Half Yearly Report

Plant Impact plc ("Plant Impact", the "Company" or, together with its subsidiaries, the "Group")

Unaudited Consolidated Interim Financial Statements for the six months ended 30 September 2012

Plant Impact (AIM: PIM), an agricultural bioscience company that develops and markets crop enhancement and specialty nutrition products, today announces its unaudited results for the six months ended 30 September 2012.

Highlights

·; Turnover £511,153 (30 September 2011: £610,042)

·; Gross profit £416,568 (30 September 2011: £436,339)

·; Margins 81.5% (30 September 2011: 71.5%)

·; Operating loss before exceptional £703,523 (30 September 2011: £1,308,324)

·; Operating loss £753,018 (30 September 2011: £1,492,022)

·; Cash balance £805,270 (30 September 2011: £1,661,495)

·; Cash absorbed from operations £236,436 (30 September 2011: £1,376,038)

David Jones, Chairman of Plant Impact, commented: "I am delighted to report a near 50% reduction in the Company's net loss in this six months period. We are also pleased to deliver a significant improvement in the rate of cash consumption. In August 2011, nearly 16 months ago, the Board and management of the Company made a clear commitment to shareholders to implement a focused commercial and R&D strategy, significantly reduce the Company's rate of cash consumption and position the business for sustainable growth and profitability. These financial results demonstrate real progress against these objectives."

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Chairman's Statement

The work of Plant Impact's management team to re-focus the business, carefully manage expenses, drive down working capital consumption and position our products for profit generation is now evident for the first time in our reported results. This starting point for the 2013 European crop season equips the Company to deliver on its objective to achieve cash and P&L break-even in the coming year.

The six month turnover result is consistent with our expectations given the seasonal nature of Plant Impact's business. The business today is primarily focused on Northern Hemisphere customers, and the seasonality of the 2012 year meant that shipments to customers were made outside the period covered by these results. The Company's attention to working capital and expense control is reflected in our much reduced cash consumption year on year. In the twelve months ending 30 September 2012, the cash consumption before financing impacts was £606,225. In the twelve month period ending 30 September 2011, prior to management' implementation of a revised strategy, this cash consumption was £2,019,054.

On 7 December 2012, we announced the completion of a £1,255,000 placing and our plan to raise up to an additional £706,000 via an Open Offer. This additional capital will support the Company's Sales & Marketing efforts in Northern Europe, the US Turf Market, our launch in Brazil, and, resources permitting, further Research & Development. We will be able to implement these growth plans against the background of a business which is more professionally managed, strategically focused and financially disciplined.

Financial Performance

Turnover for the six month period was £511,153 (2010: £610,042). This result primarily reflects the seasonality and timing of purchases from the Company's distribution customers in the European region. In the 2012 European growing season, the majority of the Company's seasonal volumes were shipped prior to 31 March 2012. In 2011, these shipments were made both before and after 31 March. The Company typically ships to its European customers in the months of February to July, and the Board believes that the turnover during these months most clearly reflects the evolution of the Company's European and Northern Hemisphere business. In the six months ending 31 July 2012, the Company's turnover was approximately £1,487,000. In the period ending 31 July 2011, this comparable figure was £1,071,000.

Gross Profit for the six month period was £416,568 (30 September 2011: £436,339). Gross margins improved to 81.5% (30 September 2011: 71.5%).

Operating Expenses declined significantly to £1,169,586 (2011: £1,928,361). This reduction was due to the Company's re-focus of its operations toward European markets and its re-prioritisation of research projects toward those with nearer-term commercial prospects. Before exceptional charges of £49,495 related to staff restructuring and relocation of the Company's head office (2011: £183,698), Operating Expenses were £1,120,091 (2011: £1,744,663).

Operating Loss for the period declined significantly to £753,018 (30 September 2011: £1,492,022). Before exceptional expenses, Operating Loss was £703,523 (30 September 2011: £1,308,324).

Net Loss also declined materially to £728,425 (2011: £1,381,603).

The Company's efforts to carefully manage expenses and optimise cash during its recent period of restructuring are reflected in its balance sheet and cash flow figures. Net Cash Outflow from Operating Activities reduced to £236,436 (2011: £1,376,038), a result of more balanced operating expenses and gross profit, as well as thorough management of working capital.

