Biodegradable plastics supplier Symphony Environmental Technologies reported a 46% increase in sales in 2013 on the back of regulatory changes around the world, and announced a deal with a large supermarket chain.
Sales for the Borehamwood-based company, whose oxo-biodegradable technology accelerates the degradation of plastics in the open environment, grew to £7.2m last year.
The increase in revenues was driven by legislation and Corporate Social Responsibility (CSR), said chairman Nirj Deva.
He noted that Pakistan had mandated the use of oxo-biodegradable technology for disposable plastics products, and sales had started to pick up. Deva said this had also happened in the UAE and parts of Africa.
In countries with no specific legislation in place, sales were driven by an increasing focus on CRS, Deva pointed out.
The number of signed agreements with distributors increased from 72 in 2012 to 76 in 2013.
The Americas accounted for 47% of revenues, the UK and Europe 21%, while the rest of the world contributed 32%.
Symphony also announced it had struck a deal with a “major supermarket group”, but declined to disclose its name or the country of incorporation.
The delivery programme will start from April, with full roll-out before the end of 2014.
“This follows more than two years of development work which demonstrates the length of time it can take to close a major sale opportunity,” said chief executive Michael Laurier.
Despite the increase in revenue, the group reported £778,000 losses before tax. Losses, however, decreased from over £2m in 2012.
Dragging down Symphony’s performance were some £4m administrative expenses.
Symphony also said it was developing a new process to recycle scrap tyres, and has applied for a patent for the technology. The business will be part of a new entity, in which the group will retain a minority stake.
- Symphony has been involved in a row over the recyclability of biodegradable bags in light of their possible exclusion from an upcoming carrier levy.