4th Dec 2006 07:01
Plant Impact PLC04 December 2006 PLANT IMPACT PLC ("Plant Impact" or the "Company") Unaudited interim results for the six months ended 30 September 2006 Plant Impact plc (PIM.L), which successfully listed on the AIM market on 16October 2006, announces its first interim results for the six months ended 30September 2006. Chairman's Statement This is my first statement since Plant Impact plc was admitted to trading on AIMlast month and I am delighted to welcome all new shareholders to the Company. Financial Review Over the period ended 30 September 2006, Plant Impact has traded in line withexpectations. Turnover for the period was £186,075, compared with £100,555 forthe six months ended 30 September 2005, an increase of 85 per cent. The lossbefore interest was £422,968, compared with £224,376 for the six months ended 30September 2005, the increase reflecting the additional expenditure on productdevelopment and field trials during the period. Interest charges and provisionfor the redemption premium on the convertible loan stock increased the lossbefore taxation to £654,681, compared with £263,607 for the six months ended 30September 2005. All outstanding loans were converted into equity on flotation, discharging theCompany's liability in respect of convertible loan stock, including theredemption premium thereon, a preferred loan and two short-term loans, in totalamounting to £1,447,000. A further £3.30 million, net of expenses, was raisedfrom the Placing, resulting in a stronger balance sheet, although the effect ofthis is not recognised in these interim accounts as the flotation took placeafter the period end. The majority of Plant Impact's sales in the period were in the Middle East andNorth Africa. The Directors have decided to concentrate their efforts in theMiddle East on the distribution relationships in Saudi Arabia, Egypt, Syria,Iran and Algeria, being the markets that show the best prospects for growth. InDecember 2005, Plant Impact entered into a distribution agreement with CertisEurope BV for its crop nutrient range, covering Spain and Portugal. The firstsales were recorded in February 2006 and have continued to grow during theperiod under review. The Directors are aware of the requirement to produce financial statements underIFRS for the interim results for the six months ending 30 September 2007 and allperiods thereafter and have established a working party to prepare for thepotential implications of this change. Operating Review The flotation has given the Company the resources needed to pursue its strategyfor growth. The proceeds from the Placing will be used to fund increasedproduct development, including the registration of the Company's naturalpesticide, BugOil, in the USA and UK, to increase our sales and marketingactivities, including the appointment of regional field sales executives, toassist in creating strategic partnerships, where the improved balance sheetshould put the Company in a stronger negotiating position, and to fund theworking capital needs of the Group. Dividends As stated in the admission document, the Directors currently intend to devotethe Company's cash resources to its operations and therefore do not anticipatepaying dividends in the near future. They will reconsider the Company'sdividend policy as and when the Company is in a position to pay dividends. Thedeclaration and payment by the Company of any dividends will depend on theresults of the Company's operations, its financial condition, cash requirements,future prospects, profits available for distribution and other factors deemed tobe relevant at the time. Outlook The Directors believe that Plant Impact will continue to make progress in theMiddle East, North Africa and European markets through its establisheddistribution channels. Evaluation field trials, on both the Group's cropnutrient and botanical pesticide products, are being conducted by a number ofmulti-national agricultural chemicals companies in America, Japan, India, Spainand Malaysia, with a view to them entering into distribution and/or licensingagreements. The Directors remain confident of the successful outcome of thesetrials. Further information: Plant Impact plcMartin Robinson, Chairman 0161 929 4969Peter Blezard, CEO 01772 733744 Grant Thornton Corporate FinanceGraeme Thom 0870 991 2790 Fiske plcClive Harrison 020 7448 4700 About Plant Impact Plant Impact