Sign up Australia
Proactive Investors - Run By Investors For Investors

Symphony Environmental revenues rise but so does marketing spend

The plastics firm said it had invested £0.38mln in its communications and marketing arm during the year
Medical gloves
Symphony said orders of its d2p anti-microbial technology had been “significantly ahead” of last year

Symphony Environmental Technologies plc (LON:SYM) has reported that revenues for the current financial year are expected to be “in line with market expectations” and higher than last year, however, its marketing spending also increased.

In a trading update, the plastics maker said revenues for the full year would be around 6% higher than last year, with full-year earnings expected to be £100,000. 

READ: Symphony Environmental shares pick up as it launches new distributor in Jordan

The reduction in earnings was seemingly due to increased investment in the firm's communications and marketing department, which rose to £380,000 for the year. The group had also recently established an in-house marketing department to assist driving sales of its products throughout the distribution network.

The gross margin generated in the first half of the year, at 47.4%, was lower than the circa 49% historically achieved, principally due to increased lower margin finished product sales, with this level of sales mix and gross margin expected to broadly continue for the full year.

Symphony said orders of its d2p anti-microbial technology had been “significantly ahead” of last year and were expected to “comfortably exceed” management expectations, with promotion campaigns scheduled in October to increase product listings.

Also, after two years of research and development, Symphony had received a US$120,000 initial commercial order for its d2p anti-insect additive technology with a large global manufacturer of commercial agricultural products.

For its d2w oxo-biodegradable plastic range, the company said orders had remained strong, but the timing of orders placed by distributors in their principal market, the Middle East, had been fluctuating quite significantly from month to month and are currently anticipated to be lower than original management expectations due to varying levels of, and delays in, local enforcement action.

D2w revenues generated from sales in other markets such as Central America, the Far East, Europe and Africa, were are all growing “ahead of budget”.

Symphony added that it would continue to meet its expectations for 2019.

View full SYM profile View Profile

Symphony Environmental Technologies plc Timeline

Related Articles

plastic pollution
April 17 2018
“This technology is available. It works. It is not expensive and does not interrupt the supply chain,” said Bob Wigley, a non-executive director of Symphony.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use