REG - Symphony Environment - Interim results for the 6 m/e 30 June 2022
29/09/2022 07:00
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RNS Number : 0822B Symphony Environmental Tech. PLC 29 September 2022
29 September 2022
SYMPHONY ENVIRONMENTAL TECHNOLOGIES PLC
("Symphony", the "Company" or the "Group")
Interim Results
Symphony Environmental Technologies Plc (AIM: SYM), a global specialist that
makes plastic and rubber products smarter, safer and sustainable, is pleased
to announce its interim financial results for the six-month period ended 30
June 2022.
Financial highlights
· Group revenue of £3.0 million (H1-2021: £4.9 million) softer
than prior year due to short term logistics, regulatory and resource issues,
which have since resolved, and timing on the delivery of key contracts,
temporary destocking issues and a change to our glove strategy
· d2p revenue increased c.200% to £0.3 million (H1-2021: £0.1
million) with continued conversion of higher value d2p anti-insect ("AI")
opportunities
· Gross profit of £1.1 million (H1-2021: £1.9 million)
· Loss before tax of £1.4 million (H1-2021: £0.6 million)
· Basic loss per share of 0.73 pence (H1-2021: 0.29 pence)
· Cash used in operations £0.8 million (H1-2021: cash generated
£0.3 million)
Operational highlights
d2p
· Supply Agreement with Grupo Bimbo, the western world's largest
bread producer for the Group's FDA-approved d2p anti-microbial ("AM") bread
packaging technology
· Continued progression of our d2p pipeline commercialisation with
positive test results received for d2p AM, d2p AI and d2p flame retardant
("FR") that are expected to result in orders during Q4
· Change in glove strategy - revenues awaiting regulatory approvals
d2w
· Two-year contract with Better Earth, a US packaging company, to
use d2w in nutritional supplement bottles
· d2w regulatory confirmation in Peru
· Positive regulatory progress in several key Central and South
American countries
Post period-end highlights
· Significant increase in sales and activity in India due to new
regulation which allows exemptions for biodegradable products
· New d2p AI orders ($340,000) with Rivulis Irrigation Ltd with
further orders anticipated during Q4
· Middle East - manufacturing agreement for d2w masterbatch, with
volume production expected to commence in October 2022 following successful
start-up trials
· Balance sheet strengthened by £1.0 million - Sea Pearl
shareholding increased to 17.4%
· New Mexican biodegradable standard applicable to d2w
· Expect to achieve a minimum annualised run-rate revenue of £14.0
million between Q4 2022 and H1 2023, through the conversion of a number of our
active near-term pipeline opportunities
Michael Laurier, CEO of Symphony, commented on the results and business:
"I am very pleased to report that we expect to achieve a minimum annualised
run-rate revenue of £14.0 million between Q4 2022 and H1 2023, through the
conversion of a number of our active near-term pipeline opportunities.
Excellent progress has been achieved with our d2p antimicrobial technologies
for use in bread and other food packaging for the North and South American
markets as well as for insecticidal technologies in agricultural applications
for Europe and the Middle East. As a whole, both India and the Middle East are
expected to add significant revenues in the near term as we have strong
partners, proven products, and market readiness after many years of
investment. Beyond this, our medium to long term sales potential is therefore
substantially higher than the above £14 million.
This year so far has been one of continued development to which we are seeing
low-cost biodegradable technologies growing in favour globally, and there is
increasing acceptance of, and commercial interest in, our d2p suite of
products. We, together with our partners, are now moving into a very positive
commercial phase."
Enquiries:
Symphony Environmental Technologies Plc
Michael Laurier, CEO Tel: +44 (0) 20 8207 5900
Ian Bristow, CFO
www.symphonyenvironmental.com (http://www.symphonyenvironmental.com)
Zeus (Nominated Adviser and Joint Broker)
David Foreman / Kieran Russell (Investment Banking) Tel: +44 (0) 161 831 1512
Dominic King / Victoria Ayton (Corporate Broking) Tel: +44 (0) 203 829 5000
Hybridan LLP (Joint Broker)
Claire Louise Noyce Tel: +44 (0) 203 764 2341
Houston (Financial Public Relations)
Kay Larsen / Joe Burgess Tel: +44 (0)204 529 0549
Chairman's statement
I am pleased with the progress the Group has made in the first half of the
year as we continued to lay solid foundations from which to build our
commercial success. Although revenues were softer than the same period last
year, we reported on 1 August 2022 that this was primarily down to various
logistical, regulatory, and stocking issues which have now been rectified.
