By Adria Calatayud
Symphony Environmental Technologies PLC said Tuesday that it expects to report an operating loss for the first half of 2021 and said that higher distribution costs due to global vessel and container shortages are set to continue.
The U.K. plastic-technology company said it expects to report an operating loss for the first six months of the year of around 500,000 pounds ($694,100) compared with a profit of GBP40,000 for the same period a year earlier.
Revenue for the first half was GBP4.9 million, up from GBP4.8 million for the year-earlier period.
Symphony said gross margins for the period are expected to be slightly lower due to an increased proportion of finished products compared to masterbatches, which carry a higher margin. Distribution costs were also higher and this is expected to continue for the remainder of the year, the company said. Symphony said it continues to invest in its sales and other operating functions.
The company said its board expects results for 2021 will be in line with market expectations. Symphony is forecast to report revenue of GBP11.9 million and operating profit of GBP400,000 for the year, according to consensus estimates provided by the company.
Shares at 0712 GMT were down 6.1% at 19.25 pence.
Write to Adria Calatayud at [email protected]