Plant Impact sales grow 68%
ECOLOGICAL fertiliser group Plant Impact has reduced its losses and increased turnover as it starts to benefit from license agreements.
The Preston-based business increased in turnover by 68% to £1.4m for the year to the end of March 2010 (2009: £830,000) and reduced its loss before tax to £1.7m (2009: £2.5m).
During the year the group entered into its first license agreement for its BugOil product, and expanded territories and crops for its nutrient products.
It said turnover growth was down to license agreement milestone payments, direct sales to growers, particularly in the UK and Eastern Europe, and sales via the group’s distributor in the US.
Gross profit margins for the group’s nutrient products also improved from 47.6% to 63%, as a result of increased sales of its highest margin product InCa.
During the year, Plant Impact raised £3.59m (£3.32m net) in two placings, in July 2009 and March 2010.
The group said net proceeds are being invested in appointing new sales and marketing personnel to drive sales in the company’s current markets and accelerate the roll out of existing products into new markets.
Martin Robinson, chairman of Plant Impact, said: “Our work with growers in recent years has generated increased sales. We continue to work with government agencies and food producers around the world to seek the breakthroughs we need to take the business to another level.
“This is a long process, in an industry which is slow to change, but we remain confident that we have a range of products which can change the face of agriculture and make a significant contribution to food security and sustainability.”
