A Southampton company plans to raise £1million after a 36 per cent drop in revenue.

Biome Technologies PLC, a bioplastics and radio frequency technology enterprise based in Marchwood, recorded a 36 per cent drop in revenue, falling from £3.6 million last year to £2.3 million as of June 30.

A decrease in their end of period cash balance was also noted, which fell by 33 per cent from £900,000 to £600,000.

Looking ahead, despite expectations of their full-year revenue falling significantly short of targets, it is still expected to surpass the £7million reported last year.

The Bioplastics division also noted a 33 per cent decrease in its revenue, dropping from £3million to £2million.

The company have attributed this to production and regulatory challenges, which it plans to rectify in the second half of the year to achieve a revenue of greater significance for the division.

Biome has announced a two-tranche plan to raise a total of £950,000 before expenses, with CEO Mr Paul Mines and three other senior figures committing to provide £309,000 to this subscription.

An additional £80,000 will also be raised through the placing of 1.6 million shares at an issue price of 5p per share via the REX platform operated by Peel Hunt Ltd.

The company has scheduled a general meeting to seek shareholder approval for this fundraising endeavour.

In addition, existing convertible loan notes valued at £1.3 million will be converted into 25.6 million shares, equal to the 5p per share issue price.

Biome said: "The RF division entered the year having secured a major contract in 2023 for delivery in 2024 and secured three further large contract wins in 2024 H1 which are expected to result in significant revenue being recognised in 2024. The division's background spares, service and small equipment revenues have continued as expected in 2024 H1."