(Alliance News) - Biome Technologies PLC on Monday warned full-year revenue will be "materially below current market expectations".

In response, shares in the Southampton, England-based biodegradable plastics and advanced radio frequency systems firm was down 43% to 40.00 pence in London on Monday morning. The stock fell as far as 33.00p, setting a new 52-week low.

Biome Technologies said a recovery in revenue at its Bioplastics division is now likely to occur later in 2024 than previously anticipated.

In addition, the company highlighted signs that the wider coffee packaging market in North America, to which Biome is exposed, is not as buoyant as in previous periods.

Biome painted a brighter picture of trading in its RF Technologies division, where contract wins are expected to result in "significant" revenue being recognised in 2024.

Nonetheless, the delays in Bioplastics will result in a sales and profit hit, the company cautioned.

Biome said the reduction in revenue will be partially offset by higher margins and lower overheads. However, the company expects to make a small loss before interest, tax, depreciation and amortisation for 2024.

Biome said working capital management will be a significant focus in the second half, and the board is examining ways to ensure it has sufficient working capital going forward.

Biome said had a cash balance of GBP600,000 on June 30, with no bank debt and convertible loan notes outstanding of GBP1.3 million.

By Jeremy Cutler, Alliance News reporter

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