www.biometechnologiesplc.com
Biome Technologies plc is a growth oriented, commercially driven technology group. The Group's primary activity is the development of its fast growing business in bioplastics. It is a leading innovator and supplier of biodegradable natural polymers that replace and enhance products made conventionally from oil based materials.
Biome Technologies delivering on “demanding forecasts”, says broker
Biodegradable plastics firm Biome Technologies (LON:BIOM) is “delivering on our demanding forecasts”, said house broker Daniel Stewart this morning after the firm reported that revenue for the first nine months of the year increased by almost half. The increase was due largely to a strong improvement in its Bioplastics division, the firm said.
Biome develops and sells biodegradable natural polymers that replace and enhance products made conventionally from oil-based materials through its Bioplastics division.
Biome said that its group revenue for the nine months to September 30 was greater by 49 per cent at £15.3 million. This reflected a 110-per cent increase in bioplastic sales made by its Southampton, UK-based Biome Bioplastics business, a 34-per cent increase in sales at the firm’s Stanelco RF Technologies and a 29-per cent increase in third-party sales at its Germany-based Biotec division – which it jointly owns with SPhere (one of Europe’s largest plastic bag producers).
Revenue from the Bioplastics division during the first nine months increased from £8.5 million in 2010 to £12.9 million this year. This comprised revenue of £5.3 million at Biome Bioplastics and £7.6 million from third-party sales at Biotec.
During the third quarter, the Bioplastics division’s revenue was, at £4.3 million, 61 per cent ahead of that for Q3 2010. Biotec’s revenue was £2.7 million (Q3 2010: £1.7 million) thanks to it benefiting from further abatement of capacity constraints in its supply chain and allowing some stock build within the business.
Biome Bioplastics achieved “substantial growth” with Q3 2011 sales almost doubling to £1.7 million (Q3 2010: £0.9 million). But the firm warned that it continues expect some quarterly volatility as the market reacts to the easing of supply constraints.
Meanwhile, Biome said that its Stanelco business continue to perform in line with management expectations.
Daniel Stewart is forecasting turnover of £20.4 million for the whole of this year, along with a pre-tax loss of £1.1 million. This compares with £13.4 million of revenues and a £1.8 million loss for 2010.
For 2012, the broker estimates that turnover will increase to £26.6 million while Biome should get nearer to breaking even with a loss of £0.3 million. (In September, the broker said that Biome was “on track” to achieve breakeven at the operating profit level by 2012.)
Daniel Stewart also reiterated its ‘buy’ rating and 0.41 pence target price for the firm’s shares, which were flat in mid-morning trading today at 0.18 pence each.
