Waste treatment plant operator Bioganix says volumes at its main site in Suffolk were well below expectations at the end of last year.
The plant’s main customer was not delivering the amounts of waste it had contracted to do. Management says that it can get compensation for the shortfall under the contract arrangements. Arbitration proceedings should be completed in the first half of 2008. This creates uncertainty about the 2007 figures because the final outcome is dependent on how much compensation Bioganix is awarded.
The shortfall looks like it is continuing into 2008. There is also a reduction of volumes at the smaller Hereford plant. Bioganix has been attracting new customers.
On top of this the new Sharpness plant will be operational slightly later than expected. That will reduce 2008 revenues.
Bioganix is negotiating a new contract that will lead to the construction of another plant.
The shares fell 14.5p to 97p.
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