29th Jan 2015 09:32
LONDON (Alliance News) - Biome Technologies PLC Thursday said it is hoping that trading for its bioplastics division is starting to "normalise" after it won "significant" orders worth about GBP0.4 million in total for delivery in the first quarter of 2015.
The company had previously warned that it was being hit by reduced demand for its single-serve coffee pods in the US as its main customer there faced "competitive challenges to its coffee brewing technology". It had said recently that that the technical issue had been resolved.
The drop in demand had a big impact. Biome said Thursday that revenue in its bioplastics unit had been GBP1.1 million in the six months to June 30, but slumped to just GBP0.3 million in the six months to end-December.
"The board noted in its trading statement of 22 January 2015, that whilst this problem had been resolved technically, demand was yet to normalise. The board believes that the orders, referred to above, are an encouraging indication that normalisation is underway," the company said in a statement Thursday.
Still, Biome Technologies shares were down 8.3% at 110.00 pence Thursday morning,
By Steve McGrath; [email protected]; @stevemcgrath1
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