20/01/2005
Degradable plastics venture Symphony, tipped on these pages as a speculative buy at 13.25p, surrendered 11% after the market reacted negatively to its pre-close statement for the year to December. Sales for the year were up an encouraging 17% to £8.9m. However, as indicated at the time of the interims, second half results will show reduced gross profits and wider losses than forecast due to 'exceptional' spikes in global raw material prices versus fixed price contracts. Although all this was reiteration, and Symphony has re-negotiated many of its contracts, hopefully mitigating the future impact, the news still rankled as a disappointment with investors. Elsewhere, the board still insists international market opportunities are rising on growing demand for eco-friendly degradable plastics and Government pressure - Symphony recently completed significant distribution deals for Saudi Arabia and Columbia, further extending the territorial reach of its d2w range. Today's warning ruined the impact of a successful court judgement in the case brought by rival group EPI, which ended months of uncertainty that had weighed on the share price. London's High Court dismissed EPI's major claim that Symphony had copied its technology entirely. Symphony's full year figures are out in March. We're slightly less easy about the outlook now. Invest elsewhere.
| Market cap: | £10.7m |
| PE Forecast: | n/a |
| Share price: | 18.5p |
| AIM | £2.89m |
2.75p
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-0.12p
|
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| Other company articles: |
| 29/04/2008 |
| 06/10/2006 |
| 22/12/2005 |
| 20/01/2005 |
| 22/12/2004 |
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