Biome Tech Regulatory News (BIOM)

24 July 2014

Biome Technologies plc

 ("Biome", "the Company" or "the Group")

Trading Update

Biome Technologies plc, a leading bioplastics and radio frequency technology business, today publishes a trading update, ahead of its interim results for the six-month period ended 30 June 2014, which are expected to be announced on 3 September 2014.

Trading Update

Total Group revenues achieved for the second quarter of 2014 were £1.2m (Q1 2014: £1.1m; Q2 2013: £0.5m). The turnover for the second quarter maintains the significant progress made in the first quarter of 2014 compared to the same period in the prior year and means that revenues generated by the Group in the first half of 2014 at £2.3m are now in excess of those for the full year of 2013.

The Group's cash position at 30 June 2014 was £3.1m (31 March 2014: £3.2m).

The business continues to make good progress with the strategy to commercialise and develop wholly owned intellectual property. Performance in the first half was ahead of the Board's expectations for both divisions.

Bioplastics Division

Q2 2014 revenues for the Bioplastics Division were £0.6m (Q1 2014: £0.5m; Q2 2013: £0.1m) 21% ahead of Q1 2014 performance. Revenues generated by the Bioplastics Division in the first half of 2014 were therefore £1.1m, already in excess of the £1.0m full year 2013 revenue.

The focus of the division on developing high margin, application led bioplastic polymers with enhanced level of functionality is starting to take hold. Increasing volumes of Biome's materials were procured in the period for use in the US single-serve coffee market amongst other applications. Further progress was made in the development of the pipeline of new products with technical and customer trials continuing in both the food service and paper-board coating sectors.

The division announced the successful completion of a feasibility study undertaken in conjunction with the University of Warwick's Centre for Biotechnology and Biorefining and supported by the Government-backed Technology Strategy Board (TSB).

Stanelco RF Technologies Division

Q2 2014 revenues for the RF Division were £0.6m (Q1 2014: £0.6m; Q2 2013: £0.4m) maintaining the promising start that the division made in the first quarter of the year. Revenues for the first half of 2014 were £1.2m and are now in excess of the revenues achieved by this division for the full year 2013.

Activity and ordering levels in the first half have been encouraging with some evidence that the market for fibre optic furnaces, one of the main repeating products for the division, is experiencing some recovery in Asia. The contract with a customer from a regulated industry has commenced and receipts of approximately one quarter of contract value were received during the first half of 2014. Enquiry and order levels for the business are robust.

Group Outlook

The Group's revenues and cash are slightly ahead of the Board's expectations at the mid-year point with the reporting of the interim results scheduled for 3 September 2014.

This has been a positive first half for the Group and the Board is confident that this progress can be maintained for the full year.

-Ends-

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