REG - Biome Technologies - Trading Update and Board Change

Biome TechnologiesAnnouncement

04/12/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241204:nRSD6793Oa&default-theme=true

RNS Number : 6793O  Biome Technologies PLC  04 December 2024

This announcement contains inside information for the purposes of Regulation
11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the
publication of this announcement, this information is now considered to be in
the public domain.

 

4 December 2024

 

Biome Technologies plc

("Biome", the "Company" or the "Group")

 

Trading Update

 

Board Change

 

Biome Technologies plc, a leading bioplastics and radio frequency technology
business, today provides a trading update.

 

RF Technologies Division

 

In the Company's trading update of 13 November 2024, it was noted that three
RF projects of scale were in the process of being built in the Group's factory
in Southampton, but that challenges with the delivery of components made it
more likely that only two of these would be delivered before the year-end,
with a consequential impact on revenues in the final quarter of 2024.

 

Additional complexities relating to component deliveries for the two large
projects, which were expected to be completed in 2024, have arisen recently.
In two specific cases, externally manufactured parts and bought in assemblies
have required rework or return to their suppliers for replacement.

 

The technical paths for rework and replacement are clear. However, despite
significant recent work on expediting this, the timetables are such that this
will not be delivered within a timeframe that will allow completion of the two
final machine builds and the required extensive internal and customer testing
acceptance process before the 2024 year end.

 

Internal completion dates have therefore been revised into Q1 2025 and new
final acceptance dates are being discussed with the customers. The customers
have expressed their continued understanding and support while the Group
resolves these challenges.

 

Group Outlook

 

As a result of the matters set out above, the Board has adjusted its
expectations for revenues in 2024, which are now expected to be materially
below current market expectations with a consequential impact on
profitability.

 

There is a clear technical path to project completion for all three of the
remaining projects of scale for the RF division. However, at this time,
customer acceptance dates and subsequent payments in 2025 remain to be
finalised. This creates a requirement for additional working capital and the
Board has therefore entered into discussions regarding a debt facility to
bridge the Group's working capital needs in early 2025. A further announcement
is expected to be made in relation to this in due course.

 

Board change

 

Further to the Company's announcement of 13 November 2024, John Standen has
stepped down from the Board with immediate effect.  Martin Rushton-Turner
will fulfil the role of Interim Chairman, as the Directors consider various
options in relation to the composition of the Board going forward.

 

-Ends-

 

 For further information please contact:
 Biome Technologies plc

 Paul Mines, Chief Executive Officer
 Donna Simpson-Strange, Company Secretary
 www.biometechnologiesplc.com (http://www.biometechnologiesplc.com)  Tel: +44 (0) 2380 867 100

 Allenby Capital
 David Hart/Alex Brearley/Lauren Wright (Nominated Adviser)

 Kelly Gardiner/Tony Quirke (Sales and Corporate Broking)
 www.allenbycapital.com (http://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 ("Bioplastics") and
Stanelco RF Technologies Limited ("RF Technologies").

 

Biome Bioplastics is a leading developer of highly-functional, bio-based and
biodegradable plastics. The division'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 markets.

 

www.biometechnologiesplc.com (http://www.biometechnologiesplc.com)
www.biomebioplastics.com (http://www.biomebioplastics.com) and
www.thinkbioplastic.com (http://www.thinkbioplastic.com)
www.stanelcorftechnologies.com (http://www.stanelcorftechnologies.com)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTEAPADEFDLFFA