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. 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.
The Group is due to announce results for the year ended 31 December 2020 on Thursday, 25 March 2021.