Sofix Ucits Etf Regulatory News (BGX)

1 Feb 2007 07:00

Bioganix PLC01 February 2007 Bioganix plc ("Bioganix", "the Company" or "the Group") February 1st 2007 NEW PLANT PLANNING PERMISSION AND TRADING UPDATE Bioganix is pleased to announce that full planning permission has been grantedfor its third composting plant, a 48,000 tonnes per year in-vessel compostingfacility at Sharpness Docks, Gloucester. Detailed planning and related mattersare now being finalised, with the intention that installation of the plant at anexisting building will commence later this year. Although it was originallyenvisaged that this plant would start processing material in the second half of2007, it is now expected to become fully operational in early 2008. The Company's additional processing capacity ("phase two") at Parham, Suffolkwas completed on time in November 2006 but, as anticipated in the Chairman'sstatement accompanying the interim results in September 2006, the addition ofmore capacity has caused some disruption to production during the latter monthsof 2006. Nonetheless overall trading has been maintained at an acceptablelevel. Since the commencement of operations in April 2006, the Suffolk plant hasprocessed over 15,000 tonnes of material and despite large increases inelectricity and fuel prices, the Suffolk plant has been profitable and cashgenerative during 2006. The Wharton plant in Herefordshire has operated substantially as anticipated andgood progress has been made with the DEFRA New Technologies DemonstratorProgramme, research project. Subject to audit, the Group's overall financial performance for 2006 is likelyto show a small loss and therefore results are not expected to be materiallydifferent from those originally anticipated. In recent weeks the directors have become aware of some deficiencies in themanufacturing of two out of the four composting vessels installed at the Suffolkplant as part of the initial build in early 2006. Having investigated theissues thoroughly, the Directors have decided to carry out modification andremedial work now, in order to maintain the full capacity of the vesselsthroughout the lifetime of the Suffolk plant, rather than wait until later whenmore involved work might be required. Disruption to throughput is thereforeexpected for some three or four months during the first half of the company'scurrent financial year. This additional work and the resultant temporary slowing of production, combinedwith the delay to the Sharpness plant, will materially prejudice the Group'soverall financial performance in 2007. Nevertheless the Directors remainpleased with the Suffolk plant's demonstration of a profitable and cashgenerative facility and with progress made both in refining the operation of theGroup's systems and in the development of the third processing facility atSharpness. Bioganix contacts: Nick Helme (Managing Director) DD: 01568 619115 Julian Morgan (Finance Director) DD: 01568 619101 Barrie Newton, Corporate Synergy Plc DD: 01225 424666 Paul Vann/Tom Cooper, Winningtons Financial DD: 0117 9200092 Web: www.bioganix.co.uk This information is provided by RNS The company news service from the London Stock Exchange