Shares in ‘bioplastics’ specialist Biome Technologies plc (LON:BIOM) advanced more than 13% on Monday after it highlighted a 43% rise in first-half group revenue.
It generated some £4.3mln in the first six months, from £3mln in the comparative period last year and ended the half year with £2.3mln of cash.
The company told investors it now expected interim results, due September 3, will show a higher pre-tax profit.
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“The board remains confident in the group's outlook for the remainder of the year,” Biome said in a statement.
It comes as ‘bioplastic’ industries are increasingly finding the spotlight in mainstream media, along with a broader rise in awareness around the issue of recycling and retail packaging.
Toda for example, a BBC News report focused on a UK watchdog report which underlined the scale of Britain’s waste challenge, with statistics revealing that more than 50% of the waste designated as being recycled is actually exported for processing.
The UK’s present approach to recycling has been described as ‘an illusion of success’.
Estimates from the government’s Department for Environment, Food and Rural Affairs (Defra) show that UK recycling rates have more than doubled (to 64% in 2017 from 31% in 1998), ahead of an EU target of 55%.
Nonetheless, there’s no way to know if and /or how much of the ‘recyclable’ waste ends up in landfills or is incinerated after it is exported. Looking forward, there’s perhaps also question marks over the sustainability of such high export rates, post-Brexit.
Whatever the statistical analysis says, it remains clear that waste and recycling is a top environmental issue, and, the evident growth for bioplastics companies such as Biome further highlights the demand for new and innovative solutions.
Biome shares were up 51p or 13.49% changing hands at 429p per share, valuing the group at around £10.6mln.