# Biome Technologies Q&A: 48% revenue growth in bioplastics division (LON:BIOM)

- Link: https://www.directorstalkinterviews.com/biome-technologies-qa-48-revenue-growth-in-bioplastics-division-lonbiom/412934771
- Published: 2020-11-03T10:27:49+00:00
- Author: Amilia Stone

**[Biome Technologies](https://www.directorstalkinterviews.com/company/biome-technologies-plc/biom.l)
plc** ([LON:BIOM](https://www.directorstalkinterviews.com/company/biome-technologies-plc/biom.l))
Chief Executive Officer Paul Mines caught up with DirectorsTalk for an exclusive
interview to discuss the 48% revenue increase in the bioplastics division, what 
will drive growth going forward, their Stanelco RF division, the recent fundraise
and the appointment of a new CFO.

**Q1: Biome Technologies’ quarter three trading update showed a 48% increase in 
revenues in your bioplastics division, that’s on the previous quarter and more than
doubling on the previous year. Paul, what’s driven all this growth?**

**A1**: It’s been a very exciting quarter and we’ve got revenues of £1.6 million
in our bioplastics business.

The strength really has come from two areas, one materials for packaging that have
been in the market for some time and have been growing strongly and then, on top
of that, there’s been a rapid growth of materials that we’ve launched recently, 
particularly for coffee pod applications.

**Q2: Paul, what are the trends for the bioplastics business? What projects or markets
do you expect to drive growth going forward?**

**A2**: I think the really encouraging thing is, despite the worldwide pandemic,
the desire for environmental solutions such as compostable plastics remains really
strong and feels to be growing.

We’re delighted to see not just our existing products doing well but there’s a pipeline
of enquiries and development projects coming in from both the US and Europe. In 
particular, we’re seeing enquiries to work with both existing and a few new customers
on our coffee filtration materials for filtering coffee and coffee pod and in flasks
etc.

Right now, we’re deploying with one such customer in the USA and we expect revenues
from that customer later this quarter.

**Q3: Now your Stanelco RF division is still reporting modest revenues, are there
any signs of pickups there?**

**A3**: The rate at which telecoms companies can get fibre into the ground is very
much being constrained by COVID-19 at the moment and this impacts the investments
of our customers so I think, although in the long-term we can see this being a very
vibrant market because of the very medium that we’re using to talk together now,
but for now it remains tightly constrained.

We are picking up a few small orders from the more general UK industrial market 
but we believe business for this division will be subdued for some time to come.

**Q4: Now, the recent £1.1 million fundraising has now been completed successfully.
How are you deploying the funds?**

**A4**: You’re right, that the money is now in the bank.

The fundraise is really about accelerating the growth of bioplastics over the next
couple of years and this money gives us fuel in the tank to really tackle some of
the larger enquiries and development opportunities I spoke of earlier. They’re coming
in and, particularly from the US market and with this cash, it will give us the 
fuel for the resources, people, technical effort to really try and reel those opportunities
in.

**Q5: So, you also announced the appointment of Rob Smith as Biome Technologies’
new CFO, can you tell us a little bit more about Rob?**

**A5**: Rob has got a broad depth of experience as a CFO of AIM-listed technology
businesses so he comes with a good experience base. More than anything, through 
the me getting to know him over the last few months, he’s really got the drive and
enthusiasm required to help us really grow the bioplastics business in the coming
years. Myself, the rest of the team and the Board are really looking forward to 
working with him.

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