RNS Number : 2389D

Bion PLC

28 June 2021

28 June 2021

BiON plc

("BiON" or "the Company")

Trading Update, Publication of Results and Director Shareholding

BiON (AIM: BION), an environmental engineering, wastewater treatment and renewable energy solutions company, provides an update on trading, on the publication of its results and on its biogas consortium. The Company also gives notice of a change in the shareholding of Mr. Habizan Rahman Bin Habeeb Rahman, an Executive Director of the Company.

Trading Update

As previously noted, following the outbreak of COVID-19, on 18 March 2020 the Government of Malaysia implemented a Movement Control Order ("MCO"), which is the lockdown and restriction of movement for all civilians and non-essential businesses, including a ban on interstate travel. This required the Company to cease its construction activities at the various project sites as supplies, materials and equipment were not transportable or obtainable. From 4 May 2020, there was some easing of restrictions, but lockdown measures remained in place throughout the year, including various restrictions on interstate travel. As a result, the Company's ability to progress its biogas power plants to completion was impeded. However, the Company was successful in securing a number of engineering, procurement, construction and commissioning ("EPCC") contracts, primarily in the second half of the year when restrictions were eased. As noted in the Company's announcement of 13 April 2021, based on the delivery of these contracts (with an immaterial contribution from power sales at the end of the year), BiON expects to report revenue for 2020 of at least RM100m (2019: RM24.06m). These results remain subject to audit.

The MCO was reinstated for January and February 2021 and from May 2021 to date. Against this backdrop of challenging economic and operating conditions, the Company has been unable to secure and deliver EPCC contracts. While it has made some progress with the development of its portfolio of biogas power plants, the Company is only recognising initial revenue from this activity at present as it awaits the receipt of regulatory approvals. As a result, the Company expects to report significantly reduced revenue for the first half of 2021.

Biogas Power Plant Portfolio

The Company has progressed the development of its wholly-owned biogas power plant portfolio as follows:

-- Seberang Perak (2MW) - BiON was awarded the commercial operation date ("COD") by Tenaga Nasional Berhad ("TNB"), Malaysia's largest integrated electricity company, in May 2021 (with the formal certificate expected to be received in the coming weeks). This enabled the Company to commence selling electricity from Seberang Perak at the full Feed-in-Tariff ("FiT") rate. Seberang Perak is currently generating 1MW of power, with the capacity expected to increase as the mill recovers over time from the impact of the pandemic.

-- Kahang (2MW) - The plant is undergoing recommissioning to enable it to recommence power exports once approval is received from the requisite authorities. The Company is also progressing the refurbishment works, with the plant running and generating gas, while strictly abiding by the standard operating procedures imposed by the Malaysian government under the MCO.

-- Malpom (2MW) - The Company has successfully installed two tanks alongside its lagoon-based system to support its biogas creation capacity. While the Malpom power plant continues to produce gas, this is not currently being converted to electricity exports due to engine downtime and scheduled maintenance.

-- Nasaruddin (1MW) - The Company continues to await the granting of an initial operation date ("IOD"), which is subject to a visit to the site from TNB (the timing of which is largely dependent on government restrictions on travel). Once the IOD is granted, the Company will be able to commence selling power at Nasaruddin at a reduced FiT rate ahead of receiving the COD.

Publication of Results

As a result of the MCO, the Company's audit for the 2020 financial results has been delayed as the Company's finance team and its auditors have been unable to enter the office premises. While work has commenced remotely, this only provides limited access to the Company's accounting systems and supporting documents. Consequently, the Company applied for a three-month extension for the publication of its annual report and accounts for 2020, and it has received approval from AIM and the Jersey Financial Services Commission. As a result, the Company will publish its annual report and audited results for 2020 by 30 September 2021.

