REG - Eden Research plc - Half Yearly Report
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250917:nRSQ6029Za&default-theme=true
RNS Number : 6029Z Eden Research plc 17 September 2025
The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.
17 September 2025
Eden Research plc
("Eden" or "the Company")
Half Yearly Report
Eden Research plc (AIM: EDEN), a leader in sustainable biopesticide and
biocontrol technology, announces its interim results for the six months ended
30 June 2025.
Financial highlights
· Revenue for the period of £1.2m (H1 2024: £1.9m)
· Product sales of £1.1m (H1 2024: £1.7m)
· Operating loss for the period of £1.7m (H1 2024: £1.3m)
· Cash and cash equivalents of £1.8m (H1 2024: £4.9m). Current
cash position is £1.9m.
· The cash reduction reflects both the sales weighting and the fact
that several payments from major customers fell into H2. The Company does not
currently expect to need to raise additional funds for its existing working
capital requirements for the foreseeable future.
· To align with the reporting practices in agriculture and to
modify seasonality as well as avoiding logistic and commercial difficulties of
production and sales during the December period, the Company will seek to move
its accounting reference date to 31 March. The impact on reporting calendar
and further detail on the rationale is set out in the Chief Executive
Officer's Statement below.
· The Board anticipates that with the extended reporting period, a
proportion of December revenues will now be recognised in the historically
quiet Q1 2026, and that the Company will therefore meet its 2025 expectations
over the 15-month period. This is also based on the previously indicated
assumptions of receiving a timely emergency use authorisation for Ecovelex in
Italy again this year and commensurate sales, as well as a typical level of
post-season sales of Mevalone and Cedroz.
Operational and corporate highlights
· Approval of flagship fungicide product, Mevalone®, for the
control of powdery mildew on grapes in California.
· Appointment of Andermatt Kenya as the Company's exclusive
distribution partner for Mevalone in Kenya.
· Agreement with Veto-pharma, a French pharmaceutical laboratory,
to supply thymol for bee health applications in the United States.
· Award of a Knowledge Transfer Partnership grant by Innovate UK
and formation of a strategic partnership with Royal Holloway to expand the
development of Eden's flagship seed treatment product to include new cereal
and vegetable seeds, leveraging non-dilutive funding and world-class seeds
expertise.
Lykele van der Broek, Chairman of Eden Research, commented:
"Whilst the 2025 first half results reflect the seasonality of our industry
more markedly than in 2024, given the unusually warm spring and summer, the
Company has continued to make good progress on several fronts and,
importantly, expects 2025 to be a good year, overall. With the adjustment of
the year end date providing the capacity to move some December revenue into
Q1, we now expect to achieve our full-year revenue guidance of £5m albeit
over the 15-month period. This is on the basis of a timely emergency use
authorisation for Ecovelex in Italy and commensurate sales, as well as a
typical level of post-season sales of Mevalone and Cedroz.
The label extension of Mevalone in California, granted at the beginning of the
year, will help expand the market opportunity in the US while we continue to
await the removal of certain restrictions in the US that will ultimately
expand the market meaningfully.
The appointment of Andermatt as the Company's exclusive distribution partner
for Mevalone in Kenya should result in material product sales revenue being
generated in short order, with approval already in place and the first orders
being processed and delivered before year-end, subject to import clearance.
In the background, the development team has made significant advances with the
Company's new fungicide product, which is used to tackle late blight in
potatoes and other high value fruit and vegetables. The potential for this
product is vast, driven by the removal of certain key conventional chemistries
from the market that have been the primary solutions for farmers for many
years.
In addition, a second insecticidal product is being tested, which has shown
promising results against lepidoptera (moths), another interesting and
potentially lucrative market opportunity.
Meanwhile, the commercial team continues to negotiate with several interested
parties over the Company's first insecticide, with a conclusion expected in
the coming months.
In summary, there's a lot happening at Eden and, as such, I remain very
confident in the future success of Eden and would like to thank our
shareholders for their continued support and belief in us."
For further information, contact:
Eden Research plc www.edenresearch.com (http://www.edenresearch.com/)
Sean Smith 01285 359 555
Alex Abrey
Cavendish Capital Markets Limited (Nominated advisor and joint broker)
Giles Balleny / George Lawson (corporate finance) 020 7397 1961
Harriet Ward (corporate broking)
Michael Johnson (sales)
Oberon Capital (Joint Broker) 020 3179 5300
Nick Lovering
Mike Seabrook
Adam Pollock
Hawthorn Advisors (Financial PR)
Victoria Ainsworth eden@hawthornadvisors.com (mailto:eden@hawthornadvisors.com)
Chief Executive Officer's Statement
To date, 2025 has broken a number of records for being one of the hottest
years in documented history. Not only have temperatures across Europe been
well above seasonal norms, but we have also endured longer and more frequent
heatwaves. Precipitation across southern Europe (today Eden's largest market)
has also been far lower than normal. Together, this has put an incredible
amount of strain on the farming industry in our key markets that depend on
predictable weather patterns and consistent rainfall. For the crop protection
industry, long, dry summers reduce the prevalence of certain crop diseases on
farms and impact demand for insecticides. Although this doesn't necessarily
negatively impact all biocontrol products, it has had some impact on H1 sales
of our main product, Mevalone, which is primarily used to tackle outbreaks of
Botrytis cinerea, which is not as prevalent in hot, dry conditions.
Generally, Eden's revenues are split one-third in the first half of the
calendar year and two-thirds in the second half. Notably, 2024 was an unusual
year with the first half making up around 44% of the full year's revenue.
Consequently, 2025 has presented the opposite dynamic with around 24% of
forecast full year revenue falling in the first six months of the year.
We continue to expect 2025 to be a year of good growth in many areas of the
business, such as in Spain where label extensions are driving growth even with
challenging growing conditions. In addition, behind the scenes, we are very
excited with the progress the team at Eden has made in the development of its
new products, such as the first and second-generation insecticides and our
second-generation fungicide, for which interest from third parties is already
abundant.
Financial performance
Revenue for the period decreased by 37% to £1.2m from £1.9m in H1 2024, of
which product sales made up £1.1m (H1 2024: £1.7m).
