Eden Research PLC on a pest-free path to profitability

What it does

() has created biopesticides and fungicides based on natural chemistries that protect high-value crops, priced at a comparable level to synthetic alternatives.

It has two products on the market: Mevalone (a bio-fungicide) and Cedroz, which protects against soil-based pests called nematodes.

And it has partnerships with industry big hitters such as Eastman, Sipcam Oxon (which is also a major shareholder) and SumiAgro that have opened the doors to deals in Mexico, Portugal, Italy and the Benelux countries to name a few.

Sustaine encapsulation technology

Eden’s Sustaine encapsulation technology is free from plastics, is derived from a natural source, and is suitable for use with both sustainable biopesticides and conventional synthetic pesticides. 

Indeed, it is this technology that has enabled the commercialisation of Eden’s own biopesticides which are used to protect grapevines and various other crops.

How it is doing

The first half of 2020 saw revenue nudge up to £746,000 from £581,000 in the first half of 2019.

Loss before tax widened to £1.02mln from £645,000 the previous year, largely as a result of overheads increasing to £970,000 from £680,000.

At the end of June, cash and cash equivalents stood at £8.7mln, up from £1.4mln a year earlier.

In this half, the company has received authorisation for the sale of its Cedroz product in France, while Mevalone was also approved for use in the country in organic agriculture.

Eden has also partnered with family-run UK farming business M H Poskitt to develop and trial a new bio-fungicide product designed to protect and improve the quality of vegetables.

What the boss says: Sean Smith, chief executive

“Our partnership with innovative grower Poskitt is an excellent example of collaboration in UK agriculture,”

“Eden and Poskitt share the mutual goal of advancing sustainable alternatives for crop protection in the UK and further afield.

“When we first heard about Poskitt’s discovery and the initial R&D, we were keen to get involved due to our experience in developing plant-derived chemistry into effective products.”

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What the broker says

House broker Cenkos is predicting Eden will generate product sales of £3.6mln this year, rising to £6.6mln in 2021, at which point it will be profitable.

“We remain positive on Eden due to its appealing product sales profile, exposure to a high-growth market, supportive regulatory environment and path towards profitability,” said analyst Donnellan.

“Our forecasts represent a conservative approach based on visible opportunities with upside possible based upon regulatory approvals and milestones.”