Symphony Environmental Technologies expects higher than expected – Symphony Environmental Technologies - Arhive
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Symphony Environmental Technologies expects higher than expected pre-tax profit for 2017 thanks to Saudi orders
A continued increase in orders for Symphony Environmental Technologies PLC‘s (LON:SYM) plastic additives in Saudi Arabia means the firm expects pre-tax profit for 2017 to be “significantly higher than current market expectations”.
The group expects the figure to be not less than £350,000 for the year to December 31, compared to £123,000 in 2016, on revenues of around £8.0mln versus £6.8mln last year.
As reported in the interims in September, the firm was seeing good interest from its regional distributor, and sales of its d2w oxo-biodegradable plastic additives have increased into the second half.
“These markets include South America and the Far East but momentum has been most apparent in the Middle East, and in particular Saudi Arabia, where legislation requires the use of oxo-biodegradable technology for almost all everyday plastic items made in or imported into the country,” the group said.
This year, Saudi legislated to make oxo-biodegradable plastic compulsory for a wide range of locally-manufactured and imported plastic products.
The products include carrier bags, packaging films, agricultural films, and many other types of plastic products.
Countries outside the European Union and US were leading the way in dealing with plastics pollution said Michael Laurier, chief executive.
“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.”
As well as the MIddle East, Symphony also seeing rising sales in South and Central America and Pakistan while India is potentially huge market said Laurier.
As at close of business yesterday (October 26), the firm had cash in the bank, net of its invoice discounting facility, of £317,000 as compared with a net borrowing position of £577,000 on June 30 this year.
In addition, Symphony has a £1.50mln invoice discounting facility to assist in funding receivables, together with a £0.50mln overdraft facility.
Shares added 11.5% to 14.2p each.