Additionally, the several new contracts and other positive developments
achieved during the period had not yet translated into revenues. These new
contracts and developments significantly underpin many of our growth
initiatives for both d2w and d2p in the near to medium term.
We were delighted to achieve a significant commercial supply agreement for d2p
antimicrobial ("AM") technology with Grupo Bimbo, the western world's largest
bread manufacturer. This agreement followed FDA and Health Canada approvals of
our d2p AM bread technology. The size of the US bread market in 2018 was
estimated at $20 billion (source: Global Markets Insights) and, as the only
FDA-approved AM technology for this type of packaging application, we believe
that we are well positioned to capture substantial market share in the medium
to long term. Initiatives are also in progress with bread manufacturers in
Latin America and other parts of the world. Our strategy is to capture a
substantial part of these new markets that we estimate will result in
annualised revenues of at least £2.5 million in the near term with strong
growth over the medium to long term.
Symphony India, our joint venture company in India owned by Symphony and
Indorama Corporation, received a prestigious sustainability award for our d2w
biodegradable technology. As further set out in the Chief Executive's report,
new legislation in India requiring minimum thickness of certain types of
plastic products unless certified by the Government as biodegradable, resulted
in Symphony India achieving a significant increase in sales and marketing
activity for d2w technology.
d2w revenues are also anticipated to show substantial growth in other markets
in the near term because of several factors, including: the establishment of
local manufacturing in the Middle East and a reset of regional stock levels;
legislative enforcement in Saudi Arabia which is an ongoing process that
started accelerating in recent weeks; and Latin American legislative and
standards initiatives, which are expected to continue progressing in the right
direction following recent positive developments in Peru and Mexico. We are
also very happy with progress made outside of regulatory drivers, especially
the United States where we signed a contract earlier in the year for
nutritional supplement bottles.
We have shown a c.200% growth of d2p sales during the period based on our
successful anti-insect ("AI") technology for use in agricultural applications.
Current dialogues indicate that this will grow and expand globally. In
addition to the above, flame retardant ("FR") and odour absorbent ("OA")
technologies are close to completion on several initiatives. This is all
within our current d2p pipeline of over 60 projects. Revenues for AI are
anticipated to reach £600,000 in 2022 and are expected to more than double
during 2023.
Group revenues for H1-2022 of £3.0 million (H1-2021: £4.9 million) were
lower primarily due to a change in protective glove strategy, moving away from
commodity gloves to higher value EU certified products, with regulatory
approvals currently in process, together with materially lower sales of d2w in
the Middle East due to temporary destocking by our distributor and logistical
issues, which I'm pleased to note most of which have now been resolved.
The near-term annualised revenue run-rate, including the initiatives described
above, which we expect will be achieved between this year's Q4 through H1
2023, exceeds £14 million. Undoubtedly the Group's opportunities are
significant and real, but the Board and I are acutely aware that these
multi-year projects do not fit neatly into reporting periods. Whilst the
returns on these projects will be highly profitable, the Company's financial
performance in any given reporting period is affected by the timing of these
projects. This financial year is no different, and whilst the Board remain of
the view that full year market expectations are achievable, if certain
projects are delayed, this may impact results.
Finally, I am pleased that we have been able to strengthen the Board during
the period, with the appointment of The Hon. Alexander Brennan, and look
forward to the coming months with growing confidence.
Chief Executive's review
The financially slow period during the first half of the year does not reflect
the significant underlying progress being made across the business on several
fronts. We now have a very strong joint venture partner in India and a highly
motivated and growing team, building an increasing network of strong, high
quality and well-connected hub-distributors, with demand being further driven
by positive regulatory change. In addition to this, the Middle East is also
showing great promise as plastic regulations and compliance are gaining
traction, and there is growing interest in customer-evaluation trials for our
other d2p technologies.
Financial
Revenue for the 6 months ended 30 June 2022 was £3.0 million (H1-2021: £4.9
million).
