TIDMSYM
RNS Number : 8047D
Symphony Environmental Tech. PLC
12 October 2018
12 October 2018
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this information is considered to be in the public
domain
SYMPHONY ENVIRONMENTAL TECHNOLOGIES PLC
("Symphony", the "Company" or the "Group")
Trading update
Sales Revenue of d2p significantly increase
New d2p anti-insect product and first commercial order
Symphony Environmental Technologies Plc (AIM: SYM), a global
specialist in products and technologies that "make plastic and
rubber products smarter", announces the following trading
update.
Revenues for the financial year to 31 December 2018 are expected
to be broadly in line with market expectations, being approximately
6% higher than the previous year. Orders for the Group's d2w
"oxo-biodegradable" technology remain strong but the timing of
orders placed by distributors in our principal market, the Middle
East, have been fluctuating quite significantly from month to month
and are currently anticipated to be lower than original management
expectations due to varying levels of, and delays in, local
enforcement action. Over the next 6 months, our market intelligence
indicates an improvement in government enforcement actions and
this, combined with an increase in the direct sales force of our
Middle East distributors, is expected to generate a substantial
increase in sales volumes, albeit the timing is not yet clear.
Activities in Symphony's other global markets are encouraging as
d2w revenues generated from sales in Central America, the Far East,
Europe and Africa are all growing ahead of budget.
Revenues from Symphony's d2p "designed-to-protect" technologies
are significantly ahead of last year, and are expected to
comfortably exceed management expectations. In Italy, our range of
d2p anti-microbial gloves are listed in several large, as well as
some smaller, retail outlets. Promotion campaigns are scheduled by
our distributor during this October and further increases to
product listings are expected to continue over the coming
months.
After some smaller initial orders, the Group has now also
received its first full $60,000 container order for d2p
anti-microbial gloves to the USA.
Also, and after two years of R&D and successful trials,
Symphony has received an initial commercial order for d2p
anti-insect additive technology with a very large global
manufacturer of commercial agricultural products. The value of this
first part-container order is $120,000, and the finished products
made with d2p technology will be marketed globally.
The gross margin generated in the first half of the year, at
47.4%, was lower than the circa 49% historically achieved,
principally due to increased lower margin finished product sales
and this level of sales mix and gross margin is expected to broadly
continue for the full year.
The Group continues to invest in communications and marketing
with increased spend of GBP0.38 million for the year. The primary
activity has been in the promotion of d2w oxo-biodegradable
technology in the UK, EU and the USA. Some of that activity has
been in response to negative misinformation published and reported
in relation to oxo-biodegradable technology. In the addition, the
Group has recently established a new in-house marketing department
to assist driving sales of all the Group's products throughout the
distribution network.
The combination of the above means the Board expects full year
earnings to be approximately GBP0.10 million. This figure includes
the additional communication and marketing costs of GBP0.38 million
and expensed R&D costs, which for 2018 are expected to be
broadly in line with the previous year at GBP0.63 million.
The Board remain confident that the Group will continue to meet
2019 expectations.
Enquiries
Symphony Environmental Technologies Plc
Michael Laurier, CEO Tel: +44 (0) 20 8207
5900
Ian Bristow, CFO
www.symphonyenvironmental.com
Cantor Fitzgerald Europe (Nominated Adviser
and Broker)
David Foreman, Richard Salmond, Michael Tel: +44 (0) 20 7894
Boot 7000
(Corporate Finance)
Caspar Shand Kydd (Sales)
FTI Consulting (Financial PR)
Daniel Hamilton Tel: +44 (0) 7813
456720
NOTES TO EDITORS:
About Symphony Environmental Technologies plc
Symphony has developed and continues to develop, controlled-life
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. 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, most recently Saudi Arabia, oxo-biodegradable
plastic is mandatory.
In addition, Symphony has developed a range of additives,
concentrates and master-batches marketed under its d2p(R) brand,
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, fungi, algae, moulds, and insects, and
against fire. d2p products also include odour, moisture and
ethylene adsorbers as well as other types of food-preserving
technologies. We have also launched d2p anti-microbial household
gloves and are developing a range of other d2p finished products
for retail sale.
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 Oxo-biodegradable Plastics
Association (www.biodeg.org) (OPA), the Society for the Chemical
Industry (UK), and the Pacific Basin Environmental Council.
Symphony is also a strategic partner of the Commonwealth business
initiative, 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 Symphony 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.
BBC World Service film introducing d2w oxo-biodegradable
(controlled-life) plastic technology
From within the UK-
http://www.symphonyenvironmental.com/d2w/d2w-brochure-5/
From outside of the UK -
http://www.bbc.com/storyworks/the-british-bid/symphony
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END
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