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LONDON (Alliance News) - Symphony Environmental Technologies PLC Wednesday reported a widened pretax loss for 2015 as a result of one-off costs, continued investment in its products and a lower profit margin.
The "smart" plastics company reported a pretax loss of GBP2.3 million, widened from a pretax loss of GBP390,000 in 2014, predominantly as a result of higher research and development and marketing costs, and a one-off GBP1.3 million impairment of intangible assets.
Gross profit margin declined to 46.0% from 49.8% in 2014, which the company said was as a result of a less profitable sales mix during the back end of the year.
Revenue was flat at GBP6.4 million.
Symphony Environmental said it has carried out a strategic review of its technology. For its oxo-biodegradable plastic dw2 said that it has achieved a number of successful commercial milestones, and has decided that it will "substantially reduce, but not eliminate" its investment into product development and marketing as it is unlikely to effect its short to medium-term revenue generation.
For its d2p plastic technology there is "uncertainty" in relation to the timing of future sales it believes it can make, and as such it has decided to realign its focus to "designed to protect" plastic additives. It has developed a number of new formulations as part of this realignment including anti-microbial, flame retardant and insecticides, but said some of these technologies may require certification or regulatory clearance, and it is working to obtain these.
"I am pleased to confirm that the group has sufficient working capital to execute its strategy and to complete its short to medium term objectives. As an operationally geared business, now running with a significantly lower cost base, the board looks forward to a financially more successful year in 2016," said Chief Executive Michael Laurier in a statement.
Shares in Symphony Environmental were down 4.7% at 4.05 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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