TIDMSYM
RNS Number : 0839W
Symphony Environmental Tech. PLC
17 December 2021
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act 2018.
Upon the publication of this announcement via the Regulatory
Information Service, this inside information is now considered to
be in the public domain.
17 December 2021
SYMPHONY ENVIRONMENTAL TECHNOLOGIES PLC
("Symphony", the "Company" or the "Group")
Trading and Business Update
Improved anti-viral kill rate of d2p gloves
Symphony Environmental Technologies Plc (AIM:SYM) global
specialists in technologies that make plastic and rubber products
"smarter, safer and sustainable", is pleased to announce a trading
and business update.
Trading update
Group revenue (draft and unaudited) for the financial year
ending 31 December 2021 ("FY 2021") is currently expected to be
approximately GBP9.8 million (FY 2020: GBP9.8 million) resulting in
an operating loss of approximately GBP800,000 (FY 2020: GBP390,000
and H1 2021: GBP600,000). As always, this is subject to completion
of final shipment consignments for revenue recognition purposes at
the year end.
Group revenue for FY 2021 by product type is expected to show a
5% year-on-year increase of d2w masterbatch and a 29% year-on-year
increase of d2p masterbatch. However, finished good sales,
particularly of PPE/gloves reduced year-on-year. Separately, a
total of GBP1.8 million d2p masterbatch and PPE/glove pipeline
revenues, originally expected to be recognised in FY 2021 has been
delayed into FY 2022 - further explanation is provided in the
"Business development updates" section below.
Revenue in the final quarter of FY 2021 was comparatively much
stronger than earlier in the year and is expected to total
approximately GBP2.8 million and be operating break even. On an
annualised basis, the Group would be generating revenue of at least
GBP11.2 million.
Business development updates
The Group continues its investment programmes across several
areas each aimed to stimulate new sales and markets in the short
and medium term including gaining key regulatory and product
approvals. The new business pipeline of d2p technologies and
PPE/gloves currently totals over 100 projects for which management
estimate if successfully commercialised would generate in excess of
$40 million of recurring annual revenues.
We are particularly excited by our new d2p glove product which
has a proven coronavirus (see note 1 below) kill rate of 99.99%
within just 10 minutes. This is a massive improvement on our
previously reported result which showed a 99.84% kill rate within
24 hours. We are not currently aware of any competitor gloves
offering this combination of speed and protection. Further details
are provided below, but Symphony expect regulatory approvals to
market and sell in the EU and the US to be obtained in Q2 2022.
Given the continual mutations of Covid-19, Symphony is and will
continue to seek to launch this new product to the market as soon
as practicable.
It should also be noted that from the sales pipeline, conversion
of circa GBP1.0 million of revenue from d2p technology projects was
anticipated to be completed before the year end, but due to
unforeseen delays beyond the Company's control have moved into the
new trading year. This part of the sales pipeline covers bread
packaging, water pipes and other types of antimicrobial products. A
further GBP800,000 of PPE/gloves revenues was also expected to be
completed before the end of the financial year but negotiations are
taking longer to complete than anticipated due to the complexity of
the technical requirements.
Listed below are some of the more notable revenue opportunities
within the d2p and PPE/gloves sales pipeline:
- d2p USA FDA & Canadian approved bread-packaging technology
Following successful initial trials during the year, small
commercial product sales have commenced in Latin America with a
large bakery for use in one type of bread packaging. Testing on
other types of bread products is continuing with a progressive
programme to expand the evaluation process and eventual use of d2p
in a wide geographical area.
The results from these small-scale commercial trials are
expected to be positive based on data collected to date. Symphony
are working closely with relevant key decision makers of the bread
producers as to the benefits to their business attributable to
d2p.
Separately, bread packaging products made with d2p have now been
produced to specific customer specifications for evaluation in
Canada, USA, Middle East, Pakistan, and South Africa. These markets
have shown strong interest in using our d2p technology if the local
trials confirm the expected results. The sales volumes indicated
would be potentially large which would then translate into
meaningful Group revenues if the trials and subsequent commercial
discussions proceed as hoped.
- Nitrile disposable gloves made with d2p technology
As noted above, nitrile gloves made with d2p have completed
pre-production trials and also have been successfully tested
against ISO Standards for anti-viral and anti-bacterial performance
with kill rates of at least 99.99% with a recent result showing a
coronavirus kill rate of 99.99% within 10 minutes.
Regulatory applications will be made imminently, and if
approved, Symphony currently anticipate will translate to the Group
being able to market and sell in the EU and the US in Q2 2022.
