Symphony Environmental Technologies plc Annual Report & Accounts 2015
A British Public Company
ANNUAL REPORT & 
ACCOUNTS 2015
Symphony Environmental 
Technologies plc Symphony is able to supply a wide  
range of technologies worldwide,  
to make plastic smarter .
 > Symphony is the world leader in controlled-life plastic and sells both pro-degradant additives and 
finished plastic products. O ur d
2
w additive is the only technology of this type to be awarded an 
Eco-label, which distinguishes it from all other oxo-biodegradable plastic products on the market.
 > We have developed a range of protective technologies under the d
2
p (designed to protect) brand, 
which offer extra protection to plastic products from bacteria, insects, fungi, algae, odour,  
fouling and fire. We also have a number of additives in development  
which will be adding to this family of products in the coming year.
 > In addition to the above, our d
2
t tag and trace technologies  
give our customers the ability to accurately determine  
the authenticity of their plastic products, helping  
to protect brand owners from counterfeits  
and fraud.
 > Our products are marketed through a  
network of distributors, now serving  
almost 100 countries worldwide.
Business Review
01 Highlights
02 Symphony at a Glance
04 Chairman’s Statement
06 Chief Executive’s Review
08 Global Network
09 Corporate Social Responsibility
Corporate Governance 
10 Board of Directors
12 Strategic Report
13 Directors’ Report
15 Remuneration Report
Financial Statements
16 Independent Auditor’s Report
17 Consolidated State ment of Comprehensive Income
18 Consolidated Statement of Financial Position
19 Consolidated Statement of Changes In Equity
20 Consolidated Cash Flow Statement
21 Notes to the Annual Report and Accounts
43 Company Balance Sheet
44 Company Statement of Changes In Equity
45 Company Cash Flow Statement
46 Notes to the Company Balance Sheet
51 Company information Symphony Environmental Technologies plc
Annual Report & Accounts 2015
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
01
Highlights
2015
HIGHLIGHTS
 › Revenues of £6.37 million  
(2014: £6.35 million) 
 › Gross profit of £2.93 million  
(2014: £3.16 million)
 › Operating loss before non-recurring 
costs of £0.97 million (2014: loss  
£0.27 million)
 › Non-recurring costs £1.31 million  
(2014: £nil)
 › Loss before tax of £2.30 million  
(2014: loss of £0.39 million)
 › Loss after tax of £3.33 million  
(2014: loss £0.31 million) 
 › Basic loss per share of 2.26p  
(2014: loss per share 0.23p)
 › Cash generated in operations of  
£0.03 million (2014: cash used in 
operations £0.10 million)
 › Somerston placing of £500,000 at  
10p per ordinary share
 › Directors purchase of 501,000 shares 
during the year
POST YEAR-END 
 › 1st quarter revenues 8% higher than 
same period last year
 › Operating costs expected to reduce by 
approximately £750,000 for 2016
 › Completion of new Recycling Study 
into oxo-biodegradable technology
 › Launched new corporate website 
Pg 02
Symphony at a glance
Pg 06
Chief Executive’s Review
For more information visit:
www.symphonyenvironmental.com
www.
symphonyenvironmental.
com/investors Symphony Environmental Technologies plc
Annual Report & Accounts 2015
02
FROM A ONE  
PRODUCT COMPANY 
TO A BROAD 
TECHNOLOGIES 
GROUP
Symphony is now an international company,  
reaching every corner of the globe. We have  
distributors giving us a presence in nearly 
100 countries worldwide.
Symphony at a glance
OVERVIEW
d
2
w is a masterbatch system which, when 
included at the manufacturing stage, turns 
ordinary plastic at the end of its useful life 
into a material with a different molecular 
structure. It is then no longer a plastic and 
has become a material which is inherently 
biodegradable in the open environment in 
the same way as a leaf.
http://www.symphonyenvironmental.com/
d2w/
http://www.symphonyenvironmental.com/
what-is-d2w-2/
PRODUCT INFORMATION
OVERVIEW
d
2
t is a suite of technologies that  
provide anti-counterfeiting performance. 
They offer the ability to determine the 
authenticity of your plastic packaging  
and other plastic products through a  
unique and sophisticated tracer system.  
d
2
t is complemented by Symphony’s 
portable d
2
Detector device.
http://www.symphonyenvironmental.com/
d2t/
d
2
w products include:
 – Bin liners
 – Bottles, tubs and cups
 – Bubble wrap
 – Carrier bags
 – Cling film
 – Food packets
 – Frozen food packaging
 – Garbage sacks
 – Gloves and aprons
 – Newspaper and 
magazine wrappers
 – Paint ball spheres
 – Pallet wrap
 – Parachutes
 – Shrink wrap Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
03
OVERVIEW
d
2
p is a family of masterbatches which offer 
extra protection to plastic products from 
bacteria, insects, fungi, algae, odour, fouling, 
and fire.
Antibacterial
Fights healthcare and food industry 
infections. Tested against dangerous 
organisms including MRSA, E-coli, Listeria, 
Salmonella, Pseudomonas and Aspergillus 
Niger. 
Natural
Antibacterial suitable for use in food and 
non-food applications. In compliance with 
FDA Food and Drug Administration,  
USA and EFSA (European Food Safety 
Authority) requirements.
Antimicrobial
The primary purpose is to prevent bacterial 
and fungal contamination whilst preserving 
the aesthetic and functional properties of  
the plastic article.
Odour adsorber
Inorganic masterbatches and additives 
designed to inhibit the development of 
odours in plastic products and to prevent 
spoilage of fruit and vegetables.
Insecticide technology
Insecticidal plastic masterbatches used to 
control pests. Typically used in mosquito 
nets, agriculture, horticulture, forestry and 
home applications.
Flame retardant 
Flame retardants decrease the ignitability  
of materials and inhibit the combustion 
process – limiting the amount of heat 
released.
Pest control
Rodents can cause dangerous damage to 
plastic products such as cable insulation, 
warehouse pallets, non-food packaging  
and boxes etc. Symphony has developed 
additive masterbatches with products that 
repel these pests.
Anti-fouling
Anti-fouling paint is a specialised coating 
applied to the hull of a ship or boat to reduce 
the growth of aquatic organisms.
http://www.symphonyenvironmental.com/
d2p/
OVERVIEW
The d
2
Detector is a portable XRF (x-ray) 
device that allows customers, and the 
authorities in countries with relevant 
legislation to determine in less than 60 
seconds whether or not a plastic product 
contains d
2
w, d
2
p or d
2
t additives as 
specified, and whether it contains any 
undesirable substances.
http://www.symphonyenvironmental.com/
d2t/d2detector/
d
2
p products include:
 – Agriculture
 – Clothing and 
accessories
 – Credit/debit cards
 – Cutting/chopping 
boards
 – Electronic devices
 – Flexible food 
packaging
 – Food containers
 – Fridges
 – Home: roofing, wall 
cladding and decking, 
tubing, piping, bed 
pans
 – Kitchen utensils
 – Kitchen worktop 
coating
 – Pet food packaging
 – Refuse sacks and 
long-life carrier bags
 – Sanitary: toilet seats, 
shower heads, shower 
curtains, hand dryers, 
toothbrush handles
 – Sports: ski boots, 
bowling shoes, insoles
 – Tablecloths
 – Transportation: car 
interiors, tube, train, 
plane
 – Water coolers 04
Symphony Environmental Technologies plc
Annual Report & Accounts 2015
Chairman’s Statement
Nirj Deva, DL, FRSA, MEP
The year under review included some  
major investments in marketing and 
development costs. However, revenues 
remained disappointingly static, resulting in  
the operating loss before exceptional items 
increasing to £0.97 million (2015: £0.27 million). 
Blown filmline
IDENTIFYING 
GROWTH
OPPORTUNITY
As a result of the above, and following years 
of significant investment into our d
2
w 
oxo-biodegradable plastic masterbatch 
range (the Group’s primary revenue 
generating technology) the Board has 
carried out a strategic review of its 
technologies and their operating position. 
• For d
2
w, a number of successful 
commercial milestones have been 
achieved. As a result, the technology’s 
main sustainability credentials namely, 
Eco-label, Recycling Studies, Bio-
degradation and Eco-toxicity on land and 
in the sea have been enhanced. This is in 
addition to an earlier Life Cycle Analysis 
in support of oxo-biodegradable 
technology. Symphony has, and 
continues to achieve, positive political 
momentum in several overseas markets 
where governments aim to resolve the 
plastic litter crisis without damaging the 
plastic industry. Accordingly, the Board 
has decided that it will substantially 
reduce, but not eliminate, its investment 
into product development and marketing 
as it is unlikely to have a short to medium-
term impact on the Group’s revenue 
generation. The Board believes that the 
opportunities for d
2
w oxo-biodegradable 
plastic will remain at the same high levels, 
despite a reduced level of investment.
• For d
2
p, significant technological 
milestones have been achieved and 
although the Board is confident that 
material sales can result in the near future, 
there is an uncertainty in relation to timing. 
The Group has therefore realigned its 
focus, cost and investment into d
2
p 
“designed to protect” plastic additives and 
masterbatches. The Board has 
successfully developed a number of new 
formulations in the d
2
p range, including 
but not limited to the following: anti-
microbial, flame retardant and 
insecticides. Some of these technologies 
may require certification or regulatory 
clearance before commercial use, and the 
Board is working hard to obtain these with 
our distributors. d
2
p has a number of 
synergies with our established markets 
and customers, and the Group has a high 
number of sales opportunities that could 
result in a material increase in revenue in 
the near term. Due to both technical and 
regulatory reasons, no certainty of 
success can be given, however the Board 
has received positive indications from 
potential customers for the new products. 
The impact of the strategic review on its 
technologies affects Symphony in the 
following ways: 
• The Group has been able to significantly 
reduce its ongoing operating and 
marketing costs, which are expected to 
show a reduction of approximately 
£750,000 in 2016.
• The Board have reduced their fixed 
remuneration. 
• Management are more focused on 
delivering products and technologies 
which will create shorter term value for 
shareholders.
• The cost base is now better aligned with 
the Group’s current levels of revenue, with 
potential upside should sales increase. 
