TIDMBIOM
RNS Number : 9408Z
Biome Technologies PLC
24 September 2020
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information for the purposes of Article 7 under the Market Abuse
Regulation (EU) No. 596/2014 ("MAR"). With the publication of this
announcement, this information is now considered to be in the
public domain.
24 September 2020
Biome Technologies plc
("Biome", "the Company" or "the Group")
Interim Results
Biome Technologies plc announces its unaudited Interim Results
for the six months ended 30 June 2020.
Highlights
-- The Group generated revenues of GBP2.5m (H1 2019: GBP3.4m(1)
) and gross profit of GBP0.8m (H1 2019: GBP1.5m)
-- The Biome Bioplastics division has now become the principal
revenue generator for the Group with growth of 71% on H1 2019
-- Biome Bioplastics has continued to grow its revenues from both developed and new products
-- Stanelco RF division saw a sharp decline in revenues as the
impact of Covid-19 exacerbated weak market demand
Paul Mines, Chief Executive Officer said:
"The Bioplastics division performed exceptionally well in the
first half despite the upheaval caused by Covid-19, with a 71%
increase in revenues compared with the same period in the prior
year. As previously reported, the revenues of the Stanelco RF
division, however, were compromised by both over-capacity in the
fibre optic market and the slow-down in industrial activity caused
by Covid-19. The Bioplastics division has now therefore become the
principal revenue generator for the Group, and we expect this to be
maintained into the future."
(1) Grant income was classified as Revenue in the Group's
interim results for the period ended 30 June 2019, and as Other
operating income in the Group's Annual Report and Financial
Statements for the year ended 31 December 2019. The comparatives
for 30 June 2019 have correspondingly been restated in these
interim results. Group income including grant income for the period
ended 30 June 2020 was GBP2.6m (H1 2019: GBP3.6m). Bioplastics
income including grant income for the period ended 30 June 2020 was
GBP2.2m (H1 2019: GBP1.4m).
- Ends -
For further information please contact: Biome Technologies plc
Paul Mines, Chief Executive Officer
info@biometechnologiesplc.co.uk 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 (Ticker: BIOM) 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 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.
www.biometechnologiesplc.com
www.biomebioplastics.com and www.thinkbioplastic.com
www.stanelcorftechnologies.com
#ThinkBioplastic is our digital educational platform, launched
in October 2018 in response to the emerging global plastic
conversation. It speaks to a wide audience, highlighting
bioplastics as a leading solution among several to reduce the
negative impact of plastic manufacture and disposal. Following the
much acclaimed first series of short videos, the second series was
recently released.
Chairman's Statement
During the first half of 2020, the Group's two divisions
performed in line with the expectations set out by the Board in
April 2020 during the early stages of the lockdown due to the
Covid-19 pandemic.
Group revenues for the period were GBP2.5m (H1 2019: GBP3.4m).
Including grant income, Group income was GBP2.6m (H1 2019:
GBP3.6m). Grant income was classified as Revenue in the Group's
interim results for the period ended 30 June 2019, and as Other
operating income in the Group's Annual Report and Financial
Statements for the year ended 31 December 2019. The comparatives
for 30 June 2019 have correspondingly been restated in these
interim results.
The Bioplastics division continued its strong growth trajectory
despite the impact of Covid-19, delivering an increase in revenues
of 71% on the comparable period, and has become the principal
revenue generator for the Group. Revenues in the Stanelco RF
Technologies division sharply reduced by 82% due to weak market
demand and the impact of Covid-19.
Gross profit for the Group was GBP0.8m (H1 2019: GBP1.5m)
impacted by the effect of the reduced revenues highlighted above.
The overall gross margin for the Group was 30% (H1 2019: 44%)
reflecting the increased weighting of sales towards the Bioplastics
division.
Vigorous cost cutting measures, including a voluntary reduction
of Directors' remuneration and accessing government support
schemes, contributed to reduced administrative expenses in the
period to GBP1.7m (H1 2019: GBP2.2m). As a result, the Group
recorded a loss before interest, depreciation, amortisation and
share option charges for the six months to 30 June 2020 of GBP0.5m
(H1 2019: GBP0.2m loss). The loss after taxation was GBP0.8m (H1
2019: GBP0.5m loss), which equates to a loss per share of 29 pence
on a basic and diluted basis (H1 2019: loss per share of 20 pence
on a basic and diluted basis).
