation, binds a nitrogen molecule with a cation to produce a chemical application which stimulates desirable growth effects in crops. The Group has commercialised two PiNT® products to date: iNTrench®, for high-value sports turf; and eNTiton®, which stimulates better rooting and establishment of field vegetables and oilseed rape (canola).

· Alethea®, a patented combination of three chemical additives, which when combined with selected micronutrients, produces an anti-stress response in crops. The Group is currently developing a series of products using this technology for application in world crops such as soy and wheat. In addition, the Group has a pilot commercial programme with Arysta LifeScience in cocoa.

· TGT-101, a patented, essential-oil based insecticide which has control benefits on agricultural pests such as mites, whiteflies and thrips. The Group was granted a United States EPA registration for this technology in 2012, and its Californian registration is in progress.

Plant Impact's distribution approach aligns the Group's selection of route to market according to both crop and geography. This plan is summarised in the Chairman's statement and further described in the Strategic Report. The Group currently sells in 15 countries, though it is focused on three key areas: Europe, the Middle East, and the Americas. Sales in the Americas currently account for more than 50% of the Group's turnover.

All of the Group's products are currently manufactured within the United Kingdom at the facilities of three, outsourced, contract manufacturers. The Group operates a "make-to-order" business, placing orders with its contract manufacturers only following receipt of a firm purchase order from one of the Groups' customers. The Group has no current plans to own production facilities.

Research and development for new products, as well as extensions and upgrades of existing products, is conducted at the Group's primary research facility at the Rothamsted Centre for Research and Enterprise ("RoCRE") in Harpenden, United Kingdom. At RoCRE, Plant Impact has on-demand access to glasshouses, controlled growth environments, a 250 hectare research farm, as well as advanced imaging and analytical equipment. In addition, the Group supplements these in-house efforts with field efficacy and analytical trials placed with contract research organisations in multiple countries. On an annual basis, the Group will typically commission 50 trials with 25 independent trialists.

The Group's products are typically regulated under national and multinational rules which govern the manufacture and distribution of foliar fertilisers. Since these compounds are well characterised, the regulatory process is relatively simple and speedy. This is in contrast to regulatory regimes which oversee the introduction of pesticides, which typically take several years and require much more extensive testing and dossier preparation. The Group maintains a strict regulatory compliance approach, and will continue to monitor the appropriate regulations related to its current and future products.

The Group has approximately 30 people associated with the business, of which 14 are salaried employees and the remainder are compensated via various contracting and consulting arrangements.

Plant Impact maintains its head-office and primary research facility at RoCRE in Harpenden, United Kingdom. In addition, in January 2014, the Group opened a second office in Sao Paulo, Brazil.

Chairman's Statement

Plant Impact's technology raises the yields of world crops for a grower cost that represents compelling value for money. This is a useful and enduring proposition given global demographics and agricultural challenges. The Group's strategic plan is to secure value for its technology across three pillars. Firstly, to sell "direct to market" in Europe and the Middle East by commercialising products for high value crops. This activity is aimed at generating secure cash flow with acceptable operational risk. The second pillar is to "globalise and scale" the business by partnering with leading agrochemical businesses which can market Plant Impact's technologies in large world crops. Thirdly, the Group will "accelerate innovation" by investing surplus cash in R&D.

In the last twelve months, my Board colleague and I have focused on supporting the CEO and management to deliver this strategy. For the direct-to-market opportunities, we are committed to horticulture and fruit crops. For the second pillar, the essential challenge of globalisation and scale-up, we have recently entered the Brazilian soy market in partnership with Bayer CropScience. In R&D, the team is focused on broadening the offer in soy with a range of products that add cumulatively to the yield proposition to Brazilian growers and to branch out to develop new products for cereals and other crops.

In the last annual report I wrote about headwinds in Europe as a consequence of the poor spring weather and high in-market stocks of the Group's products in the channel. This last year the European business has improved. It is still a modest performer, but generates an appreciable margin and has shown good growth over last year. We remain committed to building this business, and a number of initiatives, including widening distribution and further broadening our territorial cover, are expected to drive continued progress in sales performance in the spring of 2015.

