Biome, a bioplastics firm, faces a significant downturn in sales due to regulatory challenges affecting key clients.
- Sales dropped over 36% at Biome in the first half of the year, with revenue falling to £2.3m.
- Two major customers of Biome encountered regulatory hurdles, causing delays in product launch and revenue dips.
- Biome’s financial losses increased by 76%, reaching £1.2m, with shares plummeting by 11%.
- Despite current setbacks, Biome remains hopeful for improved revenue performance in the coming months.
The bioplastics industry is witnessing a notable setback as Biome, a Southampton-based company, reported a substantial decrease in sales. The firm’s revenue plunged by more than 36% in the first six months of the year, totalling just £2.3m, compared to the previous year’s figures. This drop is largely attributed to regulatory issues faced by two of its significant clients.
Biome detailed that one of their principal clients, involved in coffee pod production, encountered regulatory delays which necessitated additional laboratory testing. This requirement stalled the client’s sales campaigns, leading to a notable downturn in Biome’s revenue generation.
Adding to these challenges, Biome recorded a 76% increase in financial losses, amounting to £1.2m over the same period. These losses have been reflected in the company’s stock market performance, where shares fell by 11% to 6.2p in early trading as of Friday.
CEO Paul Mines expressed that the difficulties encountered during this period are moving towards resolution, although some obstacles remain. He conveyed optimism for achieving expected revenue targets soon.
Biome has proactively sought to bolster its financial standing by completing a £1.1m fundraising effort earlier in September. However, the company’s share value has dropped by more than 90% since the start of the year.
Looking ahead, the company is focusing on overcoming existing hurdles. The board anticipates an upturn in revenue performance later in the year, expecting sustained growth into 2025.
In summary, Biome is navigating through regulatory challenges with optimism for future growth.
