Final Results

Press Release - 21 November 2013

Plant Impact plc

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

Preliminary unaudited results for the 16 months ended 31 July 2013

Plant Impact plc (AIM:PIM), an agricultural bioscience company that develops and markets crop enhancement and specialty nutrition products, today announces its preliminary unaudited results for the period ended 31 July 2013.

Key Events and Highlights

Corporate

o Continued focus on Northern European markets: launch of Amētros for tree fruit

o Establishment of Brazilian team and legal entity

o Launch of Veritas in Brazilian soy with Bayer CropScience

o Relocation of the Company to Rothamsted completed

o Loan repaid to Arysta LifeScience Corporation: Balance Sheet now debt free

o Restructuring programs completed: no further exceptional expenses

o Equity Financing of £2.37 million to support Brazil launch and European Marketing

Research & Development

o Investment in product performance yields successful technical results in soy and apples

o New laboratory, glasshouse and research farm facilities to improve R&D leverage

o Product pipeline expanding in soy and wheat

o Alethea anti-salinity and second generation CaT work continue to progress

Financial

o Change of Financial Year from 31 March to 31 July; sixteen month transition period completed

o Decrease in turnover to £1,601k due to decline in Europe (2012: £1,927k)

o Crop nutrient revenue £1,351k (2012: £1,927k)

o Pest control revenue £250k (2012: nil)

o Crop nutrient gross profit margins reduced to 67% due to product mix (2012: 75%)

o Exceptional Expense of nil (2012: £475k)

o Operating Loss reduced £1,803k (2012: £1,929k)

o Cash at 31 July 2013 of £1,266k (2012: £1,346k)

o Borrowings at 31 July 2013 of nil (2012: £842k)

Post Year End

o First invoiced sales of Veritas to Brazil

o Shipments of first product to US turf market

Chairman's Statement

Since I last reported, Plant Impact plc ("Plant Impact, the "Company" and together with its subsidiaries, the "Group") has made good progress with all elements of its strategy. The intent of the Board which I described then, was to focus the Group towards sales in high value horticultural crops close to home, to secure a first move into broad acre crops in partnership with an agrochemical major in Brazilian soy and to secure distribution for our turf (golf) product in the USA. All of these have been accomplished. A new product for high-value tree fruit launched in the UK and Holland (Amētros) was well received by growers in its first year. We were delighted to secure a significant partnership programme with Bayer CropScience to launch Veritas in the vast Cerrados soy area in Brazil (which is described in a separate Q1 2014 trading update also released today), and we made our first trial sales into US golf in preparation for a launch in 2014. These are all exciting foundation achievements, exemplifying management's ability to deliver to strategy.

Our balance sheet was strengthened in May 2013 by the repayment of an outstanding development loan to Arysta LifeScience Corporation ("Arysta") of £652,276. Plant Impact is now debt free. In the period, the Company raised equity capital of £2,368,588, primarily to fund its expansion into Brazil and the launch of new products into European markets.

Less satisfactory were the European sales for the sixteen month transition period. In our May trading update, we highlighted our objective to achieve break-even operating income and cash flow in the six month trading period ended 31 July 2013. We did not achieve that. The business over that reporting period relied primarily on the Northern European sector, specifically our markets in the United Kingdom, Benelux, France and Germany. Each were challenged by high in-market stocks of our products which we expected distribution to sell out and then re-order. The very cold and prolonged spring coupled with a hot dry summer deterred growers from investing in new products and so farmer usage did not pull through enough distributor carry-over stock to trigger re-ordering. However, the decline in sales into the channel masked a small increase in farmer usage year-on-year. Furthermore, management made impressive progress broadening and deepening awareness of the performance of Plant Impact products at the grower level. This is an accumulating asset that we expect will be converted into sales in the coming seasons.

I am delighted by the quality of staff now committed to Plant Impact and their achievements this year. Further, I should like to thank you, our shareholders, for the support you have given Plant Impact in the last year and for your interest in the Company. It was a pleasure to have a 'full house' at our mid-summer investors' day in Rothamsted. It was our first opportunity for the Board to demonstrate the range of Research & Development activities we are able to conduct at this remarkable institute and to share our growth strategy. We will be repeating the event in 2014.

David Jones

Chairman

21 November 2013

Chief Executive's Review

This extended financial period ended 31 July 2013 marks the completion of an important transition for Plant Impact - of product positioning, people and location of the company.

