Biome Technologies Share Discussion Threads

[jmf69] 01/10/2019 08:13

Both resolutions passed in yesterdays general meeting.

[rossco] 18/9/2019 21:20

The interim figures do not make good reading.

- trading loss of £500k
- gross margin fell from 53% to 48%
- operating activities cash outflow of £700k
- expected RF revenue of only £1.8m in the second half (including order of £1.3m)


When you read the Placing Document you find no reference to Profit - only mention of increasing Bio revenue so that it will exceed RF “in a year or so”.

Even if combined revenue reaches £8m (4m each based on RF normal 2017 revenue) and a gross margin of 48% (optimistic) is earned GP will be £3.8m. However Administrative expenses in 2018 were £4.8m (and we are told more staff have been recruited) - resulting in a minimum loss of £1m.

No wonder the company needs more cash.
The documents certainly do not inspire me to buy more shares.

[jmf69] 18/9/2019 19:24

4687 buy at 15.31 in addition to the 5k bought earlier in the morning

[jmf69] 14/9/2019 17:17

Fair point about raising funds at 300p when bioplastic revenue is expected to rise every quarter.From the management commentary about bioplastic products commercialising and growing demand, I expect bioplastic revenues to be over 3m this year.Q3 numbers due at the end of October will be a good guide.

[marmar80] 13/9/2019 20:57

Was nearly 7 so why raising at 3 if you believe in own co?

[amt] 13/9/2019 19:14

Bioplastics starting to deliver. 50% growth and implied that growth rate is what there are expecting in the next couple of years. So say 3.0m this year 4.5 next 7.0 or so the year after and perhaps could hit the jackpot if a product takes off. Market cap of 8.0m is modest. Add in the other business which is steady with some growth potential and it looks very cheap. The share price was nearly 7.0 quid not long ago.

[jmf69] 13/9/2019 09:00

I agree with you and I've been holding long enough to be very cautious here but the market has changed drastically and traditional plastics are public enemy number 1.The opportunities are there to be taken and the only question is can this management grab them with both hands and deliver?I am in profit at these levels believe but believe there could be a long way to go. Gla

[vaneric1] 13/9/2019 08:54

Sirmark will tell you, and he's right, that the story in your post 1151 JMF69 could be a copy and paste of the story told to us ten years ago when we were fools enough to put money in this company.

We lost that money, the only ones to profit from this business are those at the head who take their generous salaries for producing only promises.

[jmf69] 12/9/2019 22:19

Reasons for the Placing and use of proceeds Revenues from Biome Bioplastics have, in the first six months of 2019, begun to accelerate, particularly in the US market.To maintain and build on this growth, investment is required in both:-- the costs associated with scaling up manufacture (in the US, Germany and UK); and -- the acquisition of raw materials, stocks and debtors as production volumes increase. Further, Biome Bioplastics is working on a variety of further projects with implementations that stretch through 2020 and beyond and the business continues to receive an elevated level of new enquiries. Progressing these will require investment to bring them to market.

[jmf69] 12/9/2019 22:13

Just to get this right... the directors have a LTIP and share options. These options are vested as the share price hits certain targets and from recollection the price is 215p.So the directors must be pretty confident to issue more shares at 300p and raise funds leading to the resulting dilution otherwise they risk not hitting the share price targets and missing out on the share options. Thoughts anyone?I see the raising as a positive to fund the growth not only in the current commercialized products but also commercialising some of those 15 products in development and the new generation bioplastics.

[sirmark] 12/9/2019 18:40

Don't worry about that you've been saved lol

[someuwin] 12/9/2019 09:11

...Don't worry, I expect we'll be able to buy at 300p (or less) soon enough.

[marmar80] 12/9/2019 09:09

Why are we ordinary shareholders excluded from this 14% discounted offer ? Anyone?

[marmar80] 12/9/2019 09:01

I hope they won't go private and delist it once it starts generating real money. It happened before to a few shares on AIM that I owned.

[marmar80] 12/9/2019 08:39

Share at 335 today is at its 52weeks minimum and further discount is not needed if the result may lead to the significant increase of sales, revenue and perhaps profits to share - all if they believe own plan.

[jmf69] 12/9/2019 08:35

Mr V Pereira and Mr JM Rushton-Turner are subscribing for 66,667 and 76,667 Placing Shares respectively, representing GBP200,001 and GBP230,001 respectively at the Issue Price. As Mr V Pereira and Mr JM Rushton-Turner each currently hold more than 10 per cent. of the Ordinary Shares, both of the subscriptions of Placing Shares by them are deemed to be related party transactions pursuant to rule 13 of the AIM Rules for Companies.

[slicethepie] 12/9/2019 08:30

Why would anyone be interested ? New holders require a discount....the only people disadvantaged are pi who cannot get access to the placing and have to buy in the market. Good to see big holders are joining in for circa £400k

[marmar80] 12/9/2019 08:10

Placing at discount means to me that the company doesnt believe its shares are worth current price. Pity csuse share is trading at low level and they could easily announce raising at 350.

[michaelmouse] 12/9/2019 07:57

Interim results are exactly as outlined in the previous trading statement, although I wasn't expecting a £1.3m fund raise at 300p when they still have £1.7m cash in the bank and relatively low cash burn. In fact they generated cash last year.

However, it becomes apparent why they've raised when you read this single line:-

"Pipeline of approximately 15 key bioplastics development projects underway with a customer group that ranges from mid-sized businesses to multi-nationals"

That's why I invested. Bioplastics division is beginning to come of age. They need to invest for the anticipated significant growth.

[zipstuck] 12/9/2019 07:29

Having a placing at £3 does not fill me with confidence on Stanelco next year. Looks like its flatlined as no addition orders over previously announced £1.3 for this half

[jmf69] 11/9/2019 13:26

You'll find out tomorrow when the results are announced

[marmar80] 11/9/2019 13:14

Not a single rns for over a month. Wonder if all the staff is on extended summer holidays or simply there is no activity there at all.