New Saudi plastics laws boost Symphony Environmental

So-called smart plastics technology company Symphony Environmental Technologies updated the market on its trading on Friday, following the “positive start” to the second half of the year announced in its interim results on 7 September.

The AIM-traded firm said it continued to generate increased sales of its ‘d2w’ oxo-biodegradable plastic additives in several of its markets, including South America and the Far East, although momentum had been “most apparent” in the Middle East and in particular Saudi Arabia.

In that country, legislation reportedly required the use of oxo-biodegradable technology for almost all everyday plastic items made in or imported into the country, with enforcement of the legislation starting earlier this year.

Symphony said an initial uplift in orders and enquiries from the company's regional distributor, as it previously reported, had continued with the board now expecting revenues for the year to 31 December to be approximately £8m.

Due to the operational gearing of the group, the board expected that profit before tax would be “significantly higher” than current market expectations, and not less than £0.35m for the full year.

As at close of business on Thursday, the group had cash in the bank - net of its invoice discounting facility - of £0.317m compared with a net borrowing position of £0.577m on 30 June.

In addition, the group had a £1.5m invoice discounting facility to assist in funding receivables, together with a £0.5m overdraft facility.

The working capital of the group fluctuated depending on the customer mix within its revenues at any point in time, the board explained, with the cash position as stated “not necessarily” an indication of its cash position at the end of the year.

“I am very pleased with the group's progress and in particular the growing adoption of our core d2w oxo-biodegradable products,” said chief executive Michael Laurier.

“With the growing problem of plastic pollution, and in particular microplastics, we continue to see a growth in enquiries, not just in the Middle East, but globally.

“It is becoming much better known that plastics treated with d2w oxo-biodegradable technology will go a long way towards reducing the issue of plastic waste on land and in the oceans.”