Biome Technologies profits slip as it looks to bioplastics unit for growth
Natural polymers supplier Biome Technologies saw revenues and profits slip in the six months ended 30 June as it continued with efforts to make the bioplastics division its main revenue generator.
Group revenues dropped 18.1% to £3.6m, which it said reflected "a more normal level of revenue" from its Stanelco RF Technologies unit after the "exceptional" level of sales seen in 2018.
Biome's bioplastics arm reported a 55.5% increase in revenues to £1.4m but the division's operating profits remained flat year-on-year at £300,000.
Revenues in its RF Technologies operations fell to £2.2m from £3.5m.
Gross profits slid 26% to £1.7m and overall margins dropped from 53% to 48% due to the increased weighting of sales towards its bioplastics business.
Chief executive Paul Mines said: "The first half of 2019 has seen substantial progress in the commercialisation of three new products in the bioplastics division with initial revenues in the latter part of the period.
"Against this backdrop, it is anticipated that the group will evolve with the bioplastics division becoming the principal revenue generator in coming periods."
Biome also announced on Thursday that it had conditionally raised roughly £1.3m by way of a placing of 433,337 new ordinary shares at a discounted price of 300p.
The AIM-listed group intends to use the money to fund the growth and development of its bioplastics unit.
As of 1015 BST, Biome shares had fallen 3% to 399.50p.