26th Nov 2007 07:00
Plant Impact PLC25 November 2007 26 November 2007 Plant Impact plc ("Plant Impact" or "the Group") Interim Results for the six months ended 30 September 2007 Plant Impact plc (AIM:PIM), a global developer of technologies that improve cropproductivity by combating the negative effects of environmental stress,announces its interim results for the six months ended 30 September 2007. Highlights • Turnover £128,578 (2006: £186,075) 2006, affected by a strategic move to larger product distribution partners • Operating loss £892,135 (2006: £447,809), reflecting an increase in R&D and recruitment of key finance and sales staff • Stronger cash position at 30 September 2007 £2.4 million compared with £0.2 million at 30 September 2006 • Significant landmarks achieved for BugOil technology in European patent process; global field trial and product registration • Successful field trials of nutrient products on wide range of crops • Collaboration with Lancaster University yielding positive results and subject of a grant application to further accelerate research • Strengthening of senior management team to support future growth: • Mike Panteli, Finance Director • Martyn Pearce, International Business Director • Angel Ruiz, Business Development Manager Martin Robinson, Chairman of Plant Impact plc, commented: "We have achieved many important product development, regulatory, IP protectionand corporate milestones over the last six months. Whilst these initiatives haverequired significant up-front financial commitment, which is reflected intoday's headline numbers, they do represent a strategic investment in PlantImpact's fundamental long term growth drivers. Impressive trial results andstrong underlying customer demand across our portfolio of plant stress controltechnologies also leaves us confident about our future prospects." For further information, please contact: Plant Impact plcPeter Blezard, Chief Executive Tel: + 44 (0) 1772 333 [email protected] www.plantimpact.com Grant Thornton Corporate FinanceNominated AdviserPhilip Secrett Tel: +44 (0) 870 991 [email protected] www.gtuk.com Media enquiries:AbchurchJustin Heath / Ashley Tapp Tel: +44 (0) 20 7398 [email protected] www.abchurch-group.com Chairman's Statement I am very pleased to present Plant Impact's results for the six months ended 30September 2007. The Group has made steady progress over the period. It is justover a year since the Group's flotation on AIM. During the six months underreview, the Group has expanded its sales team, invested further in theregistration of BugOil, the Group's pesticide product, carried out furthertrials to demonstrate the efficacy of the products and continued the negotiationof distribution and licensing deals around the world for BugOil and theanti-stress products. Financial Review Turnover for the period was £128,578, compared with £186,075 for the six monthsended 30 September 2006. The comparative fall in turnover is due to the Groupfocusing on larger distributors, with increased geographical penetration, andincreasing its activity on licensing strategy and partnering. Although sales athalf year are lower than the comparative period the Directors believe that themove to larger distributors and focusing on licensing will be beneficial to theGroup in the longer term. The operating loss was £892,135, compared with£447,809 for the six months ended 30 September 2006, the increase reflecting theexpansion of technology and product development (£266,376) and additionalexpenditure on people and the costs associated with being a quoted company.Interest and research and development tax credit receivable reduced the loss forthe period attributable to equity shareholders to £814,922, compared with£825,435 for the six months ended 30 September 2006. Cash balances at 30September 2007 amounted to £2.4 million, compared with £0.2 million at 30September 2006. Product development The Company has a series of field trial programmes to test products that areaimed at combating abiotic (environmental) stress within target crops in orderto increase marketable yield, shelf life and crop health. These programmes aregenerating, and are expected to continue to do so, data that proves the efficacyof Plant Impact technologies and products. During 2007, field trials havedelivered positive results which have enabled Plant Impact to access markets,for its products, with an estimated market size of upwards of US$500 million perannum. Geographically these field trials are world-wide. Europe (Spain, France, UK,),United States of America, South America (Costa Rica, Chile, Ecuador), Africa(Kenya, Tanzania), Middle East and North Africa (Jordan, Saudi Arabia, Morocco,Syria). During the last six months field trial results for tomato, lettuce and tablegrapes demonstrate the efficacy of Plant Impact technologies. Tomato The trial, conducted in Spain (Almeria) using a combination of Plant Impact'sCaT and PiNT technologies, demonstrated an increase in marketable tomato yieldof between 36% and 48% as well as a reduction in the incidence of blossom endrot from 30% to 8%, when compared to the standard grower practice. Otherbeneficial trial observations were increased fruit homogeneity and increasedfruit setting. This trial suggests that the use of Plant Impact technologies on fresh tomatocrops could result in increases in profitability for the grower of betweenUS$1,500 and US$2,000 per hectare. The global fresh tomato market for PlantImpact's CaT and PiNT technologies has an estimated market size of US$120million and is expected to grow, due to the increasing demand for fresh tomatoesand the more unpredictable climatic conditions being experienced in the areaswhere they are grown. Tomatoes are believed to represent one of the most important horticultural cropsin terms of world production and trade. The EU is the biggest single producerof fresh tomatoes, followed by the USA, then Turkey. Within the EU, Italy isthe biggest producer by far, followed by Spain, Greece, Portugal and France.Between them Italy and Spain grow almost 9.5 million tonnes of tomatoes a year. Tomato blossom end rot is a physiological disorder that is caused by a lack ofcalcium in the fruit. Unlike traditional products, Plant Impact's CaT technologyovercomes the problem efficiently and specifically, reducing the amount ofagricultural inputs applied to the plants, significantly improving marketableyield to the grower and providing consumers with better quality tomatoes. Lettuce In another field trial, carried out by Certis Europe BV ("Certis") in Spain, theuse of Plant Impact's CaT and PiNT technologies was demonstrated tosignificantly improve the marketable yield, shelf life and speed to maturity oflettuce. The trial also demonstrated a reduction in the incidence of tip burn. After 8 to 9 weeks of storage under ambient conditions the percentage of lettucehearts in 'good', saleable condition (without browning of leaves and rotting)increased from between 40% to 80% in the treated Group compared with between 0%to 40% in the control Group. This trial design included storage in extremeconditions and indicates an important value for retailers that sell pre-packedsalads, where two days' extra storage makes a significant impact onprofitability by reducing spoilage. Additional shelf life potentially opensglobal markets to growers. Supermarkets are currently suffering spoilage ratesof between 20% and 30% on salads. Other findings of the trial showed that following lettuce seedlingtransplantation, plant