Last year also saw a pilot commercial launch of Veritas® into Brazilian soy with our partners Bayer CropScience. This was a crucial opportunity to prove the value of the product in one of the largest single crop sectors in the world under the scrutiny of a major R&D based agrochemical company. I am pleased to report that our pilot was extremely well received by Brazilian growers and by our partners Bayer. They are cooperating enthusiastically with the Plant Impact Brazilian team with a full scale commercialisation of Veritas® in the upcoming 2014/15 soy growing season.

The third element of our strategy, invigorating and accelerating R&D, has made some exciting, if early, field confirmations of ideas developed over the last twelve months.

A little on how we work: the Plant Impact Board consists of three people who are responsible for refining and implementing the strategy, achieving and monitoring performance, especially cash and the allocation of funds. Much emphasis is placed on achieving financial self-sufficiency of the business and delivery to market expectation. With many companies in the agricultural sector promising breakthrough performance, the Board's style is toward prudent prediction with energetic and determined delivery. I am pleased to say that there is excellent alignment on the Board and within the executive on these priorities and this culture.

The R&D programme is directed both by the Board (Commercial) and a Scientific Advisory Board (SAB). The SAB consists of three senior external advisory members with academic and industrial backgrounds, and is coordinated by Dr. Steven Adams (Technical director). The SAB meets alongside every Board meeting and is a strategic forum of the first importance for R&D targeting. Finally, the Board takes an active role in supporting the CEO in his task in attracting and retaining top talent. The Group depends on partnership building with major agricultural technology companies who have best in class teams. Plant Impact has secured people of equal quality and will need to hire more. A resolution for this year's AGM addresses one important aspect of this point; share based compensation.

It remains for me to thank our shareholders for their support of Plant Impact especially those longer term holders, who have remained loyal throughout the period required to effect the business turn-around that is now beginning to be evident in the P&L, cash flows and the Group's valuation. The Board and management look forward to reporting further progress through the current season in Brazil and in Europe during its Spring 2015.

David Jones

Chairman

24 October 2014

Strategic Report

Strategy

In 2011, the Plant Impact Board conceived a strategy to stabilise the Group, achieve P&L profitability and positive operating cash flow, and prioritise the Group's commercial and product development efforts on the highest potential projects. This strategic plan has the following three pillars:

· To sell "direct to market" in territories which could be served affordably from the Group's home base in the United Kingdom. This was directed at developing and focusing on products which improve the post-harvest quality of high-value horticultural crops such as field lettuce, root vegetables, soft fruit and tree fruit. In these markets, such as the United Kingdom, the Netherlands and various legacy markets of the Middle East, the Group provides direct, technical "on-farm" support to the distributors who sell Plant Impact products and also to the growers who use them. This element of the Group's strategy is intended to develop stable customer relationships and improved predictability of recurring revenue. The aim is to generate operating cash flow to cover the majority of the operating cost of the Group, both near and mid-term.

· To "globalise and scale" by selecting crop targets and countries in which to enter the business of supplying technical inputs to growers of large-scale world crops, such as soy, rice, maize, and wheat. The Group's strategy is to market its products in these crops via strategic partnerships with major agrochemical suppliers. The Group identified the Brazilian soy market in partnership with Bayer CropScience as its first 'globalise and scale' objective. As the Group achieves the targeted growth from its entry to world-scale crops, surplus cash will provide additional financial and organisational capacity to develop new products and technologies.

· To "accelerate innovation" by identifying and commercialising new technologies and products to bring a complete Crop Enhancement portfolio offering to growers of large-scale world crops. This aspect of the strategy would only follow on the financial improvement in cash flow from sales into the first target, Brazilian soy. The Group has set in motion development and marketing plans to develop a complete portfolio of new Crop Enhancement products for the soy and wheat crops over the 2013-2018 period.

2014 Business Results and Outlook

The Directors are very pleased to report progress across all three pillars of its strategy in the year to 31 July 2014.