• Given the uncertainty, a number of items 
being carried on the Group’s balance 
sheet have been impaired including 
development costs relating mainly to  
d
2
p of £1.28 million and the deferred  
tax asset of £1.14 million, as well as a 
prudent review of inventory and aged 
receivables provisions.  Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
05
The Company has, and can foresee, no 
working capital constraints as a result of 
these changes. 
The Board would like to thank its 
shareholders, management, distributors and 
staff for their steadfast commitment and 
dedication towards the commercial success 
of the business.
N Deva DL FRSA MEP
Chairman
19 April 2016 Symphony Environmental Technologies plc
Annual Report & Accounts 2015
06
Chief Executive’s Review
Michael Laurier
The Group successfully completed an important 
phase in its long term d
2
w development plan 
and no longer requires the same level of 
investment, time and overhead cost to realise 
the full sales potential for this technology. 
d
2
w® – Controlled-life Plastic 
Technology
Symphony d
2
w technology is known 
globally as an important technology 
and credible brand that is helping 
governments deal with the issue of 
plastic pollution and litter without the 
need to ban plastic products. d
2
w 
has been trialled and tested over a 
long period of time by a wide range 
of organisations. It is the only 
oxo-biodegradable technology that 
has a complete set of sustainable 
credentials, namely, Life Cycle 
Assessment (“LCA”), Eco-label, 
Millennium Product, Eco-Toxicity, 
Bio-degradation, Recycling and 
membership to the important trade 
body, The Oxo-biodegradable Plastic 
Association (“OPA”).
Consistent with previous years, the 
range of d
2
w masterbatches and 
products represented the majority 
of the Group’s revenues in 2015. 
Towards the year end it became 
clear that costs and investments 
could be reduced or even eliminated 
as the business had achieved one of 
its primary objectives, namely to 
create demand through positive 
Corporate Social Responsibility 
(“CSR”) credentials and legislative 
drivers. It was also clear that sales 
should grow from the many ongoing 
and established relationships and 
projects. The main drivers for d
2
w 
technology have been: organisations 
that need a low cost, easy to 
change, pragmatic solution to 
improve their CSR and 
environmental credentials, and 
governments that urgently needed 
to resolve the many issues created 
by plastic litter on land and in the 
oceans, and without materially 
increasing the cost of packaging or 
risk to food and health. The 
legislative drive in support of our 
d
2
w biodegradable type technology 
is continuing albeit mostly outside of 
Europe and the USA where recycling 
and litter collection are well-
developed and where they do not 
have the same level of issues created 
by litter that impact the less 
developed nations. The Board has 
started to see slow, but gradual 
enforcement of laws aimed at 
encouraging or enforcing the use of 
oxo-biodegradable plastic in a 
number of developing nations. 
d
2
p™ – Technology that is  
designed to protect
Symphony’s product diversification 
and expansion strategy is being 
driven under the umbrella of the d
2
p 
brand, which is gaining momentum 
in many applications within the 
global distribution network.
Symphony continues its investment 
into creating intellectual property for 
the growing number of d
2
p products. 
Some of these technologies require 
certification or regulatory clearance 
before commercial use, and some 
do not. Customer trials have been 
ongoing for a number of years 
and some have been initiated in 
the period under review. From 
these, a number of trials have 
completed successfully with initial 
modest sales being achieved. 
Moving forward, given the stage 
of development now reached for 
the d
2
p range of technologies, the 
level of investment required on an 
ongoing operating basis is expected 
to be less than in previous periods. 
Due to confidentiality, details  
cannot be provided at this stage 
other than to say that these projects 
cover several countries and industry 
sectors. In particular, the business 
has one major project at contract 
negotiation phase after the 
completion of successful trials  
over the past 18 months. 
Trading results
Group revenues were marginally 
higher at £6.37 million (2014: £6.35 
million) albeit with a reduced gross 
profit margin at 46.0% from 49.8% 
in 2014. The contribution from 
gross profit was also reduced at 
£2.93 million versus £3.16 million in 
FY14. The fall in gross margin was 
driven by a less profitable sales mix 
during the back end of the year 
and a year-end stock impairment 
provision of £0.08 million. 
Recurring administrative expenses 
increased by 12.9% to £3.68 million 
(2014: £3.26 million) due to an 
increase in R&D and marketing 
costs together with an increase 
in the receivables impairment 
provision of £0.12 million. Non-
recurring administrative expense 
of £1.31 million were incurred in 
2015 (2014: £nil) which included a 
£1.28 million impairment charge 
relating to development cost within 
intangible fixed assets, and £0.03 
million relating to staff adjustments, 
following the strategic review. Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
07
Including non-recurring items, the 
Group made an operating loss of 
£2.29 million in 2015 compared to  
an operating loss of £0.27 million in 
2014. This resulted in a loss before 
tax of £2.30 million in 2015 (2014: 
loss £0.39 million). 
Excluding non-recurring items,  
the Group made an EBITDA loss of  
£0.84 million in 2015 (2014: loss  
£0.14 million) with an operating loss 
of £0.97 million (2014: loss £0.27 
million). The increase in loss was due 
to marketing and R&D cost increases, 
together with the impairment 
provisions against receivables and 
stock as detailed above.
Included within the taxation charge 
of £1.03 million (2014: tax credit 
£0.09 million) is a deferred tax asset 
impairment of £1.14 million (2014: 
£nil) following the strategic review, 
together with an R&D tax credit of 
£0.11 million (2014: £0.09 million). 
The Group therefore reports a loss 
for the year of £3.33 million (2014: 
loss £0.31 million) with basic loss per 
share of 2.26 pence (2014: loss per 
share 0.23 pence). 
The Group’s primary selling currency 
is the US Dollar. The Group had no 
contractual hedging instruments at 
the end of 2015 and self-hedges 
where possible by purchasing in US 
Dollars, and has banking facilities in 
place in order to secure rates going 
forward. As at 31 December 2015 the 
Group had a net balance of US 
Dollar assets totalling $0.82 million 
(2014: $0.64 million). A majority of 
the Group’s revenue is in US Dollars 
and accordingly, a strong dollar is 
beneficial for the Group.
Segmental analysis
The Group operates two business 
divisions being the Plastics Division 
(Symphony Environmental Limited 
or “SEL ”) and the Recycling 
Technologies division (Symphony 
Recycling Limited or “SRT”). Within 
SEL there are two operating 
segments; “Plastics Sales” which 
generate and maintain revenues 
relating to plastic additives, 
masterbatches and finished 
products, and “Plastics R&D” which 
includes all new product 
development and research 
expenditure.
Plastics Sales, which represent all 
Group sales, generated an EBITDA 
loss of £0.35 million (2014: profit 
£0.48 million). This loss compared to 
the previous year was the result of 
significantly increased marketing 
spend, together with the asset 
provisions detailed above. Plastics 
R&D incurred an EBITDA loss of 
£0.52 million (2014: £0.41 million).
SRT has no revenues to date and 
incurred a small amount of 
maintenance expenditure in 2015.  
In 2014 SRT had incurred costs of 
£0.22 million. The Board’s strategy  
is to commercialise SRT with an 
appropriate partner when identified. 
Cash flow
The Group generated cash of  
£0.03 million from operations  
(2014: cash used £0.10 million).  
The Group has a £1 million trade 
finance facility with HSBC Bank plc 
of which £0.16 million was drawn 
down as at 31 December 2015 (2014: 
£0.15 million). 
The Group had net cash in the bank 
of £0.12 million at the year-end 
(2014: £0.59 million), with trade 
receivables of £0.72 million (2014: 
£1.27 million) and continues to work 
comfortably within its banking 
facilities.
Outlook
The results for 2015 reflect the 
continued investment phases for 
both our d
2
w and d
2
p technologies, 
and we have now set a much lower 
operating cost basis for the business 
going forward. The business is 
transitioning away from product 
development activities that required 
capital for long-term returns and is 
now moving towards a stronger 
focus on shorter-term 
commercialisation and sales 
opportunities.
Sales for the first quarter of 2016 are 
8% higher than for the same period 
last year, and on a conservative basis 
for the full year the Board expects to 
achieve moderate sales growth 
whilst maintaining gross margins. In 
addition, the Board expects 
operating costs for the full year 2016 
to be approximately £750,000 
lower than 2015. 
The Board considers the longer 
term sales prospects for both d
2
p 
and d
2
w as being positive as a 
result of the new d
2
p technologies 
being capable of commercialisation, 
and for d
2
w, where there is 
enforcement of legislative changes.
The Group has been working  
for some time on a number of 
high-profile projects for both its 
technologies and the Board believe 
these are progressing well, although 
it should be noted that no certainty 
of success can be provided at  
this stage. 
I am pleased to confirm that the 
Group has sufficient working capital 
to execute its strategy and to 
complete its short to medium-term 
objectives. As an operationally 
geared business, now running with  
a significantly lower cost base, the 
Board looks forward to a financially 
more successful year in 2016.
Michael Laurier
Chief Executive Officer
19 April 2016 Symphony Environmental Technologies plc
Annual Report & Accounts 2015
08
Global Network
Symphony’s sixth distributor-conference was 
hailed as a great success by distributors from  
26 countries in Europe, Africa, Asia, Latin America 
and Australasia who gathered in London for the 
event at the end of September.
Over two days delegates were introduced 
to new and exciting applications from 
our d
2
p range of technologies.
Antifungal and antimicrobial applications 
are increasingly important to reduce 
the need for preservatives in foods and 
to protect plastic packaging for raw 
poultry against dangerous organisms like 
E-coli, Campylobacter and Salmonella. 
Fears that many types of bacteria 
are becoming resistant to antibiotics 
means that they have to be dealt with 
before they get into our bodies.
During the conference some of the 
Distributors were  interviewed by a 
reporter from the BBC about their 
experience of d
2
w (biodegradable plastic) 
in their countries. Delegates also took the 
opportunity to share their own projects 
and to talk about the newest applications 
for d
2
p technology in their countries, 
with products as diverse as insoles for 
trainers, to plastic cosmetic containers. 
There were also success stories for d
2
w 
controlled-life plastic. For example a 
company called Air Drop Box, based in the 
United Kingdom, produce containers for 
delivering humanitarian aid and logistics 
support in areas where there is no transport 
infrastructure. 98.5% of their container is 
biodegradable including the parachute, 
which is made with d
2
w technology. 
