The information contained within this announcement is deemed
by the Company to constitute inside information for the purposes of
Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations
2019/310.
8
July 2024
Biome Technologies
plc
("Biome", the "Company" or
the "Group")
Trading
update
Biome Technologies plc, a leading
bioplastics and radio frequency technology business, today provides
a trading update.
Bioplastics division
In its previous trading update,
issued on 29 April 2024, the Company noted that production and
regulatory difficulties at two of the division's end customers had
subdued revenues in the first quarter and that, whilst these
matters were expected to correct in the following months, full
clarity of the normalisation of these offtakes was awaited at that
time. It has recently become clearer from information and orders
received that, whilst revenues of significance can be expected to
return, this is now likely to occur later in 2024 than previously
anticipated as various technical validations are finalised by these
customers.
Whilst demand from a number of the
division's customers remains robust, there are some signs that the
wider coffee packaging market in North America, to which Biome is
exposed, is not as buoyant as in previous periods.
Stanelco RF Technologies division
The RF division entered the year
having secured a major contract in 2023 for delivery in 2024 and
has since won three further large contract wins, which have been
announced, and are expected to result in significant revenue being
recognised in 2024.
These contracts support the
division's diversification into novel applications in a sub-sector
of the scientific glass industry and high-value medical markets.
The division is now busy with the design and build of these systems
with deliveries now scheduled for the second half of the
year.
Group outlook
As a consequence of the delays to
the Bioplastics division's revenues described above, the Board now
believes that Group revenues for the year ending 31 December 2024
will be materially below current market expectations. The Board
anticipates that the reduction in revenue will be partially offset
by higher margins and lower overheads and that the Group will now
make a small loss before interest, taxation, depreciation,
amortisation and share option charges ("Underlying LBITDA") for the
year ending 31 December 2024.
Working capital management will be a
significant focus for management in the second half of the year as
the RF division completes four large system builds and the
Bioplastics division stocks its raw material pipelines ahead of
anticipated customer ramp-ups in North America. In these
circumstances, the Board is examining ways to ensure that the Group
has sufficient working capital going forward. As of 30 June
2024, the Group had an unaudited cash balance of £0.6m (26 April
2024: £0.6m), no bank debt and convertible loan notes outstanding
of £1.3m.
-Ends-
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For
further information please contact:
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Biome Technologies plc
Paul Mines, Chief Executive
Officer
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Donna Simpson-Strange, Company
Secretary
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www.biometechnologiesplc.com
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Tel: +44 (0) 2380 867 100
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Allenby Capital
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David Hart/Alex Brearley (Nominated
Adviser)
Kelly Gardiner/Tony Quirke (Sales
and Corporate Broking)
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www.allenbycapital.com
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Tel: +44 (0) 20 3328 5656
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About
Biome
Biome Technologies plc is an AIM
listed, growth-orientated, commercially driven technology group.
Our strategy is founded on building market-leading positions based
on patented technology and serving international customers in
valuable market sectors. We have chosen to do this by developing
products in application areas where the value-added pricing can be
justified and are not reliant on government legislation. These
products are driven by customer requirements and are compatible
with existing manufacturing processes. They are market rather than
technology-led.
The Group comprises two divisions,
Biome Bioplastics ("Bioplastics") and Stanelco RF Technologies
Limited ("RF Technologies").
Biome Bioplastics is a leading
developer of highly-functional, bio-based and biodegradable
plastics. The division's mission is to produce bioplastics that
challenge the dominance of oil- based polymers.
RF Technologies designs, builds and
services advanced radio frequency (RF) systems. Dielectric and
induction heating products are at the core of a product offering
that ranges from portable sealing devices to large furnaces for the
fibre optics markets.
www.biometechnologiesplc.com
www.biomebioplastics.com
and www.thinkbioplastic.com
www.stanelcorftechnologies.com