Final Results

Plant Impact plc

("Plant Impact", "Pi", or the "Company")

Preliminary results for the year ended 31 March 2012

Plant Impact plc (AIM:PIM), an agricultural bioscience company that develops and markets crop enhancement and specialty nutrition products, today announces its preliminary results for the year ended 31 March 2012.

Key Events and Highlights

Corporate

o Refocus of Business on European Markets

o Agrovista & Gowan France Distribution Agreements

o BugOil License Agreement Renegotiated and Development Loan Rescheduled

o New Chief Executive Officer

o Arysta Share Subscription £2.05 million

Research & Development

o Investment in Product Performance

o Commencement of Research Programs on Second Generation CaT

o Prototype of Anti-Salinity Alethea

o Development of PiNT product for US and UK Turf Markets

Financial

o Increase in turnover to £1,927k (2011: £1,624k restated)

o Crop nutrient revenue £1,927k (2011: £1,624k restated)

o BugOil revenue £nil (2011: nil)

o Improved Crop Nutrient gross profit margins 75% (2011: 67% restated)

o Operating Loss Before Exceptionals of £1,454k (2011: £2,020k restated)

o Operating Loss of £1,929k (2011: £2,020k restated)

o Cash at 31 March 2012 of £1,346k (2011: £1,173k)

Post year end

o United States Environmental Protection Agency (EPA) Registration of BugOil

o Achievement of BugOil Milestone under Arysta Agreement

o Announcement of Relocation of the Company to Rothamsted Research

David Jones, Chairman of Plant Impact plc, commented:

"Plant Impact invents, manufactures and markets novel crop nutrient products that enhance farm productivity. These products have global application. The Company was listed on AIM in 2006 and has over the last year been under new leadership, myself as Chairman for this reporting period, and for six months of executive change led by the new CEO John Brubaker. All vital functions of the Company have been critically examined and upgraded or changed. Not least, Plant Impact will move its headquarters from a business park in Preston to the agricultural research institute of Rothamsted in September of this year.

The numbers and commentary in this report make evident that these activities have resulted in improvements to our income statement and cash utilisation in just a few short months. We hope that current and prospective shareholders continue their support of Plant Impact."

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Chairman's Statement

Sales of technology products for the agriculture sector (seeds, biotechnology and crop protection products) grew 6% in real terms in 2011 (according to Phillips McDougall Agriservice). Overall global sector sales growth over the last decade has averaged 5% per annum in real terms. This is appreciable in a sector now valued at more than US$85 billion globally and comes as something of a surprise after decades of only nominal growth. This change in pace is a direct consequence of rising prices for agricultural commodities. Prices in the last five years have been volatile, but always on the upside. Accordingly, the world's farmers are motivated to extract the last ton of production from their farms and agricultural technology enables this productivity. Market buoyancy is likely to be an enduring feature as the world deals with agriculture output trending from over to under production. Indeed, there has never been a better time to participate in agricultural productivity. Companies such as Plant Impact with effective technology enjoy favourable fundamentals for their businesses which we believe are set fair for the long term. Plant Impact's technologies are based on plant nutrition components, but derive their distinctiveness in this otherwise crowded and diffuse field by adopting the high standards of the 'effect chemistry' industry in their discovery and proof. Our products are rationally designed and rigorously performance tested, and their efficacy has been demonstrated in many crops and circumstances. High performance specialist plant nutrition is a category that has not been occupied by the majors and holds much promise in global agriculture.

Your Board of Directors are determined to secure this opportunity for Plant Impact and to develop a global business as rapidly as the Company's resources permit. Central to the Board's direction of the Company over the last year have been three elements; organisational restructuring, strategy refinement and operational excellence.

Within the strategic context, there are three 'horizons' to our strategy. 'Horizon One': prove, promote and sell our products directly into high value horticulture in order to generate high margin income rapidly and to achieve cash self-sufficiency for the business. 'Horizon Two': with increasing financial capacity, align with major agrochemical incumbents to introduce our products into broad acre crops and thereby achieve scale and global significance. And finally, but crucially, 'Horizon Three': build R&D capability to accelerate innovation such that Plant Impact can offer an unmatched pipeline of IP-protected products with distinctive value effects.