Another notable success story came from 
France where Polytek Innovations have 
developed a degradable paintball sphere, 
which is used to contain the water-based 
paint used in Paintball games. The distinct 
advantage of making the paint balls 
with d
2
w technology is that they can be 
used in all seasons and will disintegrate 
within 6 months of use, which greatly 
reduces their environmental impact. 
Symphony maintains strong links with 
research and laboratory facilities in the 
UK and around the world, in addition to 
our own research and development team 
who are continually working on innovative 
additives and finished products.
  Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
09
Corporate Social Responsibility
We strongly believe in the environmental and  
health benefits of the technologies we offer.
“As an organisation we  
are dedicated to creating  
a sustainable future  
by finding low cost 
solutions to the world’s 
environmental and public 
health problems.”
At Symphony, we believe that our long-
term future and profitability depend not 
only on our environmental, technical 
and social performance, but also our 
willingness to go above and beyond 
requirements. This translates in practice 
to striving for excellence in operational 
performance and support for our 
customers, stakeholders and staff.
Symphony is accredited to the 
environmental standard ISO 14001 and 
ISO 9001 for quality management and 
environmental responsibility. We carefully 
monitor the energy we consume as a 
company and the waste that we generate. 
We are mindful of our carbon footprint 
and committed to reducing our energy 
requirements and waste year on year.
Our offices and laboratories use low-energy 
lighting and all products and equipment are 
responsibly sourced. We are also committed 
to recycling and have a member of staff to 
monitor our recycling activities. We follow 
the principles of reduce, reuse and recycle 
whenever practicable.
We work wherever possible with paperless 
administration and use the best-practice 
document management systems, utilising 
electronic communication and video 
conferencing to reduce postal costs and 
the need for business travel. Our global 
production facilities also minimise the need 
to transport supplies around the world.
We regularly support local charities  
and this year held events to support 
Mencap and Breast Cancer UK. We are 
also developing an education section 
on our website with free downloadable 
lesson plans on key environmental issues.
We provide training opportunities 
in the form of work placements for 
students in the Laboratory, Sales and 
Administration departments. We also 
support overseas students with work 
experience, and this year hosted students 
from Germany and Uzbekistan.
Finally, we recognise that the most valuable 
assets in our business are our staff. We 
therefore do our very best to provide a 
nurturing business environment, supporting 
staff with training and encouraging our 
employees and distributors to develop and 
update their knowledge and skills through 
training courses, webinars and conferences. Symphony Environmental Technologies plc
Annual Report & Accounts 2015
10
1. Nirj Deva, DL, FRSA, MEP
Chairman of the Board
BACKGROUND AND EXPERIENCE
Nirj Deva has been a Member of the 
European Parliament since 1999 and is 
Vice-chairman of the Parliament’s 
International Development Committee.  
He is also Chairman of the EU-China 
Friendship Group. From 1992 to 1997 he  
was a member of the UK Parliament.  
He has held a number of senior political 
appointments and has advised the boards 
of a number of public companies including 
International Leisure Group, Air Europe Plc, 
Tricentrol Oil Co Plc, EDS, Television South 
West, Thomas Howell Group, John Laing 
Plc, Aitken Spence, and Rothmans 
International Plc. 
2. Michael Stephen, LL.M
Deputy Chairman
BACKGROUND AND EXPERIENCE
Michael Stephen was a member of the UK 
Parliament from 1992 to 1997 and was a 
member of the Trade and Industry Select 
Committee and the Environment Select 
Committee of the House of Commons.
He is Commercial Director and Deputy
Chairman of the plc, and Chairman of 
its subsidiary companies since 2007. He 
qualified as a Solicitor with Distinction in 
Company Law. He was called to the Bar, 
and practised from chambers in London 
for many years, dealingwith civil cases in 
the High Court and Court of Appeal. 
3. Michael Laurier
Chief Executive Officer
BACKGROUND AND EXPERIENCE
Michael Laurier is the Chief Executive of the 
Company. Michael’s career began with his 
long established family packaging business, 
Brentwood Sack and Bag Co Limited. He took 
over responsibility for sales and production in 
the mid-seventies and changed the emphasis
of the company’s business from jute 
products to polythene packaging, 
introducing the then innovative high 
density and medium density polythene 
bags into the UK market in 1975. He co-
founded Symphony Plastics in 1995.
Board of Directors Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
11
4. Ian Bristow, FCCA
Finance Director and Company Secretary
BACKGROUND AND EXPERIENCE
Ian Bristow was in private practice for seven 
years, qualifying as a Certified Accountant 
in 1992. In 1994, he joined Brentapac UK Plc 
until it was sold in 1994. He went on to 
co-found Symphony Plastics in 1995.
5. Nicolas Clavel
Non-Executive Director
BACKGROUND AND EXPERIENCE
Nicolas Clavel started his career in 
international banking in the mid-seventies 
and his area of expertise has been 
structured trade finance and equity 
investments with a particular focus on 
Emerging Markets. He is Chief Investment 
Officer of Scipion Capital Ltd., (the
Investment Manager of Scipion African 
Opportunities Fund SPC) and is personally 
CF 1, 3, 11 and CF30 approved by the UK 
Financial Services Authority. Nicolas is 
Swiss, and is based in London and Geneva.
6. Shaun Robinson
Non-Executive Director
BACKGROUND AND EXPERIENCE
Shaun Robinson has nearly 20 years’ 
corporate finance, restructuring and 
active asset management experience, 
focusing on operational real estate 
with key specialities in hotels and 
healthcare. A chartered certified 
accountant, Shaun Robinson joined the 
Somerston Group in 2004 and is 
responsible for the groups’ business 
development, M&A and tax/corporate 
structuring. Shaun is also Executive 
Director of Richmount Management 
Limited, Somerston Health, Somerston 
Hotels and St James’s Hotels. Symphony Environmental Technologies plc
Annual Report & Accounts 2015
12
Strategic Report
PRINCIPAL ACTIVITIES AND BUSINESS REVIEW
The primary business activities of the Group are the development and supply of 
environmental plastic products to a global market, and the development of waste to  
value projects. The Group also supplies other flexible polythene and related  
conventional products.
A review of the business is given in the Chairman’s Statement on page 4 together with  
the Chief Executive’s Review on pages 6 and 7. Future developments are summarised in  
the Outlook section of the Chief Executive’s Review on page 7.
KEY PERFORMANCE INDICATORS
The Directors have monitored the progress of the overall Group strategy by reference to 
certain financial and non-financial key performance indicators.
Key performance indicator 2015 2014 Method of calculation
Sales d
2
w (£’000) 6,365 6,352 Sales revenue solely of d
2
w additives  
and products.
Gross profit margin (%) 46% 50% The ratio of gross profit to sales.
Number of distributors 74 77 The number of distribution agreements signed.
These are discussed within the Chairman’s Statement and the Trading Results section of the 
Chief Executive’s Review.
PRINCIPAL RISKS AND UNCERTAINTIES
The Directors have identified and continually monitor the principal risks and uncertainties of 
the Group. These may change over time as new risks emerge and others cease to be of 
concern. The principal risks of the Group are detailed below.
FOREIGN EXCHANGE RISK
The Group sells products in many countries and so generates revenues in US Dollars and 
Euros. Foreign exchange rates fluctuate and, as such, assets created in foreign currencies 
are liable to constant revaluations into their Sterling equivalent. The Group mitigates this 
risk by purchasing, where practicable, in currencies to match revenues. The Group also has 
exchange facilities with its bank to use as and when appropriate.
COMPETITION RISK
The Group faces competition from suppliers of similar products which could affect 
revenues and/or gross margins. The Group mitigates this risk by having a large number of 
distributors globally who can concentrate on any competition issues within their market, 
and also by differentiating the Group’s products by branding and marketing activities.
RAW MATERIAL PRICING AND AVAILABILITY
The Group uses commodity and speciality materials in the make-up of its products. There is 
a risk of price volatility and material availability. The Group mitigates this risk by using more 
than one supplier of its products and continually researching separate supply alternatives 
for the materials used.
By order of the Board
I Bristow 
Company Secretary 
19 April 2016 Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
13
Directors’ Report
The Directors present their report and the audited financial statements of the Group for the 
year ended 31 December 2015. 
RESULTS AND DIVIDENDS
The trading results for the year and the Group’s financial position at the end of the year are 
shown in the attached financial statements.
The loss for the year after taxation amounted to £3,332,000 (2014: loss £305,000).
The Directors are not able to recommended a dividend.
RESEARCH AND DEVELOPMENT
The Group is involved in the research and development of environmental plastic products, 
and waste to value systems.
THE DIRECTORS AND THEIR INTERESTS
The Directors who served during the year and their interests in the shares of the Company 
are shown in the Remuneration Report.
DIRECTORS’ RESPONSIBILITIES STATEMENT
The Directors are responsible for preparing the Strategic Report, the Directors’ Report,  
and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. 
Under that law, the Directors have elected to prepare the Group financial statements in 
accordance with International Financial Reporting Standards as adopted by the European 
Union (IFRSs). The parent Company’s own financial statements continue to be prepared in 
accordance with United Kingdom Generally Accepted Accounting Practice (United 
Kingdom Accounting Standards and applicable laws). Under company law the Directors 
must not approve the financial statements unless they are satisfied that they give a true  
and fair view of the state of affairs and profit or loss of the Company and Group for that 
period. In preparing these financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and accounting estimates that are reasonable and prudent;
• state whether applicable IFRSs or UK Accounting Standards have been followed, subject 
to any material departures disclosed and explained in the financial statements; and
• prepare the financial statements on the going concern basis unless it is inappropriate to 
presume that the Company will continue in business. 
The Directors are responsible for keeping adequate accounting records that are sufficient  
to show and explain the Company’s transactions and disclose with reasonable accuracy at 
any time the financial position of the Company and enable them to ensure that the financial 
statements comply with the Companies Act 2006. They are also responsible for 
safeguarding the assets of the Company and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities.
The Directors confirm that: 
• so far as each Director is aware, there is no relevant audit information of which the 
Company’s auditor is unaware; and
• the Directors have taken all steps that they ought to have taken as Directors in order to 
make themselves aware of any relevant audit information and to establish that the auditor 
is aware of that information.
