30th Jan 2020 12:17
(Alliance News) - Polymers supplier Biome Technologies PLC on Thursday said it expects annual revenue to be above market forecasts but fall year-on-year following a drop in fibre optic cable prices hurting trading in one of its divisions.
Revenue for the year to December 31 to fall 17% to GBP7.4 million from GBP8.9 million. Biome said this would however be "slightly ahead of market expectations".
At its RF Technologies division, revenue is to fall 43% to GBP4.0 million from GBP7.0 million. The performance is in line with market expectations, Biome added.
Biome said: "The division's principal activity is the sale of furnaces for the production of fibre optic cable. The division undertakes ongoing analysis of the fibre optic cable market and this indicated that prices of such cable began to fall in late 2018 and continued to fall subsequently in the face of global over-capacity.
"As a result, and as previously reported, the board's expectation for the division's performance during 2019 was reduced in line with that intelligence. This over-capacity shows no sign of abating and any recovery in demand is now not anticipated until 2021."
In the Bioplastics unit, revenue climbed 79%, and above market expectations, to GBP3.4 million, from GBP1.9 million in 2019.
The company added that Finance Director Declan Brown will step down at the end of April, for a "new challenge".
"A replacement for the Finance Director post will be sought over the coming months. In the meantime, the board will engage a temporary, experienced executive to ensure that this important role in the Biome team is adequately resourced," Biome said.
Shares in the company were 9.1% lower at 250.00 pence each in London on Thursday afternoon.
By Eric Cunha; [email protected]
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