22nd Sep 2022 10:53
(Alliance News) - Biome Technologies PLC on Thursday reported that logistical difficulties were taking their toll on the company's future revenue.
Shares in the bioplastics and radio frequency technology firm were trading 48% lower at 87.75 pence each.
The company reported a pretax loss of GBP667,000 in the six months to June 30, narrowed slightly from GBP790,000 the year before.
Revenue declined 7.7% to GBP2.4 million from GBP2.6 million the year before. New customers acquired over the past few years now count for 32% of revenue in the bioplastics division, the company noted.
However, revenue for 2022 and 2023 will now be "substantially below current market expectations" due to supply chain problems and concerns over consumer demand.
Biome said revenue from its supply of biodegradable coffee filter material to a large US customer is expected to be "significantly lower than previously expected" because of engineering issues at the customer's facilities. Raw material delays and uncertainty over customer behaviour have also delayed the customer launches.
Its Stanelco RF Technologies division is also facing delays on shipments due to "elongated lead-times", though shipments are expected to occur in the second half of 2022. The Stanelco division increased its revenue by 25% to GBP400,000. The company said "enquiry levels remain encouraging".
Biome is taking a "very cautious approach" and said that further delays and a scaling back of volumes are inevitable in the shorter term.
Chief Executive Officer Paul Mines said: "Growth has been limited in both divisions in the first half by ongoing supply challenges. The trading environment for Biome Bioplastics is becoming more difficult with a number of factors impacting our revenue expectations for this year and 2023. We continue to work with our customers on new products that we believe will unlock more value and I am particularly encouraged by the diversification of our customer base and applications in both divisions."
By Chris Dorrell; [email protected]
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