Shares of Biome Technologies plc (LON: BIOM) soared 47.4% after the company revealed that it had won a crucial contract with a US end-customer for its proprietary compostable coffee-pod filtration material.
The company did not reveal the name of the US customer. Still, it clarified that the deal marked a significant milestone for the company, which expects similar deals to drive its revenue growth this year and in the future.
The unnamed customer made an initial order, which it used to test Biome’s materials in a production environment extensively. After successful testing, commercial production for the customer’s use begun in Q1 2021.
Biome Technologies reported that the new customer had made a new order for more equipment valued at $70,000. Its Stanelco RF Technologies division would fulfil the order using Biome's compostable filtration material.
The company noted that the current customer is its second US end-customer. It expects growth from this segment will be a crucial pillar of its overall revenue growth strategy.
Biome Technologies said: “It is anticipated that this will lead to significant additional revenues for the Group Bioplastics division during 2021,”
Adding:
“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.
The company operates in two main divisions, Biome Bioplastics, which makes highway-functional biodegradable plastics and Stanelco RF Technologies, which designs, builds and services advanced radio frequency (RF) systems.
Biome Technologies share price.
Biome Technologies shares soared 47.37% to trade at 392p, having risen from Monday’s closing price of 266p.