The H1-2022 revenue performance was softer than normal, affected by short-term
logistical and resource issues, slow and complex d2p regulatory approvals,
temporary d2w destocking at our Middle East distributor, and a change to our
glove strategy. The short-term logistical and resource issues are resolving as
anticipated, and we are seeing restocking at our Middle East distributor.
As previously advised, having focused our glove strategy on higher value EU
certified gloves and moving away from commodity gloves, near-term revenues
were negatively affected by c.£1.0 million during the period. We are
awaiting regulatory approvals for our gloves, which is anticipated later this
year. Once regulatory approvals are received, we will recommence the sales and
marketing initiative. Based on feedback from the market through our potential
customers, we anticipate there will be high demand for these certified gloves
and will benefit from greater protection from competitors, as the regulatory
process is time-consuming, costly, and complex, creating a strong barrier to
entry.
Gross margins also softened during the period due to high raw material and
shipping costs which have recently been reduced closer to historical levels.
In particular, distribution costs due to global vessel and container
shortages, are now easing, with c.20% reductions since the peak during the
first half of the year. These are expected to continue falling throughout the
rest of 2022.
As previously advised, we continue to incur costs in relation to supporting
d2w advocacy communications in the UK, Middle East and Latin American markets.
In addition, regulatory and other IP related costs continued for new d2p
products for the EU and US markets.
The Company continues to invest in its sales and other operating functions to
better manage its strong and growing pipeline and also in its quality control
systems and service-levels as these form the basis of our brand value.
The Group's share of Symphony India's joint venture start-up loss for the
period was £23,000 (H1-2021: £nil). The Group's 46.5% interest in the Indian
company is recognised as a joint venture investment in our financial
statements using the equity method.
This additional strategic investment in key resources, together with the
above-described factors resulted in a net loss before tax of £1.4 million
(H1-2021: £0.6 million).
An R&D tax credit of £119,000 was received during the period (H1-2021:
£127,000). The Group reports a loss after tax of £1.3 million (H1-2021:
£0.5 million).
The loss per share for the period was 0.73 pence (H1-2021: 0.29 pence).
Post period-end we were also pleased to see our balance sheet strengthened
following a £1.0 million equity fundraise from Sea Pearl Ventures Limited,
increasing their shareholding to 17.4% and demonstrating their ongoing support
and optimism around the potential of the Group.
d2p "designed-to-protect"
d2p revenues for the period were up c.200% to £345,000 compared to £111,000
for the same period last year due primarily to d2p AI growth. Since the
period-end Rivulis placed a record order of $340,000 for new d2p AI product
which was shipped in Q3 2022. There were several positive laboratory and field
test results for d2p AM, d2p FR and d2p AI initiatives in several of our
markets, which we believe, following discussions with our distributors and
potential customers, will lead to a number of material new orders during the
second half of 2022 and into 2023. This is all within our current d2p pipeline
of over 60 projects.
Most significant is the d2p AM bread technology where we expect the sales
process with Grupo Bimbo to start in Q4 of this year. Initiatives are also
being undertaken in Latin America and other parts of the world.
d2w biodegradable technology
Post period-end we signed a manufacturing agreement with Ecobatch Plastic
Factory in the UAE, for the production and supply of d2w into the Middle East.
The manufacturing facility is expected to start operations in October. This
facility, being financed and operated by our local partners, will reduce
reliance on expensive and unreliable freight from our Far East facility, where
most of our products for supply to this region are currently made. In
preparation for the switch from imports to locally made products in the Middle
East, stocks and orders were temporarily reduced in the period - which had a
short-term but material negative effect on H1 performance. These sales have
not been lost, but delayed to H2-2022. We anticipate improved sales and sales
and supply efficiency, as well as improved Group cashflow and operating
margins, following the switch to this facility.
We continue with advocacy in Latin America, UK, and the EU. The regulatory
clarification in Peru, resulting in a clear distinction being officially
acknowledged between oxo-degradable and oxo-biodegradable, will help generate
revenues in the region. Further, the Mexican Ministry for the Economy
published a new Mexican Technical Standard with positive commercial
implications for d2w, acknowledging and validating the technology for the
accelerated biodegradation of plastic. We anticipate further positive news
from other Latin American markets during Q4 2022.
We are confident that many of our markets will produce significant growth as
the environmental drive for better alternatives to non-biodegradable plastics
has become an increasingly urgent issue for Governments and brand-owners to
resolve.