growth had increased from between 6% and 11% compared tothe control Group, and yields on harvesting of the crop after transplantationincreased by between 5% and 10% compared to the control Group. This indicatesearlier maturity of the crop through better growth, allowing the grower to cutearlier or harvest a heavier crop. In addition, lettuce tip burn, a calciumdeficiency disorder, was reduced from 15% in the control Group to 10% in thoseplants treated with Plant Impact's products. This indicates that calcium uptakeby the plant was more effective, leading to improved quality and a reduction inwaste. Tip burn is caused by environmental factors, such as high temperatures and lowrelative humidity, and agricultural factors such as salinity, calcium-poor soilsand water stress. Leaves with tip burn have an unpleasant appearance and theedge of the damaged leaf is weaker and subject to rotting. The global lettuce market for Plant Impact's CaT and PiNT technologies has anestimated market size of US$120 million per annum, which is expected to grow dueto the increasing demand for fresher and better-quality lettuce. In the last 10years, per capita consumption of lettuce has grown by 17%. Table Grape Five trials have been conducted in Spain (3), in Jordan and in Morocco, on tablegrapes, using the Company's PiNT, CaT and Speedo technologies. Grapes grown inthose and other viticultural regions typically face plant stresses such asdrought, high temperatures, poor soil conditions and calcium deficiency - allof which contribute to sub-optimal yield. The trial groups, treated with the Plant Impact technologies, showed a range ofimprovements compared with their respective controls: • marketable yield up by 10-15%; • shelf life increased by 8%; • colour improved by 7%; based on measurement of CIRG (colour index for red grapes) which is a standard statistical calculation. • sugar content increased by 20%. As a result of treatment with Plant Impact's solutions the growers' revenuesincreased by 20-25% and the time-to-harvest was reduced by 10-12 days. Inaddition, the grapes became less susceptible to heat and drought stress and thevines showed an overall improvement in health, both with regards to colour (ofleaf and stem) and strength (thickness of stem). The global table grape market for Plant Impact's PiNT, CaT and Speedotechnologies has an estimated market size of US$230 million per annum. Other Crops Other trials have shown improvements in marketable yield in squash (62.5%improvement), cucumber (50% improvement), olives (10% improvement) and pears(15% improvement). The third year of trials on cocoa has confirmed earlieryears' results, showing a 69% increase in marketable yield and demonstratingcontrol of pests by increasing the number of healthy pods by 30%. Trials havealso shown improved fruit homogeneity in grapes and tomatoes, increased fruitsetting in cucumber, grape, olive and pear together with improved vegetativegrowth. All of these results are used by the Group to support the existing distributionchannels and in the Group's negotiations with potential commercial partners todemonstrate the added value of the various products. Commercial development All of Plant Impact's sales continue to be generated from the Group's range ofnutrient products. In April 2007, the Group shipped its first container of nutrient products intothe United States of America for use on salad and high value crops, followingreceipt of an order from an independent distributor of speciality chemicals.During the period, Plant Impact also received its first order from SouthAmerica. BugOil - pest control technology The Group has made significant progress with regard to product registration,patent and field trial results. Registration The Group is in the process of finalising its registration dossiers for each ofthe UK Pesticides Safety Directorate ("PSD") and the USA Environment ProtectionAgency ("EPA") for BugOil, its first pesticide product. Following thepre-submission of the dossiers, both the PSD and EPA have asked the Group foradditional data, the compilation of which is nearly complete. The Directorsexpect to file the final dossier by mid-2008, which would mean that oncompletion of the registration process first sales can commence in the key USand EU markets. Patent In September 2007, the European Patent Office granted the patent applicationcovering BugOil. This is the first step in patent granting throughout Europefor BugOil and it implies that the patent will be granted. This is an extensionof the UK patent for BugOil, which was granted in December 2005. Patentapplications for BugOil have been filed in the USA. Field Trials Evaluation trials of BugOil with potential commercial partners continue. Initialresults from these trials indicate that BugOil showed excellent pest controllevels equal to or slightly above the market standard with at the same time goodcrop safety results. These trials in 2007 were on ornamentals and vegetables inthe USA, Europe and Africa. The Directors hope to enter into a number of licensing and/or distributionagreements for BugOil, covering different territories and markets, before theregistration process is complete. Collaboration with Lancaster University In January 2007, the Group entered into a research agreement with LancasterUniversity to seek greater clarification of the mechanism of action of a productknown as Alethea by reference to the physiology and molecular biology oftomatoes, the study crop. Since then, the Group has made an application to PERAfor funding for its Nematicide and Alethea technologies and has rented officeand laboratory space at the University. Management team appointments Mike Panteli was appointed Finance Director on 8 May 2007. Mike moved fromIntercytex Group plc, where he served as Financial Controller. During his sixyears at Intercytex, he was a key member of the finance and management teamsoverseeing the development of Intercytex from a venture capital backedbiotechnology company through to its admission to trading on AIM. Prior toIntercytex, he served as Financial Director of Telescope Technologies Limited, amanufacturer of large telescopes. We have also made two important appointments to enhance our sales effort:Martyn Pearce joined Plant Impact in May 2007 as International BusinessDirector. Martyn previously worked for Kanesho Soil Treatment, where he heldthe position of International Product Manager. He will be responsible fordeveloping channels to market for our ground breaking anti-stress technologies,as well as the registration of our botanical insect control product. Martyn hasspent all his working life in the agrochemical industry mostly in technicalmanagement roles for Certis Europe and ISK Biosciences. He is a graduateBiologist with an M.Sc. in Bio-aeronautics. Angel Ruiz joined Plant Impact in June 2007 as Business Development Manager.Angel previously worked for Certis Spain and is an integrated pest management(IPM) and soil fumigation specialist. During his four years at Certis, Angelhelped to establish Certis as a credible IPM company and a major soil fumigationcompany. Angel's responsibilities are to enhance the exposure of Plant Impactproducts in the European and Mediterranean regions. International Financial Reporting Standards These interim condensed consolidated financial statements are for the six monthsended 30 September 2007. They have been prepared in accordance with IAS 34"Interim Financial Reporting" and the requirements of IFRS 1 "First-timeAdoption of International Financial Reporting Standards" relevant to interimreports, because they are part of the period covered by the Group's first IFRSfinancial statements for the year ended 31 March 2008. They do not include allof the information required for full annual financial statements, and should beread in conjunction with the consolidated financial statements of the Group forthe year ended 31 March 2007. Dividends The Directors currently intend to devote the Group's cash resources to itsoperations and therefore do not anticipate paying dividends in the near future.They will reconsider the Company's dividend policy as and when the Company is ina position to pay dividends. The declaration and payment by the Company of anydividends will depend on the results of the Group's operations, its financialcondition, cash requirements, future prospects, profits available fordistribution and other factors deemed to be relevant at the time. Outlook The Directors are pleased with the progress made in recent months. The Group isattracting the attention of many key players in the agrochemical industry, manyof whom have entered into evaluation agreements as a prelude to an agreement forthe commercialisation of the Group's products. The fact that many of thesecompanies have approached Plant Impact in the first instance suggests that theGroup's products are gaining wide recognition. This has been achieved by thesuperb efforts of what is still a very small, but dedicated, management team,who have developed and are promoting a range of compounds that the Directorsbelieve have the potential to be world beating products. The next six months are potentially the most exciting in the Group's history, asa number of potential partners work towards formalising distribution and/orlicensing agreements with the Group. Martin RobinsonChairman 26 November 2007 Plant Impact plc Condensed consolidated interim income statement For the six months ended 30 September 2007 Unaudited Unaudited Unaudited Six months to Six months Year to 30 September to 30 September 31 March 2007 2006 2007 Note £ £ £ Revenue 128,578 186,075 377,237 Cost of sales (86,748) (125,232) (268,987) Gross profit 41,830 60,843 108,250 Distribution costs (119,244) (75,075) (119,433)Research and development costs (447,120) (180,744) (690,780)General and administrative expenses (367,601) (252,833) (763,606) Total expenses (933,965) (508,652) (1,573,819) Operating loss (892,135) (447,809) (1,465,569) Finance revenue 71,357 3,616 70,599Finance cost - (381,242) (426,975) 71,357 (377,626) (356,376) Loss before tax (820,778) (825,435) (1,821,945) Income tax expense 5,856 - 98,010 Loss for the period attributable to equity (814,922) (825,435) (1,723,935)shareholders Loss per share attributable to equity shareholdersBasic and diluted 4 (0.04) (0.10) (0.12) All results are from continuing activities. Plant Impact plc Condensed consolidated interim balance sheet At 30 September 2007 Unaudited Unaudited Unaudited At 30 September At 30 September At 31 March 2007 2006 2007 £ £ £ ASSETSNon-current assetsProperty, plant and equipment 20,069 2,937 6,842Goodwill 585,383 585,383 585,383 605,452 588,320 592,225 Current assetsInventories 3,030 5,663 3,030Trade and other receivables 80,286 396,291 223,035Cash and cash equivalents 2,363,275 162,871 3,077,959 2,446,591 564,825 3,304,024 Total assets 3,052,043 1,153,145 3,896,249 LIABILITIESNon-current liabilitiesLong-term borrowings - (1,478,790) - - (1,478,790) - Current liabilitiesTrade and other payables (317,750) (668,496) (409,303) (317,750) (668,496) (409,303) Total liabilities (317,750) (2,147,286) (409,303) Net assets / (liabilities) 2,734,293 (994,141) 3,486,946 EQUITYEquity attributable to equity holders of the parentShare capital 231,193 79,878 231,193Share premium 6,019,263 844,812 6,019,263Other reserve 250,725 134,635 188,456Merger reserve 182,892 182,892 182,892Retained loss (3,949,780) (2,236,358) (3,134,858) Total Equity 2,734,293 (994,141) 3,486,946 Plant Impact plc Condensed consolidated interim statement of changes in equity For the six months ended 30 September 2007 Share Share premium Other Merger Retained losses Total equity capital account reserve reserve £ £ £ £ £ £ At 1 April 2006 79,878 844,812 80,815 182,892 (1,410,923) (222,526) Loss for the period - - - - (771,615) (771,615)Total recognised income 79,878 844,812 80,815 182,892 (2,182,538) (994,141)and expense for theperiodShare-based - - 53,820 - (53,820) -compensationAt 30 September 2006 79,878 844,812 134,635 182,892 (2,236,358) (994,141)Loss for the period - - - - (844,679) (844,679)Total recognised income 79,878 844,812 134,635 182,892 (3,081,037) (1,838,820)and expense for theperiodIssue of shares 151,315 5,174,451 - - - 5,325,766Share-based - - 53,821 - (53,821) -compensationAt 31 March 2007 231,193 6,019,263 188,456 182,892 (3,134,858) 3,486,946Loss for the period - - - - (752,653) (752,653)Total recognised income 231,193 6,019,263 188,456 182,892 (3,887,511) 2,734,293and expense for theperiodShare-based - - 62,269 - (62,269) -compensationAt 30 September 2007 231,193 6,019,263 250,725 182,892 (3,949,780) 2,734,293 Other reserve Other reserves comprise the fair value provision for the cost of optionsgranted. Merger reserve The merger reserve arose on the acquisition of PI Bioscience Limited which wasaccounted for under UK GAAP. This business combination took place prior to 1April 2006, the Group's date of transition to IFRS and as such the Group haselected not to apply IFRS 3 "Business Combinations". Plant Impact plc Condensed consolidated interim cash flow statement For the six months ended 30 September 2007 Unaudited Unaudited Audited Six months to 30 Six months to 30 Year September 2007 September 2006 to 31 March 2007 £ £ £Cash flows from operating activitiesLoss before tax (820,778) (825,435) (1,821,945)Adjusted for:Depreciation 2,819 2,418 3,785Share-based compensation 62,269 53,820 107,641Deferred finance costs on convertible loan - - 30,155notes 2008Finance revenue (71,357) (3,616) (70,599)Finance income - 381,242 426,975Operating profit before working capital (827,047) (391,571) (1,323,988)changes Decrease in trade and other receivables 44,739 29,218 307,720Decrease in inventories - 2,168 4,801(Decrease) / increase in trade payables (91,553) (27,064) (20,701) Cash generated from operations (46,814) 4,322 291,820 Interest paid - (221,439) (49,778)Research & Development tax credit received 103,867 - - Net cash from operating activities (769,994) (608,688) (1,081,946) Cash flows from investing activitiesPurchase of plant and equipment (16,047) (1,609) (6,881)Interest received 71,357 3,616 63,362Net cash generated from investing 55,310 2,007 56,481activities Cash flows from financing activitiesProceeds from issue of share capital (net 6 - - 3,428,766of expenses)Proceeds from issue of convertible loan - 336,671 100,000notesProceeds from issue of loan notes - - 143,444Repayment of loans - (13,889) (15,556)Net cash generated from financing - 322,782 3,656,654activities Net (decrease) / increase in cash and cash (714,684) (283,899) 2,631,189equivalents Cash and cash equivalents at the beginning 3,077,959 446,770 446,770of the period Cash and cash equivalents at the end of 2,363,275 162,871 3,077,959the period Notes to the condensed interim statements 1. Nature of operations and general information Plant Impact plc and subsidiaries' ('the Group') principal activities includethe research, development, manufacturing and sale of crop nutrients and