Biome’s revenue fell by more than a third due to regulatory difficulties.
- The company reported a revenue of £2.3m in the first half of the year.
- Losses increased by 76% during this period, reaching £1.2m.
- Share value decreased by 11% as trading began.
- CEO remains optimistic about resolving current challenges.
Biome, a firm specialising in bioplastics, experienced a significant drop in revenue, which declined by over 36% in the first half of the year, amounting to £2.3m. This decline has been attributed to regulatory issues faced by two major clients, particularly in the case of a coffee pods client whose new product required additional testing, causing sales delays.
In parallel with declining revenue, Biome’s losses surged by 76%, totalling £1.2m over the same period. Consequently, shares saw an immediate impact, with a marked decrease of 11% to 6.2p at the start of trading on Friday.
Despite these challenges, Biome has expressed a determined outlook to resolve customer-related issues. The company foresees an improved revenue performance in the remaining months and anticipates continued growth into 2025.
Biome’s CEO, Paul Mines, shared insights into the ongoing situation, acknowledging the hurdles while remaining positive about achieving the desired revenue run-rate in the near future: “The challenges encountered by the Bioplastics business in the first half are progressing towards resolution, albeit some hurdles remain to achieve the revenue run-rate we expect in the near term.”
To bolster financial stability, Biome recently completed a fundraise of £1.1m, aiming to reinforce its cash reserves after experiencing a stock value drop of over 90% since the year’s start.
Biome faces significant challenges but remains optimistic about overcoming them and achieving growth.
