12th Sep 2019 11:53
(Alliance News) - Biome Technologies PLC on Thursday said it swung to a loss on a revenue fall in the first half of 2019.
In the six months to June 30 revenue fell by 18% year-on-year to GBP3.6 million from GBP4.4 million. The polymers supplier swung to a pretax loss of GBP484,000 from a GBP216,000 profit in the first half of 2018.
More positively, Biome said it is in the early stages of the commercialisation of three new products, which have started to generate initial revenue.
One product is a new material designed to be used for single serve pods in the sports nutrition market, and another is a material used in compostable disposal cutlery.
The third is a plastic film product for one of Biome's newer clients, it added.
All three products are in its Bioplastics division, which the company said is "continuing towards becoming the principal revenue generator for the group".
The Bioplastics unit delivered a 55% revenue rise to GBP1.4 million from GBP932,000.
The RF Technologies division had a 37% revenue fall to GBP2.2 million from GBP3.5 million. The unit has however secured a GBP1.3 million contract for the supply of fibre optic furnaces in the second half of 2019. Biome expects full-year revenue in the unit to be in line with the GBP7.0 million it delivered in 2017.
Looking ahead, Biome also expects gradual revenue growth from the Bioplastics division, anticipating it to be the larger unit in roughly a year from now.
Chief Executive Paul Mines said: ""The first half of 2019 has seen substantial progress in the commercialisation of three new products in the Bioplastics division with initial revenues in the latter part of the period. Against this backdrop it is anticipated that the group will evolve with the Bioplastics division becoming the principal revenue generator in coming periods."
Separately, the company said on Thursday it has raised GBP1.3 million in a placing of 433,337 new shares. The shares were priced at 300.00 pence each and the proceeds will fund the development of the Bioplastics division.
Shares in Biome were 3.0% lower at 339.50p each in London on Thursday morning.
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