croppest control products and technologies. Plant Impact plc is the Group's ultimate parent company. It is incorporated anddomiciled in Great Britain. The address of Plant Impact plc's registeredoffice, which is also its principal place of business, is 2 Lockside OfficePark, Lockside Road, Riversway, Preston, PR2 2YS, United Kingdom. Plant Impactplc's shares are listed on the Alternative Investment Market (AIM) and the PLUSMarket. Plant Impact plc's consolidated interim financial statements are presented inPounds Sterling (£), which is also the functional currency of the parentcompany. These consolidated condensed interim financial statements have been approved forissue by the Board of Directors on 23 November 2007. The financial information set out in this interim report does not constitutestatutory accounts as defined in Section 240 of the Companies Act 1985. TheGroup's statutory financial statements for the year ended 31 March 2006,prepared under UK GAAP, have been filed with the Registrar of Companies. Theauditor's report on those financial statements was unqualified and did notcontain any statement under Section 237(2) of the Companies Act 1985. 2. Basis of preparation These interim condensed consolidated financial statements are for the six monthsended 30 September 2007. They have been prepared in accordance with IAS 34"Interim Financial Reporting" and the requirements of IFRS 1 "First-timeAdoption of International Financial Reporting Standards" relevant to interimreports, because they are part of the period covered by the Group's first IFRSfinancial statements for the year ended 31 March 2008. They do not include allof the information required for full annual financial statements, and should beread in conjunction with the consolidated financial statements of the Group forthe year ended 31 March 2007. These financial statements have been prepared under the historical costconvention. These condensed consolidated interim financial statements (the interim financialstatements) have been prepared in accordance with the accounting policies setout below which are based on the recognition and measurement principles of IFRSin issue as adopted by the European Union (EU) and are effective at 31 March2007 or are expected to be adopted and effective at 31 March 2008, our firstannual reporting date at which we are required to use IFRS accounting standardsadopted by the EU. Plant Impact plc's consolidated financial statements were prepared in accordancewith United Kingdom Accounting Standards (United Kingdom Generally AcceptedAccounting Practice) until 31 March 2007. The date of transition to IFRS was 1April 2006. The unaudited comparative figures in respect of 2006 have beenrestated to reflect changes in accounting policies as a result of adoption ofIFRS. The disclosures required by IFRS 1 concerning the transition from UK GAAPto IFRS are given in the reconciliation schedules, presented and explained innote 7. The accounting policies have been applied consistently throughout the Group forthe purposes of preparation of these condensed consolidated interim financialstatements. 3. Summary of significant accounting policies The accounting policies adopted in the preparation of the Group's IFRSstatements are set out below: The preparation of financial statements require management to make judgements,estimates and assumptions that affect the application of accounting policies andthe reported amounts of assets, liabilities, income and expense. Actual resultsmay differ from the estimates. The key estimates and assumptions by managementare set out below: a. Impairment of Goodwill - Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which goodwill has been allocated. The value in use calculation requires the Group to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value. b. Assumptions on the expected life of share options, volatility of shares, risk free yield to maturity and expected dividend yield on shares used in the IFRS fair value of share options. c. Expected useful life of non-current assets. d. Management have revised the expenditure relating to admission and placing on AIM and, where appropriate, made judgements as to how much of the expenditure related to the placing of existing shares, and should therefore be charged to the Consolidated Income Statement, and how much related to the placing of new shares, and should therefore be charged against share premium. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisionsto accounting estimates are recognised in the period in which the estimate isrevised and in any future periods affected. Basis of consolidation The consolidated annual financial statements comprise the financial statementsof Plant Impact plc and its subsidiaries as at 31 March each year. Subsidiariesare entities over which the Group has the power to control the financial andoperating policies so as to obtain benefits from its activities. The Groupobtains and exercises control through voting rights. The financial statements of subsidiaries are prepared for the same reportingyear as the parent company, using consistent accounting policies. Unrealisedgains on transactions between the Group and its subsidiaries are eliminated.Unrealised losses are also eliminated unless the transaction provides evidenceof an impairment of the asset transferred. Amounts reported in the financialstatements of subsidiaries have been adjusted where necessary to ensureconsistency with the accounting policies adopted by the Group. Acquisitions of subsidiaries are dealt with by the purchase method. The purchasemethod involves the recognition at fair value of all identifiable assets andliabilities, including contingent liabilities of the subsidiary, at theacquisition date, regardless of whether or not they were recorded in thefinancial statements of the subsidiary prior to acquisition. On initialrecognition, the assets and liabilities of the subsidiary are included in theconsolidated balance sheet at their fair values, which are also used as thebases for subsequent measurement in accordance with the Group accountingpolicies. Goodwill is stated after separating out identifiable intangibleassets. Goodwill represents the excess of acquisition cost over the fair valueof the Group's share of the identifiable net assets of the acquired subsidiaryat the date of acquisition. The Group has elected not to apply IFRS 3 Business Combinations retrospectivelyto business combinations prior to 1 April 2006. Accordingly, the classification of the combinations (acquisition and merger)remain unchanged from that used under UK GAAP. Assets and liabilities arerecognised at date of transition if they would be recognised under IFRS, and aremeasured using their UK GAAP carrying amount immediately post-acquisition asdeemed cost under IFRS, unless IFRS requires fair value measurement. Revenue recognition Revenue is recognised to the extent that the Group obtains the right toconsideration in exchange for its performance. Revenue is measured at the fairvalue of the consideration received, excluding discounts and VAT. Revenue from the sale of goods 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. Interest Interest is recognised using the effective interest method which calculates theamortised cost of a financial asset and allocates the interest income over therelevant period. The effective interest rate is the rate that exactly discountsestimated future cash receipts through the expected life of the financial assetto the net carrying