REG - Biome Technologies - Trading Update

Biome TechnologiesAnnouncement

26/07/2023 07:00

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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 £3.6m (2022 H1: £2.4m) an increase of £1.2m
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 £1.7m, 24% ahead of the same period
last year (2022 Q2: £1.4m), although lower than 2023 Q1 (2023 Q1: £1.9m).

 

The Group had a cash balance as at 30 June 2023 of £0.93m (30 June 2022:
£0.65m) and had 2026 convertible loan notes outstanding of £0.85m and no
bank debt.

 

Bioplastics Division

 

The division's revenues for 2023 H1 were £3.0m, a 50% increase on 2022 H1
(2022 H1: £2m). 2023 Q2 revenues were £1.4m, 11% behind 2023 Q1 (2023 Q1:
£1.6m) but 37% ahead of 2022 Q2 last year (2022 Q2: £1.0m).

 

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 £0.3m,
consistent with 2022 Q2 (£0.3m) and in line with 2023 Q1 (2023 Q1: £0.3m).
Revenues for 2023 H1 were £0.5m representing an increase of 25% compared to
2022 H1 (2022 H1: £0.4m).

 

On 22 June 2023, the division announced a significant new contract win with a
revenue value of £452,000 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 (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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