So what has been achieved by management in these three elements over the last year? Firstly, people and restructuring. To achieve our strategy, the Company needs to be managed and staffed with people who are expert, determined and operationally disciplined to achieve focussed, but ambitious goals within constrained resources. We now have such people. John Brubaker, the Company's CEO has a background in start-up companies, in global agriculture and replaced Peter Blezard last August. The Board acknowledges the crucial contribution Peter made in forming the Company, guiding it through listing on AIM, and with great energy, promoting the Company to investors and keeping it prominent amongst AIM contestants in the capital market.The Finance, Marketing and Supply Chain management has also been changed and enormous progress has been made over the past months in achieving clear reporting, budgeting and close expense management; achievements that are clear in the numbers in this announcement and in the CEO and Financial Reviews. With regard to our marketing and supply chain, we have secured precision in product positioning and customer support, and the Company now benefits from lower cost of goods and much-improved quality of products and packs. For example, Plant Impact is, to my knowledge, the only farm-technology product sold in a bottle with QR code labels. These enable growers to access detailed application guidance from their smart phone; a major response to the challenge of achieving best field practice by our users. We believe that competitive advantage for our products is made and held by a combination of patented science and simple innovations such as QR which can be applied to all aspects of our product offer and business practices. In this way we will build a leading brand. I am encouraged to be able to offer these examples of progress in a few short months which are indicative of the new management's sense of urgency and obsession with excellence.

Turning to strategy, in 'Horizon One', the new team have focussed on horticultural crops near to home, especially in its Northern Europe business (which includes the UK). The season is in full swing in this region, and progress is promising. The planned launch into the USA has been postponed pending the resources to investigate the market with the degree of thoroughness we believe is essential in building a secure brand franchise for Plant Impact there. With respect to our "Horizon Two"; moving into broad acre crops, the Company has received a second year of excellent field trial results in soya with Plant Impact's calcium transport technology CaT, and promising first year results with PiNT. Plant Impact's third 'Horizon'; accelerated R&D, will be boosted by the recently announced move of the business headquarters to the Green Enterprise Science Park on the Rothamsted Research campus in Hertfordshire, approximately 20 miles north of London. Rothamsted is the oldest agricultural research station in the world, home to over 300 scientists, and the world's leading wheat research institute. Plant Impact has selected wheat nutrition (the world's number one food crop) as the next broad acre target after soya and expects to launch products for enhanced wheat quality and productivity in the next 2-3 years.

These initiatives from the Board and management comprise of a coherent and realisable set of goals toward an exciting future for the Company. Our communications to the market and investors in the last year have been fewer than in previous periods. We intend that future announcements will reflect what we will regard as significant progress with aspects of the three 'Horizons' strategy. I am confident that the pace of progress will pick up as we emerge from an urgent period of fundamental restructuring and strategic refocusing.

Thank you for your continued support of Plant Impact.

David Jones

Chairman

16 July 2012

Chief Executive's Review

Overview

Plant Impact aims to become a global agricultural leader through the discovery and marketing of crop enhancement and specialty nutrition technologies. Over the past year, we have recommitted to this promise by implementing fundamental operational changes to ensure that the Company is on stable footing for future, profitable growth.

In the past months, we have prioritised changes to our commercial and market emphasis and our R&D direction. We have implemented more rigour in our internal operational and financial processes, and critically we have developed a performance culture in our organisation that emphasizes and rewards individual and collective initiative.

We have also identified a new home for the Company. Following the Board's review of our strategic plan, it was clear that Plant Impact's head office needed to support collaboration with other agricultural innovators, provide access to research facilities, glasshouses and field trials, and enable the recruitment of world-class talent with international agribusiness experience. After a series of discussions with a number of UK-based research institutions, universities and industry partners, we identified the Green Enterprise Science Park at Rothamsted Research as the ideal long-term home for our corporate office and research team. Rothamsted has a vibrant community of agricultural scientists and a commitment to industry collaboration. Its location of Harpenden, Hertfordshire is near to other UK agrochemical, seed and life science companies, and it offers an excellent quality of life for Plant Impact's employees and their families.