Net increase / (decrease) in cash and cash equivalents was (£540,835) for the period (2011: £488,732) as the Company made debt reduction payments of £250,000 related to its BugOil development loan with Arysta LifeScience Corporation. For the 12 month period ending 30 September 2012, the net decrease in cash and cash equivalents before the impact of financing was £606,225. This compares with a cash decrease of £2,019,054 for the 12 month period ending 30 September 2011. This significant improvement reflects the combined impact of improved gross profit, a re-focus of expenses and detailed management of working capital. The Board believes that management's continued focus on cash flow substantially reduces the operating risk of the business and strengthens the Company's ability to create sustainable growth.

Cash at the end of the period was £805,270 compared with £1,346,105 at 31 March 2012 and £1,661,495 at 30 September 2011. On 7 December 2012 the Company announced the completion of a firm placing of £1,255,000 (before expenses) and the intention to raise up to an additional £706,000 in an Open Offer.

Current Outlook

The job of management as we look forward to 2013 is to convert good performing products, properly supported by professional sales and marketing people into revenue growth. The funds raised through the recently announced Placing and Open Offer will be directed to this objective. The campaigns planned for UK and European horticulture, turf in the USA and, later in the year, soya in Brazil, are rigorous and will be executed with the same thoroughness and discipline that has been applied successfully to the restructuring of the business over the last twelve months. I am optimistic that the momentum created in a few months by John Brubaker and his largely new team will translate into sales achievement in the coming season. I am pleased with the performance of the business at this stage in its renaissance.

David Jones

Chairman

19 December 2012

Plant Impact plc

Unaudited Consolidated Income Statement

For the six months ended 30 September 2012

The Group has no items to be recognised in the "Condensed Statement of Comprehensive Income" and consequently this statement has not been shown.

All results are from continuing activities.

The notes are an integral part of these Unaudited Consolidated Half Year Results.

Plant Impact plc

Unaudited consolidated statement of financial position

At 30 September 2012

The notes are an integral part of these condensed Unaudited Consolidated Half Year Results.

Plant Impact plc

Unaudited consolidated statement of cash flows

For the six months ended 30 September 2012

Plant Impact plc

Unaudited consolidated statement of changes in equity

For the six months ended 30 September 2012

Notes to the consolidated interim financial statements

 1. Nature of operations and general information

The Group's principal activities include the research, development, manufacturing and sale of crop nutrients and crop pest control products and technologies.

Plant Impact is the Group's ultimate parent company. It is incorporated and domiciled in the United Kingdom. The address of Plant Impact's registered office, which is also its principal place of business, is Rothamstead, West Common, Harpenden, Hertfordshire, AL5 2JQ, United Kingdom. Plant Impact's shares are quoted on AIM, a market operated by London Stock Exchange plc.

Plant Impact's unaudited consolidated half year results are presented in Pounds Sterling (£), which is also the functional currency of the parent company.

These unaudited consolidated half year results have been approved for issue by the Board of Directors on 18 December 2012.

The financial information set out in this unaudited consolidated half year results statement does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 March 2012, prepared under IFRS, have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain any statement under Section 237(2) of the Companies Act 2006.

2. Basis of preparation

These unaudited consolidated half year results are for the six months ended 30 September 2012. They have not been prepared in accordance with IAS 34, Interim Financial Reporting. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 March 2012.

The Group's existing financial resources, including the proceeds of the placing of new shares on 7 December 2012, together with contractual arrangements with certain economic partners in different geographical areas provides a sound platform for launching the Group's products and generating future sales and revenues. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully despite the current uncertain economic outlook.

The Group's forecasts and projections, which have been prepared for the period to 31 July 2014, including sensitivity analysis, and taking account of reasonably possible changes in performance and achievement of certain regulatory milestones, show that the Group should be able to operate within the level of its current cash resources.

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 unaudited consolidated half year results.

These unaudited consolidated interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 31 March 2012.

The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these unaudited consolidated half year results.

3. Loss per ordinary share

The calculations of loss per ordinary share are based on the following losses and weighted average number of shares in issue during the period:

The exercise of outstanding share options in the periods would have the effect of reducing the loss per ordinary share and are not therefore dilutive under the terms of IAS 33.