Biome Technologies

Bioplastics and optical fibre furnaces concern Biome Technologies (BIOM) is on track for operating profits next year after slashing interim losses.

At the pre-tax level, the Southampton-based company, which changed its name from Stanelco last year when bioplastics became its new core business, turned a £1.7m loss into a £100,000 profit in the six months to June, thanks to foreign exchange gain and a VAT reclaim, on turnover 55% ahead to £10.4m.

Chief executive Paul Mines says AIM-quoted Biome's potato starch and cellulose-based bioplastics – whose 'energy-saving' uses range from agriculture, horticulture and packaging to strimmer cords, electronic cases and coffee cup lids – is facing growing markets at home and in Europe, the Americas and Asia, helped in the USA and elsewhere by legislation.

This side of the company's business lifted sales 49% to £8.6m in the first half-year, with the UK showing growth of 131%, while Stanelco RF Technologies almost doubled sales to £1.9m in the same period, reflecting what the company describes as a 'resurgence of its position as a leading manufacturer of optical fibre furnaces'.

Mines stresses that Biome has £3.5m in the bank and £2m of debt facilities. Highlighted by Growth Company Investor at a depressed 0.14p last year, the shares, which traded above 4p 11 years ago, now change hands at 21p and could go further in the medium term.