This announcement contains
inside information for the purposes of Regulation 11 of the Market
Abuse (Amendment) (EU Exit) Regulations 2019/310. With the
publication of this announcement, this information is now
considered to be in the public domain.
4
December 2024
Biome Technologies
plc
("Biome", the "Company" or
the "Group")
Trading
Update
Board
Change
Biome Technologies plc, a leading
bioplastics and radio frequency technology business, today provides
a trading update.
RF
Technologies Division
In the Company's trading update of
13 November 2024, it was noted that three RF projects of scale were
in the process of being built in the Group's factory in
Southampton, but that challenges with the delivery of components
made it more likely that only two of these would be delivered
before the year-end, with a consequential impact on revenues in the
final quarter of 2024.
Additional complexities relating to
component deliveries for the two large projects, which were
expected to be completed in 2024, have arisen recently. In two
specific cases, externally manufactured parts and bought in
assemblies have required rework or return to their suppliers for
replacement.
The technical paths for rework and
replacement are clear. However, despite significant recent work on
expediting this, the timetables are such that this will not be
delivered within a timeframe that will allow completion of the two
final machine builds and the required extensive internal and
customer testing acceptance process before the 2024 year
end.
Internal completion dates have
therefore been revised into Q1 2025 and new final acceptance dates
are being discussed with the customers. The customers have
expressed their continued understanding and support while the Group
resolves these challenges.
Group Outlook
As a result of the matters set out
above, the Board has adjusted its expectations for revenues in
2024, which are now expected to be materially below current market
expectations with a consequential impact on
profitability.
There is a clear technical path to
project completion for all three of the remaining projects of scale
for the RF division. However, at this time, customer acceptance
dates and subsequent payments in 2025 remain to be finalised. This
creates a requirement for additional working capital and the Board
has therefore entered into discussions regarding a debt facility to
bridge the Group's working capital needs in early 2025. A further
announcement is expected to be made in relation to this in due
course.
Board change
Further to the Company's
announcement of 13 November 2024, John Standen has stepped down
from the Board with immediate effect. Martin Rushton-Turner
will fulfil the role of Interim Chairman, as the Directors consider
various options in relation to the composition of the Board going
forward.
-Ends-
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For
further information please contact:
|
|
Biome Technologies plc
Paul Mines, Chief Executive
Officer
|
|
Donna Simpson-Strange, Company
Secretary
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www.biometechnologiesplc.com
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Tel: +44 (0) 2380 867 100
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Allenby Capital
|
|
David Hart/Alex Brearley/Lauren
Wright (Nominated Adviser)
Kelly Gardiner/Tony Quirke (Sales
and Corporate Broking)
|
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www.allenbycapital.com
|
Tel: +44 (0) 20 3328 5656
|
About Biome
Biome Technologies plc is an AIM
listed, growth-orientated, commercially driven technology group.
Our strategy is founded on building market-leading positions based
on patented technology and serving international customers in
valuable market sectors. We have chosen to do this by developing
products in application areas where the value-added pricing can be
justified and are not reliant on government legislation. These
products are driven by customer requirements and are compatible
with existing manufacturing processes. They are market rather than
technology-led.
The Group comprises two divisions,
Biome Bioplastics ("Bioplastics") and Stanelco RF Technologies
Limited ("RF Technologies").
Biome Bioplastics is a leading
developer of highly-functional, bio-based and biodegradable
plastics. The division's mission is to produce bioplastics that
challenge the dominance of oil- based polymers.
RF Technologies designs, builds and
services advanced radio frequency (RF) systems. Dielectric and
induction heating products are at the core of a product offering
that ranges from portable sealing devices to large furnaces for the
fibre optics markets.
www.biometechnologiesplc.com
www.biomebioplastics.com
and www.thinkbioplastic.com
www.stanelcorftechnologies.com