Biome Technologies revenues in line and cash balances ahead of expectations

Biome Technologies - Biodegradable plastics

Biome Technologies plc, (LON:BIOM) a leading bioplastics and radio frequency technology business, today provided an unaudited pre-close trading update for the financial year ended 31 December 2021.

Group revenues for the year ended 31 December 2021 were in line with current market expectations at £5.6m (2020: £5.7m) and cash balances at the year-end of £1.0m were ahead of those expectations (31 December 2020: £1.7m) because of receipts of deposits from customers and improved working capital management. The Group continues to have no external bank borrowings.

The Board anticipates that, subject to audit, the Group will generate a loss before interest, taxation, depreciation, amortisation and share option charges for the year ended 31 December 2021 that is in line with current market expectations.

The Group’s preliminary results for the year ended 31 December 2021 are scheduled to be published on 24 March 2022.

Bioplastics Division

The division’s revenues for the full year to 31 December 2021 were £4.7m (2020: £4.9m), reflecting the previously highlighted global logistics issues and delays in the implementation of new projects as customers manage their own supply chain problems.

Revenues in Q4 were £1.6m, 35% ahead of the prior year comparative quarter (Q4 2020: £1.2m), and substantially greater than the preceding quarter (Q3 2021: £0.8m). The Board expects revenues in 2022 to be weighted more towards the second half of the year as revenues from new and existing customer implementations are expected to increase.

Stanelco RF Technologies Division

Revenues in the RF Technologies division in Q4 were £0.4m, ahead of the preceding quarter’s revenue of £0.3m, and greater than the prior year comparable (Q4 2020: £0.3m). Revenues for the division for the full year to 31 December 2021 were £0.9m (2020: £0.8m).

Trading is expected to be particularly productive during the first half of 2022 as the recently announced new orders both for fibre optic furnaces and wider industrial applications are delivered.

Group Outlook

The Group ended 2021 with a lower level of revenues than was expected when the year started. However, the Directors are pleased with the improved cash position of the Group which they currently believe should enable Biome to capitalise on the orderbook and pipeline in both divisions. 

The scale of opportunities available to Biome Technologies is now greater than it was at this time last year and the Board remains confident of being able to build on the Group’s prospects during 2022 and thereafter.

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