Biogas Consortium

Further to the Company's announcement of 19 November 2020, BiON confirms that it is no longer pursuing the establishment of a special purpose vehicle with Green Lagoon Technology Sdn Bhd ("GLT transaction"), but remains open for collaborations in future should the opportunity arise. The Company continues to partner with LIPP Engineering Sdn Bhd ("LIPP") and SIRIM Tech Venture Sdn Bhd ("SIRIM"). In particular, BiON worked with LIPP on the new tanks that were installed at Malpom.

As stated in the announcement of 19 November 2020, the GLT transaction, if completed, would have constituted a fundamental change of business under the AIM Rules requiring shareholder approval. Given it is not going ahead, no shareholder approval is required.

Director Shareholding

Further to the Company's announcement of 30 April 2020, Mr. Habizan Rahman Bin Habeeb Rahman has completed the acquisition of the entire issued share capital of K2M Ventures Sdn Bhd ("K2MV"), which has an interest in 114,361,409 ordinary shares in the Company. Accordingly, through his 100% ownership of K2MV, Mr. Habizan Rahman has a beneficial interest in 114,361,409 ordinary shares representing 26.5% of the Company's issued share capital.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018.


 BiON plc 
 Datuk Syed Nazim bin Syed Faisal, CEO 
  Fakrizzaki Ghazali, CFO                              +603 6413 1085 
 Elle Sia, UK Country Manager                             +44 20 3633 
  www.bionplc.com                                                0891 
 Beaumont Cornish Limited (Nominated Adviser) 
                                                          +44 20 7628 
 Roland Cornish, Felicity Geidt                                  3396 
 VSA Capital Limited (Joint Broker) 
 Andrew Raca, Maciek Szymanski, Vivian Papasotiriou       +44 20 3005 
  (Corporate Finance)                                            5000 
 Andrew Monk (Corporate Broking) 
 Optiva Securities Limited (Joint Broker) 
                                                          +44 20 3137 
 Vishal Balasingham                                              1903 
 Luther Pendragon (Financial PR Adviser) 
                                                          +44 20 7618 
 Claire Norbury                                                  9100 

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them

 1     Details of the person discharging managerial responsibilities 
        / person closely associated 
 a)    Name                                   Mr. Habizan Rahman Bin Habeeb Rahman 
      -------------------------------------  ------------------------------------------- 
 2     Reason for the notification 
 a)    Position/status                        Executive Director 
      -------------------------------------  ------------------------------------------- 
 b)    Initial notification                   Initial Notification 
      -------------------------------------  ------------------------------------------- 
 3     Details of the issuer, emission allowance market participant, 
        auction platform, auctioneer or auction monitor 
 a)    Name                                   BiON plc 
      -------------------------------------  ------------------------------------------- 
 b)    LEI                                    213800VRBEM772RI6T86 
      -------------------------------------  ------------------------------------------- 
 4     Details of the transaction(s): section to be repeated 
        for (i) each type of instrument; (ii) each type of transaction; 
        (iii) each date; and (iv) each place where transactions 
        have been conducted 
 a)    Description of the                     Ordinary shares of no par value 
        financial instrument, 
        type of instrument 
       Identification code                    JE00BYTQ7945 
 b)    Nature of the transaction              Purchase of an interest in Ordinary 
                                               Shares via the acquisition of K2MV 
                                               Ventures Sdn Bhd 
      -------------------------------------  ------------------------------------------- 
 c)    Price(s) and volume(s) 
                                              ------------------  -------------------- 
                                               Price(s)            Volume(s) 
                                              ------------------  -------------------- 
    N/A                                                            114,361,409 
   -------------------------------------------------------------  -------------------- 
 d)    Aggregated information 
  - Aggregated volume                    N/A 
  - Price 
 e)    Date of the transaction                2021-05-30 
      -------------------------------------  ------------------------------------------- 
 f)    Place of the transaction               Outside a trading venue 
      -------------------------------------  ------------------------------------------- 

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June 28, 2021 02:00 ET (06:00 GMT)

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