In the United Kingdom and the Benelux countries where the Group invests in a full technical team, Plant Impact works directly with distributors to commercialise its products in high-value horticultural and fruit crops, sales have expanded year-over-year. In addition, grower consumption of Plant Impact products also expanded, as reflected by reduced stock levels at the Group's distributors at the end of the 2014 growing season. In particular, the Group saw strong second year sales and consumption of Ametros®, a product that improves the post-harvest quality of apples. Plant Impact achieved appreciable market share for the product in both territories, and now looks forward to expanding the commercial footprint of Ametros® in other European markets.

Most importantly, 2014 was the first year of commercial sales for Plant Impact's products for world scale agriculture. Following a three year development process of field-trials and customer demonstrations, the Group launched Veritas®, a product which reliably and economically improves the yield of Brazilian soy. Veritas® was marketed in the large Brazilian Cerrado growing region in the 2013/14 season in pilot with Bayer CropScience. Veritas® provided an average yield improvement of 4-6% per hectare, which creates an incremental revenue of $70-$100 per hectare for the grower (2014 crop prices). Following this successful pilot, Plant Impact secured a long-term agreement with Bayer CropScience, whereby Bayer will market Veritas® in Brazil as part of its portfolio. This is an important affirmation of the Group's strategic plan and a critical validation of our technology.

Finally, the Group has made good technical progress in supplementing innovation for the soy market. Initial field test results for the Group's second Crop Enhancement product for Brazilian soy, a foliar spray which will be applied at the emergence stage of the crop's life cycle, has shown technical promise sufficient to move it to field and glasshouse testing in the coming season. Work on the third and fourth products are now at early stages, with various laboratory, glasshouse and field experiments planned over the coming twelve months.

In 2013/14, the Group also began work to develop a portfolio of Crop Enhancement products for wheat crops. Test results for the first and second products designed for this important world crop are being evaluated with a view to refining the next programme and field and glasshouse trials in the Spring of 2015.

The Group currently plans to bring new soy and wheat products to commercial pilot as early as 2016.

Outlook

The Directors are confident of the Group's strategic direction and financial prospects over the medium term and are excited about the longer term scale-up potential. The 2014 financial year has marked an important transition for the Group, with the successful launch of Veritas®, a marketing success in European tree fruit with Ametros®, and good technical progress on its development pipeline.

The Group's decision in 2013 to relocate its head office and the Group to Rothamsted Research in Harpenden will be further re-affirmed as Rothamsted completes the majority of a £25m investment programme. This promises to bring enhanced scientific capabilities to the Centre, including the relocation of other SMEs, further reducing the need for Plant Impact to invest in expensive fixed assets and enriching the collaborative environment with a commercial element on 'campus'.

Since the year-end, the Group has announced an important next step in its commercial relationship with Bayer CropScience Brazil, and the outlook for sales and grower consumption of Veritas® in the 2014/15 crop year looks strong. The Group looks forward to an appreciable full launch of Veritas® in the first quarter and first half of its 2015 financial year. Sales in the second half of the financial year are also expected to increase, as lower channel inventories within European customers at the end of 2014 give good visibility of increased growth in the 2015 growing season.

Change of Year-End, Comparable Period Data

The twelve months ended 31 July 2014 is the first full financial year to be reported on the Group's revised, July year-end. The change in year-end was implemented to provide shareholders with discrete visibility of the southern hemisphere business in the first half of the financial year (primarily Brazilian operations, reported in the Americas geographic segment) and the northern hemisphere businesses (primarily business reported in the Europe, Middle East, and Rest of World segment) in the second half of the year. In making a transition to this new year-end, the Group reported an extended, sixteen month period for the period ending 31 July 2013. This report provides prior period comparison data for the sixteen months ending 31 July 2013 (audited), as well as comparable data for the 12 months ended 31 July 2013 (unaudited).

Turnover

The Group's customers are agrochemical distributors and global strategic partners, who will each typically place orders for physical volumes of the Group's products once or twice for each agricultural selling and growing season. Customers in Europe, the Middle East, and the United States (reported in the Americas geographic segment) will typically order products between October and February and take delivery between February and May. Southern hemisphere customers (Brazil, reported in the Americas geographic segment) will place orders between March and July and typically take delivery between August and November.

Europe

European sales grew by 51% in 2014 from £516k in the year to 31 July 2013 to £789k. Half of this growth was due to the launch of Ametros®. The UK grew 118% and Benelux 48%. Most other European countries showed modest increases in sales.