The Directors are responsible for the maintenance and integrity of the corporate and 
financial information included on the Company’s website. Legislation in the United Kingdom 
governing the preparation and dissemination of financial statements may differ from 
legislation in other jurisdictions.  Symphony Environmental Technologies plc
Annual Report & Accounts 2015
14
GOING CONCERN
Management have prepared a cash flow forecast for the ensuing twelve months from the 
approval of the financial statements where a forecast increase in sales will lead to increased 
cash through the use of the invoice discounting facility. Operating results for the start of 
2016 have been in line with these forecasts. The Group has reduced its cost base and 
anticipates sales growth from the launch of new products in the forthcoming year after the 
significant investments made in previous years. Having reviewed the cash flow forecasts 
and the available headroom within existing facilities the Directors believe that the Group has 
sufficient cash resources to meet debt obligations as they fall due. For these reasons, the 
Directors are of the opinion that it is appropriate to continue to adopt the going concern 
basis in preparing these financial statements.
CORPORATE GOVERNANCE
The Group is committed to developing and adhering to high standards of corporate 
governance. As an AIM listed company, Symphony Environmental Technologies plc is not 
required to and does not apply the UK Corporate Governance Code as issued by the UK’s 
Listing Authority, however, it seeks to follow the principles of good governance as far as 
management believes it is practical for a Group of its size, nature and circumstances. 
FINANCIAL RISK MANAGEMENT POLICIES
The Group’s financial risk management policies are detailed in note 3 to the financial 
statements.
AUDITOR
A resolution to appoint Grant Thornton UK LLP as auditor for the ensuing year will be 
proposed at the Annual General Meeting.
By order of the Board
I Bristow 
Company Secretary 
19 April 2016
Directors’ Report continued Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
15
Remuneration Report
DIRECTORS’ EMOLUMENTS 
Basic salary 
£’000
Benefits 
£’000
Pension 
£’000
2015  
Total 
Emoluments 
£’000
2014 Total 
Emoluments 
£’000
N Deva 36 – – 36 36
M Laurier 170 8 80 258 260
I Bristow 171 6 – 177 176
M Stephen 171 12 – 183 183
M F Stephens (resigned from 
the Board 26 June 2015) 83 5 – 88 185
N Clavel 29 – – 29 29
S Robinson 30 – – 30 1
690 31 80 801 870
The Directors’ pensions, where applicable, are administered by those Directors.  
The Company has taken out insurance for its officers against liabilities in relation  
 to the Company under Section 233 of the Companies Act 2006.
DIRECTORS’ INTERESTS
The Directors in office at the end of the year, together with their beneficial interests 
in the shares of the Company, were as follows:
Ordinary Shares of £0.01 each
At 31 December 
2015
At 1 January
2015 
N Deva 363,925 313,925
M Laurier 22,952,317 22,802,317
I Bristow 1,163,925 1,063,925
M Stephen 933,998 782,998
N Clavel 550,000 500,000
S Robinson 10,912,449 10,203,938
SHARE OPTIONS AND WARRANTS
The Directors have share options and warrants, or interests in share options and 
warrants as follows:
Number of 
share options or 
warrants
Exercise price 
(pence per 
share) Exercisable from Exercisable to
N Deva 1,500,000 4.500 26 November 2008 26 November 2018
N Deva 250,000 9.875 18 December 2010 18 December 2019
M Laurier 1,851,500 4.500 26 November 2008 26 November 2018
M Laurier 350,000 9.125 31 March 2010 30 March 2020
I Bristow 3,000,000 4.500 26 November 2008 26 November 2018
I Bristow 280,000 9.125 31 March 2010 30 March 2020
M Stephen 1,200,000 6.250 28 April 2007 28 April 2017
M Stephen 2,000,000 4.500 26 November 2008 26 November 2018
M Stephen 210,000 9.125 31 March 2010 30 March 2020
N Clavel 500,000 4.500 16 October 2009 16 October 2018
N Clavel 250,000 9.875 18 December 2010 18 December 2019
S Robinson 893,110 15.000 14 November 2014 14 November 2017
S Robinson 293,260 15.000 09 June 2015 09 June 2018
The above share options and warrants are HM Revenue and Customs unapproved. 
See note 18 to the financial statements for the terms of the above options  
and warrants.  Symphony Environmental Technologies plc
Annual Report & Accounts 2015
16
We have audited the financial statements of Symphony Environmental Technologies plc for the year ended 31 December 
2015 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, 
the consolidated statement of changes in equity, the consolidated cash flow statement, the parent Company balance 
sheet, the parent Company statement of changes in equity, the parent Company cash flow statement and the related 
notes. The financial reporting framework that has been applied in the preparation of the Group financial statements is 
applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union. The financial 
reporting framework that has been applied in the preparation of the parent Company financial statements is applicable 
law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members 
those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest 
extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and 
the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditor
As explained more fully in the Directors’ Responsibilities Statement set out on page 13, the Directors 
are responsible for the preparation of the financial statements and for being satisfied that they give a 
true and fair view. Our responsibility is to audit and express an opinion on the financial statements in 
accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards 
require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s 
website at www.frc.org.uk/auditscopeukprivate.
Opinion on financial statements
In our opinion:
• the financial statements give a true and fair view of the state of the Group’s and of the parent Company’s affairs 
as at 31 December 2015 and of the Group’s loss for the year then ended; 
• the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the 
European Union;
• the parent Company financial statements have been properly prepared in accordance with United Kingdom 
Generally Accepted Accounting Practice; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Separate opinion in relation to IFRSs as issued by the IASB
As explained in note 2 to the Group financial statements, the Group, in addition to complying with its legal 
obligation to apply IFRSs as adopted by the European Union, has also applied IFRSs as issued by the International 
Accounting Standards Board (IASB).
In our opinion the Group financial statements comply with IFRSs as issued by the IASB.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and the Directors’ Report for the financial 
year for which the financial statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to 
report to you if, in our opinion:
• adequate accounting records have not been kept by the parent company, or returns adequate for our audit 
have not been received from branches not visited by us; or
• the parent Company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Giles M Mullins
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Central Milton Keynes
19 April 2016
Independent Auditor’s Report
to the members of Symphony Environmental Technologies plc Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
17
Consolidated Statement of 
Comprehensive Income 
for the year ended 31 December 2015
2015 2014
Note £’000 £’000 £’000 £’000
Revenue 5 6,365 6,352
Cost of sales (3,437) (3,191)
Gross profit 2,928 3,161
Distribution costs (221) (165)
Administrative expenses – recurring 6 (3,679) (3,261)
Administrative expenses – non-recurring 6 (1,313) –
Administrative expenses 6 (4,992) (3,261)
Operating loss – before non-recurring items (972) (265)
Operating loss – non-recurring (1,313) –
Operating loss 6 (2,285) (265)
Finance income 8 – 1
Finance costs 8 (16) (126)
Loss for the year before tax (2,301) (390)
Taxation 9 (1,031) 85
Loss for the year (3,332) (305)
Total comprehensive income for the year (3,332) (305)
Basic loss per share 10 (2.26)p (0.23)p
Diluted loss per share 10 (2.26)p (0.23)p
All results are attributable to the parent Company equity holders. There were no discontinued operations for 
either of the above periods.
The accompanying notes form an integral part of these financial statements. Symphony Environmental Technologies plc
Annual Report & Accounts 2015
18
Consolidated Statement of  
Financial Position 
as at 31 December 2015
Note
2015 
£’000
2014 
£’000
Assets
Non-current
Property, plant and equipment 11 397 372
Intangible assets 12 73 1,169
Deferred income tax asset 9a – 1,142
470 2,683
Current
Inventories 15 477 576
Trade and other receivables 16 852 1,425
Cash and cash equivalents 17 122 938
1,451 2,939
Total assets 1,921 5,622
Equity
Equity attributable to shareholders of Symphony Environmental Technologies plc
Ordinary shares 18 1,499 1,446
Share premium 18 3,533 3,077
Retained earnings 18 (4,139) (807)
Total equity 893 3,716
Liabilities
Non-current
Interest bearing loans and borrowings 20 6 –
6 –
Current
Interest bearing loans and borrowings 20 170 1,153
Trade and other payables 19 852 753
1,022 1,906
Total liabilities 1,028 1,906
Total equity and liabilities 1,921 5,622
These financial statements were approved by the Board of Directors on 19 April 2016 and authorised for issue 
on 19 April 2016. They were signed on its behalf by:
I Bristow FCCA
Finance Director
 
The accompanying notes form an integral part of these financial statements.  Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
19
Consolidated Statement of  
Changes in Equity
for the year ended 31 December 2015
Equity attributable to the equity holders of Symphony Environmental Technologies plc:
Share 
capital 
£’000
Share 
premium 
£’000
Retained 
earnings 
£’000
Total equity 
£’000
For the year to 31 December 2015
Balance at 1 January 2015 1,446 3,077 (807) 3,716
Issue of share capital 53 456 – 509
Transactions with owners 53 456 – 509
Loss and total comprehensive income for the year – – (3,332) (3,332)
Balance at 31 December 2015 1,499 3,533 (4,139) 893
For the year to 31 December 2014
Balance at 1 January 2014 1,281 1,650 (502) 2,429
Issue of share capital 165 1,427 – 1,592
Transactions with owners 165 1,427 – 1,592
Loss and total comprehensive income for the year – – (305) (305)
Balance at 31 December 2014 1,446 3,077 (807) 3,716
The accompanying notes form an integral part of these financial statements.
   Symphony Environmental Technologies plc
Annual Report & Accounts 2015
20
Consolidated Cash Flow Statement 
as at 31 December 2015
Note
2015 
£’000
2014 
£’000
Operating activities
Net cash used in operations 21 (80) (180)
Tax received – R&D tax credits 111 85
Net cash generated/(used) in operating activities 31 (95)
Investing activities
Additions to property, plant and equipment (141) (77)
Additions to intangible assets (212) (261)
Net cash used in investing activities (353) (338)
Financing activities
Repayments of borrowings (650) –
Movement in working capital facility 15 (432)
Movement in finance lease liability 7 (9)
Proceeds from share issue 509 1,592
Interest paid (16) (126)
Net cash generated from financing activities (135) 1,025
Net change in cash and cash equivalents (457) 592
Cash and cash equivalents, beginning of year 585 29
Foreign exchange losses (11) (36)
Cash and cash equivalents, end of year 117 585
The reconciliation to the cash and cash equivalents as reported in the statement of financial position  
is as follows:
Note
2015 
£’000
2014 
£’000
Loans and receivables:
 Cash at bank and in hand 17 122 938
Financial liabilities measured at amortised cost:
 Bank overdraft 20 (5) (353)
Cash and cash equivalents, end of year 117 585
The accompanying notes form an integral part of these financial statements.  Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
21
Notes to the Annual Report  
and Accounts 
1 General information
Symphony Environmental Technologies plc (“the Company”) and subsidiaries (together “the Group”) develop 
and supply environmental plastic additives and products, and develop waste to value systems.
