25 April 2012
Biome Technologies plc ("Biome", "the Company" or "the Group")
Trading Update
In advance of its Annual General Meeting today, Biome Technologies plc is pleased to announce its trading update for the three months ended 31 March 2012.
Trading Update
Total Group revenues achieved for the first three months of the year were £4.6m (Q1 2011: £5.6m). This is ahead of the final quarter of 2011 and close to the 2011 quarterly average of £4.8m. We anticipate performance to be second half weighted this year and consequently expect sales growth to increase in both divisions as the year progresses.
The Group's cash position at 31st March 2012 was £1.8m (31st December 2011: £2.4m). The reduction of £0.6m was due to a mixture of trading performance and further working capital investments.
Bioplastics Division
Q1 2012 revenues were £4.3m which comprised revenues of £1.3m at Biome Bioplastics and £3.0m from third party sales at the Biotec joint venture. Whilst revenues generated in the quarter represent a substantial 31% increase above that achieved in Q4 2011, they were 8% lower than the prior year Q1 period.
Stanelco RF Technologies Division
The Stanelco RF Technologies Division achieved Q1 revenues of £0.3m (Q1 2011: £0.9m). This is predominantly due to the timing of furnace orders which are skewed towards the second half of 2012, whereas 2011 was skewed very much to the first half.
The Durapipe UK contract remains on track with the second stage of the development work signed off by the customer.
Outlook
Sales were slower to achieve than expected in the first quarter, although the progress made since Q4 2011 is significant. We remain confident of achieving our trading objectives and performance for the full year as we expect Group sales to be orientated towards the second half of the year.
We have said that to maintain our pace in 2012 requires us to continue to enter new markets, gain market share and achieve further sales for our Biome developed products. We remain excited by the opportunities that lie ahead for the business.
- Ends -
For further information please contact:
Biome Technologies plc
Paul Mines, Chief Executive Officer
Declan Brown, Group Finance Director
www.biometechnologiesplc.com Tel: +44 (0) 2380 867 100
Daniel Stewart & Company plc
David Hart
www.danielstewart.co.uk Tel: +44 (0) 20 7776 6550
First Columbus
Chris Crawford/Kelly Gardiner
www.first-columbus.com Tel: +44 (0) 20 3002 2070
FTI Consulting
Oliver Winters/Latika Shah Tel: +44 (0) 20 7831 3113
