12th Oct 2018 10:04
LONDON (Alliance News) - Shares in Symphony Environmental Technologies PLC plunged Friday after it said orders from the Middle East, its "principal market" for its main product, are anticipated to be lower than management expectations.
Symphony Environmental shares were down 15% Friday morning at 8.30 pence each.
The anti-microbial plastic technologies producer said, however, it expects revenue for 2018 to be "broadly" in line with market expectations, about 6% higher than last year.
For 2017, Symphony Environmental recorded GBP430,000 pretax profit on revenue of GBP6.8 million.
Symphony Environmental said it has experienced delays in the orders due to "local enforcement action".
The company said orders for its d2w oxo-biodegradable technology remain "strong", but the timing of orders placed has been "fluctuating quite significantly" from month to month.
The company said the "majority" of its revenue derives from its d2w oxo-biodegradable plastic additives, and also "mainly" comes from outside Europe and the US.
The plastic and rubber technology company expects its sales in the Middle East will "substantially increase" in the next six months after improvement in government enforcement actions and increased sales from its distributors.
Symphony Environmental stressed, however, the timing is "not yet clear".
d2w product revenue from Symphony Environmental's other global markets are "growing ahead of budget".
Symphony Environmental said revenue from its d2p designed-to-protect technologies are "significantly" ahead of last year, and are expected to "comfortably" exceed management expectations.
The company said it has received an initial commercial order worth USD120,000 for its d2p products. This was a part-container order from a "very large global manufacturer" of commercial agriculture products.
As a result, Symphony Environmental expects its 2018 full year earnings to be about GBP100,000, which includes additional marketing costs of GBP380,000 and expenses R&D costs of GBP630,000.
The company remains "confident" it will continue to meet 2019 expectations.
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