TIDMSYM
RNS Number : 8075H
Symphony Environmental Tech. PLC
01 August 2023
1 August 2023
SYMPHONY ENVIRONMENTAL TECHNOLOGIES PLC
("Symphony" or the "Group")
Pre-close Trading Update
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
update for the six months ended 30 June 2023 ("H1-2023").
Highlights
-- Group revenue increased to GBP3.6 million (H1-2022: GBP3.0 million)
-- Gross profit margins increased to over 42% (H1-2022: 36%)
-- Distribution costs sharply reduced to circa 3% of revenues
(H1-2022: 7%) - H1 2023 approximately GBP110,000 (H1-2022:
GBP225,000)
-- Resultant contribution for H1-2023 after distribution costs
increased by approx. 70% compared to H1-2022
-- Lower operating cost base
-- GBP1.0 million convertible loan note agreement entered into with Sea Pearl Ventures LLC
H1-2023 trading
As shown above we are pleased to report a positive turnaround in
revenues and sharply improved operating margins for the Group
compared to 2022. Whilst a loss will be reported for H1-2023, it
will be significantly lower than for the same period last year.
Revenue growth was driven primarily by operations in the Middle
East and margin growth was driven by reduced raw material costs
together with managed efficiencies in the supply chain.
Focus continued in our prime revenue markets of the Middle East,
Latin America and Far East for both d2w and d2p product ranges, and
in particular d2p antimicrobial for bread packaging, d2p for
general antimicrobial applications, and d2p insecticidal.
The continued reduction in distribution costs was due to lower
shipping costs (continuing the trend seen in H2-2022) and
efficiencies arising from the new Middle East production facility
(commissioned by Symphony's partners in the region), which
commenced operation at the end of H2-2022.
Outlook
As advised at the AGM on 29 June 2023, the Board expect Symphony
will move back into profitability on the back of momentum started
during H1-2023 together with the near-term commercialisation of
several key projects.
These expectations do not take into account Symphony's joint
venture in India, where we continue to wait for approval that
plastic producers using d2w technology will become certified
suppliers.
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 (Corporate Finance) Tel: +44 (0) 161
831 1512
Dominic King / Victoria Ayton (Sales) Tel: +44 (0) 203
829 5000
Hybridan LLP (Joint Broker)
Claire Louise Noyce Tel: +44 (0) 203
764 2341
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 d(2) p(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 bacteria, viruses, fungi, algae, moulds, and
insects, and against fire. d(2) p products also include odour,
moisture and ethylene adsorbers as well as other types of
food-preserving technologies. For an overview see www.d2p.net
Symphony has launched d(2) p anti-microbial household gloves and
toothbrushes and "Symfresh" food-packaging and is developing a
range of other d(2) p finished-products for retail sale.
Symphony has also developed a biodegradable plastic technology
which addresses the problem of persistent microplastics, by turning
ordinary plastic at the end of its service-life into a waxy
substance which is biodegradable. It is then no longer a plastic
and can be bioassimilated in the open environment in a similar way
to a leaf without leaving microplastics behind. The technology is
branded d(2) w(R) and appears as a droplet logo on many thousands
of tonnes of plastic packaging and other plastic products around
the world, much of which has been recycled. In some countries, most
recently Saudi Arabia, oxo-biodegradable plastic is mandatory for
short-life plastic products.
d(2) w technology was studied for three years in the Oxomar
project, sponsored by the French government, which concluded that
plastic made with Symphony's d(2) w oxo-biodegradable technology
will biodegrade in seawater significantly more efficiently than
conventional plastic. See
https://www.biodeg.org/subjects-of-interest/agriculture-and-horticulture/the-marine-environment/
Following this report, the scientists allowed bacteria commonly
found in the open environment access to d(2) w oxo-biodegradable
plastic containing Carbon 13. They found Carbon 13 in the carbon
dioxide exhaled by the bacteria, proving beyond doubt that the
plastic had been bioassimilated by the bacteria.
Symphony has complemented its d(2) w and d(2) p product ranges
with d(2) c "compostable resins and products" that have been tested
to US and EU composting standards and has invested in Eranova - a
French company extracting starch for making plastics, out of
algae.
Symphony has also developed the d(2) Detector(R), a portable
device which analyses plastics and detects counterfeit products.
This is useful for government officials tasked with enforcing
legislation, and Symphony's d(2) t 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 over 70
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 BPA (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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