The Group's cash position as at 30 June 2020 was GBP1.1m (31
December 2019: GBP2.1m) reflecting the first half losses and an
increase in working capital requirements in the Bioplastics
division. The Group had no debt as at 30 June.
Biome Bioplastics Division
Revenues in the Bioplastics division continued to grow during H1
2020, reaching GBP2.1m for the period (H1 2019: GBP1.2m). Revenue
in the second quarter was GBP1.2m and represented a new record for
the division, despite the disruption caused by the pandemic.
The strong performance in the period was underpinned by
increased sales of outer packaging for the US coffee market and by
growing revenues for rigid ring materials for the coffee-pod
application. Despite the lockdown and supply chain constraints in
both Europe and the US, the Bioplastics division's workflows proved
resilient and production output met customer requirements
throughout the first half.
As well as increased sales to existing customers, the
Bioplastics division is working with an expanding list of potential
new customers particularly in the US and developmental work related
to this continues with some vigour. The business is well positioned
to exploit further opportunities in this growing market as
consumers and brands continue to move to reduce the impact of waste
from oil-based persistent plastics, driving recognition of the
benefits of novel bio-based polymers.
These prospects include:
-- Filtration mesh - implementation is underway with a second
end-use customer in the coffee filtration market
-- Coffee pod material - the Company's heat stable material,
developed for coffee pods, is attracting new customers within the
US market and commercial sales of this product are gaining
momentum
-- Packaging film - the Company is working on seven new customer
projects that focus on the conversion of flexible packaging to
compostable formats. Six of these projects are for the North
American market
The division's medium term research activities in Industrial
Biotechnology continue, which include the development of a new
range of performance polymers with properties which are expected to
improve the existing generation of products. This work, taking
place at the universities of Nottingham and York, is supported by
government grants. Whilst university closures have slowed this
work, post period end, the division has received an Innovate UK
Continuity Grant of GBP63,000 to support the recovery of time
lost.
Stanelco RF Technologies Division
Revenues for the first half of 2020 in the Stanelco RF division
were GBP0.4m (H1 2019: GBP2.2m).
A substantial proportion of the Stanelco RF division's revenues
are typically derived from the production and maintenance of
furnaces for the manufacture of fibre optic cable. Overcapacity in
the fibre optic cable market, apparent from late 2018, has been
exacerbated by the pandemic as telecommunication companies have
suffered restrictions on cable deployment activity and
international trade disputes have slowed the deployment of 5G.
These factors have led to temporary shutdowns of a number of
manufacturing facilities at Stanelco RF's customers, with a
consequential reduction in the requirement for Stanelco RF to
provide equipment, spares and service support. The expectation is
that in the long term, the fibre optic market will benefit from the
pandemic through the enhanced pace of global digitisation required
to meet the demands of, for example, increased home working and the
5G roll-out. However, in the short term, demand is likely to remain
weak.
The division also provides induction heating and welding
equipment to various end markets in the UK and continental Europe.
Activity in these markets in the second quarter was very weak, with
many facilities closed and customers deferring the purchase of
capital goods.
The division has accordingly reduced costs and cash outflows
where possible as well as reviewing possible alternative markets
for its technologies.
The Board is pleased that in the last few weeks, the enquiry
level has increased and there have been some small contract wins,
albeit overall demand levels remain subdued.
Other matters
To protect the Group's cash resources, the Directors and other
staff salary reductions, agreed during quarter two, have been
continued in quarter three of 2020, and use of the UK government's
furlough scheme has been made where appropriate.
The Board has considered the effect of Brexit on the Group's
future performance. As the majority of the Group's revenues and
manufacturing are located in North America the Board believes any
impact will be relatively limited. Similarly, the majority of raw
material purchases are sourced from outside the EU.
The Group exports the majority of its products and therefore
fluctuations in exchange rates may affect product demand. The Board
are informed regularly of any potential impact of exchange rate
movements and act to mitigate any adverse movements wherever
possible.
The Board has considered the going concern basis for the
preparation of these Interim Results. The outlook for trading and
the availability of funds have been forecast for the period to
September 2021.