The operating loss for the period was £1.7m, an increase of 23% on H1 2024
when it was £1.3m. This was a reflection of the reduced sales versus H1 2024,
as well as an increase in staff costs as the Company increased its headcount
slightly in line with our business plan.
At 30 June 2025, cash and cash equivalents stood at £1.8m, down from £4.9m
at 30 June 2024. The cash reduction reflects both the sales weighting and the
fact that a number of payments from major customers fell into H2. The
current cash position is £1.9m.
In the six months to 30 June 2025, Eden has invested £0.7m (H1 2024: £1.1m)
in intangible assets, including development and regulatory costs.
Regulatory costs are expected to be lower on a pro-rata basis in the 15 Months
to 31 March 2026, compared to FY2024, due to a reduction in costs associated
with the renewal of Eden's three active ingredients in the EU, as well as
those related to the full registration of Ecovelex.
However, Eden has continued to invest meaningfully in the development of its
product portfolio, both through advancing regulatory submissions (new
formulations and label extensions of existing products) and through laboratory
and field work to assist in the commercialisation of those products.
The revenue guidance of £5.0m is underpinned by an expectation of sales of
Ecovelex being made under an emergency use approval in Italy, as was the case
in 2023 and 2024, as well as a typical level of post-season sales of Mevalone
and Cedroz.
Overheads in the 15 Months to 31 March 2026 are expected to remain broadly
unchanged when compared on a pro-rata basis to FY2024 with investments in
regulatory and product development expected to decrease slightly. In
particular, the high level of investment made in FY2024 for the renewal of
Eden's three active ingredients in the EU is not expected to be at the same
level in the 15 Months to 31 March 2026 on a pro-rata basis, though further
studies could still be requested by the authorities as a part of the renewal
process, as is often the case with any regulatory approval process. The
potential for regulators to require additional studies through any product or
active substance review process can be difficult to anticipate, and so the
Company is managing the regulatory process with its typical high level of
diligence and vigour.
The Company does not currently expect to need to raise additional funds for
its existing working capital requirements for the foreseeable future, though
additional funding may be pursued to support the acceleration of
commercialisation activities, should the opportunity arise.
Operational review
New approval in California represents new sales growth opportunities
In the US, we saw Mevalone obtain state regulatory approval in California for
its use to control powdery mildew on grapes. We had been anticipating this
approval since Mevalone had first been authorised for its use against Botrytis
cinerea, and we're pleased that this was eventually granted.
California is an important territory for Eden as it is not only one of the
largest agricultural markets for high-value horticultural crops, but is also
home to the US's largest, by far, and most prestigious wine-growing
territories. Although at a relatively early stage, we are working intensively
with our distribution partner to maximise the potential available to us with a
view to reaching peak sales sooner rather than later.
There are a few remaining use restrictions that have been applied to Mevalone
regarding personal protective equipment and the number of acres that can be
treated in a day. These restrictions on Mevalone and other similar
biopesticides were introduced between the time of our dossier submission and
the ultimate grant of our approval. While these restrictions do not apply to
Mevalone in all other states or countries, it is not uncommon for a regulator
to act in such a way in the interests of farmer safety. Our regulatory team is
working very closely with the Californian authorities to provide them with the
required information to enable them to disapply these restrictions. We are
confident that these restrictions will be removed, as they currently represent
an inconvenience to grape growers and artificially restrict the appeal of the
product in use. The restriction removal will increase the marketability of the
product and expand its market share moving forward.
Enhancing our distribution network in frontier markets
Earlier in the year, we announced the appointment of Andermatt Kenya Limited
("Andermatt") as our exclusive distribution partner for Mevalone in Kenya.
This strategic appointment had been made to support our growth in a key
frontier market for the business. Beyond the emergence of Kenya as a rising
economy on the world stage, it already serves as a key exporter of produce,
including fruits, vegetables, and cut flowers. We already have regulatory
approval to control and treat Botrytis cinerea and powdery mildew on a variety
of crops, and we very much intend to continue broadening the label in a bid to
increase our addressable market. Thus far, Andermatt has proven an
enthusiastic and aggressive commercial partner, and we look forward to working
with them to achieve the potential for Mevalone in this important country.
Building partnerships to support development growth
As a business focussed on the ongoing commercialisation of our technology and
portfolio of biocontrol products, we are always assessing ways to fund these
programmes effectively and efficiently with the capital available to us. One
way we can do this is through government grant funding, as is exemplified in
the partnership that we formed with Royal Holloway, University of London
("Royal Holloway") in June 2025, under Innovate UK's Knowledge Transfer
Partnership ("KTP") programme. The KTP, which has been set up to accelerate
the development of Ecovelex to include new cereals and vegetable seeds, is
funded 67% by Innovate UK, with the remaining 33% by Eden, meaning that the
cost of this programme is a third of what it would be without grant support.
What's more, Eden stands to benefit from the specialist academic expertise and
facilities access that Royal Holloway provides, as well as a KTP associate,
whose role is subsidised by Innovate UK. The early stages of the project are
currently underway.
Building on this recent success, the management team is actively assessing
other similar opportunities to efficiently fund the development of new and
existing projects.
Diversifying our revenue streams
First and foremost, we are focused on biocontrol for sustainable agriculture,
and the heart of the business remains focussed upon this mission. However,
where it makes sense for the business, we can also apply our innovative
technology, intellectual property and expertise to other sectors and
industries. For example, in April 2025, we announced that we had entered a
supply agreement with Véto-pharma, a French pharmaceutical laboratory
specialising in animal health, to supply thymol for use in bee care products.
As a naturally occurring bioactive molecule found in the essential oils of
several plants, including thyme, oregano and sage, it acts as a highly
effective compound to treat varroa mite in bees, a major problem plaguing
these critical pollinators. We will continue to look for these opportunities
to leverage our active ingredient registrations, where they make sense and
provide a strong return on our investment.
