Biome Technologies PLC on Friday said its revenue for the first half of 2024 has fallen by more than a third, as it cuts outlook for its bioplastics business.

The Southampton, England-based bioplastics and radio frequency technology business said it has narrowed its pretax loss at the end of the six-month period ended June 30 to £829,000 from £1.1 million at the same time last year.

However, revenue fell 36% to £2.3 million from £3.6 million.

The fall in revenue was caused primarily by ‘continued production and regulatory difficulties’ at two of the bioplastics division’s end-customers, as well as the second-half phasing of revenue from four projects in the company’s radio frequency technologies division, which were undergoing the design phase and some elements of assembly during the first half of 2024.

The radio frequency technologies division won contracts totalling £1.7 million during the six-month period, with the majority of revenue expected in the second half of the year. Increased revenues for the bioplastics division are expected in the second half of 2024 from the end-customers experiencing difficulties.

Meanwhile, following first-half problems, Biome Technologies has made an unspecified ‘small revision’ to its revenue and contribution expectations from the bioplastics division in the second half of 2024.

Chief Executive Officer Paul Mines said: ‘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. We have successfully completed the first major radio frequency technologies division project of the year and achieved customer acceptance. We remain on track to deliver three further projects by the end of the year.’

In September, the company also raised £1.1 million in gross proceeds following a fundraise after converting its convertible loan notes.

Shares in Biome Technologies were down 4.7% at 6.67 pence each in London on Friday morning.

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