The Company intends to raise total proceeds of GBP1.1m before
costs, representing GBP1.0m net of costs, via a placing and
subscription of new ordinary shares, as explained in the outlook
section below and in Note 4. The Directors are satisfied that the
Group has sufficient resources to continue in operational existence
for at least one year from the date of approval of these Interim
Results.
KPIs
The Board adopted ambitious Key Performance Indicators (KPIs)
for the 2018 - 2020 objective cycle. These will now be adjusted and
extended to the end of 2023 reflecting the continued progress of
the Bioplastics division (with the addition of an EBITDA KPI), the
headwinds facing the Stanelco RF division and the impact of the
Covid-19 virus to date:
-- 40% annual revenue growth in the Biome Bioplastics division
-- Bioplastics division's profitable revenue growth to achieve a
10%-12.5% EBITDA margin by the end of the KPI period
-- Continued diversification of the Group's turnover by product
and market to ensure that no single product or end customer
contributes more than 15% of revenues by 2023
-- Continued 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
The Group's segmental EBITDA will be based on a revised
allocation of Central Costs. This revision will enable a better
understanding of Divisional performance and is explained in some
detail in Note 5 to the interim financial statements below.
The Board will continue to measure the Group's performance
against these KPIs and report to shareholders annually on
progress.
Outlook
Current trading continues in line with the Board's expectations
set out in the Trading Statement of 30 July 2020.
Looking further forward, the Bioplastics division's orderbook
remains strong with a range of products with a more predictable and
improving growth profile, particularly in the US market. An
encouraging list of prospects for 2021 and strong customer
engagement has enabled the Board to form its expectations of
continued vigorous growth in this division for 2021. Delivering
this growth will require continued investment in resources and
working capital.
The Board believes that the Stanelco RF division's prospects for
2021 will remain moderated by continued overcapacity in the fibre
optic cable market and Covid-19 related uncertainties around demand
and capital expenditure in the industrial markets that the division
serves. The Board's expectations have been set accordingly. As
mentioned above the expectation is that, in time, the fibre optic
market will benefit from global digitisation (accelerated by the
pandemic).
The Company intends to raise total proceeds of GBP1.1m before
costs, representing GBP1.0m net of costs, via a placing and
subscription of new ordinary shares. This will provide support for
the ambitious growth plans of the Bioplastics division. New and
existing shareholders have confirmed their intention to participate
in this fundraising which is expected to be announced shortly.
John Standen
Chairman
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
For the period ended 30 June 2020
6 Months 6 Months Year
Ended Ended Ended
30 June 30 June 31 December
2020 2019 2019
As restated
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
------------------------------------------- ----- ------------ ------------ ------------
REVENUE 5 2,500 3,398 6,957
Cost of sales (1,746) (1,890) (3,933)
GROSS PROFIT 754 1,508 3,024
Other operating income 87 207 436
Administrative expenses (1,668) (2,210) (4,480)
LOSS FROM OPERATIONS (827) (495) (1,020)
Loss from operations before share options
charges (657) (424) (884)
Share options charges (170) (71) (136)
Finance charges (19) - (9)
Investment revenue 2 3 6
Foreign exchange gain 23 8 -
LOSS BEFORE TAXATION (821) (484) (1,023)
Taxation 6 - - 146
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD
ATTRIBUTABLE TO THE EQUITY HOLDERS
OF THE PARENT (821) (484) (877)
============ ============ ============
Basic loss per share - pence 7 (29) (20) (35)
Diluted loss per share - pence 7 (29) (20) (35)
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
As at 30 June 2020
At At At
30 June 30 June 31 December
2020 2019 2019
As restated
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
--------------------------------------- ----- ------------ ------------ ------------
NON-CURRENT ASSETS
Other intangible assets 8 778 931 883
Property, plant and equipment 9 611 179 653
------------ ------------ ------------
1,389 1,110 1,536
------------ ------------ ------------
CURRENT ASSETS
Inventories 10 997 548 555
Trade and other receivables 11 1,781 1,232 1,885
Cash and cash equivalents 1,074 1,731 2,126
------------ ------------ ------------
3,852 3,511 4,566
------------ ------------ ------------
TOTAL ASSETS 5,241 4,621 6,102
============ ============ ============
CURRENT LIABILITIES
Trade and other payables 12 (1,245) (1,281) (1,381)
Lease liabilities (35) - (76)
(1,280) (1,281) (1,457)
------------ ------------ ------------
NON-CURRENT LIABILITES
Lease liabilities (401) - (438)
------------ ------------ ------------
(401) - (438)
TOTAL LIABILITIES (1,681) (1,281) (1,895)
------------ ------------ ------------
NET ASSETS 3,560 3,340 4,207
============ ============ ============
EQUITY
Share capital 140 118 140
Share premium 1,250 805 1,250
Capital redemption reserve 4 4 4
Share options reserve 548 314 377
Translation reserve (85) (85) (85)
Retained profits 1,703 2,184 2,521
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS
OF THE PARENT AND TOTAL EQUITY 3,560 3,340 4,207
============ ============ ============
The interim statements were approved by the Board on 23
September 2020.
