Investment summary

Biome has taken further strides towards a break-even position, with progress in each business area. Although we are not projecting break even before FY13, we raised our estimates after the H1 results and further bioplastics progress was made in Q3. The evidence for a growing and profitable core bioplastics activity is building, but this business is implicitly being rated at a fraction of its projected revenues. A new FD recently joined the board.

Last updated on 09/12/2011

Industry outlook

Around Europe, plants with capacities between 5-60mt are now in place as the consumer and regulatory drive to move away from petroleum-based plastics gathers momentum. Bioplastics are still more expensive than petroleum-based products. However, growth is being achieved by targeting niches where packaging is a small proportion of the overall cost of a product, and the consumer appeal of being eco-friendly adds enough differentiation. A range of third-party estimates indicates CAGRs of 12-20% in the coming years for the industry.

Last updated on 09/12/2011