Half Yearly Report

Plant Impact plc ("Plant Impact" or the "Group")

Unaudited Consolidated Interim Results for the six months ended 30 September 2010

Plant Impact plc (AIM: PIM), which develops and markets ecologically friendly crop nutrition and protection products, today announces its unaudited consolidated interim results for the six months ended 30 September 2010.

Highlights

·; Total turnover £638,409 (30 September 2009: £969,554)

o Crop Nutrient turnover £638,409 (30 September 2009: £469,554)

o BugOil milestone turnover £nil (30 September 2009: £500,000)

·; Product margin 65.4% (30 September 2009: 55.5%)

·; Operating loss £1,158,852 (30 September 2009: £879,381);

·; Cash £1,713,025 (30 September 2009: £1,584,942);

·; Signed distribution agreement with Arysta LifeScience Mexico - June 2010;

·; Signed Agrimatco ("AMC)" evaluation and distribution agreement - September 2010;

·; Syngenta Brazil trials announced - September 2010;

·; USDA PiNT field trials - successful efficacy and environmental trials;

·; Progress on broad acre crop trials.

Post period end

·; Signed Cebeco distribution agreement - November 2010

·; Achieved Crop Nutrient registrations in Brazil - November 2010

Martin Robinson, Chairman of Plant Impact plc, commented "Plant Impact has made progress on many fronts in the last six months. Crop Nutrient sales and product gross margin have increased, we signed new distribution agreements, commenced trials on broad acre crops with Syngenta and received excellent results from our turf trials with the USDA.

Total turnover for the period is down on last year as a result of delays in the relevant approval of our BugOil product. However crop nutrient turnover, has improved on last year mainly as a result of encouraging results from Northern Europe and despite climatic problems in North America and continuing economic uncertainty in Spain. Despite a reduction in turnover, we anticipate that the Group's loss for the current year will be broadly in line with our expectations.

We continue to make exciting progress with a number of major partners and hope to announce further commercial arrangements with these agrochemical companies shortly".

For further information, please contact:

Chairman's Statement

The Group continues to demonstrate commercial and product development progress. During the six months to 30 September 2010, the Group has signed an evaluation, development and distribution agreement with Agrimatco ("AMC"), has commenced field trials with Syngenta in Brazil and has shown continued success on potato field trials and the United States Department of Agriculture ("USDA") turf field trials.

Financial Review

Revenue for the period was £638,409, compared with £969,554 for the six months ended 30 September 2009. Revenue for the period ended 30 September 2009 included BugOil® licence milestone payments of £500,000. Crop Nutrient revenues have increased from £469,554 for the period ended 30 September 2009 to £638,409 for the period ended 30 September 2010, an increase of 36%.

Margins for the period to 30 September 2010 were 65.4% and margins for the period to 30 September 2009 were 55.5%. This is a result of continued improvement of product sales in Northern Europe.

Operating costs reduced to £1,576,661, compared with £1,640,239 for the six months ended 30 September 2009. The Group has reduced costs for research and development ("R&D") and general and administrative expenses. These reductions are partially offset by an increase in sales and distribution costs. The R&D tax credit receivable reduced the loss for the period attributable to equity shareholders to £1,050,620 compared with £745,583 for the six months ended 30 September 2009. Cash balances at 30 September 2010 amounted to £1,713,025 compared with £1,584,942 at 30 September 2009.

Operational Review

Commercial

Plant Impact has continued to experience commercial growth in crop nutrient revenues. Revenues increased significantly in the Netherlands as a result of the development and business plan implemented by Cebeco, the Group's distributor in the Benelux countries. Cebeco has conducted and is conducting a significant field trial programme in high value fruit and vegetable crops and is also conducting trials on arable crops which utilises a number of the Group's products. During the period, the Group also achieved its first crop nutrient sales in the Czech Republic via Arysta LifeScience. Revenues from Spain improved but this improvement was tempered by continued macroeconomic problems. We also saw improved revenues in Africa and in particular in Kenya. The USA distribution route underperformed during the first six month of the current financial year mainly due to poor weather conditions in Florida. Miller Chemicals, the Group's distributor in the USA, has indicated that it believes that sales of InCa will improve over the next six months.

In June 2010 the Group signed a distribution agreement with Arysta LifeScience Mexico to develop, market and sell TalentusTM, a product derived from CaT technology. This agreement represents a progression from the evaluation, development and distribution agreement signed with Arysta LifeScience in February 2010. The Board anticipates that the first sales of TalentusTM are likely to be made during Q1 2011.

The AMC evaluation, development and distribution agreement was signed during September 2010 and covers countries in the Middle East, North Africa, Eastern Europe and Central Asia. Initial crop targets are in high value horticulture with potential extension into some arable crops. Pursuant to the agreement, AMC has exclusivity to evaluate the Group's InCa, PiNTTMK, PiNTTMCa, Balance, Saxon, Scope, CaB and SpeedoTMadditive products until 31 December 2011. In the event that the evaluation is successfully completed, AMC will ensure that products are registered locally and will market and distribute these products on an exclusive basis. Detailed development and distribution agreements will then be signed on a country by country basis.

