25th Mar 2015 11:35
LONDON (Alliance News) - Biome Technologies PLC Wednesday posted a narrowed pretax loss for 2014 due to revenue growth in both of its divisions, and improved margins, and it expressed confidence in its prospects for 2015.
Biome has two divisions, one which develops and makes plastic from renewable energy sources called bioplastics, and one which builds and services advanced radio frequency systems called Stanelco RF Technologies.
The company posted a pretax loss of GBP1.3 million, narrowed from a pretax loss of GBP2.6 million a year before, as revenue rose to GBP3.6 million from GBP2.0 million and exceptional costs did not recur.
In the previous year the company posted GBP900,000 in exceptional costs, primarily related to a settlement agreement with a landlord over two surplus industrial units.
In Bioplastics revenue rose to GBP1.5 million from GBP1.0 million, as a focus on higher margin products offset disruption in the second half due to short term technical issues experience by its end customers in the single-serve US coffee market. These issues now seem to be resolved, Biome said, with orders back at comparable levels to the first quarter of 2014.
Revenues more than doubled in Stanelco as it increased its product range, and saw more demand from customers in the optic fibre market as they invested in new capacity.
Biome said that trading to date in 2015 in both divisions is in line with its expectations, and it continues to manage cash prudently.
"The group's business is developing strongly and we are confident of the prospects for the coming year," said Chief Executive Paul Mines in a statement.
Shares in Biome are trading up 0.8% at 85.70 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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