Progressing the commercialisation of our insecticide
Over the course of H1 2025, we have worked in depth with a number of parties
who have expressed interest in our insecticide to narrow our shortlist of
potential partners to advance the product's commercialisation. We are now in
advanced stages of these discussions with a small handful of parties. Given
the significant potential and addressable market of this product for Eden,
these conversations are being conducted with careful consideration to ensure
that we can secure favourable terms for the company and ultimately achieve the
best possible value for shareholders. We currently anticipate that these
commercial discussions will continue for the foreseeable future, as Eden aims
to secure commercial arrangements that maximise the overall size of the
opportunity whilst securing the margins we believe value the product itself on
a fair and reasonable basis, and final agreements will be announced as and
when they are reached in due course.
Product update
Mevalone(®)
Sales of Mevalone are expected to increase in 15 months to 31 March 2026 with
good growth seen in Spain and Greece, as well as first sales in Germany. We
are also pleased to report that meaningful sales in Kenya are anticipated
before FY2026 (March), subject to final administrative procedures related to
import permits and product registration assignments.
As previously communicated, in the next year or so, Eden expects one of
Mevalone's primary competitive products, Syngenta's "Switch", to be withdrawn
from the market in the EU. The removal of this market-leading fungicide
creates a real opportunity for significant growth in Eden's market share and
overall product positioning and reflects the general trend of the ongoing
replacement of conventional chemical pesticides with more sustainable
alternatives, such as Eden's products.
Cedroz™
Cedroz has been increasingly adopted as a nematicide by growers as the number
of viable alternative products is rapidly diminishing due to regulatory
action.
As with Mevalone, one of the leading competitor products to Cedroz has
recently been withdrawn from the market in the EU, providing an opportunity to
take additional market share in the coming years.
We expect that sales of Cedroz will continue the trend of strong sales growth
for the foreseeable future as we gain market share and expand the addressable
market through label extensions and the refinement of the commercial strategy
for various key countries.
Ecovelex™
Ecovelex, a bird repellent seed treatment for maize, received a temporary
approval in Italy in November 2024, and at the end of 2023.
While the Company currently does not have certainty as to whether another
temporary approval will be granted in Italy in 2025, Italian farmers have
widely supported Ecovelex as an alternative to conventional seed treatments
which are no longer allowed due to regulatory action.
It should also be noted that even if approval is granted, there may be
restrictions in terms of the hectarage allowed under the temporary approval
which may impact the requirement for further sales of Ecovelex to our
commercial partner, Corteva.
Full authorisation of Ecovelex is anticipated within the next year, but the
timing of this is difficult to predict, as is increasingly the case with crop
protection product authorisations in the EU.
Insecticide
The recent, well-documented bans on conventional insecticides have created a
strong demand for viable alternatives. Several potential commercial partners
for Eden's insecticide product have conducted between them over three hundred
field trials over the past three years, yielding robust results and generating
substantial interest in the product.
Eden is engaged in ongoing commercial discussions with these partners to
define the ideal distribution strategy and partners for the insecticide
product. The Company anticipates sharing updates on the progress of these
discussions in due course, but subject to commercial sensitivities.
Product development update
Fungicide 2
The development team has made significant advances with the Company's new
fungicide product which is used to tackle late blight in potatoes and other
high value fruit and vegetables. The potential for this product is vast,
driven by the removal of certain key conventional chemistries from the market
that have been the primary solutions for farmers for many years.
A number of third parties have shown interest in this product and are in the
process of undertaking their own laboratory and field trials.
Insecticide 2
In addition, a second insecticidal product is being tested, which has shown
promising results against lepidoptera (moths), another interesting and
potentially lucrative market opportunity.
Change of year-end
The Board has decided to extend the Company's Annual Reporting Date ("ARD")
from 31 December to 31 March going forward.
There are a number of reasons for this change, the key ones of which are:
1. Common practice in agriculture
· Many agricultural businesses, including those in crop protection,
opt for a year-end of 31 March which falls after their peak sales or activity.
· In agriculture, in the Northern Hemisphere, which is the vast
majority of Eden's business, crop protection sales occur in advance of the
growing season to distributors in calendar Q4 and Q1. Therefore, a cut between
these two quarters can lead to arbitrary and potentially over or understated
revenue numbers. The same applies to inventory, which is lowest in the
distribution chain during the growing season. Sales in calendar Q3 are usually
only to replenish stock that was unexpectedly exhausted.
2. Logistical and commercial considerations
· Close-down of manufacturing plants from around mid-December means
that late in the year production runs are often at risk of not happening as
scheduled.
· Shipping raw materials and/or finished goods in December is
difficult (and expensive) due to the lower availability of transportation
providers and logistics agencies around the Christmas holidays.
· Numerous commercial partners close over the Christmas period,
often beginning mid-month, which makes it difficult to conclude commercial
agreements due to staff members being out of the office.
· Performing a stocktake on the day of the year-end is often not
possible due to the closure of manufacturing facilities.
Going forward, interim and annual accounts will be prepared and published for
the six months ending 30 September and the twelve months ending 31 March,
respectively.
As a result of this change, the Company's future reporting calendar is
expected to be as follows:
· To bridge the extended period to the reporting of the period
ended 31 March 2026, the Board commits to including a trading update shortly
after the period end.
· Publication of audited accounts for the 15-month period ending 31
March 2026 by the end of August 2026.
· Publication of unaudited interim accounts for the six-month
period ending 30 September 2026 by the end of December 2026; and
· Publication of audited accounts for the 12-month period ending 31
March 2027 by the end of August 2027.
Outlook
The fundamentals of our business are as strong as they have ever been, driven
by the ever-growing industry transition from conventional chemistry to
natural, sustainable chemistry. The latest data indicates that the
biopesticide market is projected to reach $15.66bn by 2029 from $7.72bn in
2024, at a CAGR of 15.2% during the forecast period in terms of value.
Regulatory changes are also providing the driving force behind farmers'
adoption of sustainable pesticides on their farmland, optimally positioning
products like Eden's, which act as a like-for-like replacement for
conventional products and as critical partners in integrated pest management
('IPM') programmes. There are a number of incumbent conventional products
across the EU whose authorisations are due to expire in the next couple of
years and will not be renewed based on safety and environmental grounds.
However, the immediate impact on demand is unpredictable, considering existing
inventory levels of these products and the permitted extended use for a period
of time before the regulatory restrictions are enforced. Our regulatory and
commercial teams are keeping a close watch on these developments to ensure
that our products are well-marketed and primed to quickly replace certain
conventional pesticides when they come off the market.
