REG - Biome Technologies - Trading Update

Biome TechnologiesAnnouncement

13/11/2023 07:00

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RNS Number : 1458T  Biome Technologies PLC  13 November 2023

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.

 

13 November 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
September 2023.

 

Group revenues for the nine months to 30 September 2023 were £5.2m, a 19.6%
increase over the same period last year (2022 Q3 YTD: £4.3m). The results are
in line with management expectations. Performance in 2023 Q3 reflects lower
revenue recognition in the RF Technologies division, offset by an increase in
revenues from the Bioplastics division where, year-to-date, we are seeing a
strong improvement in trading.

 

The Group had a cash balance at 30 September 2023 of £0.9m (30 September
2022: £0.65m) and had 2026 convertible loan notes outstanding of £0.85m and
no bank debt.

 

Bioplastics Division

 

The division's revenues in 2023 Q3 were £1.3m, an 18% increase on 2022 Q3
(2022 Q3: £1.2m). 2023 year to date revenues were £4.4m, 36% ahead of the
prior year (2022 Q3 YTD: £3.2m).

 

The Bioplastics division is seeing continued success, particularly in North
American markets. Several new customers, particularly for packaging films,
have been adopting our materials and are initiating larger volume
manufacturing. We have also seen increased demand from more established
customers than in 2022. We are seeing some variation in quarterly demand as
our newer customers ramp up their production.  However, we believe that the
breadth of customers and applications is taking us towards a more resilient
business model.

 

RF Technologies Division

 

Revenues in the RF Technologies division for 2023 Q3 were £0.3m, compared to
£0.7m in Q3 2022 and in line with 2023 Q2 (2023 Q2: £0.3m). Revenues for the
nine months to 30 September 2023 were £0.8m (2022 Q3 YTD: £1.1m).

 

The division continues to be in extended discussions with several potential
customers regarding contracts that would have revenue and profit recognition
potential of significance for 2024.

 

Management is pleased with the novel market sectors in which the division is
building a pipeline of potential new business and the scale of some of these
opportunities. We remain cautious on the precise timing of converting these
opportunities into orders and the associated revenue recognition, as much of
this work requires considerable new collaborative designs with customers.

 

Group Outlook

 

The Board is pleased with the strong progress of the Bioplastics division
which continues to grow. It is particularly encouraging to see the ongoing
diversification of the customer base that will provide a broader platform for
potential growth in due course in line with our stated strategy.

 

The RF Technologies division's team is working hard to convert the pipeline of
sizable opportunities they have building. Detailed contract discussions on
several projects are proving extended and some uncertainty as to timing
remains.

 

The Board remains confident in its revenue expectations for the Group as a
whole due, in particular, to the robust performance of the Bioplastics
division. However, the finalisation of discussions in relation to two of the
RF division's projects, whilst progressing and expected to complete in due
course, is taking longer to finalise than originally expected. As a result,
and given the proximity to the year-end, there is an increasing risk that
these delays will impact on the level of adjusted LBITA and cash receipts in
the 2023 financial year.  Whilst this is not the position the Board would
have wished for, it remains confident that these two projects will be
delivered, albeit now in the 2024 financial year.

 

 

 

-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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