London-listed Biome Technologies (AIM:BIOM)  told investors that the impact of Covid-19 on its business has been ‘limited’ during the first quarter of 2020. 

As at 31 March 2020, the group remained debt free and held £1.8m cash compared to £2.1m at 31 December 2019. 

The group said trading for the three months ended 31 March 2020 was in line with management's expectations which the group had previously outlined in a January update. 

Group revenues achieved for the period were £1.3m compared to £2.1m in the comparative 2019 period. 

The group noted ‘subdued demand’ in the Stanelco RF division with revenues at £0.2m compared to £1.5m in the first quarter of 2019.  

The groups said Stanelco RF’s market position was exacerbated by the effect of Covid-19 on sentiment towards purchases of capital goods and it is unlikely that this position will change  

However, revenues in the Bioplastics division of £1.1m were up 83% from £0.6m in the same period last year and matched the ‘record’ quarterly revenues of 2019’s final quarter. 

Shares in Biome Technologies were trading flat at 163p on Wednesday. 

Its performance was underpinned by ‘increased sales of outer packaging for the US single serve coffee market’ and ‘growing revenues for rigid ring materials for the coffee-pod market.’ 

The group said there is ‘growing evidence’ that the ordering of coffee products for home delivery was supporting demand towards the end of the quarter. 

Biome stated that progress on other projects, such as the nutraceutical pod, had been more limited as Covid-19 began to impact some customers' developmental activities. 

However, Biome said developmental work elsewhere continues ‘with some vigour’ and it is well positioned to exploit opportunities in the growing market as and when conditions allow. 

Biome added that Stanelco RF's sales activities are focused on alternative industrial markets in the UK/Europe which it believes will support increased revenues in the second half of 2020. 

As at 14 April 2020, the group remains debt free and holds £1.7m cash. 

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