Business
Pre-close Trading Update
Pre-close Trading Update.
About this update from Symphony Environmental Technologies Plc
[{"type":"text","content":"\n\n \n \n \n1 August 2023\nSYMPHONY ENVIRONMENTAL TECHNOLOGIES PLC\n(\"Symphony\" or the \"Group\")\n \nPre-close Trading Update\n \nSymphony Environmental Technologies Plc (AIM:SYM) global specialists in technologies that make plastic and rubber products \"smarter, safer and sustainable\", is pleased to announce a trading update for the six months ended 30 June 2023 (\"H1-2023\").\n \nHighlights\n· Group revenue increased to £3.6 million (H1-2022: £3.0 million)\n· Gross profit margins increased to over 42% (H1-2022: 36%)\n· Distribution costs sharply reduced to circa 3% of revenues (H1-2022: 7%) - H1 2023 approximately £110,000 (H1-2022: £225,000)\n· Resultant contribution for H1-2023 after distribution costs increased by approx. 70% compared to H1-2022\n· Lower operating cost base\n· £1.0 million convertible loan note agreement entered into with Sea Pearl Ventures LLC \n \nH1-2023 trading\nAs shown above we are pleased to report a positive turnaround in revenues and sharply improved operating margins for the Group compared to 2022. Whilst a loss will be reported for H1-2023, it will be significantly lower than for the same period last year.\nRevenue growth was driven primarily by operations in the Middle East and margin growth was driven by reduced raw material costs together with managed efficiencies in the supply chain.\nFocus continued in our prime revenue markets of the Middle East, Latin America and Far East for both d2w and d2p product ranges, and in particular d2p antimicrobial for bread packaging, d2p for general antimicrobial applications, and d2p insecticidal.\nThe continued reduction in distribution costs was due to lower shipping costs (continuing the trend seen in H2-2022) and efficiencies arising from the new Middle East production facility (commissioned by Symphony's partners in the region), which commenced operation at the end of H2-2022.\nOutlook\nAs advised at the AGM on 29 June 2023, the Board expect Symphony will move back into profitability on the back of momentum started during H1-2023 together with the near-term commercialisation of several key projects.\nThese expectations do not take into account Symphony's joint venture in India, where we continue to wai...