A bioplastics developer has warned of lower-than-expected revenue.

Biome Technologies PLC issued the warning in a trading update for the quarter ending September 30.

The company, based in Southampton, said it expects adjusted revenue to fall below current market expectations, affecting profitability.

For the first nine months of 2024, Biome's revenue dropped 39 per cent to £3.2 million, down from £5.2 million the previous year, mainly due to problems in its bioplastics division.

In the third quarter, the bioplastics arm's revenue fell 49 per cent to £700,000, down from £1.3 million a year ago.

Sales for the nine months dropped 38 per cent to £2.7 million from £4.4 million, impacted by ongoing production and regulatory challenges faced by two key end customers.

One key customer is in the process of obtaining formal certification, while another has resolved regulatory issues, providing hope for recovery in 2025.

Revenue in the RF Technologies division dropped 59 per cent in the third quarter to £100,000 from £300,000 a year earlier, with nine-month revenue down 50 per cent to £400,000 from £800,000.

The company remains "encouraged" by the progress in addressing these challenges across both divisions, expecting improvements to the revenue run rate in the coming year.

Biome also announced that chair John Standen, who has led the company for 17 years, will be stepping down from the board in the "reasonably near term".