Technical

BugOil® Regulatory Approvals

The Board's focus during the period under review was to progress the BugOil® regulatory approval process as much as possible and both Plant Impact and Arysta LifeSciences have committed significant resources to this end. Both the UK and USA dossiers have been submitted by the Group (the UK dossier in 2008 and the USA dossier in 2009). Arysta LifeScience has also started the regulatory process in 22 countries.

The UK and US regulatory authorities have requested additional studies and these studies will be completed during December 2010. During November 2010 the UK authorities conducted their first official review of the dossier and the Group is awaiting feedback. The Board anticipates that UK approval will be given during the first half of 2011. The US authorities have informed Plant Impact that due to unprecedented workloads their review of the dossiers and the approval will be delayed until the first half of 2012. Plant Impact is in negotiations with the US authorities to reduce this timeline.

Parallel to the regulatory approval activity, Arysta LifeScience has initiated approximately 130 field trials during 2009/2010 with some 150 planned for 2010/2011. These trials cover 22 countries in Europe, North and South America, Africa and Asia.

Potato Field Trials

In April 2010 Plant Impact announced its first trial results from the Group's CaT and PiNTTM potato trial programme representing the first broad acre crop to be targeted by the Group.

Field trials were conducted in the UK, the Netherlands and Kenya on six varieties of potatoes by growers and distributors. The trials compared Plant Impact's products (CaT and PiNTTM) with standard fertilisation and competing products, with the following results:

·; significant increase in the number of potatoes grown, ranging from 12.3% to 25.6%;

·; substantial increase in yield from 6.7 to 9.4 metric tonnes per hectare;

·; points increase on average of 26.1% (potato traders in the Netherlands use a point system as an indicator of quality); and

·; storage quality of the potatoes also increased.

Following these encouraging results, the Group has extended its potato field trial programme targeting key potato producing countries, most of which are in Europe. This programme includes: field trials (both research standard and commercial demonstration trials); working with key advisers and advisory bodies in each country; significant development and commercial assistance from key distributors and cooperatives; and alignment to a marketing campaign.

Distributors and cooperatives have been involved in the initial trials and have seen the commercial advantages of using Plant Impact's CaT and PiNT technologies on potatoes. The worldwide production for potatoes covers 18.2 million hectares in 159 countries with an estimated market size of £280 million for the Group's products.

During 2010, the Group commenced a further 30 potato field trials, of which eight are to research standard, in eight countries, with yield, quality and storage results being available towards the end of the current financial year. Five of these eight countries are amongst the top producing potato countries in the world in terms of yield.

USDA PiNT Trials

In August 2010 the Group received updated results from the USDA on trials using products from the Group's nitrogen (PiNTTM) technology. The Board believes these findings potentially create new market opportunities for the PiNTTMproduct range in the USA.

The trials show that PiNT technology:

·; uses 25% less nitrogen than competing technologies;

·; allows crops to retain nitrogen for longer; and

·; may reduce nitrogen leaching into watercourses.

Independent research carried out by the USDA and published in the Congress Proceedings, supports the use of Plant Impact's unique nitrogen fertiliser technology (PiNTTM) on turf grass. The USDA's findings were reported at the World Soil Science Congress in Australia on 4 August 2010.

The Board believes that home and garden, golf course and outfield turf management represent major potential USA markets for PiNTTM, which helps turf grass retain nitrogen for longer. Turf grass that can retain sufficient nitrogen results in improved colour and vigour, root-to-shoot ratios and disease resistance. In addition, improved nitrogen retention leads to reduced nitrate run-off and pollution of waterways and coastal regions, which in turn has environmental benefits.

The research carried out by scientists from the USDA and Department of Crop and Soil Sciences, Pennsilvania State University, over a two year period demonstrated that PiNTTM outperformed comparison fertilisers, producing higher quality turf with greater nitrogen efficiency. Where PiNTTMwas used, the application rate could be reduced by up to 25 per cent. Whilst still achieving comparable growth and nitrogen uptake to the conventional product. USDA scientists measured turf colour and intensity, grass growth and nitrogen uptake.

Syngenta Field Trials - Brazil

During August 2010, the Group announced it had commenced field trials with Syngenta Brazil ("Syngenta"). The field trials will focus on the use of Plant Impact's CaT and PiNTTMtechnologies with soybean, corn, cotton and coffee.

The field trials are a significant programme, including resource commitments from Syngenta, a large number of farmers and support from Plant Impact, and these will initially focus on 4,000 hectares of soybean utilising Brazil's key soy producers. Following the successful conclusion of these trials, the Group anticipates that, through Syngenta, the initial target market for Plant Impact's products will include Brazilian farmers with an aggregate total area of 3 million hectares of soybean, 1 million hectares of corn, 300 thousand hectares of cotton and 300 thousand hectares of coffee per year.