The Company, a public limited company, is the Group’s ultimate parent company. It is incorporated and 
domiciled in England (Company number 03676824). The address of its registered office is 6 Elstree Gate, 
Elstree Way, Borehamwood, Hertfordshire, WD6 1JD, England. The Company’s shares are listed on the AIM 
market of the London Stock Exchange and as a level 1 ADR in New York.
2 Summary of significant accounting policies
These consolidated financial statements have been prepared in accordance with the requirements of 
International Financial Reporting Standards (IFRS) as adopted by the European Union and also as issued by 
the International Accounting Standards Board (IASB). 
The financial statements have been prepared under the historical cost convention except as started in the 
accounting policies. Financial information is presented in pounds sterling unless otherwise stated, and amounts 
are express in thousands (£’000) and rounded accordingly.
The accounting policies have remained unchanged from the previous year. 
Going concern
Management have prepared a cash flow forecast for the ensuing twelve months from the approval of the 
financial statements where a forecast increase in sales will lead to increased cash through the use of the invoice 
discounting facility. Operating results for the start of 2016 have been in line with these forecasts. The Group 
has reduced its cost base and anticipates sales growth from the launch of new products in the forthcoming 
year after the significant investments made in previous years. Having reviewed the cash flow forecasts and 
the available headroom within existing facilities the Directors believe that the Group has sufficient cash 
resources to meet debt obligations as they fall due. For these reasons, the Directors are of the opinion that 
it is appropriate to continue to adopt the going concern basis in preparing these financial statements.
Segment reporting 
There are currently three operating segments.
“Plastics Sales” generate and maintain revenues relating to plastic additives, masterbatches and finished 
products. “Plastics R&D” include all new product development and research expenditure.
The “Recycling Technologies” segment includes all activities involved in the development of tyre and rubber 
recycling systems.
Each of the operating segments is managed separately as each of these service lines requires different 
technologies and other resources as well as marketing approaches. All inter-segments transfers are carried out 
at arm’s length prices.
The measurement policies the Group uses for segment reporting under IFRS 8 are the same as those used in  
its financial statements. Corporate assets which are not directly attributable to the business activities of any 
operating segment are not allocated to a segment.
Segment information is presented in accordance with IFRS 8 for all periods presented. IFRS 8 only requires 
disclosure of segment information. 
Revenue
Degradable and non-degradable goods, and associated products (plastics segment) 
Revenue is stated at the fair value of the consideration receivable and excludes VAT and trade discounts.
The Group’s revenue is from sale of goods. Revenue from the sale of goods is recognised when all of the 
following conditions have been satisfied:
a) ownership of the significant risks and rewards has been transferred to the buyer. The buyer may be one of 
the Group’s distributors or an end customer. This may be based upon shipment or delivery depending upon 
specific contractual terms, whereby the Group relies on INCOTERMs (a series of pre-defined commercial 
terms published by the International Chamber of Commerce) to assess this; Symphony Environmental Technologies plc
Annual Report & Accounts 2015
22
Notes to the Annual Report  
and Accounts continued
2 Summary of significant accounting policies continued
b) the amount of revenue can be measured reliably whereby the Group sells goods after receipt of  
confirmed orders;
c) it is probable that the economic benefits associated with the transaction will flow to the entity; and
d) the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Non-recurring items
Expenditure is classified as non-recurring where the cost is considered to be material, one-off, and will not 
continue in future.
Intangible assets
Research and development costs
Expenditure on research (or the research phase of an internal project) is recognised as an expense in the 
period in which it is incurred. 
Development costs incurred on specific projects are capitalised when all the following conditions are satisfied:
• completion of the intangible asset is technically feasible so that it will be available for use or sale;
• the Group intends to complete the intangible asset and use or sell it;
• the Group has the ability to use or sell the intangible asset;
• the intangible asset will generate probable future economic benefits. Among other things, this requires that 
there is a market for the output from the intangible asset or for the intangible asset itself, or, if it is to be 
used internally, the asset will be used in generating such benefits;
• there are adequate technical, financial and other resources to complete the development and to use or sell 
the intangible asset; and
• the expenditure attributable to the intangible asset during its development can be measured reliably.
Development costs not meeting the criteria for capitalisation are expensed as incurred.
The cost of an internally generated intangible asset comprises all directly attributable costs necessary to 
create, produce, and prepare the asset to be capable of operating in the manner intended by management. 
The nature of the Group’s activities in the field of development work renders some internally generated 
intangible assets unable to meet the above criteria at present.
Amortisation commences upon completion of the asset and is shown within administrative expenses and is 
included at the following rate:
Plastic masterbatches and other additives – 15 years straight line. 
Careful judgement by the Directors is applied when deciding whether the recognition requirements for 
development costs have been met. This is necessary as the economic success of any product development is 
uncertain and may be subject to future technical problems at the time of recognition. Judgements are based 
on the information available at each balance sheet date. Careful judgement by the Directors is applied when 
deciding whether the recognition requirements for development costs have been met. This is necessary as the 
economic success of any product development is uncertain and may be subject to future technical problems at 
the time of recognition. Judgements are based on the information available at each balance sheet date. All 
amounts disclosed within note 12 in development costs relate to plastic masterbatches and other additives.
Trademarks
Trademarks represent the cost of registration and are carried at cost less amortisation.
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the 
useful economic life of that asset as follows:
Trademarks – 10 years straight line. Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
23
Property, plant and equipment
Property, plant and equipment are stated at cost, net of depreciation and any provision for impairment.
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the 
useful economic life of that asset as follows:
Plant and machinery 20% reducing balance.
Fixtures and fittings Elstree Gate 10% straight line.
Motor vehicles 20% reducing balance.
Office equipment 25% straight line.
The residual value and useful economic lives are reconsidered annually.
Impairment testing of intangible assets and property, plant and equipment
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately 
identifiable cash flows (cash-generating units). As a result, some assets are tested individually for impairment 
and some are tested at cash-generating unit level. Those intangible assets not yet available for use are tested 
for impairment at least annually. All other individual assets or cash-generating units are tested for impairment 
whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the asset’s or cash-generating unit’s carrying 
amount exceeds its recoverable amount. The recoverable amount is the higher of fair value, reflecting market 
conditions less costs to sell, and value in use based on an internal discounted cash flow evaluation. All assets 
are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist.
Inventories
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete 
and slow moving items. Cost is determined on the basis of purchase value on a first-in first-out basis.
Leased assets
In accordance with International Accounting Standard (IAS) 17, the economic ownership of a leased asset is 
transferred to the lessee if the lessee bears substantially all the risks and rewards related to the ownership of 
the leased asset. The related asset is recognised at the time of inception of the lease at the fair value of the 
leased asset or, if lower, the present value of the minimum lease payments plus incidental payments, if any, to 
be borne by the lessee. A corresponding amount is recognised as a finance leasing liability. The interest 
element of leasing payments represents a constant proportion of the capital balance outstanding and is 
charged to profit or loss over the period of the lease.
All other leases are regarded as operating leases and the payments made under them are charged to profit or 
loss on a straight line basis over the lease term. Lease incentives are spread over the term of the lease.
Pension costs
The Group operates a defined contribution pension scheme for employees. The assets of the scheme are held 
separately from those of the Group. The pension costs charged against profits are the contributions payable to 
the scheme in respect of the accounting period.
Taxation
Current tax is the tax currently payable based on taxable profit for the year.
Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is 
generally provided on the difference between the carrying amounts of assets and liabilities and their tax bases. 
Tax losses available to be carried forward as well as other income tax credits to the Group are assessed for 
recognition as deferred tax assets, insofar as Group companies are entitled to UK tax credits on qualifying 
research and development expenditure, such amounts are recognised when received and presented in the 
income tax line within profit and loss. 
Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the 
extent that it is probable that the underlying deductible temporary differences will be able to be offset against 
future taxable income. Current and deferred tax assets and liabilities are calculated at tax rates that are 
expected to apply to their respective period of realisation, provided they are enacted or substantively enacted 
at the balance sheet date.
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in profit or loss, 
except where they either relate to items that are charged or credited directly to equity in which case the related 
deferred tax is also charged or credited directly to equity, or where they relate to items charged or credited in 
other comprehensive income the deferred tax change is recognised in other comprehensive income. Symphony Environmental Technologies plc
Annual Report & Accounts 2015
24
2 Summary of significant accounting policies continued
Foreign currencies
Monetary assets and liabilities in foreign currencies are translated into Sterling at the rates of exchange  
ruling at the balance sheet date. Transactions in foreign currencies are translated into Sterling at the rate of 
exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the 
operating result.
Financial assets
Financial assets are divided into the following categories: loans and receivables, and available-for-sale financial 
assets. Financial assets are assigned to the different categories by management on initial recognition, 
depending on the purpose for which they were acquired. 
All financial assets are recognised when the Group becomes a party to the contractual provisions of the 
instrument. Financial assets are initially recognised at fair value plus transaction costs. 
The Group currently has the following financial assets:
Trade receivables
Trade receivables are categorised as loans and receivables. Trade receivables are non-derivative financial 
assets with fixed or determinable payments that are not quoted in an active market. Trade receivables are 
measured subsequent to initial recognition at amortised cost using the effective interest method, less provision 
for impairment. Any change in their value through impairment or reversal of impairment is recognised in  
profit or loss.
Provision against trade receivables is made when there is objective evidence that the Group will not be able to 
collect all amounts due to it in accordance with the original terms of those receivables. The amount of the 
write-down is determined as the difference between the asset’s carrying amount and the present value of 
estimated future cash flows, discounted using the original effective interest rate. 