India
As announced in November 2021, Symphony became a 46.5% joint venture
shareholder in Symphony India, with Indorama Corporation holding 46.5% and the
MD, Arjun Aggarwal holding 7%.
Symphony India received a prestigious sustainability award for our d2w
biodegradable technology during the period and sales traction is gaining rapid
momentum. The increase in sales is being driven by the Plastic Waste
Management Rules 2022 (as amended 6.7.22) which permits
government-approved biodegradable plastic products to be exempted from
restrictions that would ban most plastic film products unless they are above
50-micron thickness, and 120 microns for carrier bags, (which generally means
an increase in cost by more than two to three times). Producers and brand
owners using certified biodegradable plastic materials will be free from this
obligation, thus providing Symphony's d2w technology with a competitive
advantage in a country with a population of c.1.4 billion.
Based on current enquiry and order activity, sales of d2w by Symphony India
are expected to increase to levels of over £250,000 per month from early
2023.
EU Action
As previously announced, Symphony commenced a legal action against the
Commission, Parliament and Council of the EU having been advised by three
specialists in EU law that Article 5 of the Directive 2020/904 is
unconstitutional. We are currently waiting for the court to fix a date for an
oral hearing in Luxembourg. This is expected in Q4 2022 or Q1 2023.
The Defences did not reveal anything unexpected, and Symphony's legal team
remain confident that the EU acted unlawfully in imposing a ban on a material
which they call "oxo-degradable plastic" in Article 5 of the Directive. In
any event, Symphony does not accept that the ban applies to oxo-biodegradable
plastics, which are made by incorporating Symphony's d2w masterbatch into
ordinary plastic, and do not have any of the undesirable characteristics
listed in Recital 15 of the Directive.
Confidence that our product is not included in the ban has been reinforced by
new legal Advice from Josh Holmes KC a leading Barrister at London's Monckton
Chambers, who specialises in EU law.
Eranova
As announced in October 2020, The Group entered into an exclusive distribution
agreement and made an investment representing 1.6% of the enlarged capital of
Eranova SAS (£123,000 including costs) as part of a €6 million
pre-industrial plant project. The pilot plant was completed on schedule during
October 2021 and is operational and processing small-volume commercial orders.
We expect further positive developments during 2022.
Balance sheet and cashflow
The Group had net borrowings of £0.7 million at the end of the period (30
June 2021: net cash of £0.7 million). Net cash of £0.8 million was used in
operations (H1-2021: generated in operations £0.3 million).
The Group has an invoice discounting facility of £1.5 million to assist in
funding outstanding receivables. Since the period end £1.0 million of new
equity was issued, further strengthening the Group's balance sheet. The Board
believes that the Group has sufficient working capital to support the business
and its current opportunities going forward.
The increasing strength of the US dollar as against the UK pound is beneficial
for the Group, as we generate most of our revenues in US dollars.
Outlook
After many years of R&D and product development, commercialisation of some
key product lines is now expected in the very near term with substantial sales
growth anticipated. Further, we are encouraged by the level of positive trials
and sales activity in many areas of the business worldwide, covering a wide
range of different product applications and technologies.
We expect to achieve a minimum annualised run-rate revenue of £14.0 million
between Q4 2022 and H1 2023, through the conversion of a number of our active
near term active pipeline opportunities, and is made up as follows, compared
to FY 2021:
Initiative 2021 revenue Near term annualised expected revenue
d2w biodegradable (excluding India) £7.2m £9.0m
d2p AM bread technology - £2.5m
d2p AI technology £0.1m £1.0m
d2p general pipeline £0.2m £1.0m
d2p gloves £1.0m £0.5m
It should be noted that the above necessarily excludes d2w projects in
Symphony India. This is because of Symphony's ownership of 46.5% means that
from an accounting perspective, we cannot consolidate Symphony India revenues
into the Group results - we are instead required to equity account for
Symphony India which means we can only recognise our share of the profits made
by Symphony India in our Group consolidated accounts. Accordingly, it would be
misleading to present Symphony India revenue opportunities above, but as
further set out in the India Operations Update, released at 7:01am on 29
September 2022, these are considerable.
