BIOME

PRELIMINARY RESULTS & TRADING UPDATE

Paul Mines, CEO / Rob Smith, CFO

April 2023

Overview

  • 2022: 8% Group Revenue growth. We missed original expectations (hit subsequent revision) as Bioplastics growth failed to come through as anticipated. More conservative take on future forecasting.
  • Recent CLN of £850k by existing shareholders has given support for the business towards a position of Group operating cash flow sustainability over time.
  • Q1 2023 has started robustly with the recent revenues uptick in Bioplastics reoccurring and continued confidence in RF pipeline of prospects
  • We remain cautious in these difficult economic times and our outlook for the year consequently remains unchanged relative to current market expectations

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2022 results

2021 £m

2022 £m

Comment

Group Revenue (excludes grant income)

5.7

6.2

Bioplastics division

4.8

4.4

Reduction at long term filmic customer offset by new business

RF Technologies division

0.9

1.8

3 major projects undertaken during 2022

(Gross Margin)

28%

34%

Higher RF margin and better mix in Bioplastics

Overheads

(3.4)

(3.3)

Tight overhead controls and favourable ForEx

(L)/EBITDA

(0.6)

(0.4)

Operating loss

(1.1)

(0.8)

Opening Cash

1.7

1.0

Reported (L)/EBITDA

(0.6)

(0.4)

Working Capital

0.1

0.6

Inventory and debtors reduced by working capital management

Investment / R&D tax credit

(0.2)

(0.4)

Closing Cash

1.0

0.8

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Quarterly Sales progression

Biome Technologies Group - Quarterly Sales (Unaudited)

£2,500,000

£2,000,000

£1,500,000

£1,000,000

£500,000

£-

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

BioPlastics RF

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Q1 2023 Trading update

Bioplastics division

RF Technologies division

  • Revenues of £1.6m an increase of 32% compared to the prior quarter
    (2022 Q4: £1.2m) and 65% higher than the prior year quarter (2022 Q1: £1.0m)
  • Supplies of compostable filtration mesh continue with two large end- customers in the North American market. Supplies to filmic materials market growing with a wider range of end-customers
  • Division's scientists have made great strides technical performance for "Home Compostable" certification. First products exploiting this technology are expected to enter the market during the course of 2023
  • Revenues in the RF Technologies division for the quarter ended 31 March 2023 were £0.3m, 211% higher than the first quarter of 2022 (£0.1m) but 57% lower than the previous quarter (2022 Q4: £0.7m)
  • Entered 2023 with several significant prospects for 2023, but with delivery and associated revenues expected in the second half of the year. These discussions continue and their completion is important for the division's performance in the year. We are confident that these prospects will convert
  • Our presence in North America market enhanced in 2022 by the relocation of a senior Biome employee and associated back-office services in both the USA and Canada.
  • The product development and commercial foundations laid previously provide a base from which to accelerate a number of opportunities during 2023 and beyond.

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Biome Technologies plc published this content on 19 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 May 2023 09:39:08 UTC.