TIDMSYM
RNS Number : 8088I
Symphony Environmental Tech. PLC
06 April 2020
6 April 2020
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 and COVID 19 statement
Symphony's 25(th) Anniversary
Symphony Environmental Technologies Plc (AIM: SYM), a global
specialist in technologies to enhance the properties of plastic and
some non-plastic products by making them biodegradable and/or to
provide protection against threats to health and safety, announces
a trading update in this its 25(th) Anniversary year, and
considering the current COVID 19 pandemic.
The new trading year has started strongly, with revenues for the
first quarter ended 31 March 2020 increasing 56% to GBP2.4 million
compared with GBP1.6 million for the first quarter of 2019. The
Group's cash position at 31 March 2020 was relatively healthy with
more than GBP1.0 million available between cash and existing bank
facilities. Based on current financial modelling, the Group does
not expect to need any additional cash in the next 12 months and
will be able to continue to operate within its current financial
resources.
In the Group's trading update on 17 December 2019, we reported
on inventory adjustments by some of our customers awaiting
legislative clarification in certain markets which depressed sales
in the final quarter of 2019 with an expectation that these sales
would be deferred into the first quarter of 2020. In the majority
of these markets, inventory levels have so far remained low.
Therefore, whilst this first quarter revenue does not include any
material inventory correction, we continue to expect inventory
levels in our network to increase during the year. The increase in
revenue for the first quarter of 2020 is therefore a more general
reflection of the organic growth achieved by our distribution
network.
As the impact of the COVID 19 pandemic is felt across the globe,
the Group has taken, and continues to take all necessary measures
to ensure that our workplace, people and customers are safeguarded
and that we have protocols and technology in place for business
continuity by remote working.
The Group had seen limited effects in some supply-chain areas
which have to date been quickly overcome and not resulted in any
raw material or manufacturing delays. Some customers have reported
cashflow delays within their territories. Our trade receivables
are, in the main, credit insured, and our credit insurer has
granted an extension of reporting deadlines in order to assist.
Enquiries for our d2p (designed to protect) anti-microbial and
other protective products (see www.d2p.net ) are growing at a much
faster pace and we expect to see increased sales as additional
protection becomes an everyday necessity.
On 10 March 2020, we announced that we had initiated independent
testing of our d2p anti-microbial technology against members of the
Coronavirus group, with results expected before the end of June. We
can advise, based on scientific literature and research, that the
active ingredient used by Symphony does have good anti-viral
properties, and the tests will ascertain performance within general
plastic products with d2p included. Satisfactory test results would
enable d2p treated products to be sold to a wider market, and we
will test against COVID-19 itself as soon as independent laboratory
capacity becomes available.
As reported on 28 February 2020, the Food and Drug
Administration (FDA) in the United States approved our
anti-bacterial bread-packaging, and this is now on their official
website. Some customer trials have already begun, and others are at
the planning stage, albeit we acknowledge that COVID-19 may extend
trial timetables.
The current situation due to COVID-19 is unprecedented and the
overall economic impact is currently unknown. While the Board is
encouraged by the resilience shown by the Group and its employees
to date, the impact on FY-2020 cannot as yet be fully assessed.
Accordingly, the Board believes it would be inappropriate to
provide forward looking financial guidance to investors and
analysts at this time.
The Board remains confident that the Group is in a strong
financial position and is, with its suite of highly relevant
technologies, well placed in the current environment.
We anticipate announcing our 2019 preliminary results by 30
April and we will update the market further at that time.
Michael Laurier, CEO of Symphony commented:
"This week marks the 25(th) anniversary of the formation of the
Symphony Group. The Group's suite of technologies has evolved and
improved over this considerable period and their global relevance
has never been more important, given the enormous impact of the
COVID-19 pandemic on the lives of so many people across the globe.
Our technologies provide the ability to protect lives through our
anti-microbial d2p products and also help preserve our planet
through our d2w oxo-biodegradable products which reduce the impact
of plastics on the environment. We would like to thank our
customers, shareholders, distributors and staff for all their
support during our 25-year development."
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 Tel: +44 (0) 20 7894
Finance) 7000
Caspar Shand Kydd, Maisie Atkinson (Sales)
Hybridan LLP (Joint Broker)
Claire Louise Noyce Tel: +44 (0) 203
764 2341
The person responsible for arranging the release of this
information is Michael Laurier, CEO of the Company.
NOTES TO EDITORS:
About Symphony Environmental Technologies plc
www.symphonyenvironmental.com
Symphony has developed a range of additives, concentrates and
master-batches marketed under its d2p(R) ("designed to protect")
trademark, which can be incorporated in a wide variety of plastic
and non-plastic products so as to provide protection against many
different types of microbes, and insects and rodents, and against
fire. d2p products also include odour, moisture and ethylene
adsorbers as well as other types of food-preserving technologies.
Symphony has also launched d2p anti-microbial household gloves and
toothbrushes and is developing a range of other d2p finished
products for retail sale. See www.d2p.net
Symphony has developed and continues to develop, a biodegradable
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 a similar way to a leaf.
The technology is branded d2w(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, most recently Saudi
Arabia, oxo-biodegradable plastic is mandatory. See www.d2w.net
The Group has complemented its d2w biodegradable product range
with d2c "compostable resins and products" that have been tested to
US and EU composting standards.
Symphony has also developed the d2Detector(R), a portable device
which analyses plastics and detects counterfeit products. This is
useful to government officials tasked with enforcing legislation,
and Symphony's d2t tagging and tracer technology is available for
further security.
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 itself is
accredited to ISO9001 and ISO14001.
Symphony is a member of The OPA (www.biodeg.org) and 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 Group can be found at
www.symphonyenvironmental.com and twitter @SymphonyEnv See also
Symphony on Instagram. A Symphony App is available for downloading
to smartphones.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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