SYM9 Nov 2010 06:40
Capitalised at £16.7 million Symphony Environmental Technologies operates within the biodegradable plastic development and supply market. The industry itself is becoming increasingly large and deals with a major issue across both the developed and developing world. Interims for the 6 months ended 30 June 2010 released on 6 September 2010 highlighted the expansion of the industry and Symphony's increasing importance as a producer and distributor of its 'controlled life' plastic technology. The core product Symphony supplies is derived through its d2wR technology which allows for a pre defined timed breakdown of plastic products into structurally altered harmless biodegradable components through a process known as Oxo-biodegradation. The Company is also developing its d2p technology which is compatible with most types of plastics. Supplementing plastic products with the d2p technology protects the plastic components from bacteria, viruse s and fungal growth. The marketability of Symphony’s technology can be seen clearly through the most recent financials. First half revenue was £3.9 million up 6% on last year, with the Company performing at a much greater level operationally; reporting a Gross Profit of £2.3 million, depicting a 13% increase over the same period last year. A 4% expansion in the Company's margin enabled this.
Encouragingly, underlying profits were announced as having improved dramatically; up 33% to £0.53 million. While profits including non recurring items, £115,000 associated with the costs of restructuring the Company, (merging two subsidiaries, dealing with intra-Group debts, and the cancellation of the Share Premium account) were reported as £0.48 million. One possible cause for concern was the negative movement of working capital, with a marked increase in trade debtors to £0.51 million. However, the Company has highlighted that this should not sit too heavily with Investors as it is simply due to an increased credit limit with key returning customers. Admin expenses for the period rose, but an underlying 9% increased spend on further R&D truly highlights this Company’s focus of competing at the forefront of this rapidly expanding market.
At an operational level the Company has announced the supply of its d2wR technology to London based NH Hotele Group, with the technology being used in the hotel Firm's plastic products, for example shampoo bottles, pens, et cetera. The Company are consistently undertaking intensive brand awareness marketing programs and we expect to see increased applications of the Company's technologies in varied market sectors. The scope of the industries that Symphony could theoretically serve is expanding rapidly with the marketable opportunities for the d2wR and d2p technologies becoming increasingly apparent. The fact that the patented technology changes the structure of plastic items after a pre determined service life into a completely new mol
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