- By Region
Shares in Biome Technologies, the bioplastics developer, dropped 38.5 per cent this week to 0.08p after it warned that sales would be lower than expected following a slowdown in demand in Europe, particularly in the south.
The group highlighted the Italian market, destined to become one of the largest in Europe after new rules were introduced last year insisting on the use of biodegradable products in shopping bags.
However, Biome said this week that fines for non-compliance have been deferred, slowing adoption in Italy and causing disruption to the bioplastic market across Europe, all of which will delay the group’s efforts to reach profitability.
Biome also warned that it will have to cut costs to preserve cash. This is the second time since March – when Biome reported that revenues rose 42 per cent in 2011 – that the group has warned of a drop in sales, triggering sharp falls in the share price.