Last checked at 17 Dec 2019 07:00
17 December 2019
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
SYMPHONY ENVIRONMENTAL TECHNOLOGIES PLC
("Symphony", the "Company" or the "Group")
Trading Update
Symphony Environmental Technologies Plc (AIM: SYM), a global specialist of technologies that enhance the properties of plastic and complementary non-plastic products by making them biodegradable or resistant to external factors, announces a trading update for the financial year ending 31 December 2019.
Revenues for the second half of 2019 are now expected to be not less than £4.1 million, broadly similar to the first half. Accordingly, revenues for the full year 2019 will be below market expectations resulting in an operating loss of approximately £0.5 million. We reported in our Interim Results on 27 September 2019 that sales in the first half had been impacted due to inventory adjustments by some of our customers as a result of legislative clarification in certain markets. These factors persisted throughout the second half, as both business drivers, legislation and enforcement activities regarding the manufacture of plastics, remain in a fluid period of change. Consequently, higher d2w purchases expected in Q4 2019 have been deferred and are now expected to be placed in Q1 2020.
Net cash and cash equivalents totalled £1.2 million as at 30 November 2019 (30 June 2019: net borrowings of £0.4 million).
Michael Laurier, CEO of Symphony stated: "As previously reported, 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. The global issue of how-to best deal with plastics is hotly debated and being resolved in different ways from country to country. 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 31 December 2019, the Board remains confident in delivering an improved financial performance going forward."
Enquiries
Symphony Environmental Technologies Plc | |
Michael Laurier, CEO | Tel: +44 (0) 20 8207 5900 |
Ian Bristow, CFO | |
www.symphonyenvironmental.com | |
Cantor Fitzgerald Europe (Nominated Adviser and Joint Broker) | |
David Foreman, Michael Boot (Corporate Finance) | Tel: +44 (0) 20 7894 7000 |
Caspar Shand Kydd, Maisie Atkinson (Sales) | |
Hybridan LLP (Joint Broker) Claire Louise Noyce
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Tel: +44 (0) 203 764 2341 |
The person responsible for arranging the release of this information is Michael Laurier, CEO of the Company.