Biome Technologies PLC Trading Update (1647H)
July 26 2023 - 2:00AM
UK Regulatory
TIDMBIOM
RNS Number : 1647H
Biome Technologies PLC
26 July 2023
26 July 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 trading
update for the quarter ended 30 June 2023. The Company's unaudited
interim results for the six months ended 30 June 2023 ("2023 H1")
are expected to be announced on 27 September 2023.
Group revenues for 2023 H1 were GBP3.6m (2022 H1: GBP2.4m) an
increase of GBP1.2m or 47% on 2022 H1. This has been driven by
continued robustness of demand in the Bioplastics division from
existing and new customers in North America, both for flexible film
and filtration mesh applications.
The Group's trading during 2023 Q2 continued in line with
management expectations with revenue for 2023 Q2 GBP1.7m, 24% ahead
of the same period last year (2022 Q2: GBP1.4m), although lower
than 2023 Q1 (2023 Q1: GBP1.9m).
The Group had a cash balance as at 30 June 2023 of GBP0.93m (30
June 2022: GBP0.65m) and had 2026 convertible loan notes
outstanding of GBP0.85m and no bank debt.
Bioplastics Division
The division's revenues for 2023 H1 were GBP3.0m, a 50% increase
on 2022 H1 (2022 H1: GBP2m). 2023 Q2 revenues were GBP1.4m, 11%
behind 2023 Q1 (2023 Q1: GBP1.6m) but 37% ahead of 2022 Q2 last
year (2022 Q2: GBP1.0m).
The Bioplastics division continues to see a high level of
interest in its products in North America across a wider variety of
applications than has been seen traditionally. Management expects
demand for the division's products in 2023 H2 to continue and reach
similar levels to that experienced in the 2023 Q2, with further
growth linked to product launches (the timing of which remain
uncertain as referenced in previous trading statements).
RF Technologies Division
Revenues in the RF Technologies division for the 2023 Q2 were
GBP0.3m, consistent with 2022 Q2 (GBP0.3m) and in line with 2023 Q1
(2023 Q1: GBP0.3m). Revenues for 2023 H1 were GBP0.5m representing
an increase of 25% compared to 2022 H1 (2022 H1: GBP0.4m).
On 22 June 2023, the division announced a significant new
contract win with a revenue value of GBP452,000 for the supply of a
novel induction furnace system to a global manufacturer of
scientific glass products. As highlighted in that announcement,
specific revenue timing was dependent on the availability of key
components that were to be identified during the design phase. Due
to issues with the availability of certain of these components, it
is now anticipated that all revenue associated with this contract
will be recognised in 2024.
The division continues to be in discussions with a number of
potential customers regarding contracts that would have revenue
recognition potential for 2023 H2 and beyond.
Management is pleased with the novel market sectors in which the
division is building a pipeline of new and potential new business
and the scale of some of the opportunities in this pipeline. We
remain cautious on the precise timing of revenue recognition, given
much of this work requires considerable new collaborative design
with customers and draws on components from supply chains that
remain somewhat uncertain.
Group Outlook
The Board is pleased that both divisions are performing well.
The Bioplastics division continues to outperform substantially
against last year and, despite the expected timing delay in being
able to recognise revenue for its newly won large contract, the RF
Technologies division is confident of winning further business of a
similar nature.
Whilst we continue to be cautious in light of the current
macroeconomic environment and despite the changes in the sales mix
between the divisions, management's outlook for the overall
performance of Biome for 2023 remains unchanged and in-line with
current market expectations.
-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 and 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.
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
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