Biome Technologies PLC (AIM:BIOM) shares fell sharply in Monday morning’s dealing after a profit warning, triggered by order delays in its Bioplastics business.
The company, in a statement, revealed that its Bioplastics division had experienced delays in revenue recovery, with previously reported issues with production and regulations taking longer to resolve than previously expected.
It noted that its customers' technical validations were ongoing.
Also, Biome told investors that the North American packaging market is less buoyant than in previous periods.
Biome’s board now expects group revenues for the year ending 31 December 2024 to be materially below current market expectations.
“Working capital management will be a significant focus for management in the second half of the year as the RF division completes four large system builds and the Bioplastics division stocks its raw material pipelines ahead of anticipated customer ramp-ups in North America,” the company said.
“In these circumstances, the board is examining ways to ensure that the group has sufficient working capital going forward.”
Biome, meanwhile, highlighted that major contracts secured last year would generate significant revenue during the remainder of this year.
The company noted that it had £600,000 of cash at the end of June.
In London, Biome shares were down 30p or 42% to change hands at 40p each.