Biome releases 2015 financial results, bioplastics product update

By Katie Fletcher | April 07, 2016

U.K.-based bioplastics company Biome Technologies plc has released financial results for the year ended Dec. 31, 2015, reporting significant improvement from the previous year with revenue growth of 37 percent to £4.88 million ($6.9 million) compared to £3.7 million in 2014.

John Standen, Biome chairman, commented in the annual report that it’s encouraging to note that margins were maintained at 43 percent during the year compared to 42 percent in 2014, and the operating loss was reduced to £780,000 compared to a loss of £1.32 million in the prior year period. The loss after taxation was £730,000 and the loss per share in 2015 was 31 pence compared to 54 pence in 2014.

The company’s Biome Bioplastics division reported increased revenues to £1.87 million up from £1.45 million in 2014. Standen stated that the single-serve U.S. coffee market returned to a more regular pattern after turbulence in the supply chain experienced during the second half of 2014. “The commercialization of further product offerings commenced in 2015, initial sales have been encouraging and these are expected to add significant revenues in the future,” Standen said in the annual report.

The division reported an earnings before interest, taxes, depreciation and amortization (EBITDA) profit for the year of £800,000 compared to a loss of £130,000 in the prior year, with the resultant operating loss for the division reducing to £160,000 down from £340,000 in 2014.

Biome Technologies reported that 18 percent of 2015 revenue was generated from products introduced since 2013 and this figure is anticipated to increase substantially to the 50 percent target as the company gains full-year commercial sales in 2016 in the bioplastics business. The company’s focus in this division has been on commercializing its existing product range, as well as developing new products. Besides the single-serve coffee market returning to normal levels, a further temperature-resistant product entered the commercial phase during 2015, which is expected to add substantial incremental revenues over the coming periods as the manufacturing phase takes hold.

During the period, the company reported significant development work to produce a biodegradable non-woven mesh for uses like filtration and absorption which has been undergoing scale-up and production trails with end consumers.

Biome Bioplastics mid-term research activities are directed at the development of biobased materials through the use of synthetic biology. This continued work is on the transformation of lignocellulose into low-cost bioplastics using microbial and enzymatic routes. The division has collaborated with Warwick, Leeds, York and Liverpool universities. The business has received grant funding of £700,000 from Innovate U.K. to explore the manufacture of finished polymers as well. Total grant funding in this area since the conclusion of the feasibility study in 2014 is £3.5 million. This activity is aimed at developing a new generation of bioplastics that can be made closer to the cost of traditional petro chemicals, as reported in Biome Technologies’ 2014 annual report.

Biome Technologies full 2015 annual report and financial statements can be downloaded here.