Biome Technologies (BIOM ), a bioplastics and RF technology company, has said that unaudited results in its second quarter were slightly lower than management expectations at £1.4m, compared to £1.3m in Q2 2021. The company blamed supply delays, but said that the delayed revenues will be recovered in Q3.
Biome has two divisions - Bioplastics and Stanelco radio frequency (RF) Technologies. It expects significant revenue growth from its Bioplastics division in the second half, driven by supply chain preparation and stocking by several large customers that are preparing product launches in the first half of 2023. Additionally, Biome referenced demand for its new patent-pending "home compostable" bio-based/biodegradable materials. The Bioplastics division's revenues were £1m in Q2, compared to £1.1m in Q2 2021.
The company's smaller RF Technologies division reported £0.2m in revenues, the same as in Q2 2021. Biome said the division had a strong order book that it had expected to convert to revenue growth in Q2, but that shortages of electronics and other components caused delays. Again, Biome is confident the delayed revenues will be "fully recovered" in H2, after signing a number of significant contracts in late 2021 and early 2022.
The company said it had entered into a financing agreement with Accelerated Payments Ltd, to provide working capital funding when required, to help grow the business. Biome had £0.7m in cash on 30 June 2022 and no bank debt. It should be noted that the use of invoice financing could affect margins during times of delay.
The company said its overall performance remained in line with market expectations.
Follow News & Updates from Biome Technologies: