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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Symphony Environmental Technologies Plc | LSE:SYM | London | Ordinary Share | GB0009589168 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 3.25 | 3.00 | 3.50 | 3.25 | 3.25 | 3.25 | 5,000 | 07:36:40 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Plastics,resins,elastomers | 6.15M | -2.89M | -0.0156 | -2.08 | 6.01M |
TIDMSYM
RNS Number : 0314Q
Symphony Environmental Tech. PLC
07 September 2017
7 September 2017
SYMPHONY ENVIRONMENTAL TECHNOLOGIES PLC
("Symphony", the "Company" or "the Group")
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this information is considered to be in the public domain
Interim Results
Symphony Environmental Technologies Plc (AIM: SYM), a global specialist in products and technologies to "make plastic smarter", today announces its interim financial statements for the six-month period ended 30 June 2017.
Highlights
-- Revenues increased by 14% to GBP3.69 million (2016 H1: GBP3.23 million) -- Gross profit increased by 13% to GBP1.84 million (2016 H1: GBP1.63 million) -- Operating profit increased by 276% to GBP109,000 (2016 H1: GBP29,000) -- Profit before tax increased by 400% to GBP95,000 (2016 H1: GBP19,000) -- Basic earnings per share increased by 50% to 0.06 pence (2016 H1: 0.04 pence)
Non-financial highlights
-- d2p household glove launch in UK and first order received for d2p gloves in Italy -- Dadex Eternet Limited ("Dadex") launch d2p treated water pipes in Pakistan
-- d2w awarded the Quality Mark from the Saudi Standards, Metrology and Quality Organisation ("SASO") which makes Symphony an authorised supplier for the purpose of the Saudi law which requires everyday plastic products to be oxo-biodegradable
Commenting on the results Nirj Deva, Chairman of Symphony, said:
The business is performing well and I am pleased to present a positive set of results for the first half of 2017 with growth in sales and profit.
Revenues increased by 14% compared to the same period last year to GBP3.69 million (2016 H1: GBP3.23 million) primarily as a result of d2w growth in the Middle East and South America. Gross profit margins have remained consistent at 50%, resulting in an increase in gross profit contribution in line with revenue, at GBP1.84 million (2016 H1: GBP1.63 million).
Expenses marginally increased during the period by 7% from GBP1.50 million to GBP1.60 million due to augmented R&D activities, and costs associated with quality assurance audits, customer trials and government approvals, such as obtaining the SASO Quality Mark.
As previously communicated, most of our revenues are derived from d2w controlled-life plastic technology which is supplied either as a masterbatch to manufactures or finished products to end-users. Global demand for our d2w products is clearly increasing, as biodegradable plastics are becoming a more preferred solution, due to demands by governments and industry, and also by consumer pressure.
This is currently most apparent in the Middle East, and in particular in Saudi Arabia where, as advised at our Annual General Meeting on 12 May 2017, enforcement of the mandatory use of oxo-biodegradable technology has commenced. We received an initial uplift in orders and enquiries from our distributor in the region, and are monitoring closely to establish expected recurring revenues over the short to medium term.
d2p "designed to protect" technology is also supplied as a masterbatch and finished product. During the period, Dadex, one of the largest plastic producers in Pakistan, launched a range of plastic water pipes using our d2p antimicrobial masterbatch, and I am pleased to say that we have since received repeat orders, as their customers start to adopt their d2p antimicrobial treated pipes.
The d2p "Protector Health & Hygiene" consumer product brand was launched in Wilko during this period as a household glove. This is the first of a developing range, which we will hopefully grow over the coming year. Orders for d2p treated gloves have also been received through a new distribution partner in Italy for retail distribution.
The second half of 2017 has started strongly and the Board remains pleased with progress during the period and the increasing commercial traction of the Group's products. The Board looks forward to updating the market as further progress is achieved and is very confident of meeting market expectations for the full year.
For further information, contact:
Contacts
Symphony Environmental Technologies Plc Michael Laurier, CEO Tel: +44 (0) 20 8207 5900 Ian Bristow, FD Cantor Fitzgerald Europe David Foreman / Callum Butterfield Tel: +44 (0) (Corporate Finance) 20 7894 7000 Jonnie Cox (Sales)
NOTES TO EDITORS:
About Symphony Environmental Technologies plc
Symphony has developed and continues to develop, controlled-life plastic technology which helps tackle the problem of microplastics by turning ordinary plastic at the end of its service-life into biodegradable materials. It is then no longer a plastic and can be bioassimilated in the open environment in the same way as a leaf. The technology is branded d(2) w(R) and appears as a droplet logo on many thousands of tonnes of plastic packaging and other plastic products around the world. In some countries oxo-biodegradable plastic is mandatory. For a video of d2w(R) plastic degrading see https://www.youtube.com/watch?v=tQ7ce532BBM
In addition, Symphony has developed a range of additives, concentrates and master-batches marketed under its d2p(R) brand, which can be incorporated in a wide variety of plastic and non-plastic products so as to give them protection against many different types of bacteria, fungi, algae, moulds, insects and fire.
Symphony has also developed the d(2) Detector(R), a portable device which analyses plastics and detects counterfeit products. This will be very useful to government officials tasked with enforcing legislation. Symphony's d(2) t tagging and tracer technology is also available for further security. See www.d2t.net
Symphony has a diverse and growing customer-base and has established itself as an international business with 74 distributors around the world. Products made with Symphony's plastic technologies are now available in nearly 100 countries and in many different product applications. Symphony is certified to ISO9001 and ISO14001.
Symphony is a member of The Oxo-biodegradable Plastics Association (www.biodeg.org) (OPA), the Society for the Chemical Industry (UK), and the Pacific Basin Environmental Council. 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).
Further information on the Symphony Group can be found at www.symphonyenvironmental.com.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identi ed by their use of terms and phrases such as "believe", "could", "should" "envisage", "estimate", "intend", "may", "plan", "potentially", "will" or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements re ect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.
A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Subject to any continuing obligations under applicable law or any relevant AIM Rule requirements, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.
Chief Executive's review
This reporting period shows a good set of trading results and customer activity is at an all-time high for both d2w and d2p products and technologies.
Growth in sales has resulted from positive changes of legislation and an increase in customer demand in our key markets which continue to be outside of Europe.
The majority of our revenue is in US Dollars which continues to be favourable against Sterling.
Trading results
Total revenue increased 14% for the first six months of 2017 to GBP3.69 million compared to GBP3.23 million for the first six months of 2016. The increase was mainly due to d2w growth in the Middle East and South America. Gross profit for the same period was GBP1.84 million compared to GBP1.63 million for the first half of 2016, an increase of 13% and in line with the revenue increase. The gross profit margin was stable at 49.7% (2016 H1: 50.4%).
Administrative expenses increased by 7% to GBP1.60 million during the period (2016 H1: GBP1.50 million). This was due to increased R&D activity and costs associated with quality assurance audits, primarily in obtaining the SASO Quality Mark.
The Group's operating profit for the period increased by 276% to GBP109,000 (2016 H1: GBP29,000) and net profit before tax was GBP95,000 (2016 H1: GBP19,000). Profit after tax was GBP95,000 (2016 H1: GBP64,000 after receipt of a GBP45,000 R&D tax credit).
Earnings per share for the period increased to 0.06 pence (2016 H1: 0.04 pence).
Balance sheet and cash-flow
Cash of GBP0.28 million was consumed by operations during the period (2016 H1: GBP0.28 million) due to an increase in receivables and reduction in trade payables. Trade receivables increased as a result of higher revenues in the second quarter of the period. Trade and other receivables were GBP1.80 million as at 30 June 2017 (31 December 2016: GBP1.58 million). Trade and other payables were GBP0.75 million as at 30 June 2017 (31 December 2016: GBP0.92 million).
The net cash consumed was funded by our invoice finance facility together with proceeds from new shares issued totalling GBP92,000. The Group has an invoice-discounting facility of GBP1.50 million to assist in funding outstanding receivables when required. Group net borrowings (borrowings after cash at bank and in hand) were GBP0.58 million at 30 June 2017 (31 December 2016: GBP0.48 million and 30 June 2016: GBP0.34 million). The Group has agreed an additional GBP0.50 million facility to fund accelerated revenue growth, if required. The Board believes that the Group has sufficient working capital to support the business and its current opportunities going forward.
Outlook
The issue of plastic pollution, especially by microplastics, has become a high-profile topic and the global pressure for change has never been greater than now. It is not a simple task to replace plastics due to cost and product attributes such as food preservation and general protection. This developing situation is therefore creating more attention to less disruptive and more economical alternatives such as d2w controlled-life technology.
Demand for d2w technology and finished products is therefore expected to increase as more governments pass legislation or accelerate the enforcement process. This, together with more consumer awareness is becoming a reality after many years of investment in PR and marketing.
As previously communicated, we have a substantial number of customer led d2p projects and some of these are nearing completion of the R&D stage. The main areas include flame retardants, insecticides, and odour adsorbers, together with antimicrobial masterbatches and finished products.
We look forward to the future with confidence.
