Symphony Environmental swings to H1 loss

Plastic technologies group Symphony Environmental said on Tuesday that it was now expecting to have swung from an interim profit of £400,000 in 2020 to an interim operating loss of £500,000 in its current trading year.

Symphony Environmental said group revenues were up £100,000 year-on-year at £4.9m in the six months ended 30 June but added that on a constant-currency basis, revenues would have grown 13% to £5.4m.

Gross margins were expected to be "slightly lower" due to an increased mix of finished products compared to higher-margin masterbatches and higher distribution costs during the period due to global vessel and container shortages, something it expects to continue for the remainder of 2021.

Net cash and cash equivalents totalled £600,000 at the end of the period, up £100,000 on the group's 31 December figure.

"The group is expecting strong revenue growth during H2-2021 and believes that results for the financial year ending 31 December 2021 will be in line with current market expectations," said Symphony.

"The group is making strong progress in moving d2p product enquires through to product trials and beyond, and although this is not as yet demonstrated in the group's financial results, the board is confident that these trials will translate into substantial commercial revenues in due course."

As of 1050 BST, Symphony shares were down 6.34% at 19.20p.