Our medium to long term sales pipeline is substantially higher than our
near-term annualised sales pipeline of £14 million. To meet this financial
year's market expectations, the Group is relying on timing of the key areas as
described. Whilst the Board remain of the view that full year market
expectations are achievable, there is, for the above reasons, risks outside of
management's control, in these numbers.
Our opportunities are real and significant, and we look forward with growing
confidence.
Michael Laurier, Chief Executive
Condensed consolidated interim statement of comprehensive income
6 months to 6 months to 12 months to
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Revenue 2,973 4,878 9,161
(1,891) (2,940) (5,569)
Cost of sales
Gross profit 1,082 1,938 3,592
Distribution costs (225) (234) (500)
Administrative expenses (2,228) (2,303) (4,571)
Operating loss (1,371) (599) (1,479)
Finance costs (28) (33) (54)
Share of results of joint ventures (22) - -
Loss for the period before tax (1,421) (632) (1,533)
Tax credit 119 127 127
Loss for the period (1,302) (505) (1,406)
Total comprehensive income for the period (1,302) (505) (1,406)
Earnings per share:
Basic (0.73)p (0.29)p (0.81)p
Diluted (0.73)p (0.29)p (0.81)p
All results are attributable to the owners of the parent.
There were no discontinuing operations for any of the above periods.
Condensed consolidated interim statement of financial position
At At At
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
ASSETS
Non-current
Property, plant and equipment 158 153 166
Right-of-use assets 459 621 548
Intangible assets 263 72 260
Interest in joint ventures 43 - -
Investments 123 123 123
1,046 969 1,102
Current
Inventories 1,422 1,230 1,316
Trade and other receivables 2,648 2,573 3,146
Cash and cash equivalents 505 1,323 881
4,575 5,126 5,343
Total assets 5,621 6,095 6,445
EQUITY AND LIABILITIES
Equity
Equity attributable to owners of
Symphony Environmental Technologies plc
Share capital 1,793 1,768 1,793
Share premium account 3,910 3,185 3,910
Retained earnings (3,503) (1,350) (2,231)
Total equity 2,200 3,603 3,472
Liabilities
Non-current
Lease liabilities 296 411 338
Current
Borrowings 1,210 620 167
Lease liabilities 125 158 677
Trade and other payables 1,790 1,303 1,791
3,125 2,081 2,635
Total liabilities 3,421 2,492 2,973
Total equity and liabilities 5,621 6,095 6,445
Condensed consolidated interim statement of changes in equity
Equity attributable to the owners of Symphony Environmental Technologies plc:
Share Share premium Retained earnings Total
capital equity
£'000 £'000 £'000 £'000
For the six months to 30 June 2022
Balance at 1 January 2022 1,793 3,910 (2,231) 3,472
Share-based payments - - 30 30
Transactions with owners - - 30 30
Total comprehensive income for the period - - (1,302) (1,302)
Balance at 30 June 2022 1,793 3,910 (3,503) 2,200
Share Share premium Retained earnings Total
capital equity
£'000 £'000 £'000 £'000
For the six months to 30 June 2021
Balance at 1 January 2021 1,768 3,185 (865) 4,088
Share-based payments - - 20 20
Transactions with owners - - 20 20
Total comprehensive income for the period - - (505) (505)
Balance at 30 June 2021 1,768 3,185 (1,350) 3,603
Share Share premium Retained earnings Total
capital equity
£'000 £'000 £'000 £'000
For the year to 31 December 2021
Balance at 1 January 2021 1,768 3,185 (865) 4,088
Issue of share capital 25 725 - 750
Share-based payments - - 40 40
Transactions with owners 25 725 40 790
Total comprehensive income for the period - - (1,406) (1,406)
Balance at 31 December 2021 1,793 3,910 (2,231) 3,472
Condensed consolidated interim cash flow statement
6 months to 6 months to 12 months to
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Operating activities:
Loss for the period after tax (1,302) (505) (1,406)
Depreciation 114 112 223
Amortisation 15 4 12
Share-based payments 30 20 40
Foreign exchange (profit)/loss (2) (11) 25
Share of loss of joint venture 23 - -
Tax credit (119) (127) (127)
Interest paid 28 33 46
Change in inventories (106) (170) (256)
Change in trade and other receivables 494 1,052 453
Change in trade and other payables 2 (88) 389
Net cash (used)/generated in operations (823) 320 (601)
Tax received 119 127 127
Net cash (used)/generated in operating activities (704) 447 (474)
Investing activities:
Additions to property, plant and equipment (13) (210) (54)
Additions to right of use assets - - (17)
Additions to intangible assets (17) (31) (227)
Purchase of joint venture (65) - -
Net cash used in investing activities (95) (241) (298)
Financing activities:
Movement in finance lease liability (83) 60 (198)
Proceeds from share issue - - 750
Lease interest paid (10) (14) (29)
Bank and invoice finance interest paid (17) (19) (17)
Net cash (used)/generated in financing activities (110) 27 506
Net change in cash and cash equivalents (909) 233 (299)
Cash and cash equivalents, beginning of period 204 470 470
Cash and cash equivalents, end of period (705) 703 204
Represented by:
Cash and cash equivalents 505 1,323 881
Bank overdraft (1,210) (620) (677)
(705) 703 204
Notes to the interim financial statements
1 Nature of operations and general information
Symphony Environmental Technologies plc (the "Company") and subsidiaries'
(together the "Group") principal activities include the development and supply
of environmental plastic additives and products.