Michael Laurier, Chief Executive
Condensed consolidated interim statement of comprehensive income
6 months 6 months 12 months to to to 30 June 30 June 31 December 2017 2016 2016 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 --------------------------- -------- -------- -------- -------- -------- -------- Revenue 3,693 3,228 6,801 Cost of sales (1,856) (1,600) (3,395) Gross profit 1,837 1,628 3,406 Distribution costs (128) (104) (176) Administrative expenses: * recurring (1,600) (1,467) (3,031) * non-recurring - (28) (54) -------- -------- -------- Administrative expenses (1,600) (1,495) (3,085) Operating profit/(loss): * recurring 109 57 199 * non-recurring - (28) (54) --------------------------- -------- -------- -------- -------- -------- -------- Operating profit 109 29 145 Finance costs (14) (10) (22) --------------------------- -------- -------- -------- -------- -------- -------- Profit for the period before tax 95 19 123 Tax credit - 45 45 --------------------------- -------- -------- -------- -------- -------- -------- Profit for the period 95 64 168 --------------------------- -------- -------- -------- -------- -------- -------- Total comprehensive income for the period 95 64 168 --------------------------- -------- -------- -------- -------- -------- -------- Earnings per share: Basic 0.06p 0.04p 0.11p Diluted 0.06p 0.04p 0.10p --------------------------- -------- -------- -------- -------- -------- --------
All results are attributable to the owners of the parent.
There were no discontinuing operations for any of the above periods.
Condensed consolidated interim statement of financial position (balance sheet)
At At At 30 June 30 June 31 December 2017 2016 2016 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 ------------------------------ ---------- ---------- ------------ Assets Non-current Property, plant and equipment 269 334 298 Intangible assets 55 65 62 324 399 360 Current Inventories 455 388 416 Trade and other receivables 1,799 1,296 1,576 Cash at bank and in hand 44 45 437 ------------------------------ ---------- ---------- ------------ 2,298 1,729 2,429 ------------------------------ ---------- ---------- ------------ Total assets 2,622 2,128 2,789 ------------------------------ ---------- ---------- ------------ Equity Equity attributable to owners of Symphony Environmental Technologies plc Share capital 1,516 1,499 1,499 Share premium account 3,608 3,533 3,533 Retained earnings (3,876) (4,075) (3,971) ------------------------------ ---------- ---------- ------------ Total equity 1,248 957 1,061 ------------------------------ ---------- ---------- ------------ Liabilities Non-current Interest bearing loans and borrowings - 4 2 ------------------------------ ---------- ---------- ------------ - 4 2 Current Interest bearing loans and borrowings 621 388 808 Trade and other payables 753 779 918 ------------------------------ ---------- ---------- ------------ 1,374 1,167 1,726 ------------------------------ ---------- ---------- ------------ Total liabilities 1,374 1,171 1,728 ------------------------------ ---------- ---------- ------------ Total equity and liabilities 2,622 2,128 2,789 ------------------------------ ---------- ---------- ------------
Condensed consolidated interim statement of changes in equity
Equity attributable to the owners of Symphony Environmental Technologies plc:
Share Share Retained Total capital premium earnings equity GBP'000 GBP'000 GBP'000 GBP'000 ----------------------- --------- --------- ---------- -------- For the six months to 30 June 2017 Balance at 1 January 2017 1,499 3,533 (3,971) 1,061 Issue of share capital 17 75 - 92 ----------------------- --------- --------- ---------- -------- Transactions with owners 17 75 - 92 Total comprehensive income for the period - - 95 95 Balance at 30 June 2017 1,516 3,608 (3,876) 1,248 ----------------------- --------- --------- ---------- -------- For the six months to 30 June 2016 Balance at 1 January 2016 1,499 3,533 (4,139) 893 Total comprehensive income for the
period - - 64 64 Balance at 30 June 2016 1,499 3,533 (4,075) 957 ----------------------- --------- --------- ---------- -------- For the year to 31 December 2016 Balance at 1 January 2016 1,499 3,533 (4,139) 893 Total comprehensive income for the year - - 168 168 Balance at 31 December 2016 1,499 3,533 (3,971) 1,061 ----------------------- --------- --------- ---------- --------
Condensed consolidated interim statement of cash flows
6 months 6 months 12 months to to to 30 June 30 June 31 December 2017 2016 2016 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 ----------------------------- ----------- ----------- ------------- Operating activities: Profit for the period after tax 95 64 168 Depreciation 38 44 86 Amortisation 8 8 13 Loss on disposal - 18 10 Foreign exchange 53 - (25) Tax credit - (45) (45) Interest expense 14 10 22 Change in inventories (39) 89 62 Change in trade and other receivables (272) (444) (694) Change in trade and other payables (173) (73) 60 ----------------------------- ----------- ----------- ------------- Cash consumed in operations (276) (329) (343) Tax received - 45 45 ----------------------------- ----------- ----------- ------------- Net cash consumed in operations (276) (284) (298) ----------------------------- ----------- ----------- ------------- Investing activities: Additions to property, plant and equipment (19) (4) (8) Proceeds from disposals of property, plant and equipment 9 5 11 Additions of intangible assets - - (2) Cash (consumed)/generated in investing activities (10) 1 1 ----------------------------- ----------- ----------- ------------- Financing activities: Movement in working capital facility (42) 201 464 Discharge of finance lease liability (2) (2) (4) Proceeds from share issue 92 - - Interest paid (14) (10) (22) ----------------------------- ----------- ----------- ------------- Cash generated in financing activities 34 189 438 ----------------------------- ----------- ----------- ------------- Net change in cash and cash equivalents (252) (94) 141 Cash and cash equivalents, beginning of period 258 117 117 Cash and cash equivalents, end of period 6 23 258 ----------------------------- ----------- ----------- ------------- Bank overdraft of GBP38,000 (30 June 2016: GBP22,000) (31 December 2016: GBP179,000) is included in cash and cash equivalents.
