Biome Technologies shares jump as revenues soar 43%

Biome Technologies on Monday reported a 43% increase in total group revenues for the six months leading to 30 June, compared to the same period in 2017.

The AIM-traded bioplastics and radio frequency technology business said that the board expects to report an increased profit before interest, tax, and amortisation for the half year compared to the first half of 2017, reflecting the increase in revenues.

Revenues of £3.4m at the firm’s RF Technologies division were double those of the comparable period of 2017’s, reflective of the increased sales of fibre optic furnaces for the Far East market.

Biome has increased the size of its team in order to deal with an "exceptionally strong" order book for the remainder of the year, management said in a statement.

Conversely, revenues from the Bioplastics unit fell 25% to £0.9m, although turnover for the second quarter returned to a more favourable level as sales of the group’s mesh continued to grow.

The division is also advancing projects for biodegradable packaging products which it said could, if successful, lead to substantial additional revenues in 2019 and 2020.

Biome Technologies' cash position was £2.3m at 30 June 2018, compared to £2.3m at 31 December and £2.4m at 31 March.

The company added that: "Biome continues to make progress against the strategy as set out in the group's full year results announced in March 2018 and against this background the board remains confident in the group's outlook for the remainder of the year."

Biome Technologies’ shares were up 16.40% at 440.00p at 0900 BST.