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.
6
February 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
an unaudited pre-close Trading Update for the financial year ended
31 December 2023.
Group revenues for the year ended 31
December 2023 were in line with current market expectations at
£7.0m and 13% ahead of the previous year (2022: £6.2m).
The Group had a cash balance at the
year-end of £0.6m (31 December 2022: £0.8m) and had 2026
convertible loan notes outstanding of £0.85m and no bank
debt.
The Group's results for the year
ended 31 December 2023 are scheduled to be published on 29 April
2024.
Bioplastics Division
The division's revenues for the year
to 31 December 2023 were £6.0m, an increase of 36% on the prior
year (2022: £4.4m).
The significant increase in revenues
for the Bioplastics division was driven by existing customers
initiating larger orders and a broadening of the customer and
application base in North America.
Particular success has been achieved
with the deployment of bioplastic polymer grades that are suitable
for making filmic materials that can be certified as "Home
Compostable". The market for home compostable materials appears to
be growing strongly and is a trend considered likely to continue.
Significant development focus is being deployed by Biome to extend
the division's range of home compostable materials to the market
and it was pleasing to receive the grant of a European Patent early
in 2024 that underpins this new technology.
To continue to drive this growth in North
America, we have further strengthened our customer facing team in
Canada to build on Biome's growing brand presence and customer
awareness.
Stanelco RF Technologies Division
Revenues in the RF Technologies
division in 2023 were £0.9m (2022: £1.8m). The reduction in sales
reflects the timing of receipt of contracts and revenue recognition
in line with IFRS 15.
In the November 2023 Trading Update,
we stated that the division was in extended discussions with
several potential customers regarding contracts that would have
revenue and profit recognition potential of significance for 2024.
The negotiations regarding these contracts have advanced
significantly in recent weeks and we are confident of bringing them
to conclusion in the relatively short-term.
Group Outlook
The Board is pleased with the strong
progress of the Bioplastics division throughout 2023 which
continues to grow strongly in the face of some global headwinds,
evidencing the division's resilience. It is encouraging to see the
ongoing diversification of the customer base that will provide a
broader platform for further growth in due course, in line with our
stated strategy.
Whilst there have been timing delays
in progressing some of the RF division's projects of scale,
negotiations in relation to two of these are now progressing well
and the Board remains confident that these should successfully
complete in the relatively short-term.
The Group expects the current
financial year to build on the trading momentum being established
in both divisions.
-Ends-
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For
further information please contact:
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Biome Technologies plc
Paul Mines, Chief Executive
Officer
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Rob Smith, Chief Financial
Officer
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www.biometechnologiesplc.com
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Tel: +44 (0) 2380 867 100
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Allenby Capital
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David Hart/Alex Brearley (Nominated
Adviser)
Kelly Gardiner/Tony Quirke (Sales
and Corporate Broking)
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www.allenbycapital.com
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Tel: +44 (0) 20 3328 5656
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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 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
www.biomebioplastics.com
and www.thinkbioplastic.com
www.stanelcorftechnologies.com