Biome warns on profits amid 'additional complexities'

Bioplastics and RF technology business Biome warned on FY revenue and profitability on Wednesday after "additional complexities" relating to component deliveries for two large projects expected to be completed in FY24 arose.

Back in November, Biome said that delayed components deliveries meant that at least one project expected to be completed in Q424 had been pushed out until FY25. Biome stated three RF projects of scale were in the process of being built in its factory in Southampton but pointed out that challenges with the delivery of components made it "more likely that only two of these" would be delivered before the year-end.

However, Biome said that in two specific cases, externally manufactured parts and bought-in assemblies had 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" said Biome.

The AIM-listed group said internal completion dates had been revised into Q125 and new final acceptance dates were being discussed with customers.

As a result, Biome adjusted its expectations for revenues in 2024, which were now expected to be "materially below" current market expectations with a consequential impact on profitability.

As of 0920 GMT, Biome shares had sunk 38.10% to 3.25p.

Reporting by Iain Gilbert at Sharecast.com