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Symphony Environmental Technologies PLC on Friday said it expects its annual pretax loss to widen following a decline in revenue in 2022, but the future looks brighter for 2023.
The Hertfordshire, England-based technology developer of sustainable plastics and rubber said it expects its pretax loss in 2022 to be around £2.5 million, compared to a loss of £1.4 million a year before.
Revenue is expected to decline 29% to £6.5 million from £9.2 million the prior year. Symphony Environmental said this follows a soft first half of the year, as revenue dropped 39% to £3.0 million in the six months to June 30 from £4.9 million a year before.
Its pretax loss widened to £1.4 million in the first half of the year, compared to a loss of £632,000 the prior-year.
Symphony Environmental said its results were affected by short-term logistics and resource issues, temporary destocking issues, and a change to its protective glove strategy which is moving away from commodity gloves to ‘higher value’ EU certified products.
It added that destocking issues in the Middle East have not been resolved, amid delays in receiving the requisite government certifications for its partner’s new factory in the United Arab Emirates, which became fully operational this month.
Symphony Environmental expects this to be resolved in the first three months of 2023, with the newly launched factory to deliver ‘substantially increased volumes’ into the region next year.
Annual revenue for Symphony Environmental’s d2p brand is expected to double to £800,000 from £400,000, which the company said is due to the continued conversion of its d2p anti-insect product.
Looking ahead, Symphony Environmental said it expects to move back into profitability in the first three months of 2023, as Symphony India commenced the commercial supply of its d2p bread technology in December.
Shares in Symphony Environmental were up 1.5% to 10.40 pence on Friday morning in London.
By Jaskeet Briah, Alliance News reporter
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