Notes to the interim financial statements
1 Nature of operations and general information
Symphony Environmental Technologies plc (the "Company") and subsidiaries' (together the "Group") principal activities include the development and supply of environmental plastic additives and products, and the development of waste to value systems.
Symphony Environmental Technologies plc, a public limited company, is the Group's ultimate parent company. It is incorporated and domiciled in England. The address of its registered office is 6 Elstree Gate, Elstree Way, Borehamwood, Hertfordshire, WD6 1JD, England. The Company's shares are listed on the AIM market of the London Stock Exchange.
These condensed interim consolidated financial statements ("interim financial statements" or "interim report") are for the six months ended 30 June 2017. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2016.
The financial information set out in this interim report does not constitute statutory accounts. The Group's statutory financial statements for the year ended 31 December 2016 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under Section 498(2) or 498(3) of the Companies Act 2006. These interim condensed consolidated financial statements have not been audited.
These interim financial statements have been prepared in accordance with the requirements of International Accounting Standard ("IAS") 34 "Interim Financial Reporting", and are presented in Sterling (GBP), which is the functional currency of the parent company. They have been prepared under the historical cost convention. They have also been prepared on the basis of the recognition and measurement requirements of International Financial Reporting Standards that are adopted by the European Union, and the policies and measurements are consistent with those stated in the financial statements for the year ended 31 December 2016.
These interim financial statements were approved by the board on 6 September 2017.
2 Significant accounting policies
These interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year ended 31 December 2016. There have been no changes in the period.
3 Seasonal fluctuations
The Group operates in many countries and in many different markets. There are therefore no formal or considered seasonal fluctuations affecting the operations of the Group.
4 Segmental analysis
The Board considers that the Group does not have separate operating segments as defined under IFRS 8.
5 Shares issued
Shares issued are summarised as follows:
6 months 6 months Year to to to 31 December Shares issued 30 June 30 June 2016 and fully paid 2017 2016 --------------------- -------------- -------------- -------------- - beginning of period 149,939,377 149,939,377 149,939,377 - issued during 1,675,000 - - the period --------------------- -------------- -------------- -------------- Total equity shares issued and fully paid at end of period 151,614,377 149,939,377 149,939,377 ---------------------- -------------- -------------- -------------- 6 Earnings per share and dividends
The calculation of earnings per share is based on the result attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.
The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares on the assumed conversion of dilutive options and warrants which were exercisable during the period.
Reconciliations of the results and weighted average numbers of shares used in the calculations are set out below:
Basic and diluted 6 months 6 months Year to to 30 to 30 31 December June June 2016 2017 2016 ------------------------------ --------------- -------------- -------------- Profit attributable GBP95,000 GBP64,000 GBP168,000 to owners of the Company Weighted average number of ordinary shares in issue 151,614,377 149,939,377 149,939,377 ------------------------------- --------------- -------------- -------------- Basic earnings per share 0.06 0.04 0.11 pence pence pence ------------------------------ --------------- -------------- -------------- Dilutive effect of weighted average options and warrants 16,136,953 24,456,500 15,794,717 Total of weighted average shares together with dilutive effect of weighted options and warrants 167,751,330 174,395,877 165,734,094 ------------------------------- --------------- -------------- -------------- Diluted earnings per 0.06 0.04 0.10 pence share pence pence ------------------------------- --------------- -------------- --------------
No dividends were paid for the year ended 31 December 2016.
7 Availability of Interim Financial Statements
Paper copies of the Interim Financial Statements will be sent to shareholders upon request. Shareholders will be able to download a copy of the Interim Financial Statements from the Group's website www.symphonyenvironmental.com. Further copies of the Interim Financial Statements will be available from the Company's Registered Office at 6 Elstree Gate, Elstree Way, Borehamwood, Hertfordshire WD6 1JD.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EQLFBDKFZBBD
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