Biome Technologies' bioplastics division drives 20% revenue increase
Group revenues for the first nine months of 2023 reached £5.2m, a substantial 19.6% rise compared to the same period in 2022, aligning with management expectations. The Bioplastics division saw Q3 revenues at £1.3m, an 18% increase over 2022. Year-to-date, the division's revenues were £4.4m, a 36% increase from the previous year, fueled by success in North American markets and increased demand from both new and established customers.
Conversely, the RF Technologies division reported Q3 revenues of £0.3m, reflecting a decrease from £0.7m in 2022. However, extended discussions with potential customers are ongoing, offering significant revenue and profit potential for 2024.
The board is optimistic about the Bioplastics division's continued growth but acknowledges uncertainties in finalising RF Technologies projects, potentially impacting 2023 financials. Despite challenges, the Board maintains confidence in the projects' eventual success, albeit possibly in the 2024 financial year.
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Biome Technologies is split into two divisions, Biome Bioplastics and RF Technologies. The former specialises in the development and production of sustainable bioplastics and biomaterials, offering environmentally friendly alternatives to traditional oil-based plastics. RF Technologies specialises in radio frequency heating and sealing systems for a wide range of industrial applications.
Bioplastics are essentially plastics made partly or wholly from materials derived from biological sources, such as sugarcane, potato starch, or the cellulose from trees and straw. They are often designed so that they biodegrade or compost at the end of their life, aided by fungi, bacteria, and enzymes.
Bioplastics can generally be directly substituted for their oil-based equivalents, while also being made to be chemically identical to standard industrial plastics. Bioplastics are based on organic materials, absorbing carbon as they grow. Since the production process of bioplastics is very energy efficient, the overall carbon footprint of the products is low.
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