Symphony Environmental suffers sales delays

Symphony Environmental Technologies, the plastics technologies supplier, struck a bum note as it revealed sales delays in some of its newer markets.

The firm said the unforeseen delays in several territories due to 'initiation issues' which now appear to be resolving.

Management was keen to emphasise that sales in the final quarter were strong as global demand outside of Europe started to pickup following a quieter period of consolidation.

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Once initial sales in a territory become established, revenues from that sales channel become more certain, the group said, adding that it is "therefore optimistic that this potential new business generated by legislative change will convert to increased sales in several step changes throughout this current trading year."

"Our main contracts remain secure for 2012 with indications for potential for further growth. We also have a number of important product trials in place, and negotiations are ongoing with several firms," the company added.

Revenues for the period to 31 December 2011 are expected to be in line with the prior year (2010: £8.5m), with volumes of its main product, d2w, growing by around 10% despite some reductions in the European markets. Seymour Pierce, the sole broker covering the company, had forecast 2011 revenues of £9.1m prior the sales warning.

The broker cut its price target from the stock from 19p to 12p following the announcement, but that still requires the share price to more than double to hit that level over the next 12 months, after the share price fell 16.33% to 5.12p on the morning of the announcement.

NR