Middle East

Demand from customers in the Middle East was severely affected by the political crisis in Egypt. Turnover was reduced by 53%. However, customer demand remains strong and turnover is budgeted to return to pre-2013 levels during the coming year.

Americas

Sales in the Americas rose by 228% on the back of the pilot launch of Veritas®. Shipments were in the first half of the year, for the 2013/14 growing season. These full year results also benefit from early commercial shipments for the 2014 season which occurred in July.

Gross Profit

Gross profit margin increased from 67% to 72% during the year, reflecting the reduced sales to the lower profit region of the Middle East compared to the growth of higher profit regions such as Europe and the Americas.

Expenses

Expenses over the year were £2.7m. This reflects the Group's continued focus on careful expense control opposite its strategic and commercial plans. Approximately £500k was expensed via the Group's newly-established Brazilian operations. Expense growth in Brazil is expected to continue into 2015, as field trial activity is increased, and the marketing and technical support of Bayer CropScience intensifies.

The increase in sales for 2014 and the budgeted increase for 2015 will enable the Group to invest more money in its research and development programs. A total of £1.1m was spent on R&D during the year (£758k expensed and £380k capitalised). This expenditure was predominantly focused on the soy and wheat development programmes. This will continue and at increased levels over the next financial year.

Share Based Payments

The Group issues stock options to incentivise employees and recruit high calibre experts to its management team and functional specialities.

The value of the share options is expensed in the Group Income Statement. The value of each option granted is determined at the time of grant using the trinomial valuation method, and expensed pro-rata over the options' vesting period.

When share options are forfeited pre-vesting, the Group records a benefit to its Income Statement, equivalent to the current and prior year charges which had previously been recognised. However post-vesting share option forfeitures are recycled through the reserves.

In 2014 the Group expensed £38k (2013: £186k) relating to share options. The decline in cost is due to the aging of options currently granted - most have vested during the year.

Income Tax

The Group benefits from Research and Development tax credits, in the form of a cash refund. £204k was received during the year, reflecting an under accrual of tax credit receivable of £69k at 31 July 2013. This, plus the expected tax credit of £117k for the current financial year, brings the income statement credit to £185k.

The Group currently has an accumulated tax loss of £8.1m, and does not anticipate any income tax liability for the foreseeable future.

Receivables

Trade and Other receivables at 31 July 2014 were £0.5m, reflecting shipments to customers in the June and July timeframe.

The Group has entered into a £1.0 million receivables financing facility with HSBC Invoice Financing which gives the Group the option (though not the requirement) to accelerate cash collection of up to 80% of its outstanding debtor book to the date of invoice issuance. This is a non-recourse facility, where ownership of the Group's customer debts passes to HSBC Invoice Financing, and HSBC provides credit insurance and credit control. Interest costs, at an annualised rate of 3.5%, are incurred by the Group only in the event that the facility is used to accelerate cash collection.

Borrowings

In the previous financial year, the Group repaid its £0.6m corporate loan to Arysta LifeScience. The Group operated without any long-term debt during the year to 31 July 2014.

Cash Flow and Cash

Cash at 31 July 2014 was £0.5m (2013: £1.3m). Cash outflow from operating activities was £0.4m (2013: £1.1m). £0.4m was spent on the purchase of assets (2013: £0.3m). There were no financing activities during the period (2013: £2.2m was raised through the issue of shares).

Cash balances at the time of this report publication were £1.1 million, having increased steadily since the middle of the 2014 calendar year. The Group has sufficient funds to support its near-term operating requirements and the operational flexibility to reduce or increase expenditure to respond to challenges or opportunities.

On behalf of the Board

John BrubakerChief Executive Officer

24 October 2014

Group Statement of Comprehensive Income

For the year ended 31 July 2014

The Group has no other comprehensive income or expenses. Accordingly the total comprehensive loss for the period is equal to the loss for the period, and no separate Group Statement of Total Recognised Gains and Losses has been shown.

Group Statement of Changes in Equity

For the year ended 31 July 2014

Other reserve

The other reserve comprises the fair value of share based payments granted in accordance with IFRS 2.