Signed on behalf of the Board of Directors
Paul R Mines
Chief Executive
23 September 2020
CONSOLIDATED STATEMENT
OF CASH FLOWS
For the period ended 30 June 2020
6 Months 6 Months Year
Ended Ended ended
30 June 30 June 31 December
2020 2019 2019
As restated
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------------------------- ------------ ------------ ------------
Loss from operations (827) (495) (1,020)
Adjustment for:
Amortisation of intangible assets 142 148 317
Depreciation of property, plant and
equipment 44 29 77
Share based payments 170 71 136
Foreign exchange 23 5 9
------------ ------------ ------------
Operating cash flows before movement
of working capital (448) (242) (481)
(Increase)/decrease in inventories (442) 407 400
(Increase)/decrease in receivables 104 (414) (1,087)
Decrease in payables (214) (512) (405)
------------ ------------ ------------
Cash utilised in operations (1,000) (761) (1,573)
Corporation tax received - 59 205
Interest paid - - (2)
------------ ------------ ------------
Net cash outflow from operating activities (1,000) (702) (1,370)
------------ ------------ ------------
Cash flows from investing activities
Interest received 2 3 6
Investment in intangible assets (37) (161) (282)
Purchase of property, plant and equipment (2) (23) (27)
------------ ------------ ------------
Net cash used in investing activities (37) (181) (303)
------------ ------------ ------------
Cash flows from financing activities
Proceeds of issue of ordinary share
capital - - 1,300
Costs of issue of ordinary share
capital - - (104)
Repayment of obligations under leasing
activities (15) - (11)
------------ ------------ ------------
Net cash used in investing activities (15) - 1,185
Net decrease in cash and cash equivalents (1,052) (883) (488)
Cash and cash equivalents at beginning
of period 2,126 2,614 2,614
Cash and cash equivalents at end
of period 1,074 1,731 2,126
============ ============ ============
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 30 June 2020
1. CORPORATE INFORMATION
The financial information for the year ended 31 December 2019
set out in this interim report does not constitute statutory
accounts as defined in Section 434 of the Companies Act 2006. The
Group's statutory financial statements for the year ended 31
December 2019 have been filed with the Registrar of Companies. The
auditor's report on those financial statements was unqualified and
did not contain statements under Section 498 of the Companies Act
2006. The interim results are unaudited. Biome Technologies plc is
a public limited company incorporated and domiciled in England
& Wales. The Company's ordinary shares are publicly traded on
the AIM market of the London Stock Exchange.
2. BASIS OF PREPARATION
These interim consolidated financial statements (the interim
financial statements) are for the six months ended 30 June 2020.
They have been prepared in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the European Union. They
do not include all of the information required for full annual
financial statements and should be read in conjunction with the
consolidated financial statements of the Group for the year ended
31 December 2019.
The comparative figures for the first half of 2019 have been
restated to reclassify grant income from Revenue to Other operating
income in accordance with IAS 20 (Accounting for Government
Grants).
These interim financial statements have been prepared under the
historical cost convention. The Directors have considered the
impact of IFRS 3 and IFRS 9 and have concluded that no adjustments
are required.
These interim financial statements have been prepared in
accordance with the accounting policies adopted in the last annual
financial statements for the year to 31 December 2019.