Symphony Environmental Technologies plc, a public limited company, is the
Group's ultimate parent company. It is incorporated and domiciled in England
(company number 03676824). The address of its registered office is 6 Elstree
Gate, Elstree Way, Borehamwood, Hertfordshire, WD6 1JD, England. The Company's
shares are listed on the AIM market of the London Stock Exchange.
These condensed interim consolidated financial statements ("interim financial
statements" or "interim report") are for the six months ended 30 June 2022.
They do not include all of the information required for full annual financial
statements and should be read in conjunction with the consolidated financial
statements of the Group for the year ended 31 December 2021.
The financial information set out in this interim report does not constitute
statutory accounts. The Group's statutory financial statements for the year
ended 31 December 2021 have been filed with the Registrar of Companies. The
auditor's report on those financial statements was unqualified and did not
contain a statement under Section 498(2) or 498(3) of the Companies Act 2006.
These interim condensed consolidated financial statements have not been
audited.
These interim financial statements have been prepared in accordance with the
requirements of International Accounting Standard ("IAS") 34 "Interim
Financial Reporting", and are presented in Pounds Sterling (£), which is the
functional currency of the parent company. They have been prepared under the
historical cost convention. They have also been prepared on the basis of the
recognition and measurement requirements of International Standards as adopted
by the UK, and the policies and measurements are consistent with those stated
in the financial statements for the year ended 31 December 2021.
These interim financial statements were approved by the board on 28 September
2022.
2 Significant accounting policies
These interim financial statements have been prepared in accordance with the
accounting policies adopted in the last annual financial statements for the
year ended 31 December 2021 save for investments in joint ventures as detailed
below as a result of the 46.5% equity purchase made in Symphony India during
H1-2022.
Investments in joint ventures
A joint venture is a joint arrangement whereby the parties that have joint
control of the arrangement have rights to the net assets of the joint
arrangement. Joint control is the contractually agreed sharing of control of
an arrangement, which exists only when decisions about the relevant activities
require unanimous consent of the parties sharing control.
The results and assets and liabilities of joint ventures are incorporated in
these financial statements using the equity method of accounting, except when
the investment is classified as held for sale, in which case it is accounted
for in accordance with IFRS 5.
Under the equity method, an investment in a joint venture is recognised
initially in the consolidated statement of financial position at cost as at
the date of acquisition and adjusted thereafter to recognise the Group's share
of the profit or loss and other comprehensive income of the associate or joint
venture. When the Group's share of losses of an associate or a joint venture
exceeds the Group's interest in that associate or joint venture (which
includes any long-term interests that, in substance, form part of the Group's
net investment in the associate or joint venture), the Group discontinues
recognising its share of further losses. Additional losses are recognised only
to the extent that the Group has incurred legal or constructive obligations or
made payments on behalf of the associate or joint venture."
3 Seasonal fluctuations
The Group operates in many countries and in many different markets. There are
therefore no formal or considered seasonal fluctuations affecting the
operations of the Group.
4 Segmental analysis
The Board considers that the Group does not have separate operating segments
as defined under IFRS 8.
