Interim Results

Symphony Plastic Technologies PLC
29 September 2004




For Immediate Release                                         29 September 2004


                       SYMPHONY PLASTIC TECHNOLOGIES PLC


                                INTERIM RESULTS

                     FOR THE SIX MONTHS ENDED 30 JUNE 2004



Symphony Plastic Technologies plc ('Symphony' or 'the Group'), the AIM listed
environmentally responsible plastics company, is pleased to announce its interim
results for the six months ended 30 June 2004.



HIGHLIGHTS



•   Sales up 20% to £4.45m (2003: £3.71m)

•   Gross profits up 101% to £1.05m (2003: £0.52m)

•   Loss before tax of £0.08m (2003 loss of: £2.23m)

•   Continued investment in product and market diversification



Commenting on the results, Nirj Deva, Chairman of Symphony, said:



'The first half of 2004 has seen a significant improvement in the performance of
the business and I am delighted to be reporting a strong set of results. Active
cost management and growing interest in our degradable, environmentally
responsible products have doubled our gross profits for this period. With
exceptional global increases in raw material prices for the second half of the
year due to increased demand from China and inflated oil prices, we expect
decreases in gross margins, however our aim is to invest in sales, marketing and
product development, which will enable greater product and market
diversification. We remain encouraged by the growth in our client base both in
the UK and overseas.'



For further information, please contact:


Symphony
Michael Laurier, CEO                                        Tel: [phone]

Ian Bristow, FD


Citigate Dewe Rogerson
Victoria Brough                                             Tel: [phone]

Ged Brumby




Attached: Chief Executive's review; Consolidated Profit and Loss Account;
Consolidated Balance Sheet; Consolidated Cash Flow Statement; Notes to the
Interim Accounts.



Notes to Editors



Symphony develops and supplies environmentally responsible plastic packaging
products, which are distributed primarily to the retail, local authority and
health related sectors. The Group's main technology, d2wTM, allows plastic to
degrade, leaving only water, a minimal amount of carbon dioxide and trace
amounts of non-toxic biomass over a short time period. The current d2wTM product
range now includes additives, carrier bags, refuse and waste sacks, mailing
wrap, stretch film, aprons, dog waste sacks and packaging films.



Symphony has a strong blue-chip customer base in the UK and has successfully
established itself as an international business after signing contracts with
companies in Brazil, Canada & USA, New Zealand, South Africa, the Caribbean and
the Middle East.  Further information on Symphony can be found at
www.degradable.net.






CHIEF EXECUTIVE'S REVIEW



The first six months of 2004 saw a notable improvement in the financial results
of the Group. As outlined previously, the Group has concentrated on strict cost
control and improving operating margins, whilst continuing product and market
diversification.



Trading Results



Operating losses reduced significantly to £58,000 from £2.2m compared with the
same period last year. All areas of the business have contributed to the
results. Sales increased by 20%, gross profits by 101% and overhead costs
decreased by 63%. Excluding the exceptional costs in 2003, gross profits
increased by 56% and overhead costs decreased by 25%. Gross margin growth was
primarily driven by reduced technology costs and an improved sales mix.



The loss per share decreased to 0.19 pence from 5.65 pence.



EPI Case



The dispute has a court date set for November this year. The board remain of the
view that the claim is wholly unmeritorious.



Outlook & Current Trading



Post balance sheet close on 30 June, the Group raised a further £500,000 of
equity and is in the process of increasing the UK and overseas sales functions,
as well as investing further in R&D and marketing. It is our belief that we can
continue to build and develop on our existing blue chip customer base both in
the UK and overseas.



I am pleased to advise that our UK marketing company showed its commitment to
Symphony by purchasing 240,000 new ordinary shares at 12.5p per share in the
Group.



The global rise in raw material prices will impact upon our cost base for the
second half of 2004, though we remain focused on active cost management and
control. The second half of 2004 will also be a period of investment for the
company by capitalising on the strong performance of the business achieved in
the first half of the year, with the long term aim of building our client base
and product portfolio.