The accounting policies have been applied consistently
throughout the Group for the purposes of preparation of the interim
financial statements.
3. BASIS OF CONSOLIDATION
The Group's interim financial statements consolidate the results
of the Company and all of its subsidiary undertakings drawn up to
30 June 2020. As at 30 June 2020, the subsidiary undertakings were
Biome Bioplastics Limited, Stanelco RF Technologies Limited,
Aquasol Limited and InGel Technologies Limited.
4. GOING CONCERN
The Directors have reviewed forecasts for the period to
September 2021. These have been prepared with appropriate regard
for the current macroeconomic environment including the impact of
Covid-19 and the circumstances in which the Group operates. In
particular the Directors have considered the continuing growth of
the Bioplastics Division, its need for continued investment in
development resource and working capital, the steps they can take
to improve the efficiency of the working capital deployed and the
availability of future funding.
The model has assumed little growth in the period from the
Stanelco RF Division and the Directors have already taken steps to
ensure resources meet current demand.
The Directors believe that the model is resilient to further
limitations arising as a consequence of Covid-19. Other than the
current furlough scheme ending in October 2020 no other
government-backed funding has been assumed in the model.
The Company intends to raise total proceeds of GBP1.1m before
costs, representing GBP1.0m net of costs, via a placing and
subscription of new ordinary shares, comprising a first tranche of
new ordinary shares which would be issued to raise approximately
GBP308,000 pursuant to the Directors' existing share allotment
authorities, with two subsequent tranches of new ordinary shares
which would be issued to raise GBP742,000 and GBP50,000
respectively, subject to, inter alia, approval of shareholders at a
general meeting.
The Directors are satisfied that the Group has sufficient
resources to continue in operational existence for at least one
year from the date of approval of these Interim Results.
5. SEGMENTAL INFORMATION
Biome Stanelco
Revenue from external customers Bioplastics RF Technologies Total
GBP'000 GBP'000 GBP'000
For the 6 months to 30 June 2020
- unaudited 2,117 383 2,500
-------------- ----------------- --------
For the 6 months to 30 June 2019,
as restated - unaudited 1,235 2,163 3,398
------ ------ ------
For the 12 months to 31 December
2019 - audited 2,991 3,966 6,957
====== ====== ======
From the end of the current financial year, the Group intends to
amend its presentation of segmental information by allocating
certain Central Costs to its divisions.
Segmental information has previously treated shared costs e.g.
site rent, as Central Costs. These costs will, in the future, be
reallocated to the business' divisions on a proportionate basis,
using appropriate drivers for allocation based on use. Central
Costs will therefore no longer include the costs associated with
running the operational businesses, and divisional results will be
reported on a fully costed basis. This change is designed to
allowing users of the financial statements to better understand
divisional performance.
6. TAXATION
The Group's policy is to recognise tax credits resulting from
tax research and development claims on a cash received basis. The
claim in respect of the year ended 31 December 2019 has not yet
been settled.
7. LOSS PER SHARE
The calculation of basic earnings per share is based on the loss
attributable to the equity holders of the parent for the period of
GBP821,000 (H1 2019: loss of GBP484,000, FY 2019: loss of
GBP877,000) and a weighted average of 2,798,525 ordinary shares in
issue (H1 2019: 2,365,188, FY 2019: 2,472,038). The calculation
uses the same weighted average number of shares under the basic and
diluted basis in the current and comparative periods due to a loss
being made.
8. OTHER INTANGIBLE ASSETS
Other intangible assets decreased in the period as a result of
the capitalisation of product development costs of GBP37,000 being
lower than the amortisation charge of GBP142,000.
9. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment decreased in the period as a
result of the acquisition of property, plant and equipment of
GBP2,000 being lower than the depreciation charge of GBP44,000.
10. INVENTORIES
The increase in inventories in the period reflects the increase
in raw material orders to support the growth of the Bioplastics
division.
11. TRADE AND OTHER RECEIVABLES
Trade and other receivables have decreased in the period due to
the collection of some large balances in the first quarter, partly
offset by the growth of the Bioplastics division and the timing of
invoicing and shipments around the period end.
