Bioganix says that disappointing trading has led to a deterioration in its cash position.
The waste treatment plant operator is trading within its overdraft facility and is talking to its bankers about an increase in borrowing facilities.
The Bioganix share price slumped 38p to 35p, valuing the company at £2.84m. Bioganix had net debt, excluding property leases, of £653,000 at the end of 2007.
The waste received from the Glastonbury Festival has not been enough to boost waste volumes at the new plant in Sharpness to the hoped for levels. The plant has been accepting waste since May but it will take longer than expected to reach “acceptable levels of operation”, according to Bioganix.
There have been delays in winning new contracts at Parham so its activity levels are also lower than expected.
Fuel and chemical costs are higher than forecast which increases the break even level at the plants.
Bioganix is trying to secure planning permission for a new plant at Aylesbury. It will have to look at a number of options for financing this plant if permission is granted.
Bioganix says it will publish its interim figures on 26 September – it was originally aiming for 29 September.
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