Commercially driven technology group Biome Technologies plc (LON: BIOM) has seen its share price fall during trading on Monday, following a fall in H1 revenues on a year-on-year basis.
The Group told investors that first half revenues narrowed to £3.6 million, down from £4.4 million for H1 2018, and causing the Company to forecast a loss before ITDA and share option charges.
The Company’s bioplastic division saw revenue rise on a year-on-year basis from £0.9 million to £1.4 million for the first half, while the Stanelco RF division saw the exceptional demand for fibre optic furnaces seen during 2018 wane, and as a result the division’s revenue dipped from £3.5 million to £2.2 million on-year.
Biome Technologies said their cash position represented its trading performance and working capital requirements, down from the end of Q1 at £2.3 million to £1.7 million at the end of Q2.
Biome Technologies statement
The Company’s statement continued, in regard to its bioplastics division,
“In line with our strategy, it has been particularly encouraging to see these growing revenues coming from three key growth drivers: a greater number of customers; a wider range of end-use application areas; and a broader geographic base. Whilst much of this growth is based on development projects that commenced some time ago, the continued global focus on the problem of plastics, both in their disposal and the climate change impact of their manufacture, is supporting the appetite for our existing products and continuing to increase our product development and customer project pipeline.”
Continuing with its update on Stanelco RF,
“Encouragingly, the division has recently signed a £1.3m contract for the supply of a number of fibre optic furnaces to a regular international customer for delivery in H2 2019. This underpins revenue expectations for the second half and underlines the further requirement for capacity in the fibre optic market.”
Looking forwards, it said,
“Our two divisions continue to perform to our expectations. We expect the growth drivers of the Bioplastics division to continue to propel it towards eclipsing Stanelco RF as the principal revenue generator for the Group within the next year or so.”
After a slight recovery, the Company’s shares were down 11.66% or 50.15p to 379.85p a share on Monday afternoon.
Elsewhere in the tech sector, there were updates from; Midwich Group PLC (LON: MIDW), Boku Inc (LON: BOKU), Telit Communications Plc (LON: TCM), TP Group PLC (LON: TPG) and Mobile Streams Plc (LON: MOS).