REG - Biome Technologies - Trading update

Biome TechnologiesAnnouncement

08/07/2024 07:00

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RNS Number : 3972V  Biome Technologies PLC  08 July 2024

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.

 

8 July 2024

 

Biome Technologies plc

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

 

Trading update

 

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

 

Bioplastics division

 

In its previous trading update, issued on 29 April 2024, the Company noted
that production and regulatory difficulties at two of the division's end
customers had subdued revenues in the first quarter and that, whilst these
matters were expected to correct in the following months, full clarity of the
normalisation of these offtakes was awaited at that time. It has recently
become clearer from information and orders received that, whilst revenues of
significance can be expected to return, this is now likely to occur later in
2024 than previously anticipated as various technical validations are
finalised by these customers.

 

Whilst demand from a number of the division's customers remains robust, there
are some signs that the wider coffee packaging market in North America, to
which Biome is exposed, is not as buoyant as in previous periods.

 

Stanelco RF Technologies division

 

The RF division entered the year having secured a major contract in 2023 for
delivery in 2024 and has since won three further large contract wins, which
have been announced, and are expected to result in significant revenue being
recognised in 2024.

 

These contracts support the division's diversification into novel applications
in a sub-sector of the scientific glass industry and high-value medical
markets. The division is now busy with the design and build of these systems
with deliveries now scheduled for the second half of the year.

 

Group outlook

 

As a consequence of the delays to the Bioplastics division's revenues
described above, the Board now believes that Group revenues for the year
ending 31 December 2024 will be materially below current market expectations.
The Board anticipates that the reduction in revenue will be partially offset
by higher margins and lower overheads and that the Group will now make a small
loss before interest, taxation, depreciation, amortisation and share option
charges ("Underlying LBITDA") for the year ending 31 December 2024.

 

Working capital management will be a significant focus for management in the
second half of the year as the RF division completes four large system builds
and the Bioplastics division stocks its raw material pipelines ahead of
anticipated customer ramp-ups in North America. In these circumstances, the
Board is examining ways to ensure that the Group has sufficient working
capital going forward.  As of 30 June 2024, the Group had an unaudited cash
balance of £0.6m (26 April 2024: £0.6m), no bank debt and convertible loan
notes outstanding of £1.3m.

 

 

-Ends-

 For further information please contact:
 Biome Technologies plc

 Paul Mines, Chief Executive Officer
 Donna Simpson-Strange, Company Secretary
 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 ("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)

 

 

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