Shares of Symphony Environmental Technologies plc (LON: SYM) plunged 6.2% after releasing its financial results for the six months ended 30 June 2021, where it recorded a slight loss.
The company which makes biodegradable plastic products revealed that it generated revenues worth £4.9 million in H1 2021, a slight improvement to the £4.8 million recorded last year.
However, the company sunk into a net operating loss of £0.5 million compared to the £0.04 million profit recorded in 2020.
Symphony Environmental attributed its loss to one-off short-term costs such as professional fees, including legal, communication, advocacy, and external specialist technical costs combined with non-budgeted increases in distribution and shipping costs.
The company noted that it expects to report lower overall margins due to the higher demand for finished products than masterbatches with higher margins. The firm also incurred higher distribution costs due to the scarcity of container vessels during the first half of 2021.
Symphony has also invested heavily in its sales team and other operational aspects of managing its growing pipeline as it looks for ways to commercialise more of its products.
The company reiterated that it expects the results of the year ending 31 December 2021 to be in line with market expectations of £11.9 million and operating profits of £0.4 million.
*This is not investment advice.
Symphony Environmental share price.
Symphony Environmental shares plunged 6.19% to trade at 19.23p, falling from Monday’s closing price of 20.50p.