24th Apr 2019 10:04
LONDON (Alliance News) - Biome Technologies PLC on Wednesday said 2019 has commenced in an encouraging manner, particularly for the Bioplastics division.
The stock was up 11% in morning trade at 393.00 pence a share.
The radio frequency technology and biodegradable plastics company said revenue in the three months to the end of March was GBP2.1 million, up 11% compared to GBP1.9 million reported for the final quarter of 2018 and in line with the first quarter last year.
Biome Tech said it has made a small profit before interest, tax, depreciation, amortisation and share option charges in the recent quarter.
On a divisional basis, revenue in the Bioplastics unit in the first quarter rose to GBP600,000 compared to GBP400,000 a year earlier, helped by increased sales of outer packaging for the US single-serve coffee market.
The company said it commenced initial sales of a novel, compostable material for single-serve coffee pods. Progress on other projects, such as a rigid ring material and a plastic film-based product for the North America market, remain on track, Biome Tech said, with the first revenue anticipated in the second quarter of 2019, following completion of final testing.
Meanwhile, the Stanelco RF Technologies division revenue was GBP1.5 million in the first quarter, in line with the final quarter, but down from GBP1.7 million reported in the first quarter of 2018.
The company noted that the recent quarter was helped by the delivery of multiple fibre-optic furnaces which will not occur to the same extent in the second quarter.
Looking ahead, Biome Tech said it believes that revenue from this division for 2019 will be in line with previous guidance but more likely to be closer to that of 2017 than 2018, which was an exceptional year.
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