Merger reserve

The merger reserve arose on the acquisition of PI Bioscience Limited which was accounted for under UK GAAP. This business combination took place prior to 1 April 2006, the Group's date of transition to IFRS, and as such the Group has elected not to apply IFRS 3 Business Combinations.

The reclassification between merger reserve, retained earnings and share premium has been made in order to bring the Group reserves into line with the Company reserves.

Group Statement of Financial PositionAs at 31 July 2014

Group Cash Flow StatementFor the year ended 31 July 2014

Notes to the Preliminary Results

1. Nature of Operations and General Information

The preliminary results for the year ended 31 July 2014 and the results for the 52 weeks ended 31 July 2013 are prepared under International Financial Reporting Standards as adopted for use in the EU ("IFRS"). The accounting policies adopted in this preliminary announcement are consistent with the Group financial statements for the year ended 31 July 2014.

The audited preliminary announcement, which was approved by the Board on 24 October 2014, is derived from the full Group financial statements for the year ended 31 July 2014 and does not constitute the statutory financial statements within the meaning of section 434 of the Companies Act 2006. The preliminary announcement is prepared on the same basis as set out in the statutory accounts for the year ended 31 July 2014. The Group financial statements on which the auditors have given an unqualified report, which does not contain a statement under section 498(2) or (3) of the Companies Act 2006 in respect of the financial statements for 2014, will be delivered to the Registrar of Companies in due course.

While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards, as adopted by the European Union (EU) (IFRS), this announcement does not in itself contain sufficient information to comply with IFRS.

The Company is a limited liability company incorporated and domiciled in England & Wales and whose shares are quoted on AIM, a market operated by The London Stock Exchange. The consolidated financial information of Plant Impact plc is presented in round thousands Sterling (£), which is also the functional currency of the Group.

The Board approved the release of this audited preliminary announcement on 24 October 2014.

2. Going concern

The Group has demonstrated its capability in securing contractual arrangements and maintaining customer relationships which increase the probability of improving revenues.

The Group has undertaken a review of forecasts and projections, which have been prepared for the period to 31 January 2016. These indicate growth in product revenues and cash flows. The projections take into account the new business opportunities highlighted in the Strategic Report, the timing and quantum of which will affect the Group's cash requirements, which are continually monitored by the Board. The sensitivity analysis undertaken included a number of scenarios surrounding uncertainties achieving forecast product revenues and a review of the ability of the Group to manage its cost base to meet working capital and funding requirements in the event that forecast revenues and cash flows are not achieved. This review supports the Directors' conclusion that the Group should be able to operate within the level of its current cash resources and on this basis the Directors believe that the Group is well placed to manage its business risks successfully.

In summary, the Group's financial resource procedures are managed in a way that identify potential risks, are forward looking and provide sufficient time to respond to these risks while maintaining a going concern status. The Group's financial resource management includes regular reporting to the Board. This reporting includes up to date cash resource visibility and forward looking projections of the Group's financial position.

After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the Group Financial Statements.

3. Segment information

The Group's operating segments have been identified based on internal management reporting information that is regularly reviewed by the chief operating decision maker.

All of the results for the year ending 31 July 2014 related to Crop Nutrients, other than £21k of costs relating to Pest Control.

The Group further monitors its business based on geography. These segments are monitored and strategic decisions are made on the basis of the segment results for the year ended 31 July 2014, which are as follows:

The segment results for the 16 months ended 31 July 2013 are as follows:

* Other non-cash movements represent share-based payments.

All research and development is incurred in the UK.

Customers that constituted in excess of 10% of Group revenues are:

Customer A and Customer B from the Crop Nutrients segment, being £1,450k and £157k respectively (2013: £415k and £555k respectively).

4. Income tax credit

Recognised in the Group Income Statement

Reconciliation of effective tax rate

Unrelieved tax losses of £9,307k (2013: £8,800k) remain available to offset against future taxable trading profits.

5. Deferred income tax

No provision has been made for deferred income tax on losses carried forward as they will only be available for offset when the Group makes taxable profits arising from the same trade. As the availability of future profits is uncertain, it has been assumed that the losses will not be recoverable in the foreseeable future.

