24th Jan 2019 09:20
LONDON (Alliance News) - Biome Technologies PLC on Thursday said it expects a jump in its annual revenue, helped by a strong performance in its Radio Frequency unit.
The firm, however, guided for a significant drop in revenue for its Bioplastics division.
Biome Technologies shares were trading down 24% at 520.00 pence each on Thursday morning.
For 2018, the bioplastics and radio frequency technology business said it expects group revenue to have risen 42% to GBP8.8 million from GBP6.2 million the prior year.
Revenue in the Bioplastics division is expected to have fallen 17% year-on-year to GBP1.9 million from GBP2.3 million due to "significantly lower sales of outer packaging" for the US single serve coffee market.
However, revenue in Radio Frequency Technologies for 2018 is forecast at GBP7.0 million, up 75% year-on-year from GBP4.0 million.
"Very strong demand in the fibre optic furnace market for Far Eastern markets has been the prime driver of the increase in sales in 2018. Whilst enquiry levels remain encouraging for 2019, the firm order book now is, at present, lower than the comparative period in 2018," Biome said.
Looking at 2019, the company said it expects Radio Frequency revenue to be higher than 2017 but lower than the "exceptional" 2018.
"As 2019 unfolds, we expect a gradual but substantial increase in Bioplastics revenues. This trend should be encouraging for investors and should reward their patient support for our development of new materials in an area of outstanding business potential," it added.
Biome will publish its annual results on March 28.
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