27th Mar 2014 13:28
LONDON (Alliance News) - Biome Technologies PLC Thursday posted a widened pretax loss, as revenue declined in 2013 and the company sold its 50% share in Biotec Holding GmbH in 2012 to refocus its business.
The company posted a pretax loss of GBP2.6 million for 2013, widened from a pretax loss of GBP2.1 million in 2012, as revenue declined to GBP2.0 million from GBP5.7 million in the previous year. Biome also posted GBP900,000 in exceptional costs relating to the surrender of long-term leases on two surplus industrial units, and costs incurred in the company's share consolidation and capital reduction.
The decline in revenue was as a result of drops at the company's Biome Bioplastics and RF Technologies divisions. In Biome Bioplastics revenues fell 71% as it refocused away from lower-margin single-use plastic bags after selling its 50% shareholding in Biotec.
The company said this division was focused on commercialising bioplastics in product and application areas where it believes it has differentiated products and intellectual property.
In RF Technologies, revenues dropped 57% due to continued turbulence in the Chinese fibre optic market, leading to a drop in furnace orders.
Although revenue dropped significantly, this was partly offset by lower sales costs, as the company improved its margins and continued cost reduction exercises.
The company said it underwent a capital reduction and share consolidation during the year in order to reduce its administration costs and provide an exit for shareholders who had little economic interest in the company.
Despite its weaker results, Biome expressed confidence for 2014, as the order pipelines for both its Bioplastics and RF Technologies businesses stood in the first months of 2014 at levels ahead of 2013. On Monday, the company had said it won a contract in the RF Technologies business which it expects to generate revenues of over GBP1.5 million over two years.
The company said it looks forward to improving its performance in 2014 and beyond.
Shares in Biome were trading down 6.5% at 151.00 pence Thursday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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