Positive trading updates sees Biome Technologies’ shares soar

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Sam Pither

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Shares in Southampton-based bioplastics and radio frequency technology firm Biome Technologies have jumped by more then 60 per cent following a positive unaudited trading update.

The rise comes after the company reported revenues for the quarter ended 30 September 2022 of £1.9 million, 77 per cent ahead of the same period in 2021.

Source: Google Finance, 16:55, 10/11/22

Part of this is down to the receipt of revenues delayed in the previous quarter, as anticipated by the firm’s management.

It means group revenues for the nine months ended 30 September have reached £4.3 million, in comparison to £3.6 million for same period in 2021.

As of 30 September, the Group has a cash balance of around £0.5 million, with no bank debt and access to a working capital facility of up to £600k.

The company said it is planning to change its forecasting methodology to only include new customer prospects in management expectations once large-scale commercialisation is proven in an effort to give a more consistent view of the Biome’s performance.

In its update to the London Stock Exchange, Biome said: “The Board believes that the change to forecasting methodology outlined above will, in the current economic circumstances, provide a more consistent basis by which the performance of Biome can be judged.

“This change to methodology has resulted in a marginal reduction in the Board's view of full year revenues for 2022 but no change to its view of loss before interest, depreciation, amortisation and share option charges or anticipated 2022 year-end cash. The Board's view of expected financial performance in 2023 is unchanged.

“The Board has sought to provide investors with as clear a view as possible on its expectations for the Company. Whilst the expected growth rate in the Bioplastics division has not taken place in 2022, there are encouraging signs from the uptick in demand from the large opportunity we have been pursuing for some time; growth from the broadened customer base and the portfolio of scale opportunities that the division has been developing.

“The market continues to demand highly functional bioplastic materials and the Company is in a good position to deliver these.”

Back in September, Biome received £244,000 in funding from Innovate UK.

Featured image: iStock

Sam Pither

Sam is the Regional Editor of Biz News, responsible for both Hampshire and Dorset. A new recruit to journalism, Sam started writing for the Business Magazine as a freelancer in May of 2022 after completing his degree in English at University College London. His passion for local businesses and ability to tell a story soon caught the attention of the publication’s management team and have led to his meteoric rise. Sam, who lives in central Reading, takes a particular interest in technology, gaming and food and drink, having been a chef before starting his degree.