Michael Laurier

Chief Executive






CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the six months ended 30 June 2004

                                                          Six months to          Year ended        Six months to
                                                           30 June 2004    31 December 2003         30 June 2003
                                                      £'000       £'000     £'000     £'000 £'000     £'000

                                       Turnover                   4,449               7,628                3,706

                          Cost of sales - other     (3,404)               (6,243)             (3,037)
               Cost of sales - Exceptional item           -                 (196)               (150)
                                  Cost of sales                 (3,404)             (6,439)              (3,187)

                                   Gross profit                   1,045               1,189                  519

                             Distribution costs                   (139)               (281)                (139)

                Administrative expenses - other       (964)               (2,325)             (1,283)
     Administrative expenses - Exceptional item           -               (1,501)             (1,320)
                        Administrative expenses                   (964)             (3,826)              (2,603)

                                 Operating loss                    (58)             (2,918)              (2,223)

                                   Net interest                    (26)                (91)                 (11)

    Loss on ordinary activities before taxation                    (84)             (3,009)              (2,234)

             Tax on loss on ordinary activities                       -                   -                    -

   Loss for the financial year transferred from                    (84)             (3,009)              (2,234)
                                       reserves

  Basic and diluted earnings per share in pence                 (0.19)p             (7.09)p              (5.65)p


There were no recognised gains or losses other than the loss for the period.






CONSOLIDATED BALANCE SHEET
As at 30 June 2004

                                                                      30         31 December             30
                                                                    June                               June
                                                                    2004                2003           2003
                                                                   £'000               £'000          £'000
                                          Fixed assets
                                      Intangible assets                9                   1              2
                                       Tangible assets               196                 209            207
                                           Investments                16                  16             16
                                                                     221                 226            225
                                        Current assets
                                                 Stock               518                 593            641
                                               Debtors             2,594               2,111          2,305
                              Cash at bank and in hand               226                 170            479
                                                                   3,338               2,874          3,425

        Creditors: amounts falling due within one year           (2,368)             (1,828)        (1,613)

                                    Net current assets               970               1,046          1,812

                 Total assets less current liabilities             1,191               1,272          2,037

    Creditors: amounts falling due after more than one              (28)                (25)            (15)
                                                  year
                                                                   1,163               1,247          2,022

                                  Capital and reserves
                               Called up share capital               453                 453            453
                                 Share premium account             8,593               8,593          8,593
                                        Other reserves               823                 823            823
                               Profit and loss account           (8,706)             (8,622)        (7,847)

                                                                   1,163               1,247          2,022






CONSOLIDATED CASH FLOW STATEMENT

For the six months ended 30 June 2004

                                                              Six months              Year           Six months
                                                                      to             ended                   to
                                                                 30 June       31 December              30 June
                                                                    2004              2003                 2003
                                                                   £'000             £'000                £'000

  Net cash outflow from operating activities (see below)           (216)           (1,435)              (1,086)

         Returns on investments and servicing of finance
                                       Interest received               -                 4                    3
                                           Interest paid            (24)              (91)                 (11)
                             Finance lease interest paid             (2)               (4)                  (3)

        Net cash outflow from returns on investments and            (26)              (91)                 (11)
                                    servicing of finance

            Capital expenditure and financial investment
                       Purchase of tangible fixed assets             (3)              (57)                 (42)
                     Purchase of intangible fixed assets             (8)                 -                    -
                      Receipts from sale of fixed assets               4                18                    -

 Net cash outflow from capital expenditure and financial             (7)              (39)                 (42)
                                              investment

                                               Financing
                                        Issues of shares               -             1,808                1,808
                Capital element of finance lease rentals            (11)              (58)                 (15)

                Net cash (outflow)/inflow from financing            (11)             1,750                1,793

                             (Decrease)/increase in cash           (260)               185                  654



Net cash outflow from operating activities


                                                                   £'000             £'000                £'000

                                          Operating loss            (58)           (2,918)              (2,223)
                           Depreciation and amortisation              22             1,446                1,421
                        Loss on disposal of fixed assets               6                15                    -
                           Decrease/(increase) in stocks              75               146                   97
                          (Increase)/decrease in debtors           (444)             (871)              (1,031)
                        Increase/(decrease) in creditors             183               748                  650

              Net cash outflow from operating activities           (216)           (1,434)              (1,086)









NOTES TO THE INTERIM ACCOUNTS





1. basis of preparation

The interim financial statements have been prepared on the basis of the
accounting policies set out on pages 8 and 9 of the 2003 Annual Report, and are
unaudited. The comparative figures for the year ended 31 December 2003 have been
extracted from the group's latest published accounts which contain an
unqualified audit report and which have been filed with the Registrar of
Companies.



2. Loss per share

The calculation of basic loss per share is based on a loss for the period
divided by the weighted average number of shares in issue during the period of
45,282,880 (2003 FY 42,421,388; 2003 H1: 39,512,467).


                      This information is provided by RNS
            The company news service from the London Stock Exchange