Biome Technologies PLC Trading Update (3664V)
July 23 2018 - 1:00AM
UK Regulatory
TIDMBIOM
RNS Number : 3664V
Biome Technologies PLC
23 July 2018
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR")
23 July 2018
Biome Technologies plc
("Biome", "the Company" or "the Group")
Trading Update
Biome Technologies plc, a leading bioplastics and radio
frequency technology business, today publishes a trading update for
the six months ended 30 June 2018. The unaudited interim results
are expected to be announced on 3 September 2018.
Total Group revenues for the first half of the year were
GBP4.3m, a 43% increase compared to the same period last year
(2017: GBP3.0m).
The Directors expect that the Group will report an increased
profit before interest, tax, and amortisation for the half year
compared to the first half of 2017, reflecting the increase in
revenues (based on unaudited management accounts).
The Group's cash position as at 30 June 2018 was GBP2.3m (31
December 2017: GBP2.3m, 31 March 2018 GBP2.4m), reflecting a
combination of positive trading activity, balanced by the unwinding
of advance customer deposits previously received by the
Company.
Bioplastics Division
Revenues in the Bioplastics division in H1 2018 were GBP0.9m
compared to GBP1.2m in H1 2017, with turnover in the second quarter
returning to a more encouraging pattern. Sales of the Mesh product
continued to grow as expected. It is now anticipated that sales of
the reformulated rigid ring material for coffee pods will commence
in Q4 2018.
The division continues to work on the development of new
projects which are driven by potential customer demand for a
biodegradable solution to their packaging requirements. Two of
these projects are advancing encouragingly through product
development and, if successful, could lead to substantial
additional revenues in 2019 and 2020. We will keep shareholders
informed of progress.
Positive interest remains in the UK, with the Government looking
to progress innovative material solutions to the problem of single
use plastics in the medium term. This may provide an opportunity to
accelerate our work in industrial biotechnology solutions and Biome
is engaged with a number of parties in this area.
Stanelco RF Technologies Division
Revenues for H1 2018 in the RF Technologies division were double
those of the comparative period at GBP3.4m (H1 2017: GBP1.7m). The
increase in revenues is reflective of the increased sales of fibre
optic furnaces for the Far East market. The forward order book for
the remainder of 2018 remains exceptionally strong with good
enquiry levels going into 2019 and the team has been expanded to
deal with these increased levels of activity. Revenues for the full
year 2018 are now anticipated to be significantly higher than
2017.
Outlook
Biome continues to make progress against the strategy as set out
in the Group's full year results announced in March 2018 and
against this background the Board remains confident in the Group's
outlook for the remainder of the year.
- Ends -
For further information please contact: Biome
Technologies plc
Paul Mines, Chief Executive Officer
Declan Brown, Group Finance Director
www.biometechnologiesplc.com Tel: +44 (0) 2380 867
100
Allenby Capital
David Hart/Alex Brearley (Nominated Adviser)
Kelly Gardiner (Broker)
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 that 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.
In 2018, the Board has adopted the following three high level
KPIs for the next three years to continue its ambitious
momentum:
-- Compound revenue growth of 25% per annum across the Group and
40% compound revenue growth in the Bioplastics division
-- Diversify the Group's turnover by product and market to
ensure that no one product or end customer contributes more than
15% of revenues by 2020
-- Increase investment in the Group's next generation of
products by spending significantly more per annum on average than
the GBP0.3m per annum average spend over the previous strategic
objective cycle
www.biometechnologiesplc.com
www.biomebioplastics.com
www.stanelcorftechnologies.com
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END
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