Non-execs boost growth at Plant Impact
When non-executive directors David McNeilly and Ed Sharkey took up their new roles a year ago, they became a key part of the team which is driving growth at flourishing AIM-listed Plant Impact plc. They share their experience of an exciting and challenging 12 months with 'Talent Matters'.
Providing enough food for the global population is one of the biggest challenges facing the world today. Preston-based company Plant Impact plc is helping to tackle this problem, through developing and selling a range of technologies and products which reduce the stress caused to plants by temperature, drought, light, salinity and other factors.
Its innovative approach to crop nutrition and health gives growers significantly increased yields and more consistent quality, with reduced environmental impact. This in turn aids production of the ethically grown food demanded by consumers.
The company was founded in 2005 with venture capital backing, and listed on AIM the following year - its current market capitalisation is around £7.5 million. The Board had a clear and very focused strategy to develop the business, and 18 months ago began the search for two non-executive directors with both scientific and commercial skills honed on the international stage.
After a very detailed and thorough appointment process, David and Ed joined Plant Impact. It was a new venture for them both - David had not been a non-exec with a public company before while Ed was taking up his first non-exec role.
Both individuals had an outstanding track record in the global life sciences and agri-business sectors. David (65) spent 32 years with the DuPont Co, focusing on agribusiness marketing, licensing and especially biotechnology. Originally a botany graduate, he worked at the interface of technology and business development, helping to add and capture value and develop growth strategies. Since leaving DuPont in 2001, he has acted as a consultant to companies, venture capitalists and government, as a mentor to biotechnology entrepreneurs and has held several non-exec positions, including three with start-up businesses.
After gaining his PhD in chemistry at the University of Edinburgh, Ed (61) joined AH Marks, where he spent the majority of his career in the agro-chemical industry. He progressed to the main board, and was instrumental in building a performance chemicals business with a team of 12 scientists. He then founded and runs Ambechem Ltd, a management consultancy business operating in the agro-chemical sector. Ed also chairs a number of global task forces as well as advising several international businesses.
"The attraction of the role for me was twofold - the company's innovative approach to science and the opportunity to enter the public company arena," says David. "Plant Impact has developed a range of crop nutrients and natural pesticides that improve the health and productivity of crops, yet are also non-toxic and ecologically sound. Its approach to product development is different to that adopted by many agricultural chemical companies. Plant Impact first seeks to understand the nature of the problem, then analyses the plant's natural ability to cope with it, as opposed to creating numerous compounds and screening them to find a use for them.
"I quickly learned that the regulatory demands on a small cap company are just as onerous as those for much larger businesses. There is a significant amount of day to day compliance, as well as keeping shareholders and the City informed about the company's achievements and aspirations. Chief executive Peter Blezard is very adept at this role, ably assisted by non-executive chairman Martin Robinson, who has many years' experience in the public markets. This enables Ed and me to focus on adding value to the business in areas such as product development, supply chain management, sales and marketing."
Ed believes that the two non-execs are making a major contribution by ensuring that science and the market demand are closely integrated. "In a smaller biotechnology company, every penny spent on research needs to generate a return. There is little scope for blue sky research. In the past year, the company has established a Scientific Advisory Board, to help the executive team understand and support the investment required in science. This group ensures the business remains focused and prioritises its R&D activity, as well as spotting new products to add to the Plant Impact portfolio. We've also highlighted the importance of increasing the amount of detailed field trials data available to support the business development team.
"One of the benefits of working with a smaller company is the exciting pace of change. Without the luxury of a hundred years of history and assets, businesses like Plant Impact need to be flexible and nimble in exploiting new opportunities. There is plenty of drive and entrepreneurial spirit in many smaller companies, and non-execs can act as both a catalyst and a brake, if necessary, to keep the vision and strategy on track."
For David, the keys to success with any non-exec appointment are team chemistry and taking a long view. "The three man executive team at Plant Impact is exceptionally strong with complementary skills and personalities, plus clearly defined roles. The trust and confidence between them is obvious, and the non-exec chairman plays an important part in reinforcing this and developing a shared vision for the business.
"Any business needs to look at how a prospective non-exec will match both their current ambitions and future plans. You may not be able to utilise all their skills immediately, but can tap into them as the business grows and changes. In my own case, as Plant Impact expands I can bring to bear my logistics and supply chain planning expertise, while both Ed and I have international experience and contacts which should prove very valuable."
Ed has some words of encouragement for other novice non-execs. "My general impression from talking to friends and contacts was that a non-exec role would be more time consuming than I anticipated but also very enjoyable. And they were right!
"The appointment process also gave me confidence that I was doing the right thing. Sue Tyrer of Warren Partners was very well briefed at our first meeting, which was followed by discussions with other Board members and finally a working session with the executive directors. This enabled me to test my ideas, analysis of the issues and approach, and to evaluate how the people chemistry worked on both sides."
David also commended the role of non-exec chairman Martin Robinson in the process. "The company made a significant investment in getting the right people, and Martin played a very effective part behind the scenes ensuring the brief was clear and the meetings were productive. I had used executive search companies before with mixed results, but found Warren Partners ideally suited to this kind of specialised appointment. I'd not been head-hunted before but it was a very positive experience!"
Ed and David both emphasise the importance of getting the right fit when choosing non-execs, particularly for smaller companies. "Choosing the wrong people can be an expensive mistake, and one that takes some time to rectify. In our case, it has proved to be the right decision on both sides. Although we had never met, despite 40 years in the same industry, David and I also get on well which is an important dimension to consider if appointing more than one non-exec."
A year on, the two non-execs feel they have made a positive contribution to the business. And the future looks equally rosy. Plant Impact has exciting growth plans, with regulatory approval expected for its BugOil plant insecticide in 2010 and a worldwide commercial licensing agreement in place. It has also signed long term R&D agreements with agrochemical development specialists tecsolve and CEMAS. David and Ed are looking forward to continuing to nurture a small business that will potentially make a huge difference to the world.
Autumn 2009
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