Biome Technologies division awarded £0.45m contract

22nd Jun 2023 15:02

(Sharecast News) - Bioplastics specialist Biome Technologies announced on Thursday that its Stanelco RF Technologies division has been awarded a contract worth £0.45m to supply a groundbreaking induction furnace system to a renowned global manufacturer of scientific glass products.

The AIM-traded firm said the system was set to revolutionise the industry by leveraging Stanelco's expertise in induction furnace technology and applying it to a novel application field.

By incorporating key elements of Stanelco's technology, the system would deliver enhanced performance attributes and improved operational effectiveness.

The design and construction of the furnace would take place at Biome Technologies' Marchwood facility in the UK.

After completion, the installation and commissioning would be carried out at the customer's overseas production site.

While the finalisation of the project was expected in the 2024 financial year, there was a possibility of recognizing some revenue in 2023 under the IFRS-15 accounting standard.

The exact timing of revenue recognition would be contingent on the availability of crucial components, which would be identified during the design phase.

To ensure efficient progress, the contract included stage payments that would be disbursed on reaching predefined milestones.

Biome Technologies said it had already factored in the project's revenues and cash flows into management's existing expectations.

As the timeline for revenue recognition became clearer, shareholders would be informed through trading updates.

"This contract win is a significant achievement for our Stanelco RF Division and the first major contract with this customer and in the sub-sector of the scientific glass industry," said chief executive officer Paul Mines.

"This order results from Stanelco's ongoing strategy of diversification into adjacent markets and is one of a number of opportunities that are currently in contract discussions."

At 1441 BST, shares in Biome Technologies were up 1.96% at 130p.

Reporting by Josh White for Sharecast.com.