29
April 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
an unaudited Trading Update for the quarter ended 31 March
2024.
Group revenues for the quarter ended
31 March 2024 were £1.1m, 44% lower than the same period last year
(2023 Q1: £1.9m) and slightly lower than management's
expectations.
Bioplastics Division
The division's revenues for the
quarter ended 31 March 2024 were £0.9m, a decrease of 45% compared
to the prior quarter (2023 Q4: £1.7m) and 44% lower than the first
quarter of 2023 (2023 Q1: £1.6m), below management's
expectations.
The reduced revenues in the quarter
were a result of two factors:
1. extended
transit times of material from Europe to North America, due to the
Red Sea shipping crisis and its knock on-effects to North Atlantic
transit times.
2.
Production and regulatory difficulties at two end customers that
reduced offtake of material.
In the early weeks of the second
quarter, the worst of the shipping issues have abated but transit
times remain extended and variable. The customer
production/regulatory issues appear to be understood and are
expected to correct in the coming months, but we await full clarity
on the normalisation of offtake. Customer specific demand for these
materials elsewhere continues well. We continue to monitor
inventory levels closely.
The division continues its business
development work and a number of opportunities continue to progress
with new customers.
RF
Technologies Division
Revenues in the RF Technologies
division for the quarter ended 31 March 2024 were £0.2m, 25% lower
than the first quarter of 2023 (2023 Q1: £0.3m) but 20% higher than
the previous quarter (2023 Q4: £0.2m) and slightly higher than
management's expectations.
The division entered the year having
secured a major contract in 2023 for which revenue recognition is
expected in 2024. We were pleased to be able to announce two
further large contract wins that are also expected to result in
significant revenue in 2024. The division is now busy with the
design and build of these systems with deliveries due later in the
year.
The division is progressing
pre-contract negotiations and discussions on further opportunities
that could lead to further revenue in 2024. One of these major
opportunities is well advanced.
Group Outlook
Whilst trading in the first quarter
was below the previous quarter, contract wins and ongoing business
are improving and the Board is confident that the Group will
achieve its expectations for the 2024 full year.
-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/Tony Quirke (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 and other industrial
markets.
www.biometechnologiesplc.com
www.biomebioplastics.com
and www.thinkbioplastic.com
www.stanelcorftechnologies.com