StockMarketWire.com - Bioplastics producer Biome Technologies said the lower-margin bioplastics business would become its pricipal revenue generator, following weak demand in its stanelco RF division.

The company also reported wider first-half losses as the virus impact dented activity.

For the six months ended 30 June 2020, pre-tax losses widened to £821,000 from £484,000 on-year, while revenue fell to £2.5 million from £3.4 million.

During the first half of 2020, the group's two divisions performed in line with the expectations, though an increased weighing of sales toward bioplastics division hurt margins.

Gross margin fell to 30% from 44%.

'As previously reported, the revenues of the Stanelco RF division, however, were compromised by both over-capacity in the fibre optic market and the slow-down in industrial activity caused by Covid-19. The Bioplastics division has now therefore become the principal revenue generator for the Group, and we expect this to be maintained into the future.' the company said.




At 9:24am: [LON:BIOM] Biome Technologies PLC share price was -82p at 158p



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