Trading Update

RNS Number : 0309W

Biome Technologies PLC

04 November 2014

 



04 November 2014

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 nine months ended 30 September 2014.

Total Group revenues achieved for the third quarter were £0.5m (Q3 2013: £0.6m) taking Group revenues for the nine months to 30 September 2014 to £2.8m, 85% ahead of the same period in 2013 (2013: £1.5m). The Group's cash position as at 30 September 2014 was £2.8m (30 June 2014: £3.1m).

Bioplastics Division

Revenues for the Bioplastics division in Q3 were £0.1m (Q3 2013: £0.4m), down substantially on the previous two quarters.  Offtake reduced to the single-serve coffee market in the USA as the main customer responded to technical challenges in the market place and ran down stocks ahead of re-launches. The Board believes that these effects are temporary and that revenue growth will resume in the near future.

Further progress was made in the development of the pipeline of new bioplastic polymers with technical and customer trials continuing in both the food service and paper-board coating sectors. The business launched a new product in September, formulated to improve both speed and performance in 3D printing applications, whilst retaining impeccable environmental credentials.  This is the division's first foray into this emerging sector and initial response from end-use customers is encouraging.

Earlier in the year, the division announced the successful completion of a feasibility study undertaken in conjunction with the University of Warwick and supported by Innovate UK (formerly the Technology Strategy Board).  This study examined the feasibility of producing a bacterially derived lignin-based alternative to the oil-based chemicals used in the manufacture of bioplastics.  The Board is exploring options for further scale-up of this technology and is awaiting the result of a further grant application to Innovate UK. The result of this application is expected in the near future.

Stanelco RF Technologies Division

Revenues for the RF division remained firm at £0.4m (Q3 2013: £0.2m). Demand from the optical fibre furnace market in Asia continues to underpin revenues whilst products for a broader portfolio of market applications are progressing well.  The unit's order-book into 2015 is robust and recruitment has been recently completed to extend both capacity and capability.

Outlook

The Board remains confident of meeting market expectations for 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: [phone]
Daniel Stewart & Company plc
Paul Shackleton (Nominated Adviser) Mark Treharne (Broker)
www.danielstewart.co.uk	Tel: [phone]
Allenby Capital
Chris Crawford/Kelly Gardiner
www.allenbycapital.com	Tel: [phone]
FTI Consulting
Oliver Winters www.fticonsulting.com	Tel: [phone]

 

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