Biome Technologies PLC Trading Update (4131K)
April 22 2020 - 2:00AM
UK Regulatory
TIDMBIOM
RNS Number : 4131K
Biome Technologies PLC
22 April 2020
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR")
22 April 2020
Biome Technologies plc
("Biome", "the Company" or "the Group")
Trading Update
The Annual General Meeting ("AGM") of Biome Technologies, a
leading bioplastics and radio frequency technology business, was
due to be held today. Whilst the AGM has been delayed due to
Covid-19, the Board is pleased to announce the Company's customary
trading update for the three months ended 31 March 2020.
Group revenues achieved for the first three months of the year
were GBP1.3m (Q1 2019: GBP2.1m), reflecting a very strong revenue
performance from the Bioplastics division and subdued demand in the
Stanelco RF division.
The impact of Covid-19 on Biome during the first quarter of 2020
was limited, with trading in the quarter being in line with
management's expectations at the time of the Group's trading update
on 30 January 2020. The Group continues its manufacturing and
development operations with the upmost consideration for the safety
of its staff and in conformance with Government advice.
The Group remained debt free as at 31 March 2020 and had cash of
GBP1.8m (31 December 2019: GBP2.1m) and had cash of GBP1.7m as at
14 April 2020 and no debt.
Bioplastics Division
Revenues in the Bioplastics division of GBP1.1m were up 83% on
the same period last year and matched the record quarterly revenues
of Q4 2019 (Q1 2019: GBP0.6m; Q4 2019: GBP1.1m). The performance in
the period was underpinned by increased sales of outer packaging
for the US single serve coffee market and by growing revenues for
rigid ring materials for the coffee-pod market. There is growing
evidence that the ordering of coffee products for home delivery was
supporting demand towards the end of the quarter. Progress on other
projects, such as the nutraceutical pod, was more limited as
Covid-19 began to impact some customers' developmental activities.
For others, developmental work continues with some vigour and the
business is well positioned to exploit various opportunities in
this growing market as and when conditions allow.
Stanelco RF Technologies Division
Revenues for the first quarter of 2020 in the Stanelco RF
division were GBP0.2m (Q1 2019: GBP1.5m). The Stanelco RF
division's principal revenues are derived from the production and
maintenance of furnaces for the manufacture of fibre optical cable.
Market intelligence currently indicates that there is over capacity
in the fibre optic cable market. This market position is now
exacerbated by the effect of Covid-19 on sentiment towards
purchases of capital goods. It is unlikely that this position will
change quickly and the Group's expectations are already set
accordingly. The Board expects demand for fibre optic cable for
internet capacity and 5G implementation to recover in due course.
At present the division's sales activities are focused on
alternative industrial markets in the UK/Europe which the Board
believes will support increased revenues in the second half of
2020.
Other matters
In Biome's announcement on 25 March 2020, it was stated that the
Company's AGM had been deferred to a date in June 2020 due to the
Covid-19 crisis. A further announcement will be made when the
precise date when the AGM will be held can be confirmed.
Outlook
The Group's trading continues in line with the expectations set
out in the Company's Final Result's announcement released on 16
April 2020.
The Final Results announcement also outlined the range of
actions the Board is taking as a result of Covid-19. The focus of
these actions is to maximise Biome's commercial opportunities
whilst managing the Group's cost base and cash resources with the
aim of delivering good medium-term growth for shareholders.
- Ends -
For further information please contact: Biome
Technologies plc
Paul Mines, Chief Executive Officer
David Hughes, Group Finance Director
www.biometechnologiesplc.com Tel: +44 (0) 2380 867
100
Allenby Capital
David Hart/Alex Brearley (Nominated Adviser)
Kelly Gardiner (Broker)
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 that 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 and
Stanelco RF Technologies Limited. 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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