In September 2011, the Board identified the need, firstly, to develop our products in accessible, high-value markets where we can thoroughly and cost-effectively support our partners and professional grower customers. For this reason, we focused (and reduced), the Company's near-term geographic scope, dedicating much of our commercial effort toward fruit and vegetable markets in Northern Europe, including the United Kingdom.

Second, the Board determined that, in order for Plant Impact to achieve its scale ambition, it also needed to develop and launch products relevant to growers of the world's broad acre crops (soy, maize, rice, wheat, etc.)

Thirdly, we identified that the Company will need to continue to advance as a plant science innovator, identifying new technologies and developing new products for our markets. This imperative required a fundamental re-think about how we develop our products and the resources and partnerships necessary to enable this strategy.

I am pleased to report progress against these "Three Horizons" and to provide some detail to you, our shareholders, about the efforts we are taking to convert our activity of the past 24 months into increased sales and corporate profitability.

On this first Horizon objective in Northern Europe, we are pleased with the early results of the newly-launched Amētros, a novel product designed to reduce the incidence of bitter pit in fresh apples. Our technical and commercial results in this first year of sales are good, and we find ourselves in a strong position to grow in existing markets in 2014 and expand into new European territories like France and Germany. Unfortunately, sales of several of our existing products in Europe fell well short of our growth targets. Distribution re-orders in the amount of £600,000 we anticipated late in the European season did not materialise to the extent we had targeted. This means that our sales declined year-over-year, and we failed to achieve our P&L break-even target in the final six months of the period by approximately £400,000. We are confident, however, that the investments we have made in marketing processes and our sales team will yield results in coming seasons. In summary, good grower reception of our work this year at the farm level mitigates the 2013 sales disappointment and reinforces our commitment to these markets and customers, not the reverse.

Regarding our efforts to grow and expand in row crops, we have excellent progress to report. Over the past three years, the Company has been working in Brazil to develop and prove Veritas, a foliar spray which, when applied to soybeans, relieves stress at the flowering stage thereby reducing pod loss and resulting in increased yield. Our development programme has confirmed that the product improves soybean yield by 4-6%, a boost which is worth approximately US $100 per hectare to a Brazilian soybean grower. In July 2013, we announced that we would commercialise the product with Bayer CropScience, who will initially market the product in the Cerrado growing region in the 2013/14 growing season. Bayer CropScience has a technically superior portfolio of proprietary crop protection products for the Brazilian soy market, and they currently command a leading market share in this fast-growing, 30 million hectare market. This year's commercial launch has resulted in material sales which are described today in a Q1 2014 trading update, and the full impact will be reflected in the Company's financial results for the six months ending 31 January 2014.

Our research effort, capability and pipeline have been re-charged in this period ended 31 July, most importantly by our move to Rothamsted in Harpenden, 25 minutes north of London. At our new facilities here, we have capacity to conduct in-house research on both new and existing technologies. In the 12 months since our arrival, we have begun work on our first products for wheat, continued with our development on the next generation of our calcium ("CaT") technology, significantly progressed our development of our Alethea technology to alleviate the effects of saline soil toxicity, and developed new capacity for sampling and testing the in-field effects of our products. Our Research & Development team now has a clear mandate and pipeline to follow up the technical wins of Ametros and Veritas by bringing new products through to launch over the next 3-5 years.

Finally, we have completed our work to refocus expenses, manage working capital and to strengthen our balance sheet. Operating expenses are 35% lower than they were in September 2011, and there are no further exceptional items in the P&L. The cost of running the Company is currently £2.2 million per annum, a level which provides us the capability to pursue the clear opportunities ahead of us and also still to maintain expense flexibility in the event of unexpected negative surprises. In the event that sales progress as we expect them to in the next 12 months, we will expand sales and marketing and Research & Development spending to support future growth, particularly in Brazil.

The now-completed transformation of Plant Impact has been profound. We have recruited new professionals for key roles, relocated our home, re-invested in our research capability in a cost-effective way, and - with our launch of Amētros and Veritas - invigorated our product offering to increase our confidence in an improving top line.

Our future over the coming Northern and Southern Hemisphere seasons will be about replicating these lessons of early success in Brazil and Europe in order to bring new products to the market quickly. Looking forward, our management, Board and staff are highly confident of the Company's future and committed to building a track record in our industry for technology and marketing leadership.

John BrubakerChief Executive Officer21 November 2013

Financial Review

The financial performance of the Group in the sixteen month period ended 31 July 2013 reflects the impact of the Group's geographic re-alignment, its efforts to direct spending toward the projects with highest potential, careful attention to working capital management and cash flow, and in May 2013, the repayment of all outstanding corporate borrowings.

