Biome Technologies strong annual revenue growth of 65% in the Bioplastics division

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 2020.

Group revenues for the year ended 31 December 2020 were broadly in line with market expectations at £5.7m (2019: £6.9m) following strong annual revenue growth of 65% in the Bioplastics division.

Cash balances at the year-end were £1.7m, following the net £1m equity fundraising announced in September 2020 (30 September 2020: £0.9m).

The Board anticipates that, subject to completion of the audit process, the Group will generate a loss before interest, taxation, depreciation, amortisation and share option charges for the year ended 31 December 2020, which will be in line with current market expectations.

The Group’s preliminary results for the year ended 31 December 2020 are scheduled to be published on 25 March 2021.

Bioplastics Division

The division’s revenues for the full year to 31 December 2020 were £4.9m, 65% ahead of full year 2019 revenues of £3.0m. Revenues in Q4 were £1.2m, 20% ahead of the prior year comparative quarter (Q4 2019: £1.0m), but lower than the preceding quarter (Q3 2020: £1.6m) as indicated in the Company’s Trading Update on 29 October 2020.

The Board expects significant revenue growth from this division in 2021, with further product implementations in progress with both existing and new customers.

Stanelco RF Technologies Division

Revenues for the division for the full year to 31 December 2020 were £0.8m, £0.3m being generated in Q4, slightly ahead of the preceding quarter’s revenue of £0.2m. This subdued revenue level reflects the on-going over-capacity in the division’s main fibre-optic cable market.

The division has substantially reduced its overheads in the last year and is focussing on growing its presence in its other markets, resulting in a growing pipeline of opportunities. The Board is continuing to monitor the division’s trading outlook carefully.

Group Performance

Throughout the Covid-19 pandemic, the Group has continued its manufacturing and development operations in conformance with Government advice, ensuring the safety of staff. The Group continues to make selective use of the UK Government’s Job Retention Scheme for staff within the Stanelco RF Technologies division.

Whilst the Board anticipates the Group’s loss before interest, taxation, depreciation, amortisation and share option charges for the year to be in line with current market expectations, the Statutory Underlying Loss is likely to be below market expectations due to a larger than anticipated non-cash share-based payment charge.

The Group’s cash position as at 31 December 2020 was £1.7m (30 September 2020: £0.9m). In Q4, the cash position was increased by the equity fundraising announced in September 2020 of £1.0m (net of costs), to support the continuing growth of the Bioplastics division. The remainder of the change in the Group’s cash position was a result of trading performance in the quarter. The Group has no debt.

Group Outlook

Whilst the longer-term outlook for the Stanelco RF Technologies division is slightly more encouraging than in 2020, the Board expects that headwinds will continue in the short term.

The underlying trends and technical innovation that have driven growth in the Bioplastics division are anticipated to continue as consumers increasingly demand that plastic waste is managed in a better manner. The projects that underpin the division’s expected growth in 2021 are proceeding well.

The Board remains confident of meeting market expectations in 2021.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
BiomeTechnologies

More articles like this

BiomeTechnologies

Bioplastics, the green alternative…

Single-use plastics are a major contributor to the fast accumulating plastic waste. Today, Bioplastics have increasingly become the main focus of attention as an alternative to conventional plastics. Understanding Bioplastics Bioplastic refers to biodegradable plastic made through biochemical processes from biomass materials,

BiomeTechnologies

Can bioplastics save us from drowning in our own waste?

Ever since Prime Minister Narendra Modi called out against the use of single-use plastics (SUPs) in his 73rd Independence Day speech, stakeholders have been holding their breath waiting for the other shoe to drop. Approximately 25,940 tonnes per day

BiomeTechnologies

The bioplastics industry: Where it is and where it’s going

Even though it is likely to remain a niche, the bioplastics industry should see significant growth over the next five years. That’s due largely to two reasons. The first is environmental. Bioplastics typically have two environmental benefits: a

BiomeTechnologies

Bioplastics: The evolution of polymers

From their inception over 100 years ago, plastics have become indispensable to our daily lives. In 1907 Leo Baekeland added phenol to formaldehyde to form Bakelite. Leo became a very wealthy man and the world became a very

BiomeTechnologies

OXO Biodegradable Plastic

Biome Technologies plc 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.

BiomeTechnologies

Biome Bioplastics proud to support BSI’s new report

Industrial biotechnology has the potential to significantly reduce CO2 emissions. By embedding biotechnology at the heart of industrial processes and products, it can help to support the UK Government’s target of doubling the bioeconomy to £440 billion by