Biome Tech's third quarter revenues fall but has products in the pipeline

Biome Technologies’ third quarter revenue fell, although the AIM-listed company expects revenues for the year to be around the same level as last year as products move from development to commercialisation.

In an update for the quarter ended 30 September, revenue fell 30.7% to £900,000, compared to last year, while revenue for the year to date was down 7% to £3.1m.

Cash at the end of September was £1.2m, a 20% increase.

Revenues in the Bioplastics division declined 40% to £3000,000 while revenues for the year to date in the division also decreased by 40% to £900,000, this was due to the timing of commercialising packaging and lidding materials.

The company said the Bioplastics division is developing a closely related suite of materials to enable coffee pod producers to sell biodegradable end products principally to the US.

The outer packaging and lid are now fully commercial, while the ring of the pod and the non-woven filter are in the late stages of development. For the fourth quarter £600,000 of order were received.

Revenues in the Stanelco RF Technologies division fell 12.5% £700,000, while revenues for the year to date in the division slumped 15.7% to £2.2m.

The division, which sells products using radio frequency technology in the fibre optic market, reported that its order outlook is strong and there are signs of increased appetite for capacity investment in this sector.

The company said revenues overall for the second half of year and the early part of 2017 “will continue to reflect the volatility related to the new products of the Bioplastic division as they move from their development to commercialisation phases”.

Shares in Biome Technologies were down 1.8% to 109p at 0821 GMT.