On 1 September 2012, all full time staff of the Company will relocate from Preston, Lancashire to the Rothamsted Research campus in Harpenden, Hertfordshire. Our team is excited about this new future for the Company, and we hope that shareholders are able to visit with us at Rothamsted at this year's Annual Shareholders' meeting.

Commercial Developments

In most cases, Plant Impact's products are presented as 'effect' technology for the grower. Achieving sales growth rests on securing grower conviction of performance and product brand, which requires the careful attention of our sales force and technical support staff to individual crop and geographical opportunities. Such attention involves meaningful expenditure of marketing resources to demonstrate product efficacy and optimal application.

Plant Impact is a small company with limited resources, and in order to achieve improved growth in our chosen sectors, we have narrowed our focus. We are targeting sales and profit growth in 2012 from the Northern European region of the United Kingdom, Netherlands, France, and Germany. In these markets, we will expand InCa sales to high-value horticulture crops like potatoes, leafy salads, vegetables, and top fruit. To support this objective, we announced new exclusive distribution agreements for our lead product InCa with Agrovista in the United Kingdom and Gowan in France. This focus on Northern Europe resulted in increased year on year sales of £1,289k compared to £966k in the region, with growth in the United Kingdom being the primary driver of our expansion in the quarter up to 31 March 2012 (which is directly in the middle of the European season). Growers in Northern Europe continue to see good results from InCa, and we are expanding our marketing activities to engage with key market influencers such as buying groups, research institutes, field agronomists, and well-known, reputable growers. Sales in the Netherlands, while strong at the grower level, have been somewhat delayed with distributors due to changes in the buying group structure of that market. Also, following a review of 2011 accounting treatment, we have restated revenue to correctly account for sales to the Netherlands in that year. This is fully reflected in this report and described in detail in the Financial Review section below. Despite these complications, we continue to see good support from our distribution customers and from growers in Holland for InCa.

Outside of Europe, we continue to work with the Agrimatco group which is active in more than 50 countries in the Middle East and Eastern Europe. Our collaboration with Agrimatco is now focussed primarily on horticultural crops in Egypt, the largest and most advanced agricultural market in the Middle East. The Agrimatco team operating in Egypt is highly sophisticated, committed to educating the grower about the benefits of our products and to leveraging our technology to improve their own position as a differentiated distribution business. Despite political uncertainties in Egypt, agriculture remains crucial to its economy, and we anticipate that Agrimatco Egypt will continue to increase its purchases of Plant Impact products. We have experienced no collection issues.

In May 2011, the Company executed several commercial agreements with Arysta LifeScience, the world's largest privately-held agrochemical business, a company with market presence in more than 120 countries and turnover in excess of $1.3 billion. These agreements included a distribution arrangement with Arysta Mexico & Central America, an agreement with Arysta Brazil covering horticultural crops in that market, a partnership agreement for the US Turf and Ornamental market, and a technology evaluation agreement applicable to 28 Arysta countries and valid through 30 June 2012.

Our partnership and relationship with Arysta LifeScience global and regional management continues to be very strong. Arysta purchased 9.1% of Plant Impact's share capital in May 2011, and both parties see the market opportunity of jointly working to develop Plant Impact products. Following many discussions over the past year, Plant Impact and Arysta have agreed to limit our joint efforts to a set of smaller Arysta markets in order to improve focus and accelerate the pace of sales growth. These markets include Mexico and Central America, Eastern Europe (Poland, Romania, Hungary, Czech), West Africa, Brazil (horticulture only), Thailand and Indonesia. The two companies may increase collaboration in additional markets as and when we build financial success in this first group of markets.

Plant Impact and Arysta have also determined that the profit potential of the US Turf & Ornamental (sports turf) market is insufficient for the multi-step distribution business model contemplated under our commercial agreement. Therefore, from the coming winter season and into the future, Plant Impact will work directly with distribution companies in the US Turf & Ornamental market. While this business model change means that the Company's launch of its PiNT technology product for US sports turf will yield lower near-term volumes than initially anticipated, we expect that the higher margins from direct distribution relationships will compensate for that loss. Indeed, this represents a significant opportunity for Plant Impact.

