Biome Technologies working hard to convert its prospect pipeline into firm orders

Biome Technologies plc (LON:BIOM), a leading bioplastics and radio frequency technology business, has provided an unaudited pre-close Trading Update for the financial year ended 31 December 2022.

Group revenues for the year ended 31 December 2022 were in line with current market expectations at £6.2m and 10% ahead of the previous year (2021: £5.7m).

The Group had a cash balance at the year-end of £0.8m, which is also ahead of those expectations (31 December 2021: £1.0m). This was supported by a reduction of working capital in the Group’s supply chain and prompt payments from customers. 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 2022 that is in line with current market expectations.

The Group’s preliminary results for the year ended 31 December 2022 are scheduled to be published on 26 April 2023.

Bioplastics Division

The division’s revenues for the year to 31 December 2022 were £4.4m (2021: £4.8m). As set-out in previous Trading Updates, this reflected the large reductions in demand for a single long-standing customer of Biome’s materials used in packaging films. This was offset substantially by orders from new customers in both North America and Europe primarily related to film products.

Constraints which had been impacting orders from a second US end customer following its conversion to our biodegradable coffee filtration did clear, as expected, and a substantial increase of order quantities were received for delivery in Q4 2022. Encouragingly, this increased demand has continued into 2023 and is underpinning divisional revenues for Q1.

The further important opportunities detailed in the 10 November 2022 Trading Update, but not included at scale in management’s expectations for 2023 continue broadly as expected, but with no clear timetable to revenue delivery as yet.

Stanelco RF Technologies Division

Revenues in the RF Technologies division in 2022 were £1.8m (2021: £0.9m). This uplift was driven by substantial orders both for fibre optic furnaces and wider industrial applications won in late 2021 and early 2022.

The division enters 2023 with several significant prospects for 2023, but with a much lower confirmed order book than at this time in 2022. Therefore, we believe it is prudent to reduce our expectations for the RF Technologies division in the current year, pending the finalisation of further customer discussions.

Group Outlook

Whilst we are cautious in our expectations for the RF division, particularly in the current economic environment, the team is working hard to convert its prospect pipeline into firm orders.  The Bioplastics division has started 2023 in an encouraging manner.  The Board looks forward to providing an update on the Group’s performance at the time of the full year results in April.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Share on facebook
Share on twitter
Share on linkedin
Biome Technologies

More articles like this

Biome Technologies

2023 bioplastic companies: The best

Plastic is an inescapable element in modern society, used in the packaging of food and beverages, as well as in the production of tubes, clothing, vehicles and aircraft. Its use is essentially based on fossil fuel sources. Although its recycling

Biome Technologies

Top 5 bioplastic companies

Plastic is an omnipresent material in modern life. We use it for packaging food and drink, and in manufacturing like making pipes, clothing, or even cars and airplanes. This is also a material made almost exclusively from fossil

Biome Technologies

Biome Technologies AGM to be held on 25th May 2023

Biome Technologies plc (LON:BIOM), a leading bioplastics and radio frequency technology business, has announced that the Annual General Meeting of the Company will be held on Thursday 25 May 2023 at 09:30 am at the offices of Allenby Capital

Biome Technologies

14 tonnes of compostable packaging – on trial!

With compostable packaging increasingly in demand, some voices are questioning whether these materials can break down in UK composting facilities – at scale. An item may hold compostability certification, but does that mean it can successfully break down

Biome Technologies

Unpacking the future of bioplastics

Plastic is as essential as its current manufacture is unsustainable. But locals are making big strides towards sustainability. Ask someone (except perhaps a chemical engineer) what bioplastic is and the common answer will be plastic that is made

Biome Technologies

Which label can I trust for my compostable packaging?

Rising awareness of the effects of climate change and plastic pollution from packaging has led consumers to be more conscious of the environmental impact of their buying choices. This has led to a surging interest in sustainable packaging alternatives, including compostables.

Biome Technologies

Vigilis-Bio reaches 5-year research milestone

April 2023 will mark 5 years of research, development and infield testing of the Vigilis-Bio Tree Shelter and mark over 2 years of Vigilis-Bio shelters being planted in situ across the UK and US. A truly innovative tree

Biome Technologies

Tree shelters: Redditch, Worcestershire

The Challenge The aim was to establish mixed broadleaf trees on farmland adjacent to existing woodland, where Roe deer and rabbits are plentiful. The site falls within the HS2 ‘buffer’ zone and therefore attracts strong incentives for landowners

Biome Technologies

Tree shelters case study: Queen Elizabeth Jubilee Wood

The Challenge The first phase of the Queen Elizabeth Diamond Jubilee Wood was planted in 2012, with a further tranche of planting work taking place in 2019/20. The very wet planting season delayed the start, so there was

Biome Technologies

Biodegradable tree shelters case study

Redditch, Worcestershire – Vigilis Tree Shelters The Challenge The aim was to establish mixed broadleaf trees on farmland adjacent to existing woodland, where Roe deer and rabbits are plentiful. The site falls within the HS2 ‘buffer’ zone and

No more posts to show