A strong US dollar significantly boosted Plant Impact’s (PIM) top line in the 12 months to 31 July, but strip out translation effects and constant currency growth came in at a relatively meagre 2 per cent. The specialist in crop enhancement products saw a 19 per cent gross profit uplift, but pre-tax losses widened after higher research and development (R&D) costs.
Management notes that while the long-term environment for agriculture is benefiting from technical innovation, the short-term scenario is different. Five years of strong harvests have reduced commodity prices among the world’s big crops, pressurising growers’ profitability and reducing their budget for “input” manufacturers. Plant Impact has invested more in R&D, facilitated by a £4m placing in July. This helped to advance the product pipeline, with two new product launches expected within two years.
Meanwhile, the group’s Brazil Veritas division, its strongest sales contributor, endured a shortfall against targets. But Plant Impact has successfully launched in the US and Argentina, which – with Brazil – constitute the bulk of world soybean production.
Analysts at Peel Hunt forecast adjusted pre-tax losses of £1.1m and losses per share of 0.5p for the year to July 2018, better than the £3m and 2.2p losses seen in 2017.
| PLANT IMPACT (PIM) | ||||
| ORD PRICE: | 27.3p | MARKET VALUE: | £25.8m | |
| TOUCH: | 27-27.5p | 12-MONTH HIGH: | 55p | LOW: 27p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 10.8p* | NET CASH: | £7.2m | |
| Year to 31 Jul | Turnover (£m) | Pre-tax loss (£m) | Loss per share (p) | Dividend per share (p) |
| 2013 (16-month period) | 1.6 | -1.9 | -3.1 | nil |
| 2014 | 2.5 | -0.9 | -1.0 | nil |
| 2015 | 4.5 | -0.2 | -0.2 | nil |
| 2016 | 7.2 | -1.2 | -0.9 | nil |
| 2017 | 8.5 | -4.1 | -3.8 | nil |
| % change | +17 | - | - | - |
| Ex-div: | nil | |||
| Payment: | nil | |||
| *Includes intangible assets of £4.4m, or 4.6p a share | ||||
