Biome Technologies Share Discussion Threads

[jmf69] 29/3/2021 20:23

I would say they have enough for the year if rf revenue doesn't pick up and steady increase in bioplastics revenue. We'll know more of the Q1 end position on 21st April.

[thordon] 29/3/2021 20:12

Reported Group loss before interest, interest, taxation and amortisation (LBITDA) of £0.9m (2019: LBITDA of £0.5m), in line with market expectations, with Group operating loss of £1.6m

£1.6m is still a loss , to dress it up with Earnings before interest, taxes, depreciation and amortization basic means can off set in future profits hence the £0.9M

Just love accountancies

My worry is another cash call or sell RF Technologies as its dragging us down

[michaelmouse] 27/3/2021 11:37

No that's incorrect. The group made a LBITDA of £0.9m. The LBITDA for Bioplastics was £0.1m, RF Technologies £0.4m and central costs £0.4m. Please read the finals.

With rapid growth from the Bioplastics division, and when the RF division's fortunes turnaround (which they will do, possibly more quickly than is currently expected) then you can see why this should get pretty exciting!

[thordon] 27/3/2021 11:00

Whats interesting is in the interview is the Bio Plastic division made a 0.9 Million loss , which is much higher then i thought.
So the question is how much in the Bio Plastic division need to break even , be helpful if this could be calculated.
We could use the last 3 years accounts to get a rough figure ; any ideas will be helpful

[ga_dti] 26/3/2021 08:13

Latest DT interview with Paul Mines discussing final results:

[jmf69] 25/3/2021 19:02

My take on the results today and outlook is that most of the revenue growth will come in H2 with the new product sales coming online. Still happy to hold. Gla.

[jmf69] 25/3/2021 11:59

From the allenby capital research note issued today...ValuationWith limited, if any, quoted companies operating in the same space as Biome and the current forecasted losses it is difficult to present a valuation based on traditional metricssuch as PER and EV/EBITDA. However, our belief that the shares are undervalued is supported on an analysis of the EV/Sales of smaller companies within the Chemicals sector that on average show a ratio of 4.2x for Year 1 forecasts and 4.1x for Year 2. On this basis and applying a sizeable discount of around 25% we arrive at a share price of around 750p which we believe is a reasonable short to medium term target (the shares reached a peak of 645p in January 2019) that would value the business on an EV/Sales of 3.2x 2021 forecasts and 2.3x for 2022

[heeley3] 25/3/2021 11:36

New Non-exec seems to be a heavier weight than a small co. like Biome would normally attract. I wonder what the thinking is - massive expansion on the cards? or getting the decks ready to be taken over?

[thirty fifty twenty] 25/3/2021 10:55

hi amt - agree with your conclusion that limited downside and huge upside.
though the risk reward may not suit all.

all IMHO , DYOR + BoL
BIOM is in my portfolio

[jmf69] 25/3/2021 10:35

Biome Bioplastics utilises industrial biotechnology developments to create bioplastics to replace oil-based polymers with biobased and biodegradable aromatic polyesters. https://t.co/9rAOlus6GJ #innovation #lifesciences #sustainable https://t.co/DYFr5j3Msl

[jmf69] 25/3/2021 10:28

But at what price?

[begorrah88] 25/3/2021 10:14

Something about the price action seems wrong to me.On the figures & the recent RNS I can so no genuine reason for the rise.Wouldn't surprise me if it got taken out by some larger body & Mines can then head off into the sunset with a lump sum in his pocket & maintain his delusions of having done a good job.New non-execs etc might just be positioning of appropriate parties.Wouldn't be surprised to see plenty of PR fluff in the near future if I'm right.

[amt] 25/3/2021 09:35

Yes I reckon based on current trends a loss of about 0.8m this year and cash outflow of about the same leaving 900k in the bank.
Then 2022 break even and cash neutral.
In H2 cash burn was only 400k so maybe my 800k for 2021 is pessimistic given probably 2m more in sales of Bio products.
There could of course be some major contracts and the furnace business might start to recover.
Anyway relatively safe at the moment with a huge opportunity further down the road. I am holding on.

[thordon] 25/3/2021 08:42

Yep , think this year still heading for a loss with next year heading to profit

[zipstuck] 25/3/2021 07:57

Cash burn last year was £1.4m after p;acing

[hatfullofsky] 25/3/2021 07:45

Can't see BIOM holding on to its recent gains with these results.

[thordon] 25/3/2021 07:20

Biome Technologies plc announces its audited Final Results for the year ended 31 December 2020.

Highlights:

Final Results

· Another strong year for the Bioplastics division with revenue growth of 65% building on the 81% revenue growth achieved in 2019. The division enters 2021 with a healthy pipeline of customer positions and prospects.

· RF Technologies division revenues reduced to £0.8m due to the ongoing over-capacity in the division's core fibre optics manufacturing market.

· Reported Group loss before interest, interest, taxation and amortisation (LBITDA) of £0.9m (2019: LBITDA of £0.5m), in line with market expectations, with Group operating loss of £1.6m (2019: loss of £1.0m).

· Group cash position as at 31 December 2020 was £1.7m (31 December 2019: £2.1m) with no debt.

[johncasey] 24/3/2021 20:13

sorry above was meant for ecr message board

[johncasey] 24/3/2021 20:12

37% drop from highs...id say its a bargain now with £4m in the bank

[marmar80] 24/3/2021 19:42

Good find.

[jmf69] 24/3/2021 11:25

I hear what you're saying and agree to a certain extent. I have been invested for quite a few years but almost at break-even unlike other long term holders. The only thing I would say is the market has changed massively in the last 10 years and customers as well as companies are looking for environmentally friendly products. Biome fits the bill and should see consistent growth in the coming years.