Sales to Arysta LifeScience accounted for approximately 16% of the Company's revenue in the financial year ended 31 March 2012.

Outside of the Arysta agreement, we also took the decision to de-emphasize several markets in 2012. Reprioritisation began in April 2011, when the Company exited its direct distribution presence in the Spanish market and ceased trading with several higher-risk African customers. In August, the Company postponed its decision to establish a direct presence in the United States, choosing not to relocate UK-based sales and marketing staff to that country. This decision resulted in a reduced revenue outturn in the United States for the year, as we previously announced with our interim financial statements in December 2011.

With respect to Plant Impact's near-term outlook, the Company will continue to serve the Northern European market with a more resource-intensive approach, whilst serving selected overseas markets via arms-length technical support only. We will establish a presence and add resources to these markets in a determined way when we have sufficient sales visibility to warrant increasing the operating expense base of the Company.

R&D and Product Development

Plant Impact aims to differentiate itself from other crop enhancement and specialty nutrition businesses by carefully investing in the underlying scientific foundations of our products and by demonstrating reliable performance benefits through high-integrity field trials. As with our marketing programme, this aim can only be achieved by careful focus. Accordingly, our product development in the 2011 calendar year was restricted to laboratory work on our products' mode of action and field performance on the key horticultural crops which generate Northern European sales.

For the 2012 calendar year and the financial year to 31 March 2013, we are conducting additional research and field trials to refine and expand the market claims of InCa and PiNT. Key areas of crop focus for Plant Impact include potatoes, peas and beans, tomatoes, root vegetables, top fruit, lettuce, cucurbits, and brassica. We are pairing this development work with investigations of the market dynamics of each of our chosen crops in order to better tailor our products' performance to grower's economic benefit.

We are in receipt of a second year of positive yield performance data with our products in Brazilian soya and dry beans. Further trialling and pre-launch marketing is planned for the upcoming Brazil season.

In addition, I am pleased to report that the Company has begun work on the next generation of our CaT technology, the underlying technology of InCa. This work represents an opportunity to build on InCa's technical success, improving the product and taking advantage of recent developments in formulation chemistry, solvents, adjuvants, and higher-grade ingredients. We expect to test prototype versions in calendar 2013 and laboratory and field trials permitting to launch new products using this improved product platform in 2014.

Our laboratory work on the Company's anti-stress technology platform, Alethea, continues with our research partners at Lancaster University. Alethea is a patented combination of botanical oils and acids which, when combined with essential micronutrients, produces an anti-oxidant, or "calming", response in crops in the face of acute and chronic environmental stresses such as heat, chilling, salinity and excess UV. Our near-term efforts will be focused on developing Alethea-based products to combat yield loss in high-value vegetables grown in irrigation-impacted saline soils.

In April 2012, the Company received a United States Environment Protection Agency (EPA) registration for BugOil, the natural-oil based insecticide which formed a significant pillar of the Company's previous commercial strategy. This registration was a victory for the disciplined approach the Company took to its regulatory work in 2011 and an important milestone for the Company. In addition, Plant Impact's resolution of certain BugOil licensing arrangements with Arysta LifeScience gives the Company the opportunity to commercialise the product in the United States, the world's largest insecticide market. We continue to evaluate commercial alternatives to realise the full value of BugOil, but would stress to investors that, whilst this BugOil registration is an important milestone, it does not change our previously communicated focus on crop nutrient technologies.

Finally, the Company expects to build long-term R&D capability and product innovation capacity with its recently announced relocation to the Green Enterprise Science Park at Rothamsted Research in Harpenden, Hertfordshire. At Rothamsted, Plant Impact will have access to a wide array of in-house facilities, including laboratories, glasshouses, controlled growing environments, three different research farms, and advanced diagnostic and analytical equipment. Most importantly, the Company expects to form collaborative links with like-minded researchers to investigate nutritional and environmental stress problems facing arable crop growers. We expect to formalise the scope of these links and collaborations over the coming year. We anticipate that this collaboration will influence our in-market product portfolio by the 2014 or 2015 Northern Hemisphere seasons.

We expect to realise the benefits of a move to Harpenden without burdening the Company with appreciable increase in overhead. However, our R&D expenditure is clearly more scalable at Rothamsted and we will be constantly reviewing opportunities for additional investment as the performance of the Company permits.

Financial Summary

Plant Impact's financial results reflect the Company's deliberate actions to re-focus the business on fundamental commercial and product development activity and to improve revenue growth in our highest priority markets.

Most importantly, I am pleased to report that the Company generated meaningful net income in the final quarter of the financial year ended 31 March 2012. This was the Company's first profitable quarter in its history and financial evidence of the support we have from our Northern European distribution customers, the value of our products to growers, and the actions we have taken to focus spending.

The Company recorded significant one-off restructuring expenses in 2012 amounting to £474,848 as it re-aligned its distribution efforts away from lower profitability markets and eliminated non-revenue-supporting activities such as Financial Public Relations, extensive travel to international markets, and the over-manning of back-office functions. Excluding Exceptional Costs, the Company's operating loss reduced to £1,454,302 from £2,020,223 in 2011. Plant Impact's normalised annual cash operating expense has been reduced from approximately £3,200,000 to £2,500,000.

We also took meaningful action to improve the strength of our balance sheet by rescheduling the BugOil development loan with Arysta LifeScience and by implementing concerted actions to significantly tighten our cash management cycle.

Investors should continue to expect the Board and Management to grow the business in a measured fashion, matching our cash expenditure with high priority markets and products.

Outlook

In this new financial year ending 31 March 2013, with an onerous restructuring behind us, management will dedicate full attention to building on our success in Northern Europe and generating secure business 'close to home'. We aim to begin expansion in the Southern Hemisphere from the spring-board of good performance data in soya and dry beans in Brazil. On the R&D front, we will begin work on the next generation of our current products and gain valuable on-farm insight for the Alethea platform. Finally, we will move the Company to its new home at Rothamsted Research in September 2012 and continue the process of rebuilding our organisation with talented and dedicated industry professionals.

This has been a year of transition for our company, a transition which is nearly completed. We are grateful for the support of our shareholders, as we work to build the Plant Impact that can achieve the promise of our technologies, our strategy and our developing culture.

John BrubakerChief Executive Officer16 July 2012

Financial Review

The financial performance of the Plant Impact group (the "Group") in the year and the associated loss was consistent with our expectations following the strategic re-alignment of the business and the re-focus of operating expenses on high-value markets.

Revenue

In the year ended 31 March 2012, revenue was £1,927,368 (2011: £1,623,525 restated). The overall increase was consistent with expectations following the Company's decision to delay direct entrance to the market in the United States. All sales in the year were in the crop nutrient segment; the Company recorded no BugOil licence agreement milestone payments from Arysta LifeScience. Crop nutrient revenues have improved for the fourth year in succession, primarily due to expanded sales in Northern Europe.

Restatement of Prior Year Revenue

In March 2011, during the final quarter of the 2011/2012 financial year, the Company entered into a commercial arrangement with one of its European customers whereby that customer would pay a higher gross price per unit upon shipment and Plant Impact would then rebate that customer an end-of-season amount equivalent to the difference between the gross price and the commercially-agreed net price. The aggregate cash value of this rebate was £160,000. Per management judgment at the time, this rebate liability was not accrued on the Company's Balance Sheet for the period ending 31 March 2011.

In reviewing this transaction and the Company's cash obligation to its distributor in the current period related to prior year sales, the Board determined that a restatement of 2011 sales most accurately reflected the financial results of the business and the current position of the Company. Plant Impact will satisfy this rebate liability opposite future orders from the customer in 2012 and 2013. At 31 March 2012, £80,000 of the liability remained outstanding.

Plant Impact does not use rebates as part of its current Commercial Policy, nor does it anticipate using rebates in the near future. However, the Board would like to emphasize to investors that commercial rebates to distributors are an extremely common practice in the sale of agricultural inputs, and in the event any future sales do incur a rebate liability, we will record related sales on the Income Statement net of rebates.

