In advance of its Annual General Meeting today, Biome Technologies, a leading bioplastics and radio frequency technology business, is pleased to announce a trading update for the three months ended 31 March 2019.
Group revenues achieved for the first three months of the year were £2.1m, which is 11% ahead of the previous quarter (Q4 2018: £1.9m) and in line with those achieved in Q1 2018 (Q1 2018: £2.1m).
The Group made a small profit before interest, tax, depreciation, amortisation and share option charges in this quarter (based on unaudited management accounts).
The Group’s cash position as at 31 March 2019 was £2.1m (31 December 2018: £2.6m), reflecting working capital movements.
Revenues in the Bioplastics division for the first quarter rose significantly to £0.6m (Q1 2018: £0.4m; Q4 2018: £0.4m).
The improved performance was helped by both increased sales of outer packaging for the US single serve coffee market and by initial sales for a novel material for a single serve pod being launched into the nutrition market, previously reported as being under development. It is anticipated that sales for this latter application will gradually increase through the remainder of this year.
Progress on other projects, such as the rigid ring material and a plastic film based product for the North America market, remain on track with revenues for the rigid ring continuing to be anticipated to commence in Q2 2019 following completion of final testing.
Stanelco RF Technologies Division
Revenues for the first quarter of 2019 in the Stanelco RF division were £1.5m (Q1 2018: £1.7m; Q4 2018: £1.5m). The quarter was impacted positively by the delivery of multiple fibre optic furnaces which will not occur to the same extent in Q2.
In light of the current order book and general market outlook, the Board believes that revenues from this division for 2019 will be in line with previous guidance but more likely to be closer to those of 2017 than 2018, which was an exceptional year.
2019 has commenced in an encouraging manner, particularly for the Bioplastics Division, and in line with the expectations set out in the Company’s preliminary results announcement.