Client NewsBiON plc: Trading Update, Publication of Results and Director Shareholding
BiON (AIM: BION), an environmental engineering, wastewater treatment and renewable energy solutions company, provides an update on trading, on the publication of its results and on its biogas consortium. The Company also gives notice of a change in the shareholding of Mr. Habizan Rahman Bin Habeeb Rahman, an Executive Director of the Company.
As previously noted, following the outbreak of COVID-19, on 18 March 2020 the Government of Malaysia implemented a Movement Control Order (“MCO”), which is the lockdown and restriction of movement for all civilians and non-essential businesses, including a ban on interstate travel. This required the Company to cease its construction activities at the various project sites as supplies, materials and equipment were not transportable or obtainable. From 4 May 2020, there was some easing of restrictions, but lockdown measures remained in place throughout the year, including various restrictions on interstate travel. As a result, the Company’s ability to progress its biogas power plants to completion was impeded. However, the Company was successful in securing a number of engineering, procurement, construction and commissioning (“EPCC”) contracts, primarily in the second half of the year when restrictions were eased. As noted in the Company’s announcement of 13 April 2021, based on the delivery of these contracts (with an immaterial contribution from power sales at the end of the year), BiON expects to report revenue for 2020 of at least RM100m (2019: RM24.06m). These results remain subject to audit.
The MCO was reinstated for January and February 2021 and from May 2021 to date. Against this backdrop of challenging economic and operating conditions, the Company has been unable to secure and deliver EPCC contracts. While it has made some progress with the development of its portfolio of biogas power plants, the Company is only recognising initial revenue from this activity at present as it awaits the receipt of regulatory approvals. As a result, the Company expects to report significantly reduced revenue for the first half of 2021.
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