Symphony Environmental Technologies (SYM)
Biodegradable plastic should be a world-wide market as plastic decomposes slowly and the process can take more than 400 years. Since 2001, SYM have developed its d2w technologies of plastic materbatches, which are increasingly being recognised as a valid solution. The various alternate solutions to this environmental problem have over the years been more expensive, useless, and inconvenient such as one-use plastic, paper straws and recycling.
Comment: Regulators and increasing companies understand the benefits of SYM’s low cost, immediate use, and non-disruptive solutions which when added to ordinary plastic products results in removing plastic litter and microplastics from the environment. Several trials are underway with the potential for a sales surge.
Interim 6 months to June 2023 – Announced September 29
- Revenue increased 20% to £3.6m
- Gross Profit margin increased from 36% to 42%
- Administration expenses 11% lower
- H1 loss of £0.8m is lower than last year’s £1.4m
The rate of commercialisation is hard to judge although significant commercial news can be expected.
- There is a contractual supply agreement with the giant Grupo Bimbo, which has sales in 34 countries. It’s using SYM’s d2p antimicrobial technology in plastic wrapping to protection to the bread from potential contamination and extending it shelve life.
- This technology is being evaluated in both bread and other food related products, and in a range of countries including China, India, Middle East, South Africa, South Korea, and Turkey.
- Symphony India is a joint venture, with the mighty Indorama India for biodegradable plastics and is set to benefit from a change in Plastic Waste Management legislation on plastic products.
- In the Middle East, an agreement was finalised with Ecobatch in the UAE for production of Biodegradable d2w white, black, and coloured masterbatch products which will open this sales channel.
- After delays since 2010 Yemen’s have commenced with the enforcement of legislation that manufacturers can only produce bio-degradable bags. A market estimated at 4 million tons of polymers with about 500 manufacturers.
D2W Products Range
These ‘unique’ products are being trialled in different applications and in several markets such as South Africa, South Korea, Yemen, and Turkey.
- Bin Bags its d2w biodegradable bin bags degrade harmlessly into CO2, water, and some biomass. This occurs within 12–18 months in optimal conditions. It does not leave heavy metals or other toxic residues.
- Food bags d2w biodegradable food bags keep meat and leftover ingredients fresher for longer and provide great protection for food in freezers.
- Refuse Sack, Tie handle, draw tape, and multi-purpose refuse sacks and waste bags. Made with d2w biodegradable technology.
EU Legal Action: If there is a positive outcome from the EU court case, which is due to reported within 8 months there is the possibility of damages as well as an open-door to increased sales in the EU market.
Technologies- Plastic Additives IP
There is a wide range of d2p (Designed to Protect) formulations aimed at being used in enormous sectors such as food, insecticidal and flame-retardant.
- Biodegradable Plastic technology – an environmentally responsible solution
- Compostable a polymar derived from Biobased and fully synthesized materials that meets the composability standards.
- d2p anti-insect masterbatch is included during the manufacturing stage and kills insects by changing the character of the plastic. It is not sprayed or painted on the surface, so it remains effective against insects for the life of the product.
- d2p AM – A suite of masterbatches offering cost-effective protection against dangerous microbes on plastic products and other surfaces.
- d2p (ea) is a highly active adsorbent for the removal of Ethylene gas and moisture in plastic packaging. This is to reduce spoilage of perishable fruit and vegetables.
- Flame retardants decrease the ignitability of materials and inhibit the combustion process, limiting the amount of heat and smoke released.
- d2p® (Odour Adsorber) technology is designed to adsorb unpleasant odours, it can also be used in containers to keep the contents dry.
- The partnering strategy is a low-cost entry to large markets and further such deals seem likely.
- SYM are expecting a material increase in sales and breaks-even at around £10m turnover.
- Cash flow is manageable after raising £1m in equity at 18p a share, and £1m as a 7% convertible loan with a major shareholder due for repayment h2 2025.
Comment: There is a compelling and large need to reduce plastic waste, it seems a matter of when not IF SYM solutions will be recognised and widely adopted. This possibility does not seem reflected in the Mkt cap.
|Share in Issue||184.81m|
|Net Borrowing||£0.6m||Anticipate positive cash generation from stock and receivables movements, in the second half of this year.|
|Next Results||Final December 2023||Recovery trend|
|Last Results||Interims June||Reduced losses See above|
|Last Funding||Aug 2022||£1m in equity at 18p a share and £1m CLN *|
|Shareholders||54% not in public hands||Somerston Capital 18.24%
M Laurier 12.68%
Sea Peal 17.39%
*£1m convertible loan, from Sea Pearl its 17.4% shareholder which can be repaid after March 2024, at a 20% Vwap price discount on the 3 months preceding conversion