Narrowing in on the nearer term, we are focused on at least meeting our £5m
revenue target although this is now likely to be over the 15-month period to
31 March 2026 following the change of year end. This is based on sales of
Ecovelex being made under an emergency use approval in Italy and being
commensurate with previous years, as well as a typical level of post-season
sales of Mevalone and Cedroz.
As guided in the last year-end report, there are also three circumstances
which could add upside to our revenue forecast for the year:
· Full EU authorisation for Ecovelex well in advance of the
year-end, expanding its use beyond Italy on a long-term basis;
· Approval of Mevalone for the treatment of downy mildew in France,
marketed locally as Esseva; and
· Signing of a commercial agreement for exclusive distribution rights
for Eden's insecticide
While each of these opportunities remain, the precise timing is extremely
difficult to anticipate, and as such, we cannot be certain whether their
contributions will be realised before 31 March 2026 (FY26) or the following
year. We will continue to update the market as these up-side opportunities
develop.
In our bid for topline growth, we are also conscious of our responsibility for
managing the company's operating expenditure and conserving cash. The
management team previously demonstrated its ability to postpone non-core costs
in times of unforeseen circumstances, and we continuously renew our efforts to
balance effective cash management with the pursuit of valuable opportunities.
I would like to take this opportunity to thank all our stakeholders for their
contributions and continued commitment to the Company.
Sean Smith
Chief Executive Officer
16 September 2025
Eden Research plc - Consolidated Statement of Comprehensive Income for the six
months ended 30 June 2025
Six Six Year ended 31 December 2024
months ended 30 June 2025 £ unaudited months ended 30 June 2024 £ unaudited £
audited
Revenue (note 18) 1,198,535 1,885,929 4,302,603
Cost of sales (603,753) (1,292,117) (2,430,433)
Gross profit 594,782 593,812 1,872,170
Administrative expenses (1,853,076) (1,701,968) (3,510,068)
Other operating income 8,673 4,199 20,866
Amortisation of intangible assets (286,927) (150,508) (364,319)
Share based payments (note 17) (118,021) (79,666) (204,928)
Operating loss (1,654,569) (1,334,131) (2,186,279)
17,649 43,884 110,483
Investment revenues (8,102) (6,068) (10,642)
Finance costs (1,402) (8,994) (95,988)
Foreign exchange gains/(losses)
Share of loss of equity accounted investee, net of tax (note 10) (19,543) (3,350) 2,279
Loss before taxation (1,665,967) (1,308,659) (2,180,147)
Income tax income 321,949 395,778 267,008
Loss for the financial period (1,344,018) (912,881) (1,913,139)
Attributable to: (1,359,768) (916,128) (1,906,591)
Equity holder of the company
Non-controlling interest 15,750 3,247 (6,548)
Total Comprehensive Income (912,881) (1,913,139)
(1,344,018)
Earnings per share (note 7)
Basic (pence per share) (0.25) (0.17) (0.36)
Eden Research plc - Consolidated Statement of Financial Position as at 30 June
2025
30 June 2025 30 June 2024 31 Dec 2024
£ £ £
unaudited unaudited audited
NON-CURRENT ASSETS
Intangible assets (note 9) 7,333,947 5,620,863 6,886,546
Property, plant & equipment (note 12) 135,193 231,997 183,595
Right of Use assets (note 13) 490,871 144,769 138,706
Investments in associate (note 10) 279,933 293,847 299,476
8,239,944 6,291,476 7,508,323
CURRENT ASSETS
Inventories (note 14) 652,686 618,190 532,650
Trade and other receivables (note 15) 2,095,225 2,463,758 3,105,842
Taxation 630,936 712,978 584,209
Cash and cash equivalents 1,845,853 4,947,303 3,674,796
5,224,700 8,742,229 7,897,497
CURRENT LIABILITIES
Trade and other payables (note 16) 2,281,193 2,161,728 3,399,502
Lease liabilities 126,741 139,773 109,039
2,407,934 2,301,501 3,508,541
NET CURRENT ASSETS 2,816,766 6,440,728 4,388,956
NON-CURRENT LIABILITIES
Lease liabilities 445,121 19,622 59,693
445,121 19,622 59,693
NET ASSETS 10,611,589 12,712,582 11,837,586
EQUITY
Called up share capital 5,333,529 5,333,529 5,333,529
Share premium account 6,413,652 6,413,652 6,413,652
Warrant reserve 887,524 664,892 790,154
Retained earnings (2,059,133) 270,447 (720,016)
Non-controlling interest 36,017 30,062 20,267
TOTAL EQUITY 10,611,589 12,712,582 11,837,586
Eden Research plc - Consolidated Statement of Changes in Equity as at 30 June
2025
Non-control-ling interest
Share capital Share premium Merger reserve Warrant reserve Retained earnings
Total
£ £ £ £ £ £ £
Six months ended 30 June 2025
Balance at 1 January 2025 (audited) 5,333,529 6,413,652 - 790,154 (720,016) 20,267 11,837,586
(Loss) - - - - (1,359,768) 15,750 (1,344,018)
/profit and total comprehensive income
Transactions with owners
- Share option charge - - - 118,021 - - 118,021
- Options exercised/ lapsed - - - (20,651) 20,651 - -
Transactions with owners - - - 97,370 20,651 - 118,021
Balance at 30 June 2025 (unaudited) 5,333,529 6,413,652 - 887,524 (2,059,133) 36,017 10,611,589
Six months ended 30 June 2024
Balance at 1 January 2024 5,333,529 6,413,652 - 758,234 1,013,567 26,815 13,545,797
(audited)
(Loss)/profit and total comprehensive income - - - - (916,128) 3,247 (912,881)
Transactions with owners
- Options granted - - - 79,666 - - 79,666
- Options exercised/lapsed - - - (173,008) 173,008 - -
Transactions with owners - - - (93,342) 173,008 - -
Balance at 30 June 2024 (unaudited) 5,333,529 6,413,652 - 664,892 270,447 30,062 12,712,582
Eden Research plc - Consolidated Statement of cash flows for the six months
ended 30 June 2025
Six months Six months
ended ended Year ended 31
30 June 2025 30 June 2024 December 2024
£ £ £
unaudited unaudited audited
Cash flows from operating activities
Cash outflow from operations (note 8) (800,902) (1,306,694) (1,008,569)
R&D tax credit received 275,230 1 -
Net cash used in operating activities (525,672) (1,306,693) (1,008,569)
Cash flows from investing activities
Development of intangible assets (734,328) (2,540,060)
(1,060,860)
Purchase of property, plant and equipment - (48,649) (48,649)
Purchase of right of use assets (500,092)
Interest paid and foreign exchange (5,263)
Interest received 17,649 43,884 110,483
Net cash used in investing activities (1,222,034) (1,065,625) (2,478,226)
Cash flows from financing activities
Payment of lease liabilities (71,741) (79,108) (145,796)
Interest on lease liabilities (8,094) (5,383) (9,732)
Net cash used in financing activities (79,835) (84,491) (155,528)
Decrease in cash and cash equivalents (1,827,541) (2,456,810) (3,642,323)
Cash and cash equivalents at
beginning of period 3,674,796 7,413,107 7,413,107
Effect of exchange rate fluctuations on cash held
(1,402) (8,994) (95,988)
Cash and cash equivalents at
end of period 1,845,853 4,947,303 3,674,796
Cash and cash equivalents comprise bank account balances.
