Biome Technologies warns of 'modest' loss as revenue dips
By Duncan Ferris
Date: Monday 22 Jul 2019
(Sharecast News) - Biome Technologies on Monday warned investors to expect a modest interim loss after staff costs jumped and revenue dropped due to lower sales from the Stanelco RF division.
The bioplastics and radio frequency technology business said its revenues for the first half of the year were £3.6m, down from £4.4m over the comparable period last year, as the Stanelco RF division's revenues slipped from £3.5m to £2.2m due to a return to more normalised sales levels of fibre optic furnaces following exceptional demand in 2018.
The AIM-traded company said the loss was also driven by an increased headcount as it strives to propel growth.
Interim revenue from the bioplastics division grew from £0.9m to £1.4m due to a greater number of customers, a wider range of end-use application areas for its products and a broader geographic base.
While the two divisions are performing broadly in line with expectations, Biome Technologies said it expects the bioplastics division to eclipse Stanelco RF as the principal revenue generator for the group within the next year or so.
The company's cash position as at 30 June was £1.7m, down from £2.3m at the end of March, which it said reflected its trading performance and an increase in working capital requirements.
Biome Technologies' shares were down 11.59% at 380.15p at 0850 BST.
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