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:
Facebook
Twitter
LinkedIn
Biome Technologies

More articles like this

Biome Technologies

Bioplastics are paving the way to Sustainable Packaging

The packaging industry is increasingly moving towards sustainability due to growing environmental concerns such as plastic pollution and greenhouse gas emissions. Awareness of the long-term impact of single-use plastics on ecosystems and wildlife has heightened. As

Biome Technologies

Biome Technologies AGM will be held on 29 May 2024

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 29 May 2024 at 09:30 am at the offices of Allenby Capital

Biome Technologies

Biome Technologies reports 12.7% revenue growth

Biome Technologies, an AIM-listed technology group, has seen a significant shift in its operational focus and financials, as revealed in its 2023 final results. The company, which operates through two main divisions – Bioplastics and RF

Biome Technologies

The role of Bioplastics in reducing plastic pollution

As concerns increase about plastic pollution—especially from single-use plastics—bioplastics are garnering interest for their potential role in the development of a circular economy for plastics. Bioplastics, which are made with organic, plant-based resources, are viewed as an important

Biome Technologies

Introducing Vigilis-Bio tree shelters

Biome Technologies plc (LON:BIOM) is a growth oriented, commercially driven technology group. The Group’s primary activity is the development of its fast growing business in bioplastics. The Group comprises two divisions: Biome Bioplastics and Stanelco RF Technologies.

Biome Technologies

Vigilis Tree Shelters achieves ISO 9001 certification for quality management

Vigilis Tree Shelters Ltd has been awarded ISO 9001 certification. This internationally recognised standard demonstrates our commitment to quality management and continuous improvement. Achieving ISO 9001 demonstrates our dedication to: – Consistent product quality: We have robust quality control

Biome Technologies

The rise of Compostable Packaging

Most in the packaging industry agree that circularity is the way forward. Many are employing innovative materials and design techniques to create packaging that is either reusable or recyclable, but there is a third route to

Biome Technologies

What is Biodegradable Packaging?

As the world becomes more environmentally conscious, there is an increasing demand for sustainable packaging solutions that reduce waste and minimize environmental harm. Biodegradable packaging is one such solution, gaining popularity across industries. Biodegradable packaging is

Biome Technologies

Assessing the potential of Bioplastics

Plastic waste has led the global conversation on recycling and solid waste for decades. Bioplastics are a plastic derived from biological substances, and can be an effective alternative in reducing the environmental impacts of plastic usage. Research