Symphony Environmental Technologies PLC (AIM:SYM, FRA:XP7) made strong progress in developing new products in the first half of 2021.
In its interim results statement, the group that makes plastic and rubber products "smarter, safer and sustainable" said significant potential sales for its d2p antimicrobial food contact technology are in the pipeline.
The company has already announced regulatory approval in the US and Canada for Symphony's d2p bread packaging while other product areas such as d2p antimicrobial in pipes and tanks, together with insect and animal repellent technologies, look to be promising areas of development.
The continuing investment in advisory and advocacy work is strengthening the outlook for both d2w (Symphony’s biodegradable plastic) 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 Symphony anticipates this will lead to a substantial increase in demand during the second half of the year.
As reported in the trading update on 13 July 2021, revenues for the six 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 about 13% higher than in the first half (H1) of-2020.
The half-year loss was £632,000 versus a profit the year before of £18,000, reflecting the group’s strategic investment in key resources.
Cash and cash equivalents at the end of June had improved to £1.32mln from £525,000 a year earlier. The net cash position was positive at £0.7mln (up from £0.29mln a year earlier).
"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,” said Michael Laurier, the chief executive officer of Symphony.
“After many years of product development, commercialisation of key product lines is now expected in the very near term with substantial sales growth anticipated. Further, we are encouraged by the level of activity in many areas of the business worldwide, covering many different product applications. Due to this expected substantial growth, we are continuing to strengthen the group's operational teams as well as to further develop business collaboration in a number of key markets. This, together with our successes with regulatory clearances, is paving the way for a strong outlook over the short to medium term,” he added.