amount of the financial asset. Goodwill Goodwill representing the excess of the cost of acquisition over the fair valueof the Group's share of the identifiable assets acquired, is capitalised andreviewed annually for impairment. Goodwill is carried at cost less accumulatedimpairment losses. Negative goodwill is recognised immediately after acquisitionin the income statement. Research and development expenditure Research expenditure is charged to the income statement in the period in whichit is incurred. Development expenditure is capitalised when the criteria forrecognition as an asset are met - when it is probable that the project will be asuccess, considering its commercial and technological feasibility, and costs canbe measured reliably. Regulatory and other uncertainties generally mean thatsuch criteria are not met; in particular, the Group will not recognise theresearch and development costs attributable to a product development programmeprior to grant of a marketing licence for the product. Property, plant and equipment Property, plant and equipment are stated at cost, net of depreciation andprovision for impairment. Depreciation is provided on all property, plant andequipment at rates calculated to write off the cost of each asset, less itsestimated residual value, on a straight line basis over its expected usefullife, as follows: Laboratory equipment 33.3% per annum The assets' residual values, useful lives and methods of depreciation arereviewed, and adjusted if appropriate, at each financial year end. Impairment of assets The Group assesses at each reporting date whether there is an indication that anasset may be impaired. If any such indication exists, or when annual impairmenttesting for an asset is required, the Group makes an estimate of the asset'srecoverable amount. An asset's recoverable amount is the higher of an assets orcash-generating units fair value less costs to sell and its value-in-use and isdetermined for an individual asset, unless the asset does not generate cashinflows that are largely independent of those from other assets or groups ofassets. Where the carrying amount of an asset exceeds its recoverable amount,the asset is considered impaired and is written down to its recoverable amount.In assessing value-in-use, the estimated future cash flows are discounted totheir present value using a pre-tax discount rate that reflects current marketassessments of the time value of money and the risks specific to the asset.Impairment losses on continuing operations are recognised in the incomestatement in those categories consistent with the function of the impairedasset. Cash and cash equivalents Cash and cash equivalents in the balance sheet comprise cash at banks and inhand and short term deposits with an original maturity of three months or less. For the purpose of the consolidated cash flow statement, cash and cashequivalents consist of cash and cash equivalents as defined above. Foreign currencies Transactions in foreign currencies are translated at the exchange rate ruling atthe date of the transaction. Monetary assets and liabilities in foreigncurrencies are translated at the rates of exchange ruling at the balance sheetdate. Non-monetary items that are measured at historical cost in a foreigncurrency are translated at the exchange rate at the date of the transaction.Non-monetary items that are measured at fair value in a foreign currency aretranslated using the exchange rates at the date when the fair value wasdetermined. Any exchange differences arising on the settlement of monetary items or ontranslating monetary items at rates different from those at which they wereinitially recorded are recognised in the profit or loss in the period in whichthey arise. Exchange differences on non-monetary items are recognised in thestatement of changes in equity to the extent that they relate to a gain or losson that non-monetary item taken to the statement of recognised income andexpenses, otherwise such gains and losses are recognised in the incomestatement. Taxation Credit is taken in the accounting period for research and development taxcredits, which will be claimed from Her Majesty's Revenue & Customs (HMRC), inrespect of qualifying research and development costs incurred in the sameaccounting period. The resultant amount is measured at the amount expected to berecovered from HMRC. UK corporation tax is provided on taxable profits or losses at amounts expectedto be paid, or recovered, applying the tax rates and laws that have beenenacted, or substantively enacted, by the balance sheet date. Deferred tax is accounted for using the balance sheet liability method inrespect of temporary differences arising from differences between the carryingamount of assets and liabilities in the financial statements and thecorresponding tax bases used in the computation of taxable profit or loss.Deferred tax assets are recognised to the extent that it is probable that futuretaxable profits will be available against which the temporary differences can beutilised. Their carrying amount is reviewed at each balance sheet date on thesame basis. Deferred tax is measured on an undiscounted basis, and at the taxrates that are expected to apply in the period in which the asset or liabilityis settled. It is recognised in the income statement except when it relates toitems credited or charged directly to equity, in which case the deferred tax isalso dealt with in equity. Financial Assets All financial assets are recognised when the Group becomes a party to thecontractual provisions of the instrument. Financial assets other than thosecategorised as at fair value through profit or loss are recognised at fair valueplus transaction costs. Financial assets categorised as at fair value throughprofit or loss are recognised initially at fair value with transaction costsexpensed through the income statement. Loans and receivables are non-derivative financial assets with fixed ordeterminable payments that are not quoted in an active market. Tradereceivables and other debtors are classified as loans and receivables. Loansand receivables are measured subsequent to initial recognition at amortised costusing the effective interest method, less provision for impairment. Any changein their value through impairment or reversal of impairment is recognised in theincome statement. Provision against trade receivables is made when there is objective evidencethat the Group will not be able to collect all amounts due to it in accordancewith the original terms of those receivables. The amount of the write-down isdetermined as the difference between the asset's carrying amount and the presentvalue of estimated future cash flows. A financial asset is derecognised only where the contractual rights to the cashflows from the asset expire or the financial asset is transferred and thattransfer qualifies for derecognition. A financial asset is transferred if thecontractual rights to receive the cash flows of the asset have been transferredor the Group retains the contractual rights to receive the cash flows of theasset but assumes a contractual obligation to pay the cash flows to one or morerecipients. A financial asset that is transferred qualifies for derecognitionif the Group transfers substantially all the risks and rewards of ownership ofthe asset, or if the Group neither retains nor transfers substantially all therisks and rewards if ownership but does transfer control of that asset. Financial liabilities Financial liabilities are