Notes to the Interim Results
1. Reporting Entity
Eden Research plc is a public limited company incorporated in the United
Kingdom under the Companies Act 2006. The Company is domiciled in the United
Kingdom and is quoted on the Alternative Investment Market (AIM).
These condensed consolidated interim financial statements ('Interims') as at
and for the six months ended 30 June 2025 comprise the Company and its
Subsidiaries (together referred to as 'the Group'). The principal activities
of the Group are the development and commercialisation of encapsulation,
terpenes and environmentally friendly technologies to provide naturally
occurring solutions for the global agrochemicals, animal health, and consumer
product industries.
2. Basis of Preparation
These Interims have been prepared in accordance with IAS 34 'Interim Financial
Reporting' and should be read in conjunction with the Group's last annual
consolidated financial statements as at and for the year ended 31 December
2024 which were approved by the Board of Directors on 2 May 2025 and have been
delivered to the Registrar of Companies. The report of the auditors on those
financial statements was unqualified, did not contain an emphasis of matter
paragraph and did not contain any statement under section 498 of the Companies
Act 2006.
The Interims do not include all of the information required for a complete set
of financial statements prepared under UK-adopted International Accounting
Standards and do not constitute statutory accounts within the meaning of
section 434 of the Companies Act 2006. However, selected explanatory notes are
included to explain events and transactions that are significant to an
understanding of the changes in the Group's financial position and performance
since the last annual financial statements.
Comparative information in the Interims as at and for the year ended 31
December 2024 has been taken from the published audited financial statements
as at and for the year ended 31 December 2024. All other periods presented are
unaudited.
The Board of Directors and the Audit Committee approved the interims on 16
September 2025.
3. Going Concern
The Directors have, at the time of approving the Interims, a reasonable
expectation that the Group has adequate resources to continue in operational
existence for at least 12 months from the approval of the financial
statements. Thus, the Interim financial statements have been prepared on a
going concern basis which contemplates the realisation of assets and the
settlement of liabilities in the ordinary course of business.
The Group has reported a loss for the first half of the year after taxation of
£1,344,018 (H1 2024: £912,881). Net current assets at that date amounted to
£2,816,766 (H1 2024: £6,440,728). Cash at that date amounted to £1,845,853
(H1 2024: 4,947,303). The Group is reliant on its current cash balance to fund
its working capital.
The Directors have prepared budgets and projected cash flow forecasts, based
on forecast sales provided by Eden's distributors where available, for a
period of at least 12 months from the date of approval of the Interims and
they consider that the Company and Group will be able to operate with the cash
resources that are available to it for this period.
The forecasts adopted include only revenue derived from existing contracts.
They do not include potential upside from on-going discussions and
negotiations with other parties not yet contracted, as well as other 'blue
sky' opportunities.
In addition, the Group has relatively low fixed running costs and, while
mitigating actions are not forecast to be required to support the going
concern basis, the Directors have previously demonstrated their ability to
postpone certain other costs, such as Research and Development expenditure, in
the event of unforeseen cash constraints and are willing and able to delay
costs in the forecast period should the need arise.
Consequently, the Directors are confident that the Company will have
sufficient funds to continue to meet its liabilities as they fall due for at
least 12 months from the date of approval of the half year report and
therefore have prepared the half year report on a going concern basis.
4. Adoption of new and revised standards and changes in
accounting policies
These condensed consolidated Interims have been prepared in accordance with
the accounting policies adopted in the last annual financial statements for
the year to 31 December 2024.
The accounting policies have been applied consistently for the purposes of
preparation of these condensed Interims.
5. Principal risks and uncertainties
The Company's prime risk is the on-going commercialisation of its intellectual
property, which involves testing of the Company's products, obtaining
regulatory approvals and reaching a commercially beneficial arrangement for
each product to be taken to market. This is measured by comparing actual
results with forecasts that have been agreed by the Company's Board of
Directors.
The Company's credit risk is primarily attributable to its trade receivables.
Credit risk is managed by running credit checks on customers and by monitoring
payments against contractual agreements.
The Company monitors cash flow as part of its day-to-day control procedures.
The Board considers cash flow projections at its meetings and ensures that the
Company has sufficient cash resources to meet its on-going cash flow
requirements.
Due to the nature of the business, there is inherent risk of infringement of
Eden's intellectual property rights by third parties. The risk of infringement
is managed by taking (and acting on) the relevant legal advice as and when
required.
There is also inherent uncertainty surrounding the regulatory approval of
products in terms of both timing and outcome. This risk is managed by
retaining appropriately experienced staff and contracting with expert
consultants as needed.
Full details of the principal risks and uncertainties can be found in the
Strategic Report in the Company's 2024 Annual Report.
6. Ukraine
Eden does not currently have any business activities in Russia or Ukraine and,
as such, has not experienced, nor does it expect, any direct impact on its
business.
The knock-on effect of the conflict on other countries is still being
understood, though we do not envisage significant disruption to the current
business in the short term.