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either designated to this category 
or do not qualify for inclusion in any of the other categories of financial assets. The Group’s available-for-sale 
financial assets are the equity investments in Symphony Bin Hilal LLC, American Plastic Technologies LLC and 
Oxobioplast Inc.
The equity investments in Symphony Bin Hilal LLC, American Plastic Technologies LLC and Oxobioplast Inc. are 
measured at cost less any impairment charges, as their fair values cannot currently be estimated reliably. 
Impairment charges are recognised in profit or loss. An assessment for impairment is undertaken at least at 
each balance sheet date.
A financial asset is derecognised only where the contractual rights to the cash flows from the asset expire or 
the financial asset is transferred and that transfer qualifies for derecognition. A financial asset is transferred if 
the contractual rights to receive the cash flows of the asset have been transferred or the Group retains the 
contractual rights to receive the cash flows of the asset but assumes a contractual obligation to pay the cash 
flows to one or more recipients. A financial asset that is transferred qualifies for derecognition if the Group 
transfers substantially all the risks and rewards of ownership of the asset, or if the Group neither retains nor 
transfers substantially all the risks and rewards of ownership but does transfer control of that asset.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and demand deposits, together with other short-term, highly 
liquid investments that are readily convertible into known amounts of cash and which are subject to an 
insignificant risk of changes in value.
Finance lease receivables
Goods sold under finance leases are recognised as a sale on date of the finance lease agreement or if  
later, when substantially all the risks and rewards of ownership of the asset have passed to the lessee. The 
capital element of future lessee obligations is included in trade and other receivables in the statement of 
financial position.
The interest elements of the rental obligations are credited to profit and loss over the periods of the leases  
and represent a constant proportion of the balance of capital repayments outstanding.
Rentals receivable under operating leases are credited to profit and loss on a straight line basis over the  
lease term.
Notes to the Annual Report  
and Accounts continued
  Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
25
Financial liabilities
Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Group 
becomes a party to the contractual provisions of the instrument. 
The Group’s financial liabilities include trade payables, other payables, bank overdraft, bank loans and other 
loans. These are classified as financial liabilities measured at amortised cost.
Financial liabilities measured at amortised cost are initially recognised at fair values net of direct issue costs. 
Finance charges are charged to profit and loss, where applicable, on an accruals basis using the effective 
interest method and are added to the carrying amount of the instrument to the extent they are not settled in 
the period in which they arose.
A financial liability is derecognised only when the obligation is extinguished, that is, when the obligation is 
discharged or cancelled or expires.
Classification as debt or equity
The Group has share warrants in issue which have been accounted for as equity instruments, as the substance 
of the contractual arrangement is such that the warrants evidence a residual interest in the assets of the Group 
after deducting all liabilities.
Equity settled share-based payments
All share-based payment arrangements granted after 7 November 2002 that had not vested prior to  
1 January 2007 are recognised in the financial statements.
All goods and services received in exchange for the grant of any share-based payment are measured at their 
fair values. Where employees are rewarded using share-based payments, the fair values of the instrument 
granted are determined using the Black-Scholes model. This fair value is appraised at the grant date. The fair 
value is charged to profit and loss between the date of issue and the date the share options vest with a 
corresponding credit taken to equity.
Equity
Equity comprises the following:
• “Share capital” represents the nominal value of equity shares;
• “Share premium” represents the excess over nominal value of the fair value of consideration received for 
equity shares, net of expenses of the share issue; and
• “Retained earnings” represents non distributed reserves.
Standards and interpretations in issue but not yet effective
At the date of authorisation of these financial statements, certain new standards, amendments and 
interpretations to existing standards have been published but are not yet effective, and have not been adopted 
early by the Group.
Management anticipates that all of the pronouncements will be adopted in the Group’s accounting policy for 
the first period beginning after the effective date of the pronouncement. Information on new standards, 
amendments and interpretations that are expected to be relevant to the Group’s financial statements is 
provided below. Certain other new standards and interpretations have been issued but are not expected to 
have a material impact on the Group’s financial statements.
IFRS 9 “Financial Instruments”
The IASB have released IFRS 9 following completion of the project to replace IAS 39 “Financial Instruments: 
Recognition and Measurement”. The new standard introduces extensive changes to IAS 39’s guidance on the 
classification and measurement of financial assets and introduces a new “expected credit loss” model for the 
impairment of financial assets. IFRS 9 also provides new guidance on the application of hedge accounting. 
IFRS 9 is effective for annual reporting periods beginning on or after 1 January 2018 and has not yet been 
endorsed by the European Union.
IFRS 15, “Revenue from Contracts with Customers”
IFRS 15 presents new requirements for the recognition of revenue, replacing IAS 18 “Revenue”, IAS 11 
“Construction Contracts”, and several revenue-related Interpretations. The new standard establishes a control-
based revenue recognition model and provides additional guidance in many areas not covered in detail under 
existing IFRSs, including how to account for arrangements with multiple performance obligations, variable 
pricing, customer refund rights, supplier repurchase options, and other common complexities. IFRS 15 is 
effective for reporting periods beginning on or after 1 January 2018. This standard has not yet been endorsed 
by the European Union. Symphony Environmental Technologies plc
Annual Report & Accounts 2015
26
2 Summary of significant accounting policies continued
IFRS 16 “Leases”
The IASB has published IFRS 16 “Leases”, completing its long-running project on lease accounting. The new 
Standard, which is effective for accounting periods beginning on or after 1 January 2019, requires lessees to 
account for leases “on-balance sheet” by recognised a “right-of-use” asset and a lease liability. It will affect 
most companies that report under IFRS and are involving in leasing, and will have a substantial impact on the 
financial statements of lessees of property and high value equipment. This standard has not yet been endorsed 
by the European Union.
The Group’s management have yet to assess the impact of these new standards in detail. Note 22 details the 
future minimum lease payments that would be reclassified were IFRS 16 to apply to the current financial period.
The Group’s management have yet to assess the impact of these new standards.
3 Financial risk management
The main risks arising from the Group’s financial instruments are liquidity risk, interest rate risk, currency risk 
and credit risk. The Directors review and agree policies for managing each of these risks and they are 
summarised below. These policies have remained unchanged from previous years. 
The Group’s financial assets and liabilities are summarised as follows:
2015 
£’000
2014 
£’000
Financial assets:
Cash and cash equivalents 122 938
Loans and receivables 727 1,304
849 2,242
Financial liabilities:
Financial liabilities measured at amortised cost 576 1,788
576 1,788
Liquidity risk
The Group seeks to manage financial risk to ensure financial liquidity is available to meet foreseeable needs 
and to invest cash assets safely and profitability. Short term flexibility is achieved through trade finance 
arrangements and overdrafts.
Having reviewed the maturity of financial liabilities and the forecast cash flows for the forthcoming twelve 
month period, the Directors believe that sufficient cash will be generated from trading operations to meet debt 
obligations as they fall due. 
The maturity of financial liabilities as at 31 December 2015 is summarised as follows:
Gross cash flows:
Trade 
payables 
and 
accruals 
£’000
Finance 
leases 
£’000
Loans 
£’000
Bank 
£’000
Total 
£’000
Zero to sixty days 775 1 161 5 942
Sixty one days to three months – – – – –
Four months to six months – 1 – – 1
Seven months to one year – 2 – – 2
One year to three years – 6 – – 6
775 10 161 5 951
Notes to the Annual Report  
and Accounts continued
  Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
27
The maturity of financial liabilities as at 31 December 2014 is summarised as follows:
Gross cash flows:
Gross cash flows:
Trade 
payables 
and 
accruals 
£’000
Finance 
leases 
£’000
Loans 
£’000
Bank 
£’000
Total 
£’000
Zero to sixty days 682 3 797 353 1,835
682 3 797 353 1,835
Interest rate risk
The Group seeks to reduce its exposure to interest rate risk where possible, but this is offset by the availability 
of trade finance arrangements which are transaction specific to meet liquidity needs and so have variable 
interest rate terms. 
Sensitivities have been looked at in the range of an absolute rate increase of 5% or a decrease of 1% which 
enable an objective calculation to be made depending on any interest rate changes in the future. Any rate 
changes would be outside the control of the Company.
The Group’s exposure to interest rate risk as at 31 December 2015 is summarised as follows:
Fixed 
£’000
Variable 
£’000
Zero 
£’000
Total 
£’000
Cash and cash equivalents – 122 – 122
Trade receivables – – 724 724
Other debtors – – 3 3
– 122 727 849
Trade payables – – (400) (400)
Other payables – – (77) (77)
Bank overdraft – (5) – (5)
Lease purchase (10) – – (10)
Other loans – (161) – (161)
(10) (44) 250 196
Sensitivity: increase in interest rates of 5% – (2) – (2)
Sensitivity: decrease in interest rates of 1% – – – –
The Group’s exposure to interest rate risk as at 31 December 2014 is summarised as follows:
Fixed 
£’000
Variable 
£’000
Zero 
£’000
Total 
£’000
Cash and cash equivalents – 938 – 938
Trade receivables – – 1,274 1,274
Other debtors 12 – 18 30
12 938 1,292 2,242
Trade payables – – (464) (464)
Other payables – – (71) (71)
Bank overdraft – (353) – (353)
Lease purchase (3) – – (3)
Other loans (650) (147) – (797)
(641) 438 757 554
Sensitivity: increase in interest rates of 5% – (22) – (22)
Sensitivity: decrease in interest rates of 1% – 4 – 4
Sensitivity shows the effect on equity profit and loss. Symphony Environmental Technologies plc
Annual Report & Accounts 2015
28
3 Financial risk management continued
Currency risk 
The Group operates in overseas markets and is subject to currency exposure on transactions undertaken 
during the year. The Group hedges the transactions where possible by buying goods and selling them in the 
same currency. The Group also has bank facilities available for hedging purposes.
