Biome Technologies shares surge after decent September quarter

Bioplastics and radiofrequency technology firm Biome Technologies reported revenues for the September quarter in line with expectations at £1.9m, up 77% year-on-year.

The AIM-traded company said there was “some catch-up” of revenues delayed from the second quarter in both divisions, as anticipated.

That took group revenues for the nine months ended 30 September to £4.3m, compared to £3.6m in the same period last year.

The group said it had a cash balance as at 30 September of £0.5m, down from £0.7m at the end of June and £1m a year earlier, with no bank debt, and access to a working capital facility of up to £0.6m.

Looking ahead, Biome announced a change to forecasting methodology which it said would, given the current economic climate, provide a “more consistent basis” by which the performance of the company could 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 directors said in their statement.

Their view of expected financial performance in 2023 was also 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.”

At 1420 GMT, shares in Biome Technologies were up 58.02% at 79.8p.

Reporting by Josh White for Sharecast.com.