Shares of bioplastics and radio-frequency technology Biome Technologies (LON: BIOM) have plunged Wednesday after it warned revenues for 2021 will be significantly below current market expectations due to supply chain problems.
Biome shares are down over 16% at 214p at the time of writing.
The company's revenues in Q3 were £1.1 million compared to 2020s £1.8m. Biome's cash position on 30 September was £1 million.
Looking ahead, the AIM-quoted firm said in the short term it expects more challenges, and it now believes revenues from certain customers of the Bioplastics division will be delayed into the first half of 2022.
In addition, the EBITDA loss for the year will be only slightly greater than current market expectations, Biome told investors.
“Whilst the issues highlighted above have stretched the Group's working capital resources in 2021, the Directors believe that actions underway will improve the efficiency of Biome's working capital cycle over time in a continuing process to release cash,” said the company.
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