REG - Biome Technologies - Trading Update

Biome TechnologiesAnnouncement

02/08/2022 07:00

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RNS Number : 5230U  Biome Technologies PLC  02 August 2022

The information contained within this announcement is deemed by the Company to
constitute inside information for the purposes of Regulation 11 of the Market
Abuse (Amendment) (EU Exit) Regulations 2019/310.

 

2 August 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 Trading Update for the quarter ended 30
June 2022. The Company's unaudited interim results are expected to be
announced on 22 September 2022.

 

Group revenues for the quarter ended 30 June 2022 were slightly lower than
management expectations at £1.4m (Q2 2021: £1.3m) as delays of materials
from suppliers constrained both Divisions. It is expected that the revenues
delayed from Q2 will be recovered during Q3 2022.

 

Bioplastics Division

 

The Division's revenues for Q2 were £1.0m (Q2 2021: £1.1m). Management
continues to anticipate substantial revenue growth from this Division during
H2 2022. This growth is underpinned by supply chain preparation and stocking
by several of the Division's customers which are planning product launches in
H1 2023 and based on our new "home compostable" bio-based and biodegradable
materials that are subject to the protection of a pending patent. Enquiries in
the bioplastics space remain buoyant, although our customers continue to face
supply chain challenges as they deploy new products.

 

Stanelco RF Technologies Division

 

Revenues in the RF Technologies Division in Q2 were £0.2m (Q2 2021: £0.2m).
The Division's strong orderbook had been expected to convert to higher revenue
levels in Q2. However, component shortages, particularly of electronic parts,
have impeded the build out of the significant RF contracts that were announced
in late 2021 and early 2022. Good progress has already been made in early Q3
and we expect for the Division's delayed revenues to be fully recovered in H2.

 

Cash and liquidity

 

The Group had a cash balance as at 30 June 2022 of £0.7m (30 June 2022:
£1.4m) and no bank debt.

 

We are pleased to announce that the Group has entered into a receivables
financing agreement with Accelerated Payments Limited. This highly flexible
facility has been put in place to provide working capital funding, as and when
required, as we look to grow the business over the coming months and years.

 

Group Outlook

 

The Board's view of the Group's performance remains 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 (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 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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