Brazil deal sees crop R&D firm forecasting growth to £9m
The launch of a flagship soybean product in Brazil has boosted Preston-based Plant Impact’s revenue from £7.2m to possibly £9m.
The AIM-listed company which specialises in crop enhancement R&D said ongoing discussions on a deal to market the product Veritas struck with Bayer CropScience Brazil could boost its revenue for the year ending July 31 to between £8.5m and £9m.
However, a statement issued today (Monday, July 17) said: “The contract discussions continue to progress positively but are expected to take some time to conclude.”
But revenues for 2018 are already expected to be around £13m, based on the new purchasing plan agreed with Bayer and the group’s growth expectations in other markets such as the United States and West Africa, Plant Impact said.
The statement went on: “The group’s cash balance at July 31is expected to be around £3.2m. The company’s commercial business plan for next year anticipates good cash flow generation before investments in research and development.”
Meanwhile, the board is considering an equity fund-raise of a minimum of £2m for which it has received an indicative commitment for the full amount from an existing institutional investor at a price of 31 pence per share.
