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(Sharecast News) - Bioplastics and radiofrequency company Biome Technologies said in an update on Tuesday that it recorded total revenue of £7m for 2023, meeting market expectations and marking a 13% increase over the prior year's outturn of £6.2m.
The AIM-traded firm said that at the end of the year, it held a cash balance of £0.6m, slightly down from the prior year's £0.8m.
Additionally, it had £0.85m worth of outstanding 2026 convertible loan notes, with no bank debt reported.
The bioplastics division generated revenue of £6m for the year ended 31 December, marking a substantial 36% increase compared to the prior year's revenue of £4.4m.
Biome said the growth was fueled by larger orders from existing customers and an expanded customer base in North America.
The division's success was particularly evident in its production of bioplastic polymer grades suitable for crafting 'home compostable' filmic materials.
It said the growing market for home compostable materials was expected to continue its upward trajectory.
Biome said it had committed to further developing its range of home compostable materials, and was granted a European patent early in 2024 to support those efforts.
To continue capitalising on the North American market, Biome had bolstered its customer-facing team in Canada, enhancing its brand presence and customer awareness.
On the other hand, the Stanelco RF technologies division reported revenue of £0.9m for 2023, down from £1.8m in 2022.
The decline was put down to the timing of contract receipts and revenue recognition.
In a previous trading update in November, the division disclosed ongoing negotiations with several potential customers regarding contracts with significant revenue and profit recognition potential for 2024.
The board said the negotiations had progressed substantially in recent weeks, instilling confidence that they would be successfully concluded in the near future.
"The board is pleased with the strong progress of the bioplastics division throughout 2023, which continues to grow strongly in the face of some global headwinds, evidencing the division's resilience," the board said in its statement.
"It is encouraging to see the ongoing diversification of the customer base that will provide a broader platform for further growth in due course, in line with our stated strategy.
"Whilst there have been timing delays in progressing some of the RF division's projects of scale, negotiations in relation to two of these are now progressing well and the board remains confident that these should successfully complete in the relatively short-term."
Biome said it expected the current financial year to build on the trading momentum being established in both divisions.
It said it would announce its financial results for the 2023 financial year on 29 April.
At 1235 GMT, shares in Biome Technologies were up 16.1% at 119p.
Reporting by Josh White for Sharecast.com.
