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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
Buying a property is cheaper than renting again – how much could you save?News Zoopla research shows it is now 8% cheaper to buy than rent. We reveal the places where you can save more by getting on the property ladder.
-
Is now a good time to invest in India?Should you invest in India? Its market has stood out of the emerging market pack, helped by a growing pool of domestic investors.