Based on current and ongoing communications with several key
customers and distributors, the Board are confident that upon
regulatory approval being received, the Group will be able to
generate immediate and material revenues from the sale of d2p
enhanced nitrile gloves and d2p additives for glove production into
these significant geographies.
- Meditech China
In August 2021, Symphony entered into four agreements with
Meditech to expand sales in the Far East and globally. Symphony are
pleased with progress to date and alongside Meditech, Symphony has
commenced upgrading current EU CE certification and US FDA
registration. This process is expected to complete in early Q2
2022.
- Gloves - other
Further to the work being carried out with Meditech,
negotiations are taking place in the USA (for use in medical
facilities such as hospitals and clinics) and Europe (for large
retail distributors in Spain and Italy) for d2p gloves and other
finished products. The volumes being discussed would be material to
Symphony.
d2w Masterbatch
Volumes of d2w masterbatch increased across Latin America, the
Middle East, and some parts of Asia during FY 2021. We are seeing a
positive impact from the advisory and advocacy work being carried
out for our d2w technology in these markets as well as increasing
enforcement of favourable legislation by the relevant
authorities.
India - Symphony Environmental (India) Pvt Ltd
As announced on 23 October 2021, Symphony formed a joint venture
("JV") with Indorama. Agreement has also been reached for
manufacturing and product-development with an Indian manufacturing
group, Bihani. This JV removes one of the biggest obstacles that
previously precluded Symphony from succeeding in the Indian market
as the punitive duties and other import costs made our products
uncompetitive. Based upon work and progress achieved to date,
Symphony are optimistic that this new relationship and structure
will provide significant revenue opportunities for both d2w and d2p
products during FY 2022 and beyond.
Note 1: Coronavirus strain MHV-3 genus Betacoronavirus (same
family and genus as SARS-CoV-1, SARS- CoV-2/COVID19 and MERS)
Enquiries
Symphony Environmental Technologies Plc
Michael Laurier, CEO Tel: +44 (0) 20 8207 5900
Ian Bristow, CFO
www.symphonyenvironmental.com
Zeus Capital Limited (Nominated Adviser and
Joint Broker)
David Foreman / Kieran Russell / Guy Brinkley Tel: +44 (0) 161 831 1512
(Corporate Finance)
Dominic King / Victoria Ayton (Sales) Tel: +44 (0) 203 829 5000
Hybridan LLP (Joint Broker)
Claire Louise Noyce Tel: +44 (0) 203 764 2341
The person responsible for arranging the release of this
information is Michael Laurier, CEO of the Company.
NOTES TO EDITORS:
About Symphony Environmental Technologies plc
www.symphonyenvironmental.com
Symphony has developed a range of additives, concentrates and
master-batches marketed under its d2p(R) ("designed to protect")
trademark, which can be incorporated in a wide variety of plastic
and non-plastic products so as to provide protection against many
different types of microbes, and insects and rodents, and against
fire. d2p products also include odour, moisture and ethylene
adsorbers as well as other types of food-preserving technologies.
Symphony has launched d2p anti-microbial household gloves and
toothbrushes and is developing a range of other d2p finished
products for retail sale. See www.d2p.net
Symphony has developed and continues to develop and market, a
biodegradable plastic technology which helps tackle the problem of
microplastics by turning ordinary plastic at the end of its
service-life into biodegradable materials. It is then no longer a
plastic and can be bioassimilated in the open environment in a
similar way to a leaf. The technology is branded d2w(R) and appears
as a droplet logo on many thousands of tonnes of plastic packaging
and other plastic products around the world. In some countries,
including Saudi Arabia, Jordan, Bahrain and the UAE
oxo-biodegradable plastic is mandatory. See www.d2w.net
The Group has complemented its d2w biodegradable product range
with d2c "compostable resins and products" that have been tested to
US and EU composting standards.
Symphony has also developed the d2Detector(R), a portable device
which analyses plastics and detects counterfeit products. This is
useful to government officials tasked with enforcing legislation,
and Symphony's d2t tagging and tracer technology is available for
further security.
Symphony has a diverse and growing customer-base and has
established itself as an international business with 74
distributors around the world. Products made with Symphony's
plastic technologies are now available in nearly 100 countries and
in many different product applications. Symphony itself is
accredited to ISO9001 and ISO14001.
Symphony is a member of The OPA (www.biodeg.org) and actively
participates in the Committee work of the British Standards
Institute (BSI), the American Standards Organisation (ASTM), the
European Standards Organisation (CEN), and the International
Standards Organisation (ISO).
Further information on the Group can be found at
www.symphonyenvironmental.com and twitter @SymphonyEnv See also
Symphony on Instagram. A Symphony App is available for downloading
to smartphones.
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