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Symphony Environmental Technology PLC on Thursday reported a widened loss and falling revenue in its interim report, but remained hopeful about its future prospects.
The Hertfordshire-based company that uses technology to make more sustainable plastics and rubber reported a pretax loss of £1.4 million in the six months to June 30, widened from £632,000 a year ago.
The company's revenue was £3.0 million, down 39% from £4.9 million last year. Symphony blamed logistics issues, which have since been resolved, as well as destocking issues and a change to its glove strategy.
d2p revenue more than tripled to £345,000 from £111,000 last year. d2p is the company's 'designed to protect' set of technologies used in a wide range of packaging and processing industries. Symphony also reported regulatory progress in South and Central American countries regarding its d2w division. d2w is a technology which enables plastics to biodegrade.
The company said, in a separate statement, that Symphony Environmental India Pvt Ltd, its joint venture company with Indorama Corp reported a significant increase in sales of d2w. Based on current enquiry activities, Symphony India is expected to increase to levels of over £250,000 per month from early 2023. Investments are being made to help strengthen its position in the Indian market which could generate over £10 million in sales during 2024.
The company's d2w sales were helped by a 2022 amendment to the Indian government's Plastic Waste Management Rules, which permits government-approved biodegradable plastic products to be exempted from certain restrictions.
Symphony expects to achieve a minimum annualised revenue of £14.0 million between the end of 2022 and the first half of 2023, through the conversion of a number of active near-term pipeline opportunities. However, the company's products have been progressing in markets across the world and expects to add ‘significant revenue’ in the near term. It said its ‘medium to long term sales potential is therefore substantially higher than the above £14 million.’
Chief Executive Officer Michael Laurier said: ‘Our opportunities are real and significant, and we look forward with growing confidence.’
Shares in Symphony were trading 0.7% lower at 15.40 pence each on Thursday afternoon.
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