obligations to pay cash or other financial assets andare recognised when the Group becomes a party to the contractual provisions ofthe instrument. Financial liabilities categorised as at fair value throughprofit or loss are recorded initially at fair value, all transaction costs arerecognised immediately in the income statement. All other financial liabilitiesare recorded initially at fair value, net of direct issue costs. Financial liabilities categorised as at fair value through profit or loss areremeasured at each reporting date at fair value, with changes in fair valuebeing recognised in the income statement. All other financial liabilities arerecorded at amortised cost using the effective interest method, withinterest-related charges recognised as an expense in finance cost in the incomestatement. Finance charges, including premiums payable on settlement orredemption and direct issue costs, are charged to the income statement on anaccruals basis using the effective interest method and are added to the carryingamount of the instrument to the extent that they are not settled in the periodin which they arise. A financial liability is derecognised only when the obligation is extinguished,that is, when the obligation is discharged, cancelled or expires. Financial instruments Classification as equity or financial liability Financial liabilities and equity instruments are classified according to thesubstance of the contractual arrangements entered into. A financial liability exists where there is a contractual obligation to delivercash or another financial asset to another entity, or to exchange financialassets or financial liabilities under potentially unfavourable conditions. Inaddition contracts which result in the entity delivering a variable number ofits own equity instruments are financial liabilities. Shares containing suchobligations are classified as financial liabilities. An equity instrument is any contract that evidences a residual interest in theassets of the Group after deducting all of it liabilities. Dividends anddistributions relating to equity instruments are debited direct to equity. Compound instruments Compound instruments comprise both a liability and an equity component. Theelements of a compound instrument are classified in accordance with theircontractual provisions. At the date of issue, the liability component isrecorded at fair value and thereafter the liability component is accounted foras a financial liability in accordance with the accounting policy set out above. The residual is the equity component, which is accounted for as an equityinstrument. The Group has deemed that the best evidence of the fair value of a financialinstrument at initial recognition is the transaction price (i.e. the fair valueof the consideration given or received) unless the fair value of that instrumentis evidenced by comparison with other observable current market transactions inthe same instrument (i.e. without modification or repackaging) or based on avaluation technique whose variables include only data from observable markets.This may result in no gain or loss being recognised on the initial recognitionof a financial asset or financial liability. In such a case a gain or lossshall be recognised after initial recognition only to the extent that it arisesfrom a change in a factor (including time) that market participants wouldconsider in setting a price. Inventories Inventories are stated at the lower of cost and net realisable value, aftermaking due allowance for obsolete and slow moving items. Costs include allpurchased costs incurred in bringing each product to its present locations andcondition on a first-in, first-out (FIFO) basis. Share-based payments The cost of equity-settled transactions with employees is measured by referenceto the fair value at the date at which they are granted and is recognised as anexpense over the vesting period, which ends on the date on which the relevantemployees become fully entitled to the award. Fair value is determined using theBlack Scholes pricing model. In valuing equity-settled transactions, no accountis taken of any vesting conditions, other than conditions linked to the price ofthe shares of the Company (market conditions). No expense is recognised for awards that do not ultimately vest, except forawards where vesting is conditional upon a market condition, which are treatedas vesting irrespective of whether or not the market condition is satisfied,provided that all other performance conditions are satisfied. At each reporting date, the cumulative expense recognised for equity-basedtransactions reflects the extent to which the vesting period has expired and thenumber of awards that, in the Directors' opinion, will ultimately vest. Themovement in cumulative expense since the previous balance sheet date isrecognised in the profit and loss account, with a corresponding entry in equity. The share-based charges are recognised within the financial statements of thesubsidiary company, P.I. Bioscience Limited, with corresponding increases inequity, as the services provided by the employees and directors were in respectof this subsidiary. The Company is deemed to receive additional benefit from itsinvestment in the subsidiary that is receiving the employees' services. On thisbasis, the Company has capitalised the share-based payment cost as an increaseto its fixed asset investment in P.I. Bioscience Limited. Leased assets In accordance with IAS 17, the economic ownership of a leased asset istransferred to the lessee if the lessee bears substantially all the risks andrewards related to the ownership of the leased asset. The related asset isrecognised at the time of inception of the lease at the fair value of the leasedasset or, if lower, the present value of the minimum lease payments plusincidental payments, if any, to be borne by the lessee. A corresponding amountis recognised as a finance leasing liability. Leases of land and buildings aresplit into land and buildings elements according to the relative fair values ofthe leasehold interests at the date of entering into the lease agreement. The interest element of leasing payments represents a constant proportion of thecapital balance outstanding and is charged to the income statement over theperiod of the lease. All other leases are regarded as operating leases and the payments made underthem are charged to the income statement on a straight line basis over the leaseterm. Lease incentives are spread over the term of the lease. Equity Equity comprises the following: • "Share capital" represents the nominal value of equity shares. • "Share premium" represents the excess over nominal value of the fair value of consideration received for equity shares, net of expenses of the share issue. • "Other reserve" represents equity-settled share-based employee remuneration until such share options are exercised. • "Merger reserve" arose on the merger of Bio Futures PI Limited under previous GAAP. 4. Loss per share The calculations of loss per ordinary share are based on the following lossesand weighted average number of shares in issue during the period: Unaudited Unaudited Unaudited Six months to 30 Six months to 30 Year to 31 September 2007 September March 2006 2007Loss for the period £ (814,922) (825,435) (1,723,935) Weighted average number of ordinary 23,119,323 7,987,750 14,869,506sharesLoss per share (0.04) (0.10) (0.12) The exercise of outstanding share options in the periods would have the effectof reducing the loss per ordinary share, and are not therefore dilutive underthe terms of IAS 33. 