28th Mar 2019 11:00
LONDON (Alliance News) - Biome Technologies PLC on Thursday expressed confidence for the year ahead as it swung to profit in 2018 on strong performance of its Stanelco RF division.
The polymers supplier said it swung to a pretax profit of GBP84,000 in 2018 compared to GBP442,000 loss reported a year earlier, as revenue rose by 44% to GBP8.9 million from GBP6.2 million.
The Stanelco RF division's revenue increased to GBP7.0 million from GBP4.0 million in 2017 as the division benefited from exceptional demand in the fibre optic furnace market.
Within the Stanelco RF division, headcount increased by four employees, relating mainly to increased engineering requirements and sales personnel to cover the manufacturing and delivery requirements.
Overall, headcount rose to an average of 37 employees in 2018 from an average of 27 employees the year prior.
However, revenue in the Bioplastics' division decreased in the year to GBP1.9 million from GBP2.3 million the year before, as a result of lower demand for outer packaging for the US single-serve coffee market. This decrease was partially offset by increases elsewhere in the division's other product lines, including the biodegradable non-woven filter for coffee pods.
"2018 saw an exceptionally good performance from the group's Stanelco RF division in both revenue and profitability. For the Bioplastics division, the public's change in perception of plastic waste has ushered in an increase in the number of customer-led projects that will lay the foundations for growth for 2019 and the coming years," said Chief Executive Paul Mines.
"As a result, the board is confident in the group's outlook for 2019," Mines added.
The stock was trading 5.9% lower on Thursday at 381.00 pence a share.
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