First-half losses narrow for Symphony Environmental Technologies

(Sharecast News) - Sustainable plastic products developer Symphony Environmental Technologies reported a rise in first-half revenue on Friday, to £3.6m from £3m a year earlier. The AIM-traded company's gross profit margin experienced a boost, reaching 42%, translating to a gross profit of £1.5m, rising from 36% and £1.08m year-on-year, respectively.

There was a significant reduction in distribution costs, which now accounted for 3% of revenue, down from 8% in the prior year.

The contribution margin, after considering distribution costs, jumped 10 percentage points to make up 39% of revenue, while the financial contribution saw a 62% increase, standing at £1.4m, up from £0.9m in the first six months of 2022.

Symphony's operating loss before exceptional costs narrowed by 57% to £0.6m, while the firm recorded exceptional legal costs of £0.17m for the period, while no such expenses were seen in the prior year.

The net loss before tax decreased to £0.8m from £1.4m year-on-year.

Additionally, a convertible loan note agreement was finalised with Sea Pearl Ventures in March, amounting to £1m.

Since the period ended, Symphony noted that Yemen had implemented regulations mandating oxo-biodegradable plastics.

Meanwhile, in India, the company received a test report from an accredited laboratory for its d2w biodegradable plastic.

The firm said it was currently in the process of applying for its certification.

"We are advancing well with some of the macro drivers, such as seeing positive developments with the adoption of our type of d2w biodegradable plastic technology in Saudi Arabia, the UAE, Jordan, Bahrain and parts of Latin America and the Caribbean - with Yemen now added this month," said chief executive officer Michael Laurier.

"Our d2p AM formulations for food, including bread, insecticidal, VCI and flame-retardant technologies, are all expected to advance commercially in the near term.

"Revenue generation has been delayed while waiting for the completion of d2p trials and d2w regulatory approvals in markets where we anticipate significant revenue growth, but the outlook continues to be positive, and we look forward with confidence to delivering sustainable and increasing profitability."

At 1026 BST, shares in Symphony Environmental Technologies were down 3.59% at 6.99p.

Reporting by Josh White for Sharecast.com.