REG - Biome Technologies - Trading Update

Biome TechnologiesAnnouncement

27/01/2022 07:00

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RNS Number : 7603Z  Biome Technologies PLC  27 January 2022

This announcement contains inside information for the purposes of Regulation
11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310.

27 January 2022

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 2021.

Group revenues for the year ended 31 December 2021 were in line with current
market expectations at £5.6m (2020: £5.7m) and cash balances at the year-end
of £1.0m were ahead of those expectations (31 December 2020: £1.7m) because
of receipts of deposits from customers and improved working capital
management. 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 2021 that is in line with current market
expectations.

The Group's preliminary results for the year ended 31 December 2021 are
scheduled to be published on 24 March 2022.

Bioplastics Division

The division's revenues for the full year to 31 December 2021 were £4.7m
(2020: £4.9m), reflecting the previously highlighted global logistics issues
and delays in the implementation of new projects as customers manage their own
supply chain problems.

Revenues in Q4 were £1.6m, 35% ahead of the prior year comparative quarter
(Q4 2020: £1.2m), and substantially greater than the preceding quarter (Q3
2021: £0.8m). The Board expects revenues in 2022 to be weighted more towards
the second half of the year as revenues from new and existing customer
implementations are expected to increase.

Stanelco RF Technologies Division

Revenues in the RF Technologies division in Q4 were £0.4m, ahead of the
preceding quarter's revenue of £0.3m, and greater than the prior year
comparable (Q4 2020: £0.3m). Revenues for the division for the full year to
31 December 2021 were £0.9m (2020: £0.8m).

Trading is expected to be particularly productive during the first half of
2022 as the recently announced new orders both for fibre optic furnaces and
wider industrial applications are delivered.

Group Outlook

The Group ended 2021 with a lower level of revenues than was expected when the
year started. However, the Directors are pleased with the improved cash
position of the Group which they currently believe should enable Biome to
capitalise on the orderbook and pipeline in both divisions.

The scale of opportunities available to Biome is now greater than it was at
this time last year and the Board remains confident of being able to build on
the Group's prospects during 2022 and thereafter.

 

- Ends -

 

For further information please contact: Biome Technologies plc

Paul Mines, Chief Executive Officer

Rob Smith, Chief Financial Officer

info@biometechnologiesplc.co.uk (mailto:info@biometechnologiesplc.co.uk)

Tel: +44 (0) 2380 867 100

www.biometechnologiesplc.com (https://www.biometechnologiesplc.com)

 

Allenby Capital

David Hart/Alex Brearley (Nominated Adviser)

Kelly Gardiner (Sales and Corporate Broking)

Tel: +44 (0) 20 3328 5656

www.allenbycapital.com (http://www.allenbycapital.com)

 

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 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 (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)

 

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