Change of Accounting Reference Date to 31 July

On 25 February 2013, the Group announced a change in its accounting reference date from 31 March to 31 July. The Group has made this change in order to more closely align its two six-month reporting periods with the highly seasonal nature of its business. In the future, Plant Impact will report financial performance for each twelve month period ending 31 July and each six month period ending 31 January. These periods very closely link to the Group's shipments, booked revenue, and cash collections for the Northern and Southern Hemispheres. As the Group is working to improve its focus and position in its European markets and expand its business in the Southern Hemisphere (primarily Brazil), the Directors believe this change will produce more meaningful information for shareholders. This financial report marks the conclusion of this transitional reporting and provides audited sixteen month statements to supplement the interim statements for the six month period ended 30 September 2012 and the interim statements for the ten month period ended 31 January 2013. Figures in the section below compare results from the sixteen month period to the 12 month period in the prior year.

Revenue

In the sixteen month period ended 31 July 2013, revenue was £1,600,949 (2012: £1,927,368). The 2013 period comprises the Group's shipments for the 2013 European season, a £250,000 BugOil milestone payment from Arysta, and various other shipments to non-European customers. Sales in the 2012 period also comprised virtually all of the Group's shipments to distributors for the 2012 European season, virtually all of which were invoiced prior to 31 March 2012. The results of these two periods are therefore broadly comparable in characterising the sales performance of the Group. The resultant decline in 2013 revenue reflects the fact that two key European customers did not sufficiently de-stock their inventory of Plant Impact products in order to merit re-orders from the Group and new sales in the 2013 period. In the United Kingdom, in particular, seasonal challenges at the Group's primary distributor caused by the abnormally wet weather in 2012 and the extremely cold spring of 2013 impacted its sales efforts and purchases for re-stocking.

There was no revenue recognized in either period from the Southern Hemisphere business related to the Group's launch of Veritas, its first product for Brazilian soybeans. First sales of this product were invoiced post the period end.

Gross Profit

Gross profit is calculated after deducting all production, warehousing and distribution costs from sales. Gross profit for the period was £1,072,480 (2012: £1,443,357). The gross profit margin for crop nutrient products declined to 67.0% from 74.9% in 2012. This reduced margin was due to a higher proportion of sales coming from lower-priced, Middle Eastern markets. The Group has not implemented any price reductions or experienced any cost increases over the period.

Expenses

Total expenses were £2,875,326 over the sixteen month period. (2012: £3,364,507). This result reflects the Group's continued focus on careful expense control opposite its strategic and commercial plans.

Sales and marketing costs increased due to the Group's establishment of a commercial operation in Brazil, the recruitment of key managers, and a reprioritisation of field personnel activities which resulted in a revised allocation of salary expense under IFRS rules. For full-time, part-time and contracted staff members, the Group makes an allocation of time (and therefore cost) to sales and marketing, research and development, or general and administrative. In 2013, the Group undertook a review of these policies with the goal of more accurately reflecting the costs of its staff. £84,177 of the increase in sales and marketing expense related to this allocation change.

Research & Development expenditure decreased to a total of £769,997 (2012: £1,376,211), £69,867 of this reduction related to the review of staff cost allocation referenced above. The remainder of the decline reflected the Group's completion of significant research and development activity on TGT-101 (formerly referred to in group communication as "BugOil"), following the successful registration of the product with the U.S. Environmental Protection Agency. In addition, the Group has replaced external contract research costs and fees with internal costs, following the relocation to permanent research facilities at Rothamsted in Harpenden.

Consistent with its accounting policy in prior years, the Group capitalised a portion of its Research & Development spending as investment in Intangible assets amounting to £137,193 (2012: £254,452). Total cash spending on Research & Development in 2013 was £364,000, which included external project costs as well as an allocation of the Group's salary expense.

Other administrative expenses decreased by £33,532 mainly due to a reduction in payroll, capital markets public relations efforts, and other financing-related costs.

Administrative expenses included £185,573 (2012: £159,810) of share-based payments and depreciation and amortisation expense of £93,327 (2012: £59,181).

Share Based Payments

Plant Impact expenses the value of Share Option grants in 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 Group 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.

Therefore, the Group recognises Income Statement expense from the grant of Share Options, but the income statement does not benefit from post vesting Share Option forfeiture.