5. Segmental information Turnover to date represents the Plant Impact crop nutrient products. This isthe only primary reporting segment and as such no segmental information isprovided. 6. Share issues Shares issued and authorised may be summarised as follows: Six months to 30 September 2007 Authorised Allotted, called up and fully paid Number £ Number £At 1 April 2007 and at 30 September 2007 50,000,000 500,000 23,119,323 231,193 Six months to 30 September 2006 Authorised Allotted, called up and fully paid Number £ Number £At 1 April 2006 1,000,000 100,000 798,775 79,878Subdivision of shares 9,000,000 - 7,188,975 -Increase in authorised shares 40,000,000 400,000 - -At 30 September 2006 50,000,000 500,000 7,987,750 79,878 Year to 31 March 2007 Authorised Allotted, called up and fully paid Number £ Number £At 1 April 2006 1,000,000 100,000 798,775, 79,878Subdivision of shares 9,000,000 - 7,188,975 -Increase in authorised shares 40,000,000 400,000 - -Issue of shares - - 15,131,573 151,315At 31 March 2007 50,000,000 500,000 23,119,323 231,193 For the year ended 31 March 2007, the following share issues occurred: On 28 September 2006, each existing and unissued ordinary share of 10p each inthe capital of the Company was sub-divided into 10 ordinary shares of 1p eachsubject to the rights set out in the new articles of association. The authorisedshare capital of the Company was increased from £100,000 to £500,000 by thecreation of 40,000,000 new ordinary shares. On 16 October 2006, the Company was admitted to AIM which resulted in the issueof 10,139,475 new ordinary shares. A further 4,334,204 ordinary shares wereissued on conversion of Convertible Loan Notes 2008 and a further 657,894ordinary shares were issued on capitalization of the RisingStars Growth Fundloan of £250,000. Total gross proceeds from flotation and loan conversion of£5,750,000 were received and the associated issue costs allocated to SharePremium Account amounted to £424,234. The gross proceeds of £5,750,000 comprise of flotation funding of £3,853,000(total cost of £586,774) giving net receipts from flotation of £3,266,226,together with conversion of the secured convertible loan notes 2008 of£1,500,000, conversion of the RisingStars and Lancashire County Developmentsfund loans of £147,000 and capitalisation of the RisingStars Growth Fund loan of£250,000. 7. Explanation of transition to International Financial ReportingStandards (IFRS) The Group's financial statements for the year ended 31 March 2008 will be thefirst annual financial statements that comply with IFRS, as amended for changesdue to IFRS, as adopted by the European Union. The Group's date of transition is1 April 2006 and the opening IFRS balance sheet has been prepared as of thatdate. These interim financial statements are therefore the first be preparedunder IFRS. The commentary below highlights the key changes that have arisen dueto the transition from reporting under UK GAAP to reporting under IFRS. Theunaudited comparative figures have been prepared on the same basis and aretherefore restated for the impact of IFRS from those previously reported underUK GAAP. A summary of the principal IFRS accounting policies adopted in these financialstatements are set out in note 3. The impact of the IFRS transition is set outbelow: First-time adoption IFRS 1 "First-time Adoption of International Financial Reporting Standards" setsout the approach to be followed when IFRS are applied for the first time. WhilstIFRS 1 generally requires that the accounting policies are to be appliedretrospectively it provides a number of optional exemptions. Plant Impact plc has elected to apply the exemption that precludes the fullretrospective application of IFRS 3: Business combinations. Hence no restatementhas been made in respect of business combinations prior to 1 April 2006. UnderIFRS goodwill is not amortised, but tested annually for impairment. The goodwillamortisation charge recognised in accordance with UK GAAP in 2007 was writtenback and the merger reserve arising from these business combinations has notbeen restated. Share based payments Under IFRS 2 "Share based payments", the comparative figures for the six monthsended 30 September 2006 has been adjusted to reflect the issue of share options.No restatement has been made in respect of the balance sheet as at 1 April2006, as a prior year adjustment has already been reported under UK GAAP inaccordance with FRS 20. Convertible loan notes The convertible loan notes have been restated to be in accordance with IAS 39 "Financial Instruments: Recognition and Measurement" as outlined in note 3 tothese condensed consolidated interim financial statements. Holiday pay Under IAS 19 "Employee Benefits" a provision for holiday pay to which employeesare entitled, but have not yet taken, is required. This charge was not requiredunder UK GAAP. Accordingly, an accrual has been made at each interim period andfor the year ended 31 March 2007. Explanation of material adjustments to the cash flow statement Application of IFRS has resulted in reclassification of certain items in thecash flow statement as follows: 1) Under UK GAAP, payments to acquire property, plant and equipment were classified as part of 'Capital expenditure and financial investment'. Under IFRS, payments to acquire property, plant and equipment have been classified as part of 'Investing activities'. 2) Income taxes are classified as operating cash flows under IFRS, but were included in a separate category of tax cash flows under previous GAAP. There are no other material differences between the cash flow statementpresented under IFRS and the cash flow statement presented under UK GAAP. The following unaudited reconciliations have been included in this note toprovide a quantification of the impact of the transition to IFRS: Plant Impact plc Reconciliation of equity as at 1 April 2006 As previously IAS 39 IAS 19 Restated under IFRS reported under UK Convertible Holiday pay GAAP loan interest accrual £ £ £ £ASSETSNon-current assetsProperty, plant & equipment 3,746 - 3,746Goodwill 585,383 - 585,383 589,129 - 589,129 Current assetsInventory 7,831 - 7,831Trade and other receivables 425,509 - 425,509Cash and cash equivalents 446,770 - 446,770 880,110 - 880,110 Total assets 1,469,239 - 1,469,239 LIABILITIESNon-current liabilitiesLong term borrowings (979,323) (16,883) - (996,206) (979,323) (16,883) - (996,206) Current liabilitiesTrade and other payables (670,717) - (24,842) (695,559) (670,717) - (24,842) (695,559) Total liabilities (1,650,040) (16,883) (24,842) (1,691,765) Net liabilities (180,801) (16,883) (24,842) (222,526) EQUITYEquity attributable to equityholders of the parentShare capital 79,878 - 79,878Share premium 844,812 - 844,812Other reserve 80,815 - 80,815Merger reserve 182,892 - 182,892Retained losses (1,369,198) (16,883) (24,842) (1,410,923) Total equity (180,801) (16,883) (24,842) (222,526) Plant Impact plc Reconciliation of equity as at 30 September 2006 As previously IAS 39 IFRS3 Goodwill IFRS 2 Share-based IAS 19 Restated reported Convertible amortisation compensation Holiday pay under IFRS under UK GAAP loan interest write-back accrual £ £ £ £ £ £ASSETSNon-current assetsProperty, plant & 2,937 - - - - 2,937equipmentGoodwill 570,178 - 15,205 - - 585,383 573,115 - 15,205 - - 588,320Current assetsInventory 5,663 - - - - 5,663Trade and other 396,291 - - - - 396,291receivablesCash and cash 162,871 - - - - 