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Biome Technologies PLC, a Southampton-based bioplastics developer, issued a trading update for the quarter ending September 30. The board now expects adjusted revenue to fall below current market expectations, with a ‘consequential impact on profitability’. For the first nine months of 2024, the Southampton, England-based developer of bioplastics, saw revenue declined 39% to £3.2 million, down from £5.2 million the previous year, largely driven by issues within the Bioplastics division. Third-quarter revenue for the Bioplastics arm fell 49% to £700,000, down from £1.3 million a year ago. Sales for the nine months declined 38% to £2.7 million from £4.4 million, impacted by ongoing production and regulatory challenges faced by two key end customers. Biome noted that one of the key customers in its Bioplastics division is in the process of obtaining formal certification, while another has resolved regulatory issues, providing hope for recovery in 2025. Revenue in the RF Technologies division dropped 59% in the third quarter to £100,000 million from £300,000 million a year earlier, with nine-month revenue down 50% to £400,000 million from £800,000 million. The company remains encouraged by the progress in addressing these challenges across both divisions, expecting improvements to the revenue run rate in the coming year. Biome also announced that Chair John Standen, who has led the company for 17 years, will be stepping down from the board in the reasonably near term. Biome shares were down 4.3% at 5.50 pence in London on Wednesday afternoon. Copyright 2024 Alliance News Ltd. All Rights reserved.
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