Brazilian farmers grew an aggregate of approximately 21 million hectares of soybean, 14 million hectares of corn, 2 million hectares of coffee bean and 1 million hectares of cotton in 2008. Therefore, the Group considers the Brazilian agricultural market to be a major commercial opportunity for its products.

The Group has now engaged with EMBRAPA (a Brazilian government sponsored contract research organisation), to provide official support for Plant Impact/Syngenta work in Brazil. EMBRAPA has shown interest in Plant Impact's technologies as a potential way of finding ecologically effective inputs for Brazilian agriculture. EMBRAPA will conduct official independent trials into important Brazilian crops and provide further support for the registration of Plant Impact's Crop Nutrient technologies.

In November 2010 the Group announced that the Brazilian Ministry of Agriculture had granted national product registrations for InCa™, PiNT™ Ca, PiNT™ K and Scope. This is a key milestone which has only been achieved after a regulatory review process and will enable Plant Impact's products to be made available to the agricultural industry in Brazil.With the Group expanding into the broad acre and arable crop markets, the Board believes that working with influential partners is key. During 2010, the Group's field trial programme included oil seed rape (canola), potatoes, soybeans, corn, cotton and wheat. The Group considers that this significantly expands its market potential.

Outlook

The Directors are pleased with the progress made during the last six month and are looking forward to continued Crop Nutrient revenue growth and achieving BugOil regulatory approvals.

Whilst it is disappointing that the Group's revenues have been adversely impacted by weather conditions in North America, economic problems in Spain and delays in regulatory approval of BugOil in the UK and in the US, we remain confident in Plant Impact's business model. Our strategy going forward is to continue to grow sales through partnership agreements with major agrochemical companies and we are making good progress in this regard.

For the reasons set out above our turnover for the current year will be lower than we originally anticipated but we remain confident in the overall outcome for the year.

Martin RobinsonChairman6 December 2010

Plant Impact plc

Unaudited Consolidated Income Statement

For the six months ended 30 September 2010

The Group has no items to be recognised in the "Unaudited 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 Interim Results.

Plant Impact plc

Unaudited Consolidated Statement of Financial Position

At 30 September 2010

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

Plant Impact plc

Unaudited consolidated statement of changes in equity

For the six months ended 30 September 2010

Plant Impact plc

Unaudited Consolidated Statement of Cash Flows

For the six months ended 30 September 2010

Notes to the Unaudited Consolidated Interim Results

 1. Nature of operations and general information

Plant Impact plc and its subsidiaries' ('the Group') principal activities include the research, development, manufacturing and sale of crop nutrients and crop pest control products and technologies.

Plant Impact plc is the Group's ultimate parent company. It is incorporated and domiciled in the United Kingdom. The address of Plant Impact plc's registered office, which is also its principal place of business, is 12 Cuerden Way, South Preston Office Village, Bamber Bridge, Preston, PR5 6BL, United Kingdom. Plant Impact plc's shares are quoted on AIM, a market operated by the London Stock Exchange plc and are also traded on the PLUS Market.

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

These unaudited consolidated interim results have been approved for issue by the Board of Directors on 6 December 2010.

The financial information set out in this unaudited consolidated interim 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 2010, 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 498(2) and 498(3) of the Companies Act 2006.The Group's Annual report for the year ended 31 March 2010 set out the principal risks and uncertainties affecting the Group. The Directors consider that these risks and uncertainties remained current throughout the six months to 30 September 2010 and will remain so for the second half of the year.

2. Basis of preparation

These unaudited consolidated interim results are for the six months ended 30 September 2010. 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 2010.

The Group's existing financial resources 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 March 2012, including sensitivity analysis that takes into account 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 interim results.

2. Basis of preparation (continued)

These unaudited consolidated interim results have been prepared in accordance with the accounting policies expected to be adopted in the annual financial statements for the year to 31 March 2011.

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

3. Segmental analysis

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 adjusted segment operating results.

The segment results for the 6 months to 30 September 2010 are as follows:

The segment results for the year 6 months to 30 September 2009 are as follows:

The segment results for the year ended 31 March 2010 are as follows:

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

The segment assets and liabilities at 30 September 2010 and capital expenditure for the period then ended are as follows:

The segment assets and liabilities at 30 September 2009 and capital expenditure for the period then ended are as follows:

The segment assets and liabilities at 31 March 2010 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:

The analysis of revenue by destination is as follows:

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

4. Share options and share issues

During the period to 30 September 2010, 1,960,000 LTIPs were issued to executive directors and employees.

During the period to 30 September 2010, 350,000 share options were granted to non-executive directors and 150,000 share options were exercised.

5. 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.

6. Circulation to Shareholders

Following this RNS announcement, a pdf copy of the unaudited consolidated interim results will be posted on the Group's website (www.plantimpact.com) in accordance with AIM Rule 20 rather than made available in hard copy. This is in line with the Group's efforts to minimise the environmental impact of printing and distributing sets of unaudited consolidated interim results.