Biome Technologies plc, (LON:BIOM) a leading bioplastics and radio frequency technology business, has announced that it has secured the anticipated contractual commitment with a second US end-customer to accelerate the commercialisation of its proprietary compostable filtration material. This important customer’s business will support a significant portion of the Group’s expected revenue growth in 2021 and beyond.
In the Company’s circular to shareholders at the time of its fundraising last September, Biome identified this project as the most important growth driver for 2021 in support of its ambitious KPIs. In the subsequent trading update on 29 October 2020, it was further stated that the implementation was moving forward assuredly and initial orders were expected later in Q4 2020. These initial orders enabled the customer to test Biome’s material extensively in the production environment, such production being enabled by supplementary equipment provided by the Group’s Stanelco RF Technologies division (“RF Technologies”). This testing has proven successful and commercial production for consumer use began in Q1 2021.
This end-customer has now ordered further equipment, with a value US$70k and to be made by RF Technologies, that will help to unlock the use of Biome’s compostable filtration material on a significant portion of the customer’s installed capacity. It is anticipated that this will lead to significant additional revenues for the Group Bioplastics division during 2021.
This important customer commitment, and the commercial progress described, supports the Board’s expectations of the continued rapid growth of the Bioplastics division and the current market expectations for the Group.
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 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.