5 Shares issued
Shares issued are summarised as follows:
6 months to 6 months to Year to
30 June 30 June 31 December 2021
Shares issued and fully paid 2022 2021
- beginning of period 179,251,277 176,751,277 176,751,277
- issued during the period - - 2,500,000
Total equity shares issued and fully paid at end of period
179,251,277 176,751,277 179,251,277
6 Earnings per share and dividends
The calculation of earnings per share is based on the result attributable to
ordinary shareholders divided by the weighted average number of shares in
issue during the period.
The calculation of diluted earnings per share is based on the basic earnings
per share, adjusted to allow for the issue of shares on the assumed conversion
of dilutive options and warrants which were exercisable during the period.
Reconciliations of the results and weighted average numbers of shares used in
the calculations are set out below:
Basic and diluted 6 months to 6 months to Year to
30 June 30 June 31 December 2021
2022 2021
(Loss)/profit attributable to owners of the Company £(1,302,000) £(505,000) £(1,406,000)
Weighted average number of ordinary shares in issue
179,251,277 176,751,277 172,851,825
Basic earnings per share (0.73) pence (0.29) pence (0.81) pence
Dilutive effect of weighted average options and warrants 4,671,785 4,784,605 4,041,984
Total of weighted average shares together with dilutive effect of weighted 179,251,277 176,751,277 172,851,825
options and warrants
Diluted earnings per share (0.73) pence (0.29) pence (0.81) pence
No dividends were paid for the year ended 31 December 2021.
The effect of options and warrants for the six months to 30 June 2022 and 30
June 2021, and year to 31 December 2021 are anti-dilutive.
7 Availability of Interim Financial Statements
Paper copies of the Interim Financial Statements will be sent to shareholders
upon request. Shareholders will be able to download a copy of the Interim
Financial Statements from the Group's website www.symphonyenvironmental.com
(http://www.symphonyenvironmental.com) . Further copies of the Interim
Financial Statements will be available from the Company's Registered Office at
6 Elstree Gate, Elstree Way, Borehamwood, Hertfordshire WD6 1JD.
NOTES TO EDITORS:
Symphony Environmental Technologies plc
https://www.symphonyenvironmental.com (https://www.symphonyenvironmental.com)
Symphony Environmental Technologies ("Symphony") - an award winning ESG
company -- is a British SME, listed on the AIM market of the London Stock
Exchange. Symphony is a recipient of the London Stock Exchange's Green
Economy Mark in October 2019 for devoting over 50% of its portfolio to
contribute to the global green economy and welcomed being named "ESG Company
of the Year" at the November 2021 Small Cap Awards in London.
Symphony has developed and continues to develop, a biodegradable plastic
technology, branded as "d2w®", which appears as a droplet logo on many
thousands of tonnes of plastic packaging and other plastic products around the
world. d2w® is a scientifically proven technology and a solution to the
issues of plastic waste and plastic pollution; this technology 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 bio assimilated in the open environment in a similar way to a leaf.
Symphony has also developed a range of additives, concentrates and
masterbatches marketed under its d2p® ("designed to protect") trademark,
which can be incorporated in a wide variety of plastic and non-plastic
products so as to give them protection against many different types of
bacteria, viruses, fungi, algae, moulds, and insects, and against fire.
Symphony's 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
(http://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
(https://eur01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.symphonyenvironmental.com%2F&data=05%7C01%7CIan.Bristow%40d2w.net%7C83ea6dd749884bf9454408da902c581a%7Cea9f534b3dee47e589e382546b8836c9%7C0%7C0%7C637980817449104919%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=F3W4BeW3KyAm2fsLWm%2FldkVKJuDMUSISF2%2FfSkMrZO8%3D&reserved=0)
About Symphony India
As announced in November 2021, Symphony India is a joint venture company in
India with Indorama India Private Limited ("Indorama"), a wholly owned
subsidiary of Indorama Corporation Pte. Ltd., ("Indorama Corporation"). Called
Symphony Environmental India Pvt Ltd, the shares are held 46.5% by Symphony
UK, 46.5% by Indorama and 7% by Mr. Arjun Aggarwal, an Indian citizen, who has
been appointed Managing Director of Symphony India.
Mr Aggarwal is one of India's prominent young entrepreneurs, who has
introduced a portfolio of modern technologies that are in line with the
aspirations of India's young demographic profile.
Symphony India started trading in February 2022.
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