Interim Results

Plant Impact plc

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

Unaudited Consolidated Interim Financial Statements for the six months ended 31 January 2014

Plant Impact (AIM: PIM), a plant science innovation group which develops products used by growers to improve crop quality and marketable yield, today announces its unaudited results for the six months ended 31 January 2014.

Highlights

· First shipment of Veritas™ into Brazilian soy market

· Appointment of key Commercial and Operational managers

· Second year sales campaigns underway for new European products

· R&D pipeline progressing in arable crops: soy and wheat

· Turnover £1,162k (31 January 2013: £350k)

· Gross margins 76% (31 January 2013: 64%)

· Operating loss £570k (31 January 2013: £833k)

· Cash balance £512k (31 January 2013: £1,685k), stronger cash generation expected in the second half.

David Jones, Chairman of Plant Impact, commented, "These results demonstrate that management are delivering to promise; growing the European business and establishing a position in its first chosen major global crop; Brazil soy. There remains much to do, but I am pleased that the essential elements needed to secure growth, namely product field performance and grower and partner enthusiasm are now clearly established."

Chairman's Statement

For an emerging group, with novel crop technology in hand, achieving growth requires focused effort on a few carefully chosen sectors with a sustained development effort over several growing seasons. Since the wholesale management changes at Plant Impact just over two years ago, the strategy of the Board has been to channel its resources in just two directions; solutions for high value crops close to our home UK market where management can have a direct grower influence, and secondly, to secure a growth platform in a major global crop in conjunction with a strong incumbent partner.

Today's announced results evidence progress with these objectives. Management has widened the European distributor franchise for Plant Impact products and is set to achieve modest growth there commensurate with its field strength and portfolio. Meanwhile the opportunity to secure a major growth platform with a partner moved one step closer following an entirely satisfactory pilot launch of Plant Impact's Veritas product in Brazil soy and dry beans. This is very encouraging and over the balance of the current calendar year, we expect this progress to be increasingly reflected in the trading results.

Plant Impact's research and development programme targets successor and complementary products for Brazil soy and other broad acre crops. Fieldwork in the last season in Brazil with this pipeline is just concluding and has yet to be critically appraised. Plans are moving forward for a second year of efficacy testing for the Group's first product prototypes for cereals, specifically winter wheat. With sales expansion in Brazil, the Group will increase product development investment to support these products as well as subsequent products for these important crops.

Financial Performance

Turnover for the period was £1,162k (2013: £350k). This increase in sales reflects shipments from the commercial pilot of Veritas™, the group's first product in the important Brazilian soy market. Ex-Brazil, turnover was consistent with the prior period, reflecting some growth in off-season Northern Hemisphere markets, offset by a significant decline in the Group's Egyptian business, a consequence of the political and security crisis in that country.

Gross profit for the six month period was £887k (2013: £225k). Gross margins increased from 64% to 76%, entirely due to product mix effect. Prices and costs have remained stable, year-over-year.

Operating expenses increased to £1,457k (2013: £1,058k). This expansion is related to increased staffing for marketing and R&D (field trials and demonstrations) in support of the Group's activities in Brazil. Other expenses remain tightly controlled and consistent with the prior period. With continued visibility of sales expansion into larger row crop markets such as soy, the Group expects to increase overall spending to approximately £2.6 - £2.7 million per annum, from the level of £2.2 million at the beginning of the financial year. This increase will fund investment in R&D and marketing resources, including both seasonal product campaigns and field contractors, as well as permanent regional staff to secure and expand the highest-potential growth opportunities, primarily in Brazil.

Operating loss for the period declined to £570k (2013: £833k).

Net loss also declined to £508k (2013: £801k).

Net cash outflow from operating activities increased slightly vs. the prior period, primarily from working capital requirements related to the importation and payment process of the first commercial year of Brazilian operations. The Group expects that this will reverse in Q3 and that, in future periods, the working capital cycle of the Brazilian business will trend towards that of the Northern Hemisphere businesses.

The cash balance at 31 January was £512k (2013: £1,685k). This is a seasonal low-point for the Group, accompanied by higher than expected receivables balances related to shipments and collection timing in the first six months of the year. The Group is expected to be cash generative in the second half and has no debt.

Current Outlook

The Group is continuing to expand its distribution network in Europe, having appointed eight new distributors for this season and as a consequence of this and the introductory sales of Ametros last year in apples, the Board expects that the Group's European and other Northern Hemisphere businesses will expand moderately in the 2014 season.

The Board and management are encouraged by the outlook for the Group's products in Brazil and more widely in Latin America. Sales and promotional activity with Veritas™ in its pilot launch year has been intense and the results up to expectation. Field performance of Veritas™ has been remarkably consistent compared with both trial years as well as across different farms within any one season. Growers are achieving yield improvements of between 6-8% in soy and more in dry beans. We expect to have a clear view of the 2014/15 commercial prospects for the product over the coming months, once we have reviewed the complete data package with our strategic partner in Brazil.

I should like to thank management for their determined work over the last two quarters and also to recognize with appreciation the support of our shareholders who have waited some time to see this progress.

David Jones

Chairman

28 April 2014

Plant Impact plc

Unaudited Consolidated Income Statement

For the six months ended 31 January 2014

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 six month results.

Plant Impact plc

Unaudited consolidated statement of financial position

At 31 January 2014

The notes are an integral part of these condensed unaudited consolidated six month results.

Plant Impact plc

Unaudited consolidated statement of changes in equity

For the six months ended 31 January 2014

Plant Impact plc

Unaudited consolidated statement of cash flows

For the six months ended 31 January 2014

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 plc 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 six month results are presented in Pounds Sterling (£), which is also the functional currency of the parent company. All values are rounded to the nearest thousand ('000) except where otherwise indicated.

These unaudited consolidated half year results have been approved for issue by the Board of Directors on 28 April 2014.

The financial information set out in this unaudited consolidated six month 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 period ended 31 July 2013, 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 results are for the six months ended 31 January 2014. 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 period ended 31 July 2013.

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 July 2015, 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 six month results.

These unaudited consolidated interim financial statements have been prepared in accordance with the accounting policies expected to be adopted in the next annual financial statements for the period to 31 July 2014.

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