A summary of foreign currency financial assets and liabilities as stated in the statement of financial position 
together with a sensitivity analysis showing the effect of a 10% change in rate with Sterling is shown below:
Currency
Sterling 
2015 
£’000
Currency 
balance 
2015 
’000
Sterling 
2014 
£’000
Currency 
balance 
2014 
’000
Financial assets Euro 131 €178 443 €570
Financial liabilities Euro (190) €(258) (285) €(367)
Net balance Euro (59) €(80) 158 €203
Effect of 10% Sterling increase 5 (14)
Effect of 10% Sterling decrease (6) 18
Financial assets USD 769 $1,130 985 $1,535
Financial liabilities USD (213) $(312) (577) $(899)
Net balance USD 556 $818 408 $636
Effect of 10% Sterling increase (50) (37)
Effect of 10% Sterling decrease 61 45
Sensitivity shows the effect on equity and profit and loss. A 10% change is shown to enable an objective 
calculation to be made on exchange rates which may be assumed for the future.
Credit risk
The Group’s exposure to credit risk is limited to the carrying value of financial assets at the balance sheet date, 
summarised as follows:
2015 
£’000
2014 
£’000
Loans and receivables:
Trade receivables 724 1,274
Finance lease receivables – 12
Cash and cash equivalents 122 938
846 2,224
The credit risk associated with the cash is limited as the counterparties have high credit ratings assigned by 
international credit-rating agencies. The principal credit risk arises therefore from trade receivables. The seven 
largest customer balances at the end of the year make up 75% (2014: 68%) of the above trade receivables.
In order to manage credit risk the Directors set limits for customers based on a combination of payment 
history, third party credit references and use of credit insurance. These limits are reviewed regularly.
The maturity of overdue debts is set out in note 16. During the period debts totalling £nil (2014: £70,836) were 
written off.
Capital requirements
Interest bearing loans and borrowings are monitored regularly to ensure the Group has sufficient liquidity and 
its exposure to interest rate risk is mitigated. Management consider the capital of the Group comprises the 
share capital and interest bearing loans and borrowings as detailed in note 25. The Company satisfies the 
Companies Act 2006 requirement to hold £50,000 issued and authorised share capital. The rule that 25% 
must be paid up is also satisfied, by reference to note 18.
Notes to the Annual Report  
and Accounts continued
  Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
29
4 Critical accounting estimates and judgements
Estimates and judgements are evaluated continually and are based on historical experience and other factors, 
including expectations of future events that are believed to be reasonable under the circumstances. Although 
these estimates are based on management’s best knowledge of current events and actions, actual results may 
ultimately differ from those actions. Material changes to the estimates and judgements made in the preparation 
of the interim statements are detailed in the notes.
In preparing these accounts the following areas were considered to involve significant judgements and 
estimates:
Capitalisation of development costs
Judgements and estimates relating to the capitalisation of development costs are detailed in note 2.  
In particular, estimates are made in respect to future economic benefits based on market judgements at  
the time and over attributable internal staff time allocated to each product. 
Recoverability of capitalised development cost
Judgements and estimates relating to capitalised development costs are detailed in note 12. In particular, 
estimates are continued to be made in respect to future economic benefits and any changes to market 
conditions.
 
Share option judgements
Judgements and estimates relating to share-based payment charges are detailed in note 2. Estimates are  
made on the fair value of the option using the Black-Scholes model.
Going concern
Judgements and estimates relating to going concern are detailed in note 2. In particular, estimates are made  
as to future revenues expectations which derive cash flow projections.
Bad debts
Provisions for bad debts are shown in note 16. Bad debt provisions are made when there is objective evidence  
of impairment. Where there is no provision then it is due to adequate credit insurance being in place, or cash has 
been received since the end of the year, or adequate information exists to support the recoverability of the debt.
Recognition of deferred tax assets
Judgements and estimates relating to a deferred tax asset are detailed in note 9a. In particular, estimates are 
made as to future revenues which derive profit and loss projections.
Functional currency
A significant proportion of the revenues generated by entities within the group are denominated in United 
States Dollars (USD). The functional currency of the Company and of all individual entities within the Group has 
been determined to be Sterling. Identification of functional currencies requires a judgement as to the currency 
of the primary economic environment in which the companies of the Group operate. This is based on analysis 
of the economic environment and cash flows of the subsidiaries of the Group, which has determined, based 
upon the currency of funding and operating costs, that the functional currency continues to be Sterling.
5 Segmental information
The chief operating decision maker of the Group is the Board of Directors and they review the business in three 
main segments, the supply of plastic products, the development of plastic products, and the development of 
recycling technologies. 
The segmental results for the year ended 31 December 2015 are as follows: 
Business segments 
Twelve months to 31 December 2015
Plastics 
Sales 
£’000
Plastics 
R&D 
£’000
Recycling 
Tech. 
£’000
Group 
£’000
Segment revenues 6,365 – – 6,365
Apportioned costs (6,715) (521) (5) (7,241)
EBITDA (350) (521) (5) (876)
Depreciation and amortisation (86) (44) – (130)
Impairment of intangible assets – (1,234) (45) (1,279)
Interest (16) – – (16)
Taxation (1,142) 111 – (1,031)
Profit/(loss) for the year (1,594) (1,688) (50) (3,332) Symphony Environmental Technologies plc
Annual Report & Accounts 2015
30
5 Segmental information continued
The segmental results for the year ended 31 December 2014 are as follows:
Business segments 
Twelve months to 31 December 2014
Plastics 
Sales 
£’000
Plastics 
R&D 
£’000
Recycling 
Tech. 
£’000
Group 
£’000
Segment revenues 6,352 – – 6,352
Apportioned costs (5,874) (406) (219) (6,499)
EBITDA 478 (406) (219) (147)
Depreciation and amortisation (93) (25) – (118)
Interest (125) – – (125)
Taxation – 69 16 85
Profit/(loss) for the year 260 (362) (203) (305)
Revenues stated are from external customers.
There were no inter-segment revenues for the above periods.
There has been no material change in total assets other than in the ordinary course of business other than for 
an impairment of intangible assets, details of which are given in note 12, and an impairment of deferred tax 
assets, details of which are given in note 9a.
Segmental assets primarily consist of property, plant and equipment, intangible assets, inventories, trade and 
other receivables and cash and cash equivalents. 
Segmental liabilities comprise trade and other payables arising from trading operations.
The segment assets and liabilities at 31 December 2015 and capital expenditure for the year then ended  
are as follows:
£’000
Plastics 
Sales and 
Plastics 
R&D
Recycling 
Tech. Group
Assets 1,921 – 1,921
Liabilities (1,028) – (1,028)
Capital expenditure 332 21 353
Depreciation and amortisation 130 – 130
The segment assets and liabilities at 31 December 2014 and capital expenditure for the year then ended  
are as follows:
£’000
Plastics 
Sales and 
Plastics 
R&D
Recycling 
Tech. Group
Assets 5,582 40 5,622
Liabilities (1,906) – (1,906)
Capital expenditure 77 24 101
Depreciation and amortisation 118 – 118
Segmental assets and liabilities are reported to the Chief Operating Decision maker under the two divisions 
stated above.
Notes to the Annual Report  
and Accounts continued
  Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
31
Geographical areas
The Group’s revenues from external customers and its non-current assets (assets other than financial 
instruments) are divided into the following geographical areas:
Geographical areas
Revenue  
2015 
£’000
Non- current 
assets 
2015 
£’000
Revenue  
2014 
£’000
Non- current 
assets 
2014 
£’000
UK 238 470 274 1,541
Europe 714 – 1,131 –
Americas 3,174 – 3,060 –
Other 2,239 – 1,887 –
Total 6,365 470 6,352 1,541
Major customers
There were no customers that accounted for greater than 10% of total Group revenues for 2015 (2014: one 
customers). In 2014 one customer accounted for £852,000, or 13% of the total group revenues.
6 Operating loss
The operating loss is stated after charging:
2015 
£’000
2014 
£’000
Non-recurring items:
 Impairment of intangible assets 1,279 –
 Redundancy costs 34 –
Depreciation 101 89
Amortisation 29 29
Loss on disposal of property, plant and equipment 14 10
Research and development expenditure not capitalised 521 406
Operating lease rentals:
 Land and buildings 109 93
 Plant and equipment 5 5
Fees payable to the Company’s auditor:
Audit related services:
 Audit of the financial statements 18 11
Audit of the financial statements of the Company’s subsidiaries 36 26
Non-audit related services:
 Other assurance related services 4 1
 Tax compliant services 10 7
Net foreign exchange gain (31) (10)
Non-recurring items within administrative expenses total £1,313,000 for 2015 (2014: £nil) and include an 
impairment charge of £1,313,000 against intangible assets, details of which are given in note 12. Symphony Environmental Technologies plc
Annual Report & Accounts 2015
32
Notes to the Annual Report  
and Accounts continued
 
7  Employee benefit expense
2015 
£’000
2014 
£’000
Wages and salaries 1,612 1,614
Social security costs 205 198
Other pension costs 97 75
1,914 1,887
Average number of people employed:
2015 
£’000
2014 
£’000
Testing and technical 5 4
Selling 6 8
Administration 10 8
Management 7 6
Marketing 1 –
Total average headcount 29 26
Remuneration in respect of the Directors was as follows:
2015 
£’000
2014 
£’000
Emoluments 721 805
Pension contributions 80 65
801 870
Key management remuneration:
2015 
£’000
2014 
£’000
Short-term employee benefits 721 805
Post-employment benefits 80 65
801 870
The Directors are considered to be the key management personnel of the Group. Further details on Directors’ 
remuneration and share options are set out in the Remuneration Report.
8 Finance income and costs
2015 
£’000
2014 
£’000
Interest income:
Finance lease interest – 1
Total finance income – 1
Interest expense:
 Bank borrowings 5 4
 Other interest 11 121
 Finance charges – 1
Total finance costs 16 126
Net finance costs 16 125 Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
33
9  Taxation
2015 
£’000
2014 
£’000
Net deferred tax (see note 9a) (1,142) –
R&D tax credit 111 85
Total income tax (charge)/credit (1,031) 85
  
No tax arises on the loss for the year.
The tax assessed for the year is different from the standard rate of corporation tax in the UK of 20%  
(2014: 21%). The change in the rate of standard corporation tax is due the rates being changed by UK 
Government legislation. 