In 2013, the Group expensed £185,573 (2012: £159,810) relating to Share Options. A number of share options were forfeited in 2013. In prior years, these options had created an aggregate of £365,652 of expense to the Income Statement. This substantial reversal is shown on the Group Statement of Equity.

Operating loss

The operating loss for the period reduced to £1,802,846 (2012: £1,929,150).

Finance income and cost

Finance income represents interest received from cash and cash equivalents amounting to £602 (2012: £637). The Group does hold some of its cash and cash equivalents in interest-bearing accounts. Given historical low interest rates, the Group has not realized nor anticipates any meaningful interest income in the immediate future.

Finance cost represents the interest payable on the development loan with Arysta £60,585 (2012: £33,848). This loan was repaid in full on 31 May 2013. The Group does not anticipate any finance costs in the new period ending 31 July 2014.

Income tax

Income tax comprises tax credits booked against Research & Development eligible expenditure of £129,818 (2012: £252,440). This amount has declined due to reduced Research & Development spending vs. prior years. The tax credit claims for previous years have all been received.

Loss for the year

The loss for the period attributable to equity shareholders was £1,733,011 (2012: £1,709,921).

Receivables

Trade and Other Receivables at 31 July 2013 were £389,153 as compared to £927,924 at 31 March 2012. Trade and Other Receivables balances primarily reflect order and shipment timing and are highly dependent on seasonality. As at 31 July 2013, the Group did not have any overdue debt.

Inventory

Inventory balances continue to decline, as the Group only holds stock related to marketing samples or research. Plant Impact continues 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 Group has additional years of sales predictability and planning coordination with distributors, or when required to support critical product launches of higher-margin products, the Group may consider producing stock in advance of firm orders.

Borrowings

On 31 May 2013, the Group repaid the outstanding principal and accrued interest on its February 2009 Development Loan from Arysta, a loan agreement which was amended by the Group and Arysta in February 2012. This payment of £652,276 fully satisfied the Group's obligations to Arysta under the loan agreement, which had been secured by a lien on the Group's intellectual property.

In 2009, the Group had borrowed £750,000 from Arysta in order to fund regulatory activities related to the development of a biological insecticide, (project name "TGT-01"). Under this agreement, Plant Impact was to secure regulatory approvals for the insecticide in the United States and member states within the European Union. Upon receipt of such approvals, Arysta would make milestone payments to Plant Impact which offset the Group's cash obligations under the loan.

At the time of the 2009 agreement, the Group anticipated regulatory approvals during the first six months of 2010, benefiting from a 'fast track' biopesticide regulatory process. Subsequently, both the United States Environmental Protection Agency and the United Kingdom Chemicals Regulatory Directorate determined that TGT-01 was required to be examined and approved under the traditional, slower pesticide regulatory processes designed for synthetic chemical molecules.

As a consequence of this unavoidable delay, the Group and Arysta amended the Development Loan terms in February 2012, narrowing Arysta's license rights to TGT-01, amending Arysta's milestone payment liabilities to Plant Impact, and extending the repayment date of the loan to 31 May 2013. During the period ending 31 July 2013, the Group received a United States EPA registration for TGT-01 and a £250,000 milestone payment from Arysta. This milestone payment was recognized as revenue, and the inflows of which were then used to repay debt: reflected in the Group's cash outflow from loan repayments, thus reducing the outstanding principal on the loan and the ultimate amount repaid by the Group in May 2013.

Equity Financing

The Group raised £2,368,588 (before expenses) via a Placing, an Open Offer and a Direct Subscription during the period. The proceeds of these fundraisings were used to support the commercial launch of new products in the European market, the Group's activities in Brazil in relation to the commercialisation and marketing of its newly developed Veritas™ product, and repayment of the Loan to Arysta.

Through a Placing on 13 December 2012, the Group issued 8,964,283 ordinary shares at a price of 14p per ordinary share, raising £1,255,000 (before expenses). On 11 January 2013, an Open Offer resulted in the Group issuing a further 1,852,591 ordinary shares at a price of 14p per ordinary share, the Group raised an additional £259,363 (before expenses).

On 26 July 2013 the Group issued 3,635,000 new ordinary shares via a direct subscription at a price of 23.5p per ordinary share, raising £854,225 (before expenses).

Net of expenses, equity financing inflows were £2,227,385 over the period.