plc commenced trading on AIM on 16 October 2006 Plant Impact has developed and markets a range of crop nutrients and naturalpesticides that improve the health and productivity of crops, whilst beinginherently non-toxic and ecologically sound. The Group's products allow cropsto be grown in a way that is better for the environment, the consumer and thegrower, whilst increasing yield, quality and shelf life. Placing Statistics Placing Price 38p Number of Ordinary Shares placed on behalf of the Company 10,139,475 Number of Ordinary Shares in issue immediately after the Placing 23,119,323 Capital raised £3.85m Website: www.plantimpact.com Plant Impact plcConsolidated profit and loss accountSix months ended 30 September 2006 6 months 6 months 15 months ended ended ended 30-Sep-06 30-Sep-05 31-Mar-06 Unaudited Unaudited Audited £ £ £Turnover- continuing operations 186,075 0 0- acquisitions 0 100,555 345,811 186,075 100,555 345,811 Cost of sales (125,232) (80,042) (261,517) Gross Profit 60,843 20,513 84,294 Distribution costs (75,075) (44,559) (149,518)Administrative Expenses (408,736) (200,330) (774,055) Operating loss- continuing operations (422,968) (65,365) (196,001)- acquisitions 0 (159,011) (643,278) (422,968) (224,376) (839,279) Net Interest Payable (235,329) (39,231) (146,460) Receivable 3,616 0 6,166 Loss on ordinary activities before taxation (654,681) (263,607) (979,573) Tax on loss on ordinary activities - - (4,024) Loss on ordinary activities after taxation (654,681) (263,607) (983,597) Loss £ per share - basic and diluted (0.82) (0.41) (1.61) Plant Impact plcConsolidated balance sheetAs at 30 September 2006 30th 30th 31st March September September 2006 2005 2006 Unaudited Unaudited Audited £ £ £Fixed AssetsIntangible assets 570,178 623,713 585,383Tangible assets 2,937 3,433 3,746 573,115 627,146 589,129 Current AssetsStock 5,663 8,581 7,831Debtors 396,291 92,603 425,509Cash at bank and in hand 162,871 257,036 446,770 564,825 358,220 880,110 Creditors: amounts falling due within one year (657,427) (531,988) (670,717) Net current assets / (liabilities) (92,602) (173,768) 209,393 Total assets less current liabilities 480,513 453,378 798,522 Creditors: amounts falling due after more than one year (1,315,994) 0 (979,323) Net assets / (liabilities) (835,481) 453,378 (180,801) Capital and reservesCalled up share capital 79,878 79,878 79,878Share premium account 844,812 844,812 844,812Merger reserve 182,892 182,892 182,892Profit and loss account (1,943,063) (654,204) (1,288,383) (835,481) 453,378 (180,801) Plant Impact plcConsolidated cash flow statementSix months ended 30 September 2006 6 months 6 months 15 months ended ended ended 30-Sep-06 30-Sep-05 31-Mar-06 Unaudited Unaudited Audited £ £ £Reconciliation of operating loss tooperating cashflowOperating profit / (loss) (422,968) (224,378) (839,279)Add back Depreciation 2,418 945 3,058 Amortisation of goodwill 15,205 0 22,807 Amortisation of patents 0 0 15,523 Amortisation of finance costs 5,429 2,417 Release of grant income (3,273) (399,916) (223,433) (798,747) Movement in Stock 2,168 (3,581) (2,831) Debtors 29,219 75,087 (263,477) Creditors 4,623 (210,620) (107,988) Net operating cashflow (363,906) (362,547) (1,173,043) CASH FLOW STATEMENT Cash outflow from operating activities (363,906) (362,547) (1,173,043) Returns on investment and servicing of financeInterest received 3,616 0 6,166Interest paid (531) (39,231) (40,539) 3,085 (39,231) (34,373) Taxation (4,024) 0 0 Capital expenditure and financialinvestmentPayments to acquire tangible fixed assets (1,609) (69) (2,495)Payments to acquire intangible fixed assets 0 0 0 (1,609) (69) (2,495) Acquisitions and disposalsNet cash acquired with subsidiaries 33,961 33,961Net cash inflow from acquisitions and disposals 0 33,961 33,961 FinancingIssue of shares 0 730,172 730,172Issue of convertible loans 96,444 870,985Increase / (decrease) in borrowings (13,889) (11,788) 15,556Convertible loans repaid 0 (115,000)Balancing figure required 82,555 603,384 1,616,713 Increase / (decrease) in cash in the period (283,899) 235,498 440,763 Opening cash balances 446,770 21,538 6,007 Closing cash balances 162,871 257,036 446,770 Reconciliation to movement in net debt Increase / (decrease) in cash in the period (283,899) 235,498 440,763Issue of convertible loans (96,444) (870,985)Increase / (decrease) in borrowings 13,889 (33,889) (15,556) Increase in