News

Biome Technologies plc’s pre-close trading statement for the financial year ended 31 December 2015 is set out below.

Group revenues for the year reached £4.9m, a 37% increase on the revenues of £3.6m reported for 2014.

The Group made a small profit before interest, tax, depreciation, amortisation, and incentive scheme charges in the second half of 2015 (based on unaudited management accounts). This builds on the achievement of meeting this long term strategic KPI on a similar basis for the first time in the third quarter of 2015.

Revenues in the Bioplastics division reached £1.9m, an increase of 29% on the 2014 revenue of £1.4m. A new temperature resistant material is now in its commercialisation phase and is providing an additional revenue stream.

The RF division finished the year strongly and achieved full year revenues of £3.0m, a 42% increase on the 2014 revenue of £2.1m. This revenue growth was achieved across a broader spread of equipment types than in previous years. A robust order book for the first half of 2016, including the previously announced delivery of the advanced analytical equipment to a regulated industry, is in place.

The Group’s cash position at 31 December 2015 was £1.6m (30 September 2015: £1.7m).

Consequently, the Board expects the financial performance for the full year of 2015 to be above the market’s current expectations. Trading in 2016 has started in an encouraging manner.

The preliminary results for the year ended 31 December 2015 are scheduled to be published on 30 March 2016.

Highlights

• Group financial performance in line with expectations
• Operating loss reduced to £1.7m (2012: £2.1m)
• Cash position at 31 December 2013 was £3.3m
• Considerable new revenue streams generated in Biome Bioplastics division with further promising technical progress on pipeline of products
• Stanelco Radio Frequency (RF) Technologies division’s order-book improving. Recently signed a substantial contract to supply advanced analytical equipment based on the Group’s induction heating technology
• Settlement of legacy leases and capital reorganisation has ensured the Group is in robust structural shape.

Paul Mines, Chief Executive, said:

“The Board’s confidence in the Group’s near term revenue growth potential is improving as illustrated by the recent contract award for our RF Division. Both the Bioplastics and RF Technologies’ order pipelines are currently well ahead of 2013 levels, with increasing testing and development work being undertaken by our customers providing us with confidence in the potential commerciality of a number of products.

The Group is in good structural shape and we are already seeing our technology begin to exhibit some of its exciting potential. We look forward to improving the Group’s performance through 2014 and beyond.”