7. Earnings per share
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
Pence unaudited Pence unaudited Pence
audited
(Loss)/profit per ordinary share (pence) - basic (0.25) (0.17) (0.36)
Loss per share - basic has been calculated on the net basis on the loss after
tax of £1,344,018 (30 June 2024: £912,881, 31 December 2024: £1,906,591)
using the weighted average number of ordinary shares in issue of 533,352,523
(30 June 2024: 533,352,523, 31 December 2024: 533,352,523).
Diluted earnings per share has not been presented as the Group is currently
loss making and as a result, any additional equity instruments have the effect
of being anti-dilutive.
8. Reconciliation of loss before income tax to cash used by
operations
Six months ended Six months ended
30 June 2025 30 June 2024 Year ended
£ £ 31 December 2024
unaudited§ unaudited £
audited
(Loss)/profit after tax (1,344,018) (912,881) (1,913,139)
Adjustments for:
Share of associate's losses 19,543 3,350 (2,279)
Amortisation charges 286,927 150,508 364,319
Share based payment charge 118,021 79,666 204,928
Depreciation of property, plant and equipment and right of use assets
194,726 114,411 232,481
Finance costs 8,102 5,383 9,732
Foreign exchange currency losses/(gains) 1,402 8,994 95,988
Finance income (17,649) (43,884) (110,483)
Tax credit (321,949) (395,778) (267,008)
Doubtful debt provision - - 34,057
Movements in working capital:
(Increase)/decrease in trade and other receivables 1,169,110 (14,135) (656,219)
(Decrease)/ Increase in trade and other payables (795,081) (648,690) 567,152
Decrease/(increase) in inventory (120,036) 346,362 431,902
Cash used by operations (800,902) (1,306,694) (1,008,569)
9. Intangible assets
Intellectual property Licences and trademarks Development Costs Total
£ £ £ £
COST
At 1 January 2024 9,552,223 456,684 10,679,330 20,688,237
Additions - - 1,060,860 1,060,860
At 30 June 2024 9,552,223 456,684 11,740,190 21,749,097
Additions 147,775 - 1,331,425 1,479,200
At 31 December 2024 9,699,998 456,684 13,071,615 23,228,297
Additions - - 734,328 734,328
At 30 June 2025 9,699,998 456,684 13,805,943 23,962,625
AMORTISATION
At 1 January 2024 9,015,549 454,125 6,508,052 15,977,726
Charge for the period 33,372 522 116,614 150,508
At 30 June 2024 9,048,921 454,647 6,624,666 16,128,234
Charge for the period 33,372 522 179,623 213,517
At 31 December 2024 9,082,293 455,169 6,804,289 16,341,751
Charge for the period 41,580 482 244,865 286,927
At 30 June 2025 9,123,873 455,651 7,049,154 16,628,678
CARRYING AMOUNT
At 30 June 2025 576,125 1,033 6,756,789 7,333,947
At 31 December 2024 617,705 1,515 6,267,326 6,886,546
At 30 June 2024 503,302 2,037 5,115,524 5,620,863
Impairment review
Full details of the impairment review in 2024 can be found in the Company's
2024 Annual Report and Accounts.
Given that the Company has recently completed an impairment review as part of
its 2024 audit and since there have been no indicators of impairment
subsequent to that, as well as positive events, such as the expansion of
authorisation of Mevalone in California, the Board is satisfied that an
impairment review is not required at this point.
The Board will continue to assess the carrying value of its intangible assets
on a regular basis to check for any indications of impairment.
10. Investment in associate
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
unaudited unaudited audited
Percentage ownership interest
and proportion of voting rights 29.90% 29.90% 29.90%
£ £ £
Non-current assets 226,663 284,742 253,566
Current assets 480,565 360,750 406,880
Non-current liabilities - (468) -
Current liabilities (388,539) (328,661) (300,756)
Net assets (100%) 318,689 316,363 359,690
Company's share of net assets 95,288 94,593 107,547
Separable intangible assets 74,207 86,126 81,491
Goodwill 412,649 412,649 412,649
Impairment of investment in associate (302,211) (299,521) (302,211)
Carrying amount of interest in associate 279,933 293,847 299,476
Revenue 369,247 434,230 763,271
Profit/(loss) from continuing operations (41,001) 13,158 56,344
Post tax profit from discontinued operations - - -
100% of total post-tax profits (41,001) 13,158 56,344
29.9% of total post-tax profits (12,259) (3,934) 16,847
Amortisation of separable intangible (7,284) (7,284) (14,568)
assets
Company's share of loss including amortisation of separable intangible asset (19,543) (11,218) 2,279
11. Subsidiaries
Details of the company's subsidiaries at 30 June 2025 are as follows:
Name of undertaking Country of incorporation Ownership interest (%) Voting power held (%) Nature of business
TerpeneTech Limited Republic of Ireland 50.00 50.00 Sale of biocide products
Eden Research Europe Limited Republic of Ireland Dormant
100.00 100.00
TerpeneTech Limited ("TerpeneTech (Ireland))", whose registered office is 108
Q House, Furze Road, Sandyford, Dublin, Ireland, was incorporated on 15
January 2019 and is jointly owned by both Eden Research Plc and TerpeneTech
(UK), the company's associate.
Eden has the right to appoint a director as chairperson who will have a
casting vote, enabling the Group to exercise control over the Board of
Directors in the absence of an equivalent right for TerpeneTech (UK). Eden
owns 500 ordinary shares in TerpeneTech (Ireland).
Eden Research Europe Limited, whose registered office is 108 Q House, Furze
Road, Sandyford, Dublin, Ireland, was incorporated on 18 November 2020 and is
wholly owned by both Eden Research plc.
