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Symphony Environmental rewarded for R&D spend says Cantor

It comes as the UK is due to introduce a 5p plastic bag levy next week

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Other governments are beginning to realise that the persistence of plastic waste is a real problem.

Symphony Environmental Technologies’ (LON:SYM) is starting to see the results of its significant spend on R&D, broker Cantor Fitzgerald said.

The smart plastics group is stepping up its efforts to have bio-degradable plastic bags made the standard in the UK as it continues to work on anti-microbial plastic additives.

These additives, the broker says, have “attracted the attention of a multi-billion dollar plastics group and a global America-based food producer.”

It could have the potential to transform Symphony in the next five years the broker reckons.

It comes as the UK is due to introduce a 5p plastic bag levy next week, but the new levy is not universal, with only shops with more than 250 full-time staff having to charge it.

This, the broker argues, will focus on attention on the problem of waste plastic in the environment.

And many other governments are beginning to realise that the persistence of plastic waste is a real problem.

England follows similar levies in Ireland, Wales and Scotland, but in many countries the use of eco-friendly plastics of the type produced by Symphony is mandatory.

The UAE and Pakistan have made oxo-biodegradable plastic mandatory, while support from a further 16 countries has also been received.

Meanwhile, interim results were in line with expectations, the broker added, but noted good earnings were offset by losses against the development costs.

“There have considerable growth potential and are now approaching commercialisation” the broker said.

It reiterates its ‘buy recommendation and put a target price on the stock of around 12p.

Shares were flat at 7.4p today.

Quick facts: Symphony Environmental Technologies PLC

Price: 12.25 GBX

AIM:SYM
Market: AIM
Market Cap: £20.83 m
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