RNS Number : 5345D
Biome Technologies PLC
29 October 2020
29 October 2020
Biome Technologies plc
("Biome", the "Group" or the "Company")
Biome Technologies plc, a leading bioplastics and radio
frequency technology business, today provides a trading update for
the nine months ended 30 September 2020.
Revenues in the Bioplastics division in Q3 at GBP1.6m were 48%
ahead of the previous quarter (Q2 2020: GBP1.1m) and 131% ahead of
the prior year comparative (Q3 2019: GBP0.7m).
The division's revenues in the first nine months of the
financial year stood at GBP3.8m, 93% ahead of the equivalent period
last year (2019: GBP2.0m).
Revenues in Q3 reflected strong underlying demand for products
that have been commercialised for some time (e.g. outer packaging
and non-woven filter mesh applications for the US coffee market),
coupled with growing revenues in rigid materials used in coffee
pods. The Board expects revenues in Q4 to be below the Q3 quarterly
level but in line with its expectations for this financial
The Bioplastics division is working with an expanding list of
potential new customers, particularly in the US. Developmental work
related to this continues with some vigour, despite the impact of
Covid-19. In particular, the implementation of a filtration mesh
project with a second US end-customer has moved forward assuredly
and initial revenues are expected later this quarter.
During Q3, the activities of the Bioplastics division were
recognised when Biome received the London Stock Exchange's Green
Economy Mark. The Green Economy Mark, launched in 2019, recognises
listed companies and funds which derive 50% or more of their
revenues from environmental solutions.
Stanelco RF Technologies Division
Revenues in the RF Technologies division in Q3 were GBP0.2m (Q3
2019: GBP0.6m), resulting in revenues in the first nine months of
the financial year of GBP0.6m (2019: GBP2.8m).
The fibre optic cable market, normally a major driver of the
business, remains impacted by both over-capacity and COVID-19
disruption. The division continues to make a concerted effort to
increase its geographic footprint and range of applications and
already benefits from recurring revenue from power generation,
medical and general industrial markets.
The business has continued to win small projects in the UK
induction heating and welding market, but overall demand remains
Total Group revenues in Q3 were GBP1.8m (2019: GBP1.3m) taking
Group revenues for the nine months to 30 September 2020 to GBP4.3m
(2019: GBP4.7m). It is to be noted that all revenue figures in this
statement exclude grant income (GBP38,000 in the third quarter of
this year and GBP124,000 for the nine months).
Costs and capital expenditure continue to be managed tightly and
as the Government furlough scheme ends in October, activity levels
are such that staff are returning to normal duties.
The Group's cash position as at 30 September 2020 was GBP0.9m
(30 June 2020: GBP1.1m) and the Group had no debt.
In September 2020, the Group announced that it had raised
GBP1.1m (GBP1.0m net of costs), via a fundraising made up of three
tranches, to support and accelerate the Bioplastics division's
growth. Shareholder approval was obtained on 12 October 2020 and
the net proceeds from the first and second tranches have now been
received which enhances the Group's cash position from that at the
end of Q3.
The funds from the recent fundraise will support a vigorous
approach to growing the Group's bioplastics business. It is against
the above that the Board expects the full year results to be in
line with current market expectations.
For further information please contact: Biome Technologies
Paul Mines, Chief Executive Officer
Donna Simpson-Strange, Company Secretary
Tel: +44 (0) 2380 867 100
David Hart/Alex Brearley (Nominated Adviser)
Kelly Gardiner (Equity Sales)
Tel: +44 (0) 20 3328 5656
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
value-added pricing can be justified and which 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
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
www.biomebioplastics.com and www.thinkbioplastic.com
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(END) Dow Jones Newswires
October 29, 2020 03:00 ET (07:00 GMT)