Cash Flow and Cash

The net cash outflow from operating activities was £1,089,403 (2012: £1,532,853). Capital expenditure was £179,265 (2012: £8,314), primarily related to the Group's investment in new laboratory, Research & Development and office facilities at Rothamsted. Purchase of intangible assets was £137,193 (2012: £254,452). Interest received was £602 (2012: £637). Cash and cash equivalents at the period end totalled £1,265,955 (2012: £1,346,105).

John BrubakerChief Executive Officer

21 November 2013

Unaudited Group Statement of Comprehensive Income

For the 16 months ended 31 July 2013

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 Comprehensive Income" has been shown.

All revenue and costs originate from continuing activities.

Unaudited Group Statement of Changes in EquityFor the 16 months ended 31 July 2013

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".

Unaudited Group Statement of Financial PositionAs at 31 July 2013

Unaudited Group Cash Flow StatementFor the 16 months ended 31 July 2013

Notes to the unaudited preliminary results

1.  Basis of preparation

The unaudited preliminary results for the 16 months ended 31 July 2013 were approved by the Board of Directors on 21 November 2013.

The unaudited preliminary results do not constitute full accounts within the meaning of section 434 of the Companies Act 2006. The financial information for the year ended 31 March 2012 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.

While the financial information included in this unaudited 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 accounting policies used in preparation of this unaudited preliminary announcement have remained unchanged from those set out in the Group's 2012 annual report.

They are also consistent with those in the full financial statements which have yet to be published.

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 pounds Sterling (£), which is also the functional currency of the Group.

The statutory accounts for the 16 months ended 31 July 2013 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.

Going concern

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Chief Executive's Review.

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 2015. These indicate growth in product revenues and cash flows. The projections take into account the new business opportunities highlighted in the Chief Executive's 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 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 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.

Revenue recognition

The Group currently sells crop nutrient products to national and global distributors. Revenue is recognised to the extent that the Group obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, excluding discounts and VAT.

Revenue from the sale of crop nutrient products is recognised when:

• the significant risks and rewards of ownership of the goods have passed to the buyer, usually on dispatch of the goods or on proof of acceptance by the customer;

• the amount of revenue can be measured reliably;

• it is probable that the economic benefits associated with the transaction will flow to the Group; and

• the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue recognition is dependent on contractual terms and geographical location.

Revenue arising from product license agreements typically have an initial up front non-refundable payment on execution of the license, and the potential for further payments conditional on achieving specific milestones, plus royalties on product sales. Where the initial fee is non-refundable and there are no ongoing commitments from the Group, the Group recognises the element received up front as a payment in consideration of the granting of the license on execution of the contract. Amounts receivable in respect of milestone payments are recognised as revenue when the specific conditions stipulated in the license agreement have been met. Payments linked to "success" such as regulatory filing or approval, achievement of specified sales volumes, are recognised in full when the relevant event has occurred.

Research and development expenditure

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 licence 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.

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.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group's accounting policies, which are described above, 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.

Critical accounting judgements in applying accounting policies

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 above, in particular that certain products are technically and commercially viable.

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.

2. 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.These operating segments are monitored and strategic decisions are made on the basis of the segment results for the 16 months ended 31 July 2013 are as follows:

The segment results for the year ended 31 March 2012 are as follows:

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

The segment assets and liabilities at 31 July 2013 and capital expenditure for the 16 months then ended are as follows:

The segment assets and liabilities at 31 March 2012 and capital expenditure for the year then ended are as follows:

The totals presented for the Group's operating segments reconcile to the entity's key financial figures as presented in its financial statements as follows:

All assets and capital expenditure are located within the United Kingdom.

The analysis of revenue by destination is as follows:

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

Customer A, and Customer B from the Crop Nutrients segment, being £415,000 and £555,000 respectively (2012: £675,000 and £132,000 respectively).

3. Income tax credit

Recognised in the Group Income Statement

Unrelieved tax losses of £8,800,000 (2012: £7,365,000) remain available to offset against future taxable trading profits.

4. Loss per ordinary share

The loss per ordinary share is based on the loss after taxation of £1,733,011 (2012: £1,709,921) and 55,964,477 (2012: 50,444,600) 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.

5. Availability of the financial statements

Copies of the full statutory financial statements will be available from the registered office from 16 December 2013 and will also be available from the Group's website at www.plantimpact.com in accordance with AIM Rule 20 from 29 November 2013.

6. Annual General Meeting

The Annual General Meeting will be held on 16 January 2014 between the hours of 9:30 am and 11:30am at the Russell Room, Rothamsted, Harpenden, Hertfordshire, AL5 2JQ. 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