Eden Research PLC (AIM:EDEN, OTCQB:EDNSF) said first-half trading had been in line with expectations with revenues up 33% at £1mln, leaving it on target to hit its 2022 guidance of £1.4mln.
The group, a specialist in sustainable biopesticides and plastic-free crop protection, said product sales were £1mln, up 54% from the year earlier. The underlying loss for the year is expected to narrow by £500,000 to £1.3mln.
It exited the six months to June 30, 2022, with £1.9mln in the bank, which had swelled to £2.7mln by August 15 following a tax rebate.
"The first half of the year has provided positive indications that we are on track to meaningful product sales growth and we move into the second half of the financial year with confidence and a well-managed cash position,” said chief executive Sean Smith.
In the update, the company said it expects US Environmental Protection Agency sign-off by the end of this year for the active ingredients in its green biopesticides as well as the nod for its two key products - Mevalone and Cedroz.
The US represents a significant potential market for Eden worth an estimated £424mln (€500mln), while it reckons peak sales from its tie-up with agri-giant Corteva will eventually hit £28mln (€33mln) a year.
Of the US opportunity, Eden said: “As the only AIM-quoted company focused on biopesticides, we believe that Eden offers a unique proposition for investors seeking to participate in the rapid growth and promising future of sustainable agriculture.
“The EPA approval of Eden's products, and subsequently, the company's insecticide offering in the future, will open significant revenue opportunities for Eden.”