12. TRADE AND OTHER PAYABLES
The decrease in trade and other payables during the period
primarily reflects the decrease in activity levels, and equipment
sale deposits, within the Stanelco RF division.
13. RISKS AND UNCERTAINTIES
The principal risks and uncertainties affecting the business
activities of the Group are detailed in the Strategic Report which
can be found on pages 7-14 of the Annual Report and Financial
Statements for the year ended 31 December 2019 ("the Annual
Report"). A copy of the Annual Report is available on the Company's
website at www.biometechnologiesplc.com
The Directors consider that the risks affecting the business
remain similar to those listed in the Annual Report. In summary,
these risks include:
-- the uncertainty arising from the impact of Covid-19. This has
been considered elsewhere in this statement, in particular in the
Outlook section of the Chairman's statement and also in the going
concern review. The Directors believe that a further lockdown in
the UK due to Covid-19 will not significantly adversely impact the
Group but, if necessary, that they will be able to continue the
actions taken in 2020 to date to protect the business
-- changes in the regulatory environments in which the Group operates
-- fluctuations in exchange rates
-- volatility in raw material prices and supply
-- breach of intellectual property rights
-- competitors developing more attractive products
-- failure to commercialise products
-- reliance on a small number of customers for certain products
-- financial risks including exchange rate risk, liquidity risk,
interest rate risk and credit risk
Further details of how these risks impact the business and how
the Directors attempt to mitigate the risks can be found in the
Annual Report.
Copies of this interim report will shortly be available on the
Company's website at www.biometechnologiesplc.com .
Independent review report to Biome Technologies plc
Introduction
We have been engaged by the Company to review the financial
information in the half-yearly financial report for the six months
ended 30 June 2020 which comprises the Consolidated Statement of
Comprehensive Income, Consolidated Statement of Financial Position,
Consolidated Statement of Cashflows and the related explanatory
notes. We have read the other information contained in the half
yearly financial report which comprises only the Chairman's
Statement and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the Directors. The AIM rules of the London
Stock Exchange require that the accounting policies and
presentation applied to the financial information in the
half-yearly financial report are consistent with those which will
be adopted in the annual accounts having regard to the accounting
standards applicable for such accounts.
As disclosed in Note 2, the annual financial statements of the
Group are prepared in accordance with IFRSs as adopted by the
European Union. The financial information in the half-yearly
financial report has been prepared in accordance with the basis of
preparation in Note 2.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the financial information in the half-yearly financial report based
on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, 'Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity' issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
The impact of macro-economic uncertainties on our audit
Our review of the condensed set of financial statements in the
half yearly financial report requires us to obtain an understanding
of all relevant uncertainties, including those arising as a
consequence of the effects of macro-economic uncertainties such as
Covid-19 and Brexit. Such reviews assess and challenge the
reasonableness of estimates made by the Directors and the related
disclosures and the appropriateness of the going concern basis of
preparation of the financial statements. All of these depend on
assessments of the future economic environment and the Company's
future prospects and performance.
Covid-19 and Brexit are amongst the most significant economic
events currently faced by the UK, and at the date of this report
their effects are subject to unprecedented levels of uncertainty,
with the full range of possible outcomes and their impacts unknown.
We applied a standardised firm-wide approach in response to these
uncertainties when assessing the Company's future prospects and
performance. However, no review of interim financial information
should be expected to predict the unknowable factors or all
possible future implications for a Company associated with these
particular events.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the financial information in the
half-yearly financial report for the six months ended 30 June 2020
is not prepared, in all material respects, in accordance with the
basis of accounting described in Note 2.
Use of our report
This report is made solely to the Company in accordance with
guidance contained in ISRE (UK and Ireland) 2410, 'Review of
Interim Financial Information performed by the Independent Auditor
of the Entity'. Our review work has been undertaken so that we
might state to the Company those matters we are required to state
to it in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company for our review work, for this
report, or for the conclusion we have formed.
Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Southampton
23 September 2020
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR FFFFLARIVFII
(END) Dow Jones Newswires
September 24, 2020 02:00 ET (06:00 GMT)
Biome Technologies (LSE:BIOM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Biome Technologies (LSE:BIOM)
Historical Stock Chart
From Apr 2023 to Apr 2024
