Bioplastics and radiofrequency technology company Biome Technologies has secured an expected contractual commitment with a second US end-customer, it announced on Tuesday, to accelerate the commercialisation of its proprietary compostable filtration material.
The AIM-traded firm said the important customer’s business would support a “significant” portion of the group’s expected revenue growth in 2021 and beyond.
At the time of its fundraising in September, Biome told shareholders that it had identified the project as “the most important growth driver” for 2021, in support of its ambitious key performance indicators.
In its subsequent trading update on 29 October, it added that the implementation was moving forward, with initial orders expected later in the fourth quarter of 2020.
“These initial orders enabled the customer to test Biome’s material extensively in the production environment, such production being enabled by supplementary equipment provided by the group’s Stanelco RF Technologies division,” the board said in its statement.
It confirmed the testing was successful, with commercial production for consumer use starting in the first quarter of this year.
“This end-customer has now ordered further equipment, with a value of $70,000 and to be made by RF Technologies, that will help to unlock the use of Biome’s compostable filtration material on a significant portion of the customer’s installed capacity.”
Biome said it expected that would lead to “significant” additional revenues for its bioplastics division during 2021.
“This important customer commitment, and the commercial progress described, supports the board’s expectations of the continued rapid growth of the bioplastics division and the current market expectations for the group.”
Biome said it would announce its results for the year ended 31 December on 25 March.
At 1042 GMT, shares in Biome Technologies were up 40% at 371p.
