Biome Technologies cuts interim loss

27/08/2010 Robert Tyerman

Bioplastics concern Biome Technologies has reduced first-half losses 40 per cent to £1.7 million and sees growing interest from the USA.

The company says an apparent 17 per cent turnover fall to $6.7 million in the six months to June reflects a move from 100 per cent to 50 per cent consolidation of a joint venture, Biotec JV and explains turnover on a comparable basis showed a 40 per cent increase, with its Stanelco radio frequency side nearly doubling sales.

Chief executive officer Paul Mines says pending European Union legislation favouring disposable packaging continues to work for Biome, which moved from the Main Market to AIM last month after raising £2.7 million at a lowly 0.125p. He adds the company, which until recently was called Stanelco, is finding 18 months of effort in the US market is now 'bearing fruit' in the food services and food processing sectors across the Pond.

According to Mines, a new high temperature food packaging product has met a 'reasonable response' and should benefit Biome's second-half performance. He says interest is picking up from electronics and durables companies in casings made in bio-based materials, with makers of razors and other personal care items also inquiring.

Observers suggest the company, which mostly sells to smaller and medium-sized concerns keen to boost their brands, is understood to be holding product trials with more than one leading European electronics group. With £4.7 million cash at the end of June, Biome could be heading towards profitability in 2012, argue some analysts.

Biome shares, which traded above 4p 10 years ago in their old Stanelco guise, now languish at 0.13p. They have speculative recovery appeal for the bold.