Gross Profit

Gross profit is calculated after deducting all production, warehousing and distribution costs from sales. Gross profit for the year was £1,443,357 (2011: £1,094,097 restated). The gross profit margin for crop nutrient products has improved from 67.4% in 2011 to 74.9% in 2012. Margins have improved for the fifth year in succession, as the Company re-focuses the mix of its business to higher-margin markets and improves its supply-chain processes. If and when the company expands sales of its products into broad-acre crops, margins may decline, though we expect that any such decline will be significantly offset by improvements in sales volumes.

Expenses

Total expenses were £3,372,507 (2011: £3,114,320). Total expenses excluding exceptional items were £2,897,659 (2011: £3,114,320).

Sales & marketing costs declined, as the Company eliminated its direct distribution presence in Spain and reduced its staff dedicated to lower priority markets such as the United States, Africa and Asia.

Research & Development expenditure increased to a total of £1,376,211 (2011: £1,254,164) primarily due to joint product development with Arysta LifeScience. Research & Development spending relating to these activities with Arysta was £420,047 (2011: Nil). Excluding this Arysta expenditure, Research & Development costs reduced by £298,000, as the Company re-directed resources to projects in higher priority markets, cancelling projects targeted at longer-term crop opportunities, such as bananas, in order to re-direct development to crops which will yield short term benefits, such as top fruit (apples) and soybeans. Consistent with its accounting policy in prior years, the Company capitalised a portion of its Research & Development spending as investment in Intangible assets amounting to £254,452 (2011: £289,464). Total cash spending on Research & Development in 2012 was £1,630,664, which included external project costs as well as an allocation of the Company's salary expense.

Other administrative expenses decreased by £103,268 mainly due to a reduction in payroll, capital markets public relations efforts, and other financing-related costs.

Administrative expenses included £159,810 (2011: £114,739) of share-based payments and depreciation and amortisation expense of £59,181 (2011: £42,930).

Exceptional Costs

The Company recorded £474,848 (2011: Nil) of Exceptional Costs relating to staff restructuring in 2012. Exceptional Costs consisted of all redundancy and notice period payments to staff made following the date restructuring programs were announced (but not the costs of impacted employees before such date). They also included legal and advisory costs and a portion of the cost of temporary contractors retained by the Company in the period immediately following the restructuring. Following the Company's planned move to Harpenden in September 2012, we do not expect further restructuring costs.

Share Based Payments

Plant Impact expenses the value of Share Option grants on the Group Income Statement. The value of each Option grant is determined at the time of grant using a Trinomial valuation method, and expense is incurred pro rata over the options' vesting period.

When Share Options are forfeited, the Company records a benefit to its Equity Reserves, equivalent to the current and prior year charges which the forfeited options had previously incurred recognised on the Income Statement. This benefit to Equity Reserves from the forfeiture of Share Options is recorded in Other Reserves and it increases the Group's Equity Value.

Therefore, the Company recognises Income Statement expense from the grant of Share Options, but the income statement does not benefit from Share Option forfeiture. In a period of high employee turnover such as 2012, this means that, in the opinion of the Company's Board and Management, the Group Income Statements may not clearly show the underlying and recurring profitability of the business.

In 2012, the Company expensed £159,810 (2011: £114,739) relating to Share Options. The forfeiture of a number of share options which had, in prior years, created an aggregate of £286,296 of expense to the Income Statement. This substantial reversal is shown on the Group Statement of Changes in Equity.

Operating loss

The operating loss for the year reduced to £1,929,150 (2011: £2,020,223). The operating loss before exceptional costs reduced to £1,454,302 (2011: £2,020,223).

Finance income and cost

Finance income represents interest received from cash and cash equivalents amounting to £637 (2011: £5,222). Finance cost represents the interest payable on the development loan with Arysta LifeScience £33,848 (2011: £31,141).

Income tax

Income tax comprises tax credits booked against Research & Development eligible expenditure of £252,440 (2011: £257,304). The tax credit claims for previous years have all been received.

Loss for the year

The loss for the year attributable to equity shareholders reduced to £1,709,921 (2011: £1,788,838).

