Biome Technologies plc announces its audited Final Results for the year ended 31 December 2019.
- A strong year for the Bioplastics division with reported revenue growth of 81% over 2018 and enters 2020 with its strongest pipeline of customer positions and prospects
- Stanelco RF division revenues, as expected, returned to a more normalised revenue level after the exceptional demand levels experienced in 2018
- Reported Group EBITDA loss of £0.5m (2018: EBITDA profit of £0.6m), in line with expectations, with Group operating loss of £1.0m (2018: profit of £0.1m)
- Group cash position at 31 December 2019 was £2.1m (31 December 2018: £2.6m)
- The Group has been monitoring the impact of Covid-19 since the outbreak began and is caring for its staff and customers and adjusting its continuing commercial and manufacturing activities accordingly
- Bioplastics division is in a strong growth phase, with the many market opportunities expected to grow this year in the food and beverage sector, particularly in the USA and with new opportunities continuing to emerge
- The Group is focussed on taking best advantage of these opportunities although there may be supply chain disruption as well as potential impact in demand for these products in the near future
- Stanelco RF division will be more adversely impacted than the Bioplastics division. The large Stanelco RF customers are based in China and India and there is an economic slowdown in these territories in addition to pre-existing overcapacity in the optical fibre market
- The Board believes Covid-19 will further delay any upturn in orders for Stanelco RF’s furnaces
- The Board is implementing a number of measures to reduce the Group’s costs and manage its cash-flow. These include:
- A voluntary 20% reduction in base salary for the Executive Directors and NonExecutive Directors for a period of three months from 1 May 2020
- Use of the UK Government’s “furlough scheme”
- Curtailment of any discretionary operational and capital expenditure
- Impact of Covid-19 on Biome during the first quarter of 2020 was limited, with trading in the quarter in line with management’s expectations at the time of the Group’s trading update on 30 January 2020
- As at 14 April 2020 the Group had a cash balance of £1.7m and no debt
Paul Mines, Chief Executive Officer said: “2019 saw an encouraging performance from the Group’s Bioplastics division in terms of revenue growth and a broadening of its customer and product base. The demand for bioplastic packaging from the coffee sector that underpins the division’s revenues is showing resilience in the current crisis. We will continue to work our cash resources to maximise our ability to overcome the challenges posed by Covid-19 and deliver good medium-term growth for shareholders”.
Full results can be read here.