REG - Symphony Environment - Pre-close Trading Update

Symphony Environmental TechnologiesAnnouncement

01/08/2023 07:00

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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 £3.6 million (H1-2022: £3.0 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 £110,000 (H1-2022: £225,000)

·    Resultant contribution for H1-2023 after distribution costs increased
by approx. 70% compared to H1-2022

·    Lower operating cost base

·    £1.0 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 (http://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 (http://www.symphonyenvironmental.com/)

 

Symphony has developed a range of additives, concentrates and master-batches
marketed under its d(2)p® ("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
(http://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® 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/
(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®, 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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