Trading Update

RNS Number : 4908V

Symphony Environmental Tech. PLC

13 January 2012

 



	13 January 2012

SYMPHONY ENVIRONMENTAL TECHNOLOGIES PLC

("Symphony", "Group" or the "Company"),

Trading Update

Symphony Environmental Technologies plc, the specialist in advanced plastics technologies including controlled life and anti-microbial products, and waste-to-value group (the "Group"), is pleased to provide a trading update for the 12 months ending 31 December 2011.

Revenues for the period to 31 December 2011 are expected to be in line with the prior year (2010: £8.5m), with volumes of our main product d2w, growing by approximately 10% despite some reductions in the European markets. Finished products sales continue to decrease as planned and previously reported, as the sales effort focused on d2w, d2p and d2detector product lines.

Sales in the final quarter were strong as global demand outside of Europe started to pickup following a quieter period of consolidation.  In several territories sales were unexpectedly delayed due to initiation issues which now appear to be resolving. Once initial sales in a territory become established, revenues from that sales channel become more certain. We are therefore optimistic that this potential new business generated by legislative change will convert to increased sales in several step changes throughout this current trading year. Our main contracts remain secure for 2012 with indications for potential for further growth. We also have a number of important product trials in place, and negotiations are ongoing with several firms.

The markets for our brands are indicating strong potential demand as a result of some positive changes in legislation, as well as more corporate interest in environmental, sustainability and health issues. The Group has reacted to these changes by further investing in expanding the product ranges, studies into product efficacy such as recycling, product control monitoring services and systems, carbon value, anti-microbial, and sales and marketing. These further increases in cost will result in a materially lower profitability than last year (2010: £1.1m), although our pipelines of prospective sales opportunities as a result of the investment are much higher. The cost structure is not anticipated to materially change in the short term.

The Waste to Value division progressed well with the RuPERT project, and is active in the exploration of other synergistic opportunities. The Board will keep shareholders updated as to progress in this division throughout the year.

Commenting on the update Nirj Deva, Chairman of Symphony, said:

"Symphony has made significant progress in 2011, laying the foundations for future revenue growth while it continues to drive forward in a growing number of markets and product applications. In particular we are pleased with the growing demand from countries that have legislated in favour of our type of technology.

"The opportunity for sustainable long term growth remains strong and we remain very excited about the potential to grow sales and benefit from our high margin model underpinning profits.  To this end we have continued investing in both core and new business developments with the focus firmly on creating long-term stable growth opportunities. As such we have invested in our infrastructure, people, marketing and product development to maximise all opportunities.

"Our global distribution network means that the continued uncertainty in Europe should not have a significant impact on our development opportunities. The continued focus on worldwide opportunities means that we are already benefitting from more demand for these types of technologies, as well as increases to legislative changes as more laws are passed.

"We are very happy to be at the forefront of innovation and to have such a strong and growing distribution network already in place. Our long term developing pipeline looks set to continue growing - with our technology currently being used in 96 countries, and we have invested to maximise the growing number of opportunities that we are presented with."

-ENDS-

For further information, please contact:

Symphony

Michael Laurier, CEO                                                                         Tel: [phone]

Ian Bristow, FD

Seymour Pierce

Stewart Dickson / Freddy Crossley (Corporate Finance)                  Tel: [phone]

Katie Ratner / Jacqui Briscoe (Corporate Broking)

Bishopsgate Communications

Nick Rome/Shabnam Bashir                                                              Tel: [phone]

NOTES TO EDITORS:

About Symphony Environmental Technologies plc

SYMPHONY ENVIRONMENTAL TECHNOLOGIES PLC is a specialist in controlled-life plastic technology and products - a system that works by a process called oxo-biodegradation. The technology is branded d2w® and appears as a droplet logo on many thousands of tonnes of plastic packaging and other plastic products.

Symphony's d2w® technology turns plastic at the end of its service-life into a material with a completely different molecular structure.  At that stage it is no longer a plastic and can be bioassimilated in the open environment in the same way as a leaf.

For a video of d2w® plastic degrading see http://degradable.net/play-videos/4

Symphony has a diverse and growing customer-base and has established itself successfully as an international business with 67 distributors around the world. Products made with d2w® plastic technology can now be found in more than 96 countries and in many different product applications.

Symphony is a member of The British Plastics Federation (BPF), the Oxo-biodegradable Plastics Association (www.biodeg.org), and the Society for the Chemical Industry (UK). Symphony is also a member of the European Organisation for Packaging & the Environment (Europen), the Pacific Basin Environmental Council, and the British Brands Group. Symphony 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).

Symphony also supplies d2p anti-microbial technology that can be used in most types of plastic products to help protect against infection, and has developed d2Detector, a handheld device which analyses plastics and detects counterfeit products. 

Symphony is also developing innovative and cost-effective waste-to-value technology to convert scrap tyres and other waste-streams into valuable products.

Further information on the Symphony Group can be found at www.d2w.net.

 

END

 

 

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