Biome Technologies PLC Trading Update (7489N)
January 25 2023 - 2:00AM
UK Regulatory
TIDMBIOM
RNS Number : 7489N
Biome Technologies PLC
25 January 2023
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.
25 January 2023
Biome Technologies plc
("Biome", the "Company" or the "Group")
Trading Update
Biome Technologies plc, a leading bioplastics and radio
frequency technology business, today provides an unaudited
pre-close Trading Update for the financial year ended 31 December
2022.
Group revenues for the year ended 31 December 2022 were in line
with current market expectations at GBP6.2m and 10% ahead of the
previous year (2021: GBP5.7m).
The Group had a cash balance at the year-end of GBP0.8m, which
is also ahead of those expectations (31 December 2021: GBP1.0m).
This was supported by a reduction of working capital in the Group's
supply chain and prompt payments from customers. The Group
continues to have no external bank borrowings.
The Board anticipates that, subject to audit, the Group will
generate a loss before interest, taxation, depreciation,
amortisation and share option charges for the year ended 31
December 2022 that is in line with current market expectations.
The Group's preliminary results for the year ended 31 December
2022 are scheduled to be published on 26 April 2023.
Bioplastics Division
The division's revenues for the year to 31 December 2022 were
GBP4.4m (2021: GBP4.8m). As set-out in previous Trading Updates,
this reflected the large reductions in demand for a single
long-standing customer of Biome's materials used in packaging
films. This was offset substantially by orders from new customers
in both North America and Europe primarily related to film
products.
Constraints which had been impacting orders from a second US end
customer following its conversion to our biodegradable coffee
filtration did clear, as expected, and a substantial increase of
order quantities were received for delivery in Q4 2022.
Encouragingly, this increased demand has continued into 2023 and is
underpinning divisional revenues for Q1.
The further important opportunities detailed in the 10 November
2022 Trading Update, but not included at scale in management's
expectations for 2023 continue broadly as expected, but with no
clear timetable to revenue delivery as yet.
Stanelco RF Technologies Division
Revenues in the RF Technologies division in 2022 were GBP1.8m
(2021: GBP0.9m). This uplift was driven by substantial orders both
for fibre optic furnaces and wider industrial applications won in
late 2021 and early 2022.
The division enters 2023 with several significant prospects for
2023, but with a much lower confirmed order book than at this time
in 2022. Therefore, we believe it is prudent to reduce our
expectations for the RF Technologies division in the current year,
pending the finalisation of further customer discussions.
Group Outlook
Whilst we are cautious in our expectations for the RF division,
particularly in the current economic environment, the team is
working hard to convert its prospect pipeline into firm orders. The
Bioplastics division has started 2023 in an encouraging manner. The
Board looks forward to providing an update on the Group's
performance at the time of the full year results in April.
-Ends-
For further information please contact:
Biome Technologies plc
Paul Mines, Chief Executive Officer
Rob Smith, Chief Financial Officer
www.biometechnologiesplc.com Tel: +44 (0) 2380 867 100
Allenby Capital
David Hart/Alex Brearley (Nominated Adviser)
Kelly Gardiner (Sales and Corporate Broking)
www.allenbycapital.com Tel: +44 (0) 20 3328 5656
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 Limited
("Bioplastic") and Stanelco RF Technologies Limited ("RF
Technologies").
Biome Bioplastics is a leading developer of highly-functional,
bio-based and biodegradable plastics. The company's mission is to
produce bioplastics that challenge the dominance of oil- based
polymers.
Stanelco 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
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END
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