27th Jun 2016 06:53
LONDON (Alliance News) - Biome Technologies PLC on Monday said that, although its financial performance is expected to improve during 2016, its results will fail to meet board expectations after revenue came in lower than expected during the first half of the year.
The bioplastics and radio frequency technology business said revenue in the first half came in at GBP2.2 million, only a touch higher than the GBP2.1 million generated in 2015 and below the company's target for the period.
This shortfall is due to a reduced demand for already commercialised products in the Bioplastics Division and some slippage of the Stanelco RF's division's order pipeline into the second half, Biome Technologies said.
"Group revenues at the mid-year point are behind the board's expectations. Whilst margins have been robust and the operating loss for the period is anticipated to be lower than for the same period in 2015, it will be behind the board's expectations," said the company.
"Whilst the board is confident that revenue growth should accelerate in the second half of the year, it is now likely that the group's full-year performance will be significantly behind current market expectations, with the board now expecting group revenues for the year to December 31, 2016 to be only marginally ahead of those achieved in the prior year," Biome Technologies added.
The Bioplastics Division suffered a steep fall in revenue during the first half of the year to GBP600,000 from GBP1.0 million a year ago, whilst the other unit, Stanelco RF Technologies, reported a rise in revenue to GBP1.6 million from GBP1.3 million.
Biome said both those divisions failed to hit their respective revenue targets in the period.
By Joshua Warner; [email protected]; @JoshAlliance
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