News

Biome Technologies plc announces its audited Final Results for the year ended 31 December 2019.

Highlights:

Final Results

• 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)

Covid-19 Update

• 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.

Following input from the Group’s auditors, Grant Thornton UK LLP, the Board is falling in line with the guidance from the FCA and the FRC and is delaying the publication of its final results for the year ended 31 December 2019 and audited annual report, previously scheduled for 26 March 2020, until such time as the FCA and FRC have provided clearer guidance.

The Group’s results for the year ended 31 December 2019 remain in line with the guidance given in the trading statement of 30 January 2020, based on the Company’s unaudited management accounts. The Board will provide further guidance in relation to the outlook for the year ending 31 December 2020 and beyond when the final results are published.

More details can be found here

 

Biome will be presenting and exhibiting at the popular “Mello London”, investor event on Tuesday 12th November.

Details can be found here.

Come along to hear about Biome and its exciting prospects.

The company has announced a Proposed Placing of £1.3m, Directors’ Placing participations and related party transactions and the Notice of General Meeting and the detail can be found here.

The Group has published its interim results covering the first half of 2019 and the information can be found here.

The Group published its Trading Update on 22 July 2019 and reported total Group revenues for the first half of the year were £3.6m (H1 2018: £4.4m) with the Bioplastics division reporting a 53% increase in revenues over the same period in the prior year.

The full release can be read here.