Receivables

Trade and Other Receivables increased to £927,924 as compared to (2011: £702,660). This was due to a large portion of the Company's European season being shipped in the February and March timeframe. The Company has significantly reduced its credit terms to customers in the past nine months.

As at 31 March 2012, the Company had £57,965 of debt which was more than 30 days overdue, but which management and the Board do not consider as impaired. Over the past year, the Company has improved debt collection activity and reached payment resolution with certain overdue customers. In January 2012, the Company made additional provisions amounting to £9,000 for debts relating to a 2009 invoice to a Syrian customer.

Inventory

Inventory balances continue to decline, as the Company only holds stock related to marketing samples or research. Plant Impact expects to operate as a "make-to-order" business, producing goods for our distribution customers only on receipt of firm purchase orders. At such time when the Company has additional years of sales predictability and planning coordination with distributors, the Company may consider producing stock in advance of orders. However, we have no plans to do so in the short term.

Borrowings

In February 2012, the Company concluded a series of negotiations with Arysta LifeScience Corporation ("Arysta"), whereby the due date of the development loan from Arysta (then valued at £838,661 on the Company's balance sheet) would be rescheduled from February 2012 to 31 May 2013. The interest rate on the loan increased from LIBOR +3.0% to LIBOR +6.0% with all interest to be accrued and paid on the due date. As at 31 March 2012, the principal and accrued interest of the loan amounted to £841,691.

Under the terms of the February 2012 agreement, Arysta has the ability to offset its milestone payment obligations due to Plant Impact for the BugOil Regulatory progress against Plant Impact's loan repayment obligation to Arysta. In May 2012, the Company received notice from Arysta that Arysta had accepted Plant Impact's United States Environmental Protection Agency Registration of 5 April 2012 and that Arysta will reduce Plant Impact's loan balance by £250,000.

Cash Flow and Cash

The net cash outflow from operating activities was £1,532,853 (2011: £1,388,340 restated). Capital expenditure was £8,314 (2011: £41,461). Purchase of intangible assets was £254,452 (2011: £289,464). Interest received was £637 (2011: £5,222). Cash and cash equivalents totalled £1,346,105 (2011: £1,172,763), an increase of £173,342. Cash flow at year end benefitted from a strong final quarter of sales performance in Northern Europe.

The Company has been extremely focused on working capital management, as we aim to preserve all cash in the business for sales and marketing and new product development activities. To the greatest extent possible, we collect cash from our customers in advance of our obligations to our production suppliers and we maintain only limited product inventory on hand for research and marketing purposes only.

John BrubakerChief Executive Officer

16 July 2012

Group Statement of Comprehensive Income

For the year ended 31 March 2012

The Group has no other comprehensive income or expenses. Accordingly the total comprehensive loss for the year is equal to the loss for the year, and no separate "Group Statement of Comprehensive Income" has been shown.

All revenue and costs originate from continuing activities.

Group Statement of Changes in Equity

For the year ended 31 March 2012

Other reserve

The other reserve comprises of 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".

Group Statement of Financial PositionAs at 31 March 2012

Group Cash Flow StatementFor the year ended 31 March 2012

Notes to the preliminary results

1. Basis of preparation

While the financial information included in this preliminary announcement has been computed in accordance with International Financial Reporting Standards ("IFRS"), this announcement does not itself contain sufficient information to comply with IFRS. The accounting policies used in preparation of this preliminary announcement have remained unchanged from those set out in the Group's 2011 annual report. They are also consistent with those in the full financial statements which have yet to be published. The preliminary results for the year ended 31 March 2012 were approved by the board of directors on 16 July 2012.

The financial information set out in this preliminary announcement does not constitute the Group's financial statement for the years ended 31 March 2012 and 2011. The financial information for the year ended 31 March 2011 is derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified and did not contain a statement under s498(2) or (3) of the Companies Act 2006. The statutory accounts for the year ended 31 March 2012 will be delivered to the Registrar of Companies following the Company's annual general meeting.

Going concern

The Group has demonstrated its capability to increase revenues and associated margins over a three year period. It has also 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 July 2013. These indicate growth in product revenues and cash flows. The sensitivity analysis undertaken included a number of scenarios surrounding uncertainties achieving forecast product revenues, discounting of BugOil agreement milestone payments 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 Directors believe that the Group is well placed to manage its business risks successfully despite the current uncertain economic outlook.