net debt resulting from cashflows (366,454) 201,609 (445,778)Other non cash items (240,227) 115,000 (108,338) Movement in net debt in period (606,681) 316,609 (554,116)Opening net debt (798,109) (343,462) (243,993) Closing net debt (1,404,790) (26,853) (798,109) Analysis of net debt Cash in hand and at bank 162,871 257,036 446,770Bank loans (1,667) (33,889) (15,556)Convertible loan notes (1,315,994) 0 (979,323)Other loans (250,000) (250,000) (250,000) (1,404,790) (26,853) (798,109) Plant Impact plcNotes to the unaudited interim accountsSix months ended 30 September 2006 1 Plant Impact plc was incorporated on 4th May 2005, and commenced trading on 24th June 2005, on which date it merged with Bio Futures PI Limited, acquiring that company's entire issued share capital, in the process of the group reconstruction. On 24th June 2005, the company also acquired the entire issued share capital of PI Bioscience Limited. Both companies are now wholly owned subsidiaries of Plant Impact plc. The above financial information relates to Plant Impact plc and its subsidiaries. 2 The comparative figures for the 15 months to 31st March 2006 and the other financial information contained in this interim statement do not constitute statutory accounts of Plant Impact plc within the meaning of section 40 of the Companies act 1985. Statutory Accounts of Plant Impact plc for the 15 months to 31st March 2006 have been delivered to the Registrar of Companies. The auditors have reported on those accounts, their report was not qualified and did not contain a statement under section 237 (2) or (3) of the Companies act 1985. 3 The presentation of the financial statements is complicated by the group reconstruction which was effected on 24th June 2005. This group reconstruction has been accounted for in accordance with the principles of merger accounting set out in FRS 6. The financial statements are therefore presented as if Bio Futures PI Limited had been owned and controlled by the company throughout the periods ended 30th September 2005 and 31st March 2006. In addition, on 24th June 2005 the group acquired the entire share capital of PI Bioscience Limited. This acquisition has been accounted for using the acquisition method of accounting. Comparative figures are presented for the 15 month period to 31st March 2006 and the 6 month period to 30th September 2005. 4 The above financial information for the half years to 30th September 2005 and 30th September 2006 has been prepared in accordance with the accounting policies adopted in the accounts for the 15 months ended 31st March 2006. 5 Creditors at 30th September 2006 include £1,315,994 (31st March 2006 £979,323: 30th September 2005 £nil) being convertible loans which were converted into ordinary shares of the company on 16th October 2006 (see note 9 below). 6 The loss per share is based on the loss attributable to ordinary shareholders, divided by the weighted average number of ordinary shares in issue during the period, as follows: 6 months 6 months 15 months ended ended ended 30-Sep-06 30-Sep-05 31-Mar-06 Unaudited Unaudited Audited Weighted average number of shares 798,775 649,688 675,323 7 Reconciliation of movement in shareholders funds 6 months 6 months Period ended ended ended 30-Sep-06 30-Sep-05 31-Mar-06 Unaudited Unaudited Audited £ £ £ Opening (180,801) (310,537) (224,726) Loss for the (654,681) (263,607) (983,597) financial period Shares issued 0 1,027,522 1,027,522 Closing (835,482) 453,378 (180,801) 8 Related party transactions The following directors had interest free loans during the period, which are included within debtors. Details are as follows: 6 months 6 months Period ended ended ended 30-Sep-06 30-Sep-05 31-Mar-06 Unaudited Unaudited Audited £ £ £ P Blezard 7,890 7,890 7,890 D Marks 7,890 7,890 7,890 15,780 15,780 15,780 These loans were repaid on 9th October 2006 9 Post balance sheet event. On 16th October 2006, the company's shares were admitted to trading on the Alternative Investment Market of the London Stock Exchange. There was a simultaneous issue of new ordinary shares by way of a placing, raising £3.85m before expenses of issue and admission. At the same time, the holders of the Convertible Loan Notes 2008 converted their entire holding of loan notes, including redemption premium, into ordinary shares in the company. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Plant Impact