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(Alliance News) - Shares in Symphony Environmental Technologies PLC took a dive on Tuesday after the anti-microbial plastic technologies firm forecast that annual revenue will be below market expectations.
Shares were down 16% at 6.00 pence per share on Tuesday morning in London, having partially rebounded from an intraday low of 5.02p.
Revenue for the second half of 2019 is expected to be no less than GBP4.1 million, the same as the first half. This means that revenue will be below market expectation, Symphony said, resulting in an operating loss of approximately GBP500,000.
Symphony recorded a pretax loss of GBP86,000 in the first half of 2019. In 2018, Symphony reported a pretax profit of GBP38,000 on revenue of GBP8.8 million
Symphony said that the hit to sales caused by inventory adjustments by some of its customers that it had reported in its first half results had continued in the second half. The inventory adjustments were the result of legislative clarification in some markets regarding the manufacture of plastics.
"We are uncertain as to the timing of when sales will increase, but we believe this will be in the short rather than longer-term," Chief Executive Michael Laurier said.
"The business environment that we are engaged in is complex but it continues to open many opportunities to the pipeline of technologies that we have developed. Whilst these factors have affected Symphony's financial results for the year ending December 31, the board remains confident in delivering an improved financial performance going forward."
By Ife Taiwo; ifetaiwo@alliancenews.com
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