Deferred income tax assets which have not been recognised comprise of the following amounts:

All amounts are calculated at 22.3% (2013: 24%) using the balance sheet liability method.

6. Loss per ordinary share

The loss per ordinary share is based on the loss after taxation of £668k (2013: £1,733k) and 64,896,513 (2013: 55,964,477) ordinary shares of 1 pence each, being the weighted average number of shares in issue during the period.

The share options in issue are anti-dilutive in respect of the basic loss per share calculation and have therefore not been included.

7. Impairment Review

During the year, goodwill and development costs for Crop Nutrient and Pest Control segments were tested for impairment in accordance with IAS 36 Impairment of Assets. The recoverable amount exceeded the carrying amount of goodwill recorded. The recoverable amount has been measured on a value in use calculation.

Key Assumptions

Crop Nutrients

The Group has a number of commercially available products and continues to generate new products and new product use from its current technologies. These products are currently generating commercial revenues in Europe, the Americas, Middle East and Africa.

The impairment review for Crop Nutrient products includes management's development, review and sensitivity analysis of a financial forecast for the products and technologies which comprise the segment. This forecast includes a country-by-country review which details:

o key crops;

o the number of hectares and actual addressable market;

o Plant Impact products available for sale or planned for commercialisation and their applicability to that market; and

o the potential route to market and necessary distribution discounts.

Pest Control

The Group has invested considerable historical development expense and maintains intellectual property rights over a number of patents for TGT-101 (formerly referred to as "BugOil"), an effective, low-residue insecticide used for the treatment of mites, whitefly and aphids on commercially important crops such as vegetables, almonds and apples.

Arysta has licensed TGT-101 in the European Union and selected Eastern European countries, in Africa and several countries of the Middle East as well as in Mexico, Japan and South Korea. Plant Impact maintains all other global commercial rights to the product and commercial freedom to operate in other markets such as the United States, South America, Asia (including China, India and Southeast Asia) and Australasia.

The Group received its first global registration for the product in the United States in April 2012. Since then, the Group has conducted some additional field studies to confirm the product's technical efficacy and develop data to be used for marketing purposes and for securing a registration in California. The Group filed the registration in California on 28 May 2014.

The Group pursues these registrations, including the intention for further register TGT-101 in other US States, with the intent of commercialising TGT-101 under a to-be-announced trade name. Relative to the above commercial and development strategy, the impairment review for Pest Control includes management's development, review and sensitivity analysis of a financial forecast for the Group's direct sales of TGT-101 as well as potential royalties from Arysta.

Specifically, the Group has forecast:

o a revenue, margin and cost projection taking into account Plant Impact's ability to commercialise the product via direct access to agrochemical distributors in California and other US states; and

o royalties and milestone payments from Arysta taking into account the regulatory timeframes and forecasts of Arysta sales in markets where Arysta retains distribution rights to the product.

The forecast has been made on the basis that there are currently no sales of TGT-101 by Plant Impact. The cash inflows for the impairment review are expected sales based on available market share information. These cashflow are dependent on the Group obtaining registrations in the US and securing that market share.

A period of 10 years has been selected for cash flow estimates for both the Crop Nutrient and the Pest Control segments. This is greater than the IAS 36 requirement of five years; however this is due to the long product lifecycles in agriculture. Management believe that the forecasts developed were and are conservative.

A pre-tax discount rate of 16% was used for the value in use calculation. This discount rate is based on industry standards in the agrochemical sector.

The Directors believe that there have been no significant changes to the situation involving TGT-101, and therefore there is no basis for impairment.

8. Availability of the financial statements

Copies of the full statutory financial statements will be available from the registered office from 3 November 2014 and will also be available from the Group's website at www.plantimpact.com in accordance with AIM Rule 20 from 27 October 2014.

9. Annual General Meeting

The Annual General Meeting will be held on 20 November 2014 between the hours of 9:00 am and 11:00am at Peel Hunt LLP, Moor House, 120 London Wall, London EC2Y 5ET. Existing and interested investors who plan to attend are requested to register their attendance by email to [email protected]

For further information please visit: www.plantimpact.com