Biome offers update of bioplastics division in half year results

By Erin Voegele | September 06, 2016

U.K.-based Biome Technologies has released its trading statement for the first half of 2016, reporting improved margins for its bioplastics division.

Revenues in the bioplastics division were at £600,000 ($805,830), compared to £1 million during the same period of last year. The company said the reduction of turnover was reflected in the operating loss for the period of £150,000, compared to a loss of £70,000 reported during the first half of 2015, although partially offset by improved margins. According to the company, the subdued turnover during the first half of this year is due to the timing of end market campaign runs of now commercialized packaging and lidding materials and a firmer second half of the year is expected.

Biome noted it has been developing a suite of materials to enable coffee pod producers to sell biodegradable products in the U.S. “The prospects for the suite of bio-materials for the coffee market developed by the Biome Bioplastics division is encouraging as products move into commercialization albeit exact timing of large scale deployment rests on extensive final testing,” said Paul Mines, CEO of Biome.

Within its trading statement, Biome also noted its bioplastics division has been awarded a number of grants over the past few years to develop a new range of lignocellulose-derived bioplastics that can be made at comparable cost to traditional petro-chemicals. According to the company, these development projects are at various stages of completion with one project completing its feasibility study in May with encouraging results.

In addition to its bioplastics division, Biome also has a Stanelco RF Technologies division, which designs, builds, and services advanced radio frequency systems. Overall, the company reported revenues of £2.2 million, up from £2.1 million during the first half of 2015. Gross profit was £1.1 million, up from £800,000 during the same period of last year. Margins were at 50 percent, compared to 39 percent last year. Loss before interest, depreciation, amortization and share option effects was £100,000, compared to a loss of £300,000 during the first six months of 2015. Loss after taxation was £400,000, compared to a loss of £600,000 during the same period of last year, equating to a loss per share of 16 pence, compared to a loss per share of 24 pence during the first half of 2015.