Non-controlling interests
The following table summarises the information relating to the Group's
subsidiary with material non-controlling interest, before intra-group
eliminations:
30 June 30 June 2024 31 Dec 2024
2025
£ £ £
unaudited unaudited audited
NCI percentage 50% 50% 50%
Non-current assets 59,747 73,019 66,383
Current assets 158,493 100,310 120,358
Non-current liabilities - - -
Current liabilities (230,208) (197,208) (230,208)
Net assets/(liabilities) (11,968) (23,879) (43,467)
Carrying amount of NCI -
Revenue 38,135 43,423 73,627
Profit/(loss) 31,499 6,493 (13,095)
OCI - - -
Total comprehensive income 31,499 6,493 (13,095)
Share of NCI (50% of net Total comprehensive income) 15,750 3,247 (6,548)
12. Property, plant and equipment
Land and buildings
Total
£ £
COST
At 1 January 2024 435,347 435,347
Additions 48,649 48,649
At 30 June 2024 483,996 483,996
Additions - owned - -
At 31 December 2024 483,996 483,996
Additions - -
At 30 June 2025 483,996 483,996
AMORTISATION
At 1 January 2024 205,256 205,256
Charge for the period 46,743 46,743
At 30 June 2024 251,999 251,999
Charge for the period 48,402 48,402
At 31 December 2024 300,401 300,401
Charge for the period 48,402 48,402
At 30 June 2025 348,803 348,803
CARRYING AMOUNT
At 30 June 2025 135,193 135,193
At 31 December 2024 183,595 183,595
At 30 June 2024 231,997 231,997
13. Right of use assets
Land and buildings
Vehicles Total
£ £ £
COST
At 1 January 2024 443,777 130,117 573,894
Additions - - -
At 30 June 2024 443,777 130,117 573,894
Additions - 63,605 63,605
Disposals - (50,208) (50,208)
At 31 December 2024 443,777 143,514 587,291
Additions 487,154 12,938 500,092
Disposals (326,819) (23,194) (350,013)
At 30 June 2025 604,112 133,258 737,370
AMORTISATION
At 1 January 2024 301,617 59,840 361,457
Charge for the period 45,438 22,230 67,668
At 30 June 2024 347,055 82,070 429,125
Charge for the period 45,438 24,230 69,668
Eliminated on disposal - (50,208) (50,208)
At 31 December 2024 392,493 56,092 448,585
Charge for the period 90,876 57,051 147,927
Eliminated on disposal (326,819) (23,194) (350,013)
At 30 June 2025 156,550 89,949 246,499
CARRYING AMOUNT
At 30 June 2025 447,562 43,309 490,871
At 31 December 2024 51,284 87,422 138,706
At 30 June 2024 96,722 48,047 144,769
14. Inventories
30 June 31 December
30 June 2025 2024 2024
£ £ £
Raw materials 165,712 355,348 409,367
Goods in transit 330,747 - -
Finished goods 156,227 262,842 123,283
652,686 618,190 532,650
Inventory above is shown net of a provision of:
Provision for obsolete inventory - - -
- - -
15. Trade and other receivables
30 June 31 December
30 June 2025 2024 2024
£ £ £
Trade receivables 1,348,747 1,609,698 2,138,725
VAT recoverable 304,846 361,566 244,974
Other receivables 215,196 160,328 177,061
Prepayments and accrued income 226,436 332,166 545,082
2,095,225 2,463,758 3,105,842
Trade receivables are shown net of a provision for doubtful debt of:
Provision for doubtful debt - - -
- - -
Trade receivables disclosed above are measured at amortised cost. The
Directors consider that the carrying amount of trade and other receivables
approximates their fair value.
16. Trade and other payables
30 June 31 December
30 June 2025 2024 2024
£ £ £
Current
Trade payables 1714,752 1,720,027 2,559,056
Accruals and deferred income 405,530 184,157 634,614
Social security and other taxation 63,569 62,911 108,490
Other payables 97,342 194,633 97,342
2,281,193 2,161,728 3,399,502
17. Share based payments
Long-Term Incentive Plan ("LTIP")
Since September 2017 Eden has operated an option scheme for Executive
Directors, senior management and certain employees under an LTIP which allows
for certain qualifying grants to be HMRC approved. Details on options issued
in prior periods can be found in the annual report for the year ended 31
December 2024.
Options
Number of share options Weighted average exercise price (pence)
30 Jun 2025 30 Jun 2024 30 Jun 2025 30 Jun 2024
Outstanding at 1 January 34,198,355 23,486,534 7 8
Granted during the period - - - -
Exercised during the period - - - -
Lapsed during the period (1,566,463) (3,596,432) 6 6
Exercisable at 30 June 32,631,892 19,890,102 7 6
The exercise price of options outstanding at the end of the period ranged
between 5.1p and 10.4p (H1 2024: 6p and 10.4p) and their weighted average
contractual life was 2.0 years (H1 2024: 2.0 years).
The share-based payment charge for the period, in respect of options, was
£118,021 (H1 2024: £79,666). The charge in H1, 2025 is in respect of the
options granted in 2024 under a LTIP Award.
During the period, 1,566,463 of options lapsed and £20,651 (H1 2024:
£173,008) was transferred from the warrant reserve to retained earnings.
There were no warrants outstanding at 30 June 2025.
18. Segmental Reporting
IFRS 8 requires operating segments to be reported in a manner consistent with
the internal reporting provided to the chief operating decision-maker. The
chief operating decision-makers, who are responsible for the resource
allocation and assessing performance of the operating segments have been
identified as the Executive Directors as they are primarily responsible for
the allocation of the resources to segments and the assessment of performance
of the segments.
The Executive Directors monitor and then assess the performance of segments
based on product type and geographical area using a measure of adjusted
EBITDA. This is the result of the segment after excluding the share-based
payment charges, other operating income and the amortisation of intangibles.
These items, together with interest income and expense are not allocated to a
specific segment.
