Symphony Environmental Technologies Plc (LON:SYM), a global science-based group that makes plastic and rubber products “smarter, safer and sustainable”, has announced its interim financial results for the six-month period ended 30 June 2021.
Financial highlights
· Group revenue of £4.9 million (H1-2020: £4.8 million) which on a constant-currency basis, would have shown a 13% increase to £5.4 million
· Gross profit of £1.9 million (H1-2020: £2.2 million) due to higher proportion of finished goods in the product mix
· Loss before tax of £0.6 million (H1-2020: profit £0.02 million)
· Basic loss per share of 0.29 pence (H1-2020: earnings per share of 0.01 pence)
· Cash generated in operations £0.3 million (H1-2020 cash used £0.6 million)
Business highlights
· d2p – substantial progress in many product areas including an increase in customer trials and product-tests currently underway. Significant potential sales identified in many of the current pipeline projects with a number expecting to commercialise in the near term
· Continued investment in Symphony’s sales team, and new Head of Innovation appointed to accelerate the commercialisation of the Group’s growing portfolio of new and highly innovative products. Budgeted increase in one-off professional fees including legal, communication, advocacy and external specialist technical costs to assist with many key areas of the Group’s activities, alongside £0.05 million of non-budgeted increases in distribution and shipping costs owing to short-term supply disruption
· Several patent applications filed to protect our IP as many new products reach commercialisation
Post period-end highlights
· d2p – US FDA further approval for antibacterial plastic technology with greater loading and wider use in bread films
· d2p – Canadian Health approval for antibacterial bread films
· 4 significant collaboration agreements with Meditech
o China distribution agreement for d2w and d2p
o Manufacturing and royalty agreement for Nitrile gloves
o Marketing agreement for Symphony to sell d2p Nitrile gloves in specified markets
o Corporate agreement to acquire not less than 2.5% and not more than 20% of Symphony’s total share capital
Commenting on the results Nicolas Clavel, Interim Chairman of Symphony, said:
During the period, the Group has substantially developed its highly relevant product range together with continuing major improvements in its key operations. This has resulted, amongst other achievements, in US FDA and Canadian approvals for Symphony’s d2p bread packaging where the size of the market is vast, and where Symphony already has a presence with its d2w biodegradable technology. Other product areas are moving ahead strongly including d2p antimicrobial in pipes and tanks, together with insect and animal repellent technologies, amongst others. Symphony expects its d2p bread packaging and some of its other d2p projects to commercialise in the very near term.
The continuing investment in advisory and advocacy work is strengthening the outlook for both d2w and d2p in Latin America and the Middle East. In particular, the Saudi national standards organisation, SASO, is increasing its enforcement of laws requiring the use of oxo-biodegradable plastic, and we anticipate this will lead to a substantial increase in demand during the second half of the year.
The Far East sales position has also been strengthening, and since the period end, the Group has augmented this by signing four agreements with Meditech’s Global Co Limited covering manufacturing, distribution, and marketing in the region, together with corporate investment in Symphony. The agreements also secure glove supply using our antimicrobial and/or biodegradable technologies for sales globally.
As reported in the trading update on 13 July 2021, revenues for the 6 months ended 30 June 2021 were up marginally at £4.9 million (H1-2020: £4.8 million), but on a constant-currency basis, would have been approximately 13% higher than in H1-2020.
The Group continues to invest in its operations, in third party consultancy and advocacy, and in R&D, and with this, the Board is confident it is building a strong position to deliver meaningful revenue growth in the short to medium term.
Michael Laurier, CEO of Symphony commented:
“The Group’s strategy in the short to medium term is to focus on delivering its innovative technologies for key identified product lines where test results, trials and regulatory approvals have been secured, and substantial sales opportunities have been identified.”
