Plant Impact revenue surges as shipments of Veritas rise

Josh White WebFG News | 19 Jun, 2017 12:52 | | |

libra, esterlina, divisa, moneda, reino unido pound currency

Plant Impact

6.37

17:18 15/12/17
-1.92%
-0.13
  • 13,888.66
  • 0.32%44.43
  • Max: 13,888.66
  • Min: 13,809.88
  • Volume: 0
  • MM 200 : n/a
17:25 15/12/17
  • 1,014.92
  • 0.01%0.13
  • Max: 1,016.55
  • Min: 1,013.24
  • Volume: 0
  • MM 200 : n/a
17:25 15/12/17

Crop enhancement research and development company Plant Impact published a trading update for the nine months to 30 April on Monday, with revenue for the period up 55% on the same time last year to £7.3m.

The AIM-traded firm said that, on a constant currency basis, year-to-date revenue increased around 30% compared with the same period last year as the group benefitted from the relative weakness of sterling.

As explained by the board at the time of its interim results, much of the underlying year-to-date growth had come from increased shipments of the company’s flagship soybean product Veritas to Brazil for the 2016/17 growing season.

Third quarter revenue of £2.4m - up from £0.5m year-on-year - included the final shipments of Veritas product for that growing season, particularly timed for later stage soybean and dry bean crops.

Revenue in the third quarter for other parts of the world was modest, as expected, but consistent with the board’s full year business plans.

The cash balance at 30 April was £3.7m, down from £6.0m at the end of January, with the outflow reflecting that payment for third quarter shipments was not received until after the period end.

Plant Impact said the balance at 31 May was £5.0m.

“The group's business plans for fourth quarter trading, set at the start of the year, included an expectation of revenue from early shipments of Veritas for the 2017/18 Brazil season,” the company’s board noted in its statement.

“Usage of Veritas by Brazilian growers in the field over the course of the 2016/17 growing season was significantly up on the prior year and in-field technical performance of the product has been strong.

“However, challenging industry-wide trading conditions in the country have meant that end of season inventory levels of agricultural chemical products in Brazil, including Veritas, are higher than expected.”

In order to preserve their exclusive rights to market Veritas in Brazil, Bayer Cropscience were required to purchase annual minimum contractual volumes of product.

The group said it was in discussions about how they would meet those commitments, including exploring contractual amendments which would enable higher volume product strategies and integrated commercial offers to growers.

The outcome of those discussions could impact the full year results and expectations for growth in the next financial year, the board cautioned, adding it would update the market with further announcements as appropriate.

“Fourth quarter trading in other products and geographies is progressing well and is expected to be at least in line with the board's expectations which were for material growth compared with the minimal revenue achieved in the same period last year.

“In particular, this fourth quarter will see the first season revenue for Fortalis in the US, further sales of Banzai into West Africa and the usual northern hemisphere revenues for traditional fruit and vegetable products.”

With regard to research and development, the soybean development portfolio benefited from another season of work in Brazil with one new product having reached the end of its development stage, the board reported.

“This provides the potential for first sales in the next crop cycle in Brazil.

“Field results from first customers and trial growers using Fortalis in Argentina were also good, with the product delivering a 4% yield uplift over what were excellent seasonal yields in that market.

“Post-season customer feedback has also been positive, and the Group is now in commercial planning for the coming 2017/18 growing season.”

More news

15 Dec London close: Footsie gains as pound drops, Wall Street hits fresh highs

The top flight index recovered some ground on Friday, but mostly on account of weakness in Sterling after German Chancellor Angela Merkel reportedly echoed other European Union officials, saying "the most difficult phase is ahead of us".

15 Dec Week ahead: US data, Catalan elections in focus

The focus in the coming week will continue to be on the ebb and flow of data out of the US, including Republicans' progress on securing passage of their tax cuts.

15 Dec US open: Stocks jump as Republicans move to secure passage of tax cuts

Wall Street is heading higher again on Friday amid news that Republicans were tweaking their proposed tax cuts in order to secure prompt passage of the US tax bill.

15 Dec Airbus chief executive to step down in board shake-up

The chief executive of French planemaker Airbus will step down from his position in 2019 as the company announced a major shake-up of its management team.

15 Dec FTSE 250 movers: TalkTalk rises but Serco gives back gains

London’s FTSE 250 was up 0.1% to 20,023.23 in afternoon trade on Friday as the Christmas lull kicked in.

15 Dec US industrial production rises slightly less than expected in November

Industrial production in the States rose slightly less quickly than expected last month, despite higher output of business equipment and materials.

15 Dec Strategic Minerals renegotiates acquisition of Leigh Creek Copper Mine

Diversified mineral production and development company Strategic Minerals announced on Friday that, after the successful completion of technical and financial due diligence on the Leigh Creek Copper Mine company, it has agreed to continue with the acquisition on renegotiated terms.

15 Dec FTSE 100 movers: Sky jumps but retailers retreat on H&M sales

London’s FTSE 100 was up 0.3% to 7,469.23 in quiet afternoon trade on Friday.

15 Dec Gfinity partners with Microsoft for next Halo World Championship

International esports entertainment group Gfinity has been named as a preferred event partner to Microsoft for the forthcoming ‘Halo World Championship 2018’ for the next season, it announced on Friday.

15 Dec Hutchison Chi-Med begins fruquintinib trial in US

Hutchison China MediTech, known as Chi-Med, has initiated the United States Phase I bridging clinical trial of fruquintinib, it announced on Friday.