Plant Impact H1 dented by BugOil approval delays

Date:12-10-2010

Crop nutrition and protection products developer Plant Impact plc reported a pre-tax loss of 1.17m for the six months to September 30, up from 0.89m.

Turnover fell to 0.64m from 0.97m.

Chairman Martin Robinson said the decrease was due to delays in regulatory approval of the group's BugOil product.

The UK and US regulatory authorities had requested additional studies, which would be completed during December 2010.

UK approval was expected to be given during the first half of 2011 but the US authorities had said that because of their workload approval would be delayed until the first half of 2012.

Plant Impact said it was in negotiations with the US authorities to reduce the timeline.

Robinson said crop nutrient sales and product gross margin had increased, while the company had signed new distribution agreements, begun trials on broad-acre crops with Syngenta and received excellent results from its turf trials with the USDA.

Crop nutrient turnover improved mainly as a result of encouraging results from Northern Europe and despite climatic problems in North America and continuing economic uncertainty in Spain.

Product margin rose to 65.4% from 55.5%.

The full-year loss was expected to be broadly in line with management expectations.

The company finished the period with cash of 1.71m, against 1.58m a year earlier.

The shares were down 4.5p at 18.5p.