The segmental information for the six months ended 30 June 2025 is as follows:
Agrochemicals Consumer products Total
Revenue £ £ £
Milestone payments 106,250 - 106,250
Royalties - 38,135 38,135
Product sales 1,054,151 - 1,054,151
Total revenue 1,160,401 38,135 1,198,536
EBITDA (1,093,030) 38,135 (1,054,895)
Share Based Payments (118,021) - (118,021)
Adjusted EBITDA (1,211,051) 38,135 (1,172,916)
Amortisation (280,291) (6,636) (286,927)
Impairment - - -
Depreciation (194,726) - (194,726)
Finance costs, foreign exchange and investment revenues 8,145 - 8,145
Income Tax 321,949 - 321,949
Share of Associate's loss - (19,543) (19,543)
(Loss)/Profit for the Period (1,355,974) 11,956 (1,344,018)
Total Assets 13,087,911 218,240 13,306,151
Total assets includes:
Additions to Non-Current Assets 715,767 31,499 747,266
Total Liabilities 2,464,354 230,208 2,694,562
The segmental information for the six months ended 30 June 2024 is as follows:
Agrochemicals Consumer products Total
Revenue £ £ £
Milestone payments 165,245 - 165,245
R & D charges - 2,309 2,309
Royalties - 43,423 43,423
Product sales 1,674,952 - 1,674,952
Total revenue 1,840,197 45,732 1,885,929
EBITDA (991,394) 45,732 (945,662)
Share Based Payments (79,666) - (79,666)
Adjusted EBITDA (1,071,060) 45,732 (1,025,328)
Amortisation (143,872) (6,636) (150,508)
Impairment - - -
Depreciation (114,411) - (114,411)
Finance costs, foreign exchange and investment revenues (15,062) - (15,062)
Income Tax 395,778 - 395,778
Share of Associate's loss - (3,350) (3,350)
(Loss)/Profit for the Period (948,627) 35,746 (912,881)
Total Assets 14,860,376 173,329 15,033,705
Total assets includes:
Additions to Non-Current Assets 1,109,509 - 1,109,509
Total Liabilities 2,123,915 197,208 2,321,123
The segmental information for the year ended 31 December 2024 is as follows:
Agrochemicals Consumer products Total
Revenue £ £ £
Milestone payments - - -
R & D charges 444,480 198,576 643,056
Royalties 8,900 73,627 82,527
Product sales 3,577,020 - 3,577,020
Total revenue 4,030,400 272,203 4,302,603
Adjusted EBITDA (1656,754) 272,203 (1,384,551)
Share Based Payments (204,928) - (204,928)
EBITDA (1,861,682) 272,203 (1,589,479)
Amortisation (350,753) (13,566) (364,319)
Depreciation (232,481) - (232,481)
Finance costs, foreign exchange and investment revenues 3,853 - 3,853
Income Tax 267,008 - 267,008
Share of Associate's loss - 2,279 2,279
(Loss)/Profit for the Year (2,174,055) 260,916 (1,913,139)
Total Assets 15,219,079 186,741 15,405,820
Total assets includes:
Additions to Non-Current Assets 2,592,254 60,061 2,652,315
Total Liabilities 3,568,234 - 3,568,234
Geographical Reporting
Six months ended 30 June 2025 Six months ended 30 June 2024 Year ended 31 December 2024
£ £ £
UK 38,135 43,423 90,819
Europe 1,160,401 1,842,506 4,211,784
1,198,536 1,885,929 4,302,603
The above analysis represents sales to the Group's direct customers who
further distribute these products to their end markets.
All of the non-current assets are in the UK.
19. Subsequent Events
On 3(rd) September 2025, the Board approved the change of the Annual Reporting
Date to 31 March.
Notes to Editors:
Eden Research is the only UK-listed company focused on biopesticides for
sustainable agriculture. It develops and supplies innovative biopesticide
products and natural microencapsulation technologies to the global crop
protection, animal health and consumer products industries.
Eden's products are formulated with terpene active ingredients, based on
natural plant defence metabolites. To date, they have been primarily used on
high-value fruits and vegetables, improving crop yields and marketability,
with equal or better performance when compared with conventional pesticides.
Eden has three products currently on the market:
Based on plant-derived active ingredients, Mevalone(®) is a foliar
biofungicide which initially targets a key disease affecting grapes and other
high-value fruit and vegetable crops. It is a useful tool in crop defence
programmes and is aligned with the requirements of integrated pest management
programmes. It is approved for sale in a number of key countries whilst Eden
and its partners pursue regulatory clearance in new territories thereby
growing Eden's addressable market globally.
Novellus+ is an evolution of Mevalone, allowing improved rates in the field,
high levels of efficacy and a broader list of targets.
Cedroz™( )is a bionematicide that targets free living nematodes which are
parasitic worms that affect a wide range of high-value fruit and vegetable
crops globally. Cedroz is registered for sale on two continents and Eden's
commercial collaborator, Eastman Chemical, is pursuing registration and
commercialisation of this important new product in numerous countries
globally.
Eden's seed treatment product, Ecovelex™ was developed to safely tackle
crop destruction caused by birds - a major cause of losses in maize and other
crops. Ecovelex works by creating an unpleasant taste or odour that repels
birds, leaving the seeds safely intact and the birds unaffected and free to
find alternative food sources. The product is based on Eden's plant-derived
chemistry, registered in the EU, U.S. and elsewhere, and formulated using
Eden's Sustaine(®) microencapsulation system.
Eden's Sustaine(®)( )encapsulation technology is used to harness the
biocidal efficacy of naturally occurring chemicals produced by plants
(terpenes) and can also be used with both natural and synthetic compounds to
enhance their performance and ease-of-use. Sustaine microcapsules are
naturally-derived, plastic-free, biodegradable micro-spheres derived from
yeast. It is one of the only viable, proven and immediately registerable
solutions to the microplastics problem in formulations requiring
encapsulation.
Eden was admitted to trading on AIM on 11 May 2012 and trades under the
symbol EDEN. It was awarded the London Stock Exchange Green Economy
Mark in January 2021, which recognises London-listed companies that derive
over 50% of their total annual revenue from products and services that
contribute to the global green economy. Eden derives 100% of its total annual
revenues from sustainable products and services.
For more information about Eden, please visit: www.edenresearch.com
(http://www.edenresearch.com/) . You can also follow Eden's latest
developments via its social media channels: X (Twitter)
(https://twitter.com/edenresearch) and LinkedIn
(https://www.linkedin.com/company/eden-research-plc/) .
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR BQLLFEKLZBBFRecent news on Eden Research
See all newsREG - Eden Research plc - Director/PDMR Shareholdings
AnnouncementREG - Eden Research plc - Director/PDMR Shareholdings
AnnouncementREG - Eden Research plc - Half Yearly Report
AnnouncementREG - Eden Research plc - Notice of Results
AnnouncementREG - Eden Research plc - Result of AGM
Announcement