Date: 19/1/12
Broker: Daniel Stewart
Company: Biome Technologies
Share price: 0.16p
Target price: 0.41p
Recommendation: Buy
Bioplastics company Biome Technologies announced that 2011 revenues increased by 40%. House broker Daniel Stewart forecasts 2011 revenues of £18.8 million and a pre-tax loss of £1.1 million.
Although growth slowed from 55% in the first half to around 24% in the second half, the order level for bioplastics is strong despite the economic uncertainties in Europe. The RF technologies division continues to grow as it diversifies into new markets.
Biome has net cash of £2.4 million and an unutilised debt facility of £2 million.
Daniel Stewart reiterates its buy recommendation and forecasts 2012 revenues growing to £26.6 million, with a reduced loss of £200,000.
