Bioganix reported an increased loss in 2007 but its performance should improve this year.
Waste treatment plant operator Bioganix’s loss jumped from £66,000 to £1.06m. Turnover rose from £1.6m to £2.06m but growth was lower than originally expected. This was due to disappointing levels of business at the Parham site with one local authority customer. Bioganix settled the dispute with this customer in April but only £70,000 of the compensation was included in the figures. The settlement was worth more than £1m over two and half years – it includes the processing of waste from Bioganix for a reduced fee.
The smaller Wharton plant handled a similar level of volumes to the previous year.
Net debt is £653,000. The £2.24m raised last year has been invested in plant and equipment.
The new plant at Sharpness has started to process waste in 2008. I won’t reach full operating capacity until next year. The experience of the management at Parham will help costs to be lower than the Parham plant.
Planning is underway for a new plant in Aylesbury. Construction could start in 2009. This is likely to be the first plant to benefit from the tie-up with Kompogas and Kuttner on anaerobic digestion projects.
Bioganix expects to generate enough electricity at Aylesbury to add £1.25m to the plant’s revenues.
Bioganix is finding that some waste is being recycled for animal feed because of the increases in normal feed prices. That is reducing potential supply to its plants. However, the compost that is a waste product of the waste processing is selling for higher prices.
The 2007 results were not a surprise and Bioganix shares were unchanged at 102p, valuing the company at £8.28m. There were tentative forecasts prior to the figures of earnings per share of 3.8p for 2008.
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