In summary, the Group's financial resource procedures are managed in a way which identify potential risks, are forward looking and provide sufficient time to respond to these risks whilst maintaining a going concern status. The Group's financial resource management includes monthly 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.

Critical accounting judgements in applying accounting policies

In the application of the Group's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the critical judgements, apart from those involving estimations, that the Directors have made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Research and development activities

Management have reviewed the Group's research and development activities and have made judgements on the amount of development expenditure it is appropriate to capitalise. The criteria which management have to make judgements about are set out below, in particular that certain products are technically and commercially viable.Research expenditure is charged to the income statement in the period in which it is incurred. Development costs incurred are capitalised when all the following conditions are satisfied:

·; completion of the intangible asset is technically feasible so that it will be available for use or sale, considering its commercial and technological feasibility;

·; the Group intends to complete the intangible asset and use or sell it;

·; the Group has the ability to use or sell the intangible asset;

·; the intangible asset will generate probable future economic benefits;

·; there are adequate technical, financial and other resources to complete the development and to use or sell the intangible asset, and

·; the expenditure attributable to the intangible asset during its development can be measured reliably.

Regulatory and other uncertainties generally mean that such criteria are not met; in particular, the Group will not capitalise the research and development costs attributable to a product development programme prior to grant of a marketing license for the product or until there is evidence of probable future economic benefits. Development costs not meeting the criteria for capitalisation are expensed as incurred.

Key sources of estimation uncertainty

Impairment of goodwill and development costs

Determining whether goodwill and development costs are impaired requires an estimation of the value in use. The value in use calculation requires the Directors to estimate the future cash flows expected to arise and a suitable discount rate in order to the calculate present value.

Share based payments

The cost of equity-settled transactions with employees is measured by reference to the fair value at the date at which they are granted and is recognised as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Fair value is determined using a Trinomial Valuation model. In valuing equity-settled transactions, no account is taken of any vesting conditions, other than conditions linked to the price of the shares of the Company (market conditions).

If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to that estimated on vesting.

All equity-settled share-based payments are ultimately recognised as an expense in the Group income statement with a corresponding credit to "other reserve".

Upon exercise of share options the proceeds received net of attributable transaction costs are credited to share capital, and where appropriate share premium.

Upon forfeiture of share options the cumulative income statement charge previously recognised is credited to reserves.

2. Income tax credit

Unrelieved tax losses of £7,365,000 (2011: £6,354,000) remain available to offset against future taxable trading profits.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 of profits is uncertain, it has been assumed that the losses will not be recoverable in the foreseeable future.

3. Loss per ordinary share

The loss per ordinary share is based on the loss after taxation of £1,709,921 (2011: £1,788,838) and 50,444,600 (2011: 45,758,109) ordinary shares of 1p 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.4. Prior year adjustments

Prior year results have been adjusted by £160,000 in relation to customer rebates payable. The amount relates to sales which were overstated in the year ended 31 March 2011. Accordingly, prior year Revenue, Liabilities and retained earnings have been restated by £160,000.

5. Exceptional costs

Exceptional costs relate to the fundamental reorganisation of the business which have had a material impact on the Company's operations. The costs relate to all salaries paid to employees after receiving notification of termination (notice period payments), any redundancy payments, associated legal fees and a portion of expenses associated with payment to temporary consultants.

6. Availability of the financial statements

Copies of the full statutory financial statements will be available from the registered office from 15 August 2012 and will also be available from the Group's website at www.plantimpact.com in accordance with AIM Rule 20 from 5 August 2012.

7. Annual General Meeting

The Annual General Meeting will be held on Friday 14 September 2012 between the hours of 9.00am and 1.00pm at Fowden Hall, Rothamsted Research, Harpenden, Hertfordshire, AL5 2JQ. There will be a light lunch and refreshments served. In addition to the Company Annual Meeting, the programme will include a presentation by Rothamsted Research on agricultural technology trends as well as a short tour of the campus. 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