162,871equivalents 564,825 - - - - 564,825Total assets 1,137,940 - 15,205 - - 1,153,145 LIABILITIESNon-currentliabilitiesLong term borrowings (1,315,994) (162,796) - - - (1,478,790) (1,315,994) - - - - (1,478,790)Current liabilitiesTrade and other (657,427) - - - (11,069) (668,496)payables (657,427) - - - (11,069) (668,496)Total liabilities (1,973,421) (162,796) - - (11,069) (2,147,286) Net liabilities (835,481) (162,796) 15,205 - (11,069) (994,141) EQUITYEquity attributableto equity holders ofthe parentShare capital 79,878 - - - 79,878Share premium 844,812 - - - 844,812Other reserve - - 134,635 - 134,635Merger reserve 182,892 - - - 182,892Retained losses (1,943,063) (162,796) 15,205 (134,635) (11,069) (2,236,358) Total equity (835,481) (162,796) 15,205 - (11,069) (994,141) Plant Impact plc Reconciliation of equity as at 31 March 2007 As previously IFRS3 Goodwill IAS 19 Holiday Restated under reported under amortisation pay accrual IFRS UK GAAP write-back £ £ £ £ASSETSNon-current assetsProperty, plant & equipment 6,842 - - 6,842Goodwill 554,973 30,410 - 585,383 561,815 - 592,225 Current assetsInventory 3,030 - - 3,030Trade and other receivables 223,035 - - 223,035Cash and cash equivalents 3,077,959 - - 3,077,959 3,304,024 - - 3,304,024 Total assets 3,865,839 30,410 - 3,896,249 LIABILITIESNon-current liabilitiesLong term borrowings - - - - - - - - Current liabilitiesTrade and other payables (384,460) - (24,843) (409,303) (384,460) - (24,843) (409,303) Total liabilities (384,460) - (24,843) (409,303) Net assets / (liabilities) 3,481,379 30,410 (24,843) 3,486,946 EQUITYEquity attributable to equity holders ofthe parentShare capital 231,193 - - 231,193Share premium 6,019,263 - - 6,019,263Other reserve 188,456 - - 188,456Merger reserve 182,892 - - 182,892Retained losses (3,140,425) 30,410 (24,843) (3,134,858) Total Equity 3,481,379 30,410 (24,843) 3,486,946 Plant Impact plc Reconciliation of loss for the six months to 30 September 2006 As previously IAS 39 IFRS3 Goodwill IFRS 2 IAS 19 Restated reported Convertible amortisation Share-based Holiday pay under IFRS under UK GAAP loan interest write-back compensation accrual £ £ £ £ £ £ Revenue 186,075 - - - - 186,075 Cost of sales (125,232) - - - - (125,232) Gross profit 60,843 - - - - 60,843 Distribution costs (75,075) - - - - (75,075)Research and (203,554) - 15,205 - 7,605 (180,744)developmentAdministrative (205,182) - - (53,820) 6,169 (252,833)expenses Total expenses (483,811) - 15,205 (53,820) 13,774 (508,652) Operating loss (422,968) - 15,205 (53,820) 13,774 (447,809) Finance revenue 3,616 - - - - 3,616Finance costs (235,329) (145,913) - - - (381,242) (231,713) (145,913) - - - (377,626) Loss before tax (654,681) (145,913) 15,205 (53,820) 13,774 (825,435) Income tax expense - - - - - - Loss for the period (654,681) (145,913) 15,205 (53,820) 13,774 (825,435)attributable toequity holders Plant Impact plc Reconciliation of loss for the year ended to 31 March 2007 As previously IAS 39 IFRS3 Goodwill Restated under reported under UK Convertible loan amortisation IFRS GAAP interest write-back £ £ £ £ Revenue 377,237 - - 377,237 Cost of sales (268,987) - - (268,987) Gross profit 108,250 - - 108,250 Distribution costs (119,433) - - (119,433)Research and development (721,190) - 30,410 (690,780)Administrative expenses (763,606) - - (763,606) Total expenses (1,604,229) - 30,410 (1,573,819) Operating loss (1,495,979) - 30,410 (1,465,569) Finance revenue 70,599 - - 70,599Finance costs (443,857) 16,882 - (426,975) (373,258) 16,882 - (356,376) Loss before tax (1,869,237) 16,882 30,410 (1,821,945) Income tax expense 98,010 - - 98,010 Loss for the period attributable to (1,771,227) 16,882 30,410 (1,723,935)equity holders INDEPENDENT REVIEW report to Plant Impact plc Introduction We have been instructed by the company to review the financial information forthe six months ended 30 September 2007 which comprises the Condensedconsolidated interim income statement, Condensed consolidated interim balancesheet, Condensed consolidated interim statement of changes in equity, Condensedconsolidated interim cash flow statement and the related notes 1 to 7. We haveread the other information contained in the interim report which comprises onlythe Chairman statement and considered whether it contains any apparentmisstatements or material inconsistencies with the financial information. This report is made solely to the company in accordance with guidance containedin APB Statements of Standards for Reporting Accountants "International Standardon Review Engagements (UK and Ireland) 2410". Our review work has beenundertaken so that we might state to the company those matters we are requiredto state to them in a review report and for no other purpose. To the fullestextent permitted by law, we do not accept or assume responsibility to anyoneother than the company for our review work, for this report, or for theconclusion we have formed. Directors' responsibilities The half-yearly financial report is the responsibility of, and has been approvedby, the directors. The directors are responsible for preparing the half-yearlyfinancial report in accordance with the Disclosure and Transparency Rules of theUnited Kingdom's Financial Services Authority. As disclosed in note 7, the annual financial statements of the Group areprepared in accordance with IFRSs as adopted by the European Union. Thecondensed set of financial statements included in this half-yearly financialreport has been prepared in accordance with International Accounting Standard34, ''Interim Financial Reporting,'' as adopted by the European Union. Our Responsibility Our responsibility is to express to the Company a conclusion on the condensedset of financial statements in the half-yearly financial report based on ourreview. Scope of Review We conducted our review in accordance with International Standard on ReviewEngagements (UK and Ireland) 2410, ''Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity'' issued by the AuditingPractices Board for use in the United Kingdom. A review of interim financialinformation consists of making enquiries, primarily of persons responsible forfinancial and accounting matters, and applying analytical and other reviewprocedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing (UK and Ireland) andconsequently does not enable us to obtain assurance that we would become awareof all significant matters that might be identified in an audit. Accordingly, wedo not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believethat the condensed set of financial statements in the half-yearly financialreport for the six months ended 30 September 2007 is not prepared, in allmaterial respects, in accordance with International Accounting Standard 34 asadopted by the European Union and the Disclosure and Transparency Rules of theUnited Kingdom's Financial Services Authority. GRANT THORNTON UK LLPCHARTERED ACCOUNTANTSMANCHESTER 26 November 2007 The maintenance and integrity of the Plant Impact plc website is theresponsibility of the directors: the interim review does not involveconsideration of these matters and, accordingly, the company's reportingaccountants accept no responsibility for any changes that may have occurred tothe interim report since it was initially presented on the website. Legislation in the United Kingdom governing the preparation and dissemination ofthe interim report differ from legislation in other jurisdictions. - Ends - This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Plant Impact