The differences in tax assessed against the standard rate of corporation tax are explained as follows:
2015 
£’000
2014 
£’000
Loss for the year before tax (2,301) (390)
Tax calculated by rate of tax on the result (460) (84)
Effective rate for year at 20.25% (3m @ 21% and 9m @ 20%) (6) (2)
Expenses not deductible for tax purposes 5 4
Intangible impairment provision 259 –
R & D tax relief (11) 28
Tax losses carried forward 213 64
Sundry items – (10)
Movement in deferred income tax asset (see note 9a) 1,142 –
R&D tax credit (111) (85)
Total income tax charge/(credit) 1,031 (85)
9a Deferred income tax asset
2015 
£’000
2014 
£’000
Deferred income tax asset brought forward 1,142 1,142
Impairment of deferred income tax asset (1,142) –
Deferred income tax asset carried forward – 1,142
The deferred tax asset relates to tax losses. There are tax losses of approximately £14,500,000 (2014: 
£13,400,000). These tax losses have no expiry date.
Of these tax losses, a £1,142,000 deferred tax adjustment has been recognised in this year’s accounts  
(2014: nil). The deferred tax asset has been fully impaired resulting in a total asset recognised of £nil (2014: 
£1,142,000). There is a total potential tax asset of £2,610,000 using a rate of 18%, being the corporation tax 
rate UK Parliament has currently set.
The recognition of the deferred tax asset is based on sensitizing management forecasts to estimate the future 
taxable profits against which the losses will be relieved. Judgements have been made in respect to profitability 
going forward based upon current sales leads and market receptiveness to anticipated product launches. Due 
to performance over the last year, the Group has carried out a strategic review of its product developments 
and operating costs which has resulted in an impairment provision of £1,142,000 being made against the 
deferred income tax asset (2014: £nil). This has arisen due to management reassessing the probability of 
sufficiently certain future taxable profits arising following the strategic review. Symphony Environmental Technologies plc
Annual Report & Accounts 2015
34
Notes to the Annual Report  
and Accounts continued
 
10 Loss per share and dividends
The calculation of basic earnings per share is based on the loss attributable to ordinary shareholders divided 
by the weighted average number of shares in issue during the year. The calculation of diluted earnings per 
share is based on the basic earnings per share, adjusted to allow for the issue of shares on the assumed 
conversion of all dilutive options and warrants.
Reconciliations of the loss and weighted average numbers of shares used in the calculations are set out below:
Basic and diluted 2015 2014
Loss attributable to equity holders of the Company £(3,332,000) £(305,000)
Weighted average number of ordinary shares in issue 147,616,172 130,255,952 
Basic loss per share (2.26) pence (0.23) pence
Dilutive effect of weighted average options – –
Total of weighted average shares together with dilutive effect of 
weighted options 147,616,172 130,255,952
Diluted loss per share (2.26) pence (0.23) pence
No dividends were paid for the year ended 31 December 2015 (2014: £nil). The effect of options in 2015 and 
2014 are anti-dilutive.
24,756,500 options were outstanding at the end of the year which may become dilutive in future years.  Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
35
11 Property, plant and equipment
Plant & 
machinery
£’000
Fixtures & 
fittings
£’000
Fixtures 
& fittings 
Elstree 
Gate
£’000
Motor 
vehicles
£’000
Office 
equipment
£’000
Total
£’000
At 1 January 2014
Cost 359 67 242 105 174 947
Accumulated depreciation (186) (62) (84) (77) (144) (553)
Net book amount 173 5 158 28 30 394
Year ended 31 December 2014
Opening net book amount 173 5 158 28 30 394
Additions 12 – 51 – 14 77
Transfer to/from other class 8 – (8) – – –
Disposals (5) (67) – – – (72)
Depreciation charge (33) – (27) (9) (20) (89)
Depreciation charge transferred to/from other class (2) – 2 – – –
Eliminated on disposal – 62 – – – 62
Closing net book amount 153 – 176 19 24 372
At 1 January 2015
Cost 374 – 285 105 188 952
Accumulated depreciation (221) – (109) (86) (164) (580)
Net book amount 153 – 176 19 24 372
Year ended 31 December 2015
Opening net book amount 153 – 176 19 24 372
Additions 81 – 8 17 35 141
Disposals (26) – (1) (20) (100) (147)
Depreciation charge (44) – (31) (10) (16) (101)
Eliminated on disposal 14 – – 18 100 132
Closing net book amount 178 – 152 24 43 397
At 31 December 2015
Cost 429 – 292 102 123 946
Accumulated depreciation (251) – (140) (78) (80) (549)
Net book amount 178 – 152 24 43 397
Included within net book value of motor vehicles, plant and machinery, and office equipment is £15,000  
(2014: £2,000) relating to assets held under finance leases and hire purchase contracts. The depreciation 
charged to the financial statements in the year in respect of such assets amounted to £3,000 (2014: £3,000).  Symphony Environmental Technologies plc
Annual Report & Accounts 2015
36
Notes to the Annual Report  
and Accounts continued
 
12 Intangible assets
Development 
costs 
£’000
Trademarks 
£’000
Total 
£’000
At 1 January 2014
Cost 1,548 61 1,609
Accumulated amortisation (140) (38) (178)
Accumulated impairment (494) – (494)
Net book amount 914 23 937
Year ended 31 December 2014
Opening net book amount 914 23 937
Additions 235 26 261
Amortisation charge (24) (5) (29)
Closing net book amount 1,125 44 1,169
At 1 January 2015
Cost 1,783 87 1,870
Accumulated amortisation (164) (43) (207)
Accumulated impairment (494) – (494)
Net book amount 1,125 44 1,169
Year ended 31 December 2015
Opening net book amount 1,125 44 1,169
Additions 189 23 212
Impairment charge (1,234) (45) (1,279)
Amortisation charge (24) (5) (29)
Closing net book amount 56 17 73
At 31 December 2015
Cost 1,972 110 2,082
Accumulated amortisation (188) (48) (236)
Accumulated impairment (1,728) (45) (1,773)
Net book amount 56 17 73
The Group relies on the continued development of its product range and in so doing is maintaining satisfactory 
goals in fulfilling its strategy (see Chairman’s Statement and Chief Executive’s Review). 
Development costs are capitalised in accordance with the policy set out in note 2. In capitalising these costs, 
judgements are made relating to ongoing feasibility and commerciality of products and systems being 
developed. In making these judgements, cashflow forecasts are used and these include significant estimates in 
respect to sales forecasts and future foreign exchange rates. 
Due to performance over the last year, the Company and Group has carried out a strategic review of its 
product developments and operating costs which has resulted in an impairment provision of £1,233,578 being 
made against development costs (2014: £nil). This is due to uncertainty over the timing of future revenues from 
products still in development following the strategic review. The amount remaining of £56,000 is based on the 
current value in use of revenue generating products. Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
37
13 Subsidiary undertakings
Principal subsidiaries:
Name Country of incorporation Nature of business 
Proportion of 
ordinary shares 
held by parent
Proportion of 
ordinary shares 
held by the 
Group
Symphony Environmental Limited England and Wales Supply of 
environmental 
polyolefin 
products and 
ancillaries
100% 100%
Symphony Packaging Limited England and Wales Dormant 0% 100%
D2W Limited England and Wales Dormant 0% 100%
Symphony Plastics (2010) Limited England and Wales Dormant 0% 100%
Symphony Recycling  
Technologies Limited
England and Wales Development of 
recycling systems
100% 100%
Elstree Gate Services Limited England and Wales Dormant 100% 100%
Symphony Environmental  
(Jamaica) Limited
Jamaica Dormant 0% 100%
All of the above subsidiaries are consolidated in the Group financial statements.
14 Available for sale financial assets
All non-current
2015 
£’000
2014 
£’000
Beginning and end of year – –
The Company holds 30% of the ordinary share capital of Symphony Bin Hilal Plastics LLC, a company 
incorporated in the United Arab Emirates. The directors are of the opinion that this is an investment as the 
Directors do not have significant influence because the Group has no representation on the Board of Directors 
of the investee, does not participate in policy making processes, and does not receive key financial or 
management information. A full impairment had been made against this in 2012 due to limited availability of 
financial information.
The Company holds 10% of the ordinary share capital of American Plastic Technologies plc, a company 
incorporated in the United States of America. The Directors are of the opinion that this is an investment as the 
Directors do not have significant influence because they have no financial or management control. The 
investment in American Plastics Technologies plc is measured at cost less impairment charges as the fair value 
cannot be estimated readily. The cost of this investment was £nil.
The Company holds c.5% of the ordinary share capital of Oxobioplast Inc., a company incorporated in the 
United States of America. The Directors are of the opinion that this is an investment as the Directors do not 
have significant influence because they have no financial or management control. The investment in 
Oxobioplast Inc. is measured at cost less impairment charges as the fair value cannot be estimated readily.  
The cost of this investment was £nil.
There is no collateral on the above amounts.
15 Inventories
2015 
£’000
2014 
£’000
Finished goods and goods for resale 477 576
The cost of inventories recognised as an expense and included in ‘cost of sales’ amounted to £3,297,000 (2014: 
£3,200,000). There is a provision of £90,000 for the impairment of inventories (2014: £10,000).
There is no collateral on the above amounts. Symphony Environmental Technologies plc
Annual Report & Accounts 2015
38
Notes to the Annual Report  
and Accounts continued
 
16 Trade and other receivables
2015 
£’000
2014 
£’000
Loans and receivables:
 Trade receivables 724 1,274
 Receivables under finance leases – 12
 Other debtors 3 18
VAT 37 59
Prepayments 88 62
852 1,425
The Directors consider that the carrying value of trade and other receivables approximates to their fair values. 
There is a provision of £202,000 for the impairment of receivables (2014: £117,000). The maximum credit risk 
exposure at the balance sheet date equates to the carrying value of trade receivables. Further disclosures are 
set out in note 3.
Included in trade receivables at 31 December 2015 are debtors which are past due but where no provision has 
been made as there has not been a change in the credit worthiness of these debtors and the amounts are 
considered recoverable. As of 31 December 2015 trade receivables of £nil (2014: £137,000) were past due and 
not impaired. The ageing analysis of these trade receivables is as follows:
2015 
£’000
2014 
£’000
More than three months but less than six months – 121
More than six months but not more than one year – 16
– 137
Due to the different markets that the Group operates in, trade terms vary from cash on shipment of goods to 
payment under letter of credit due 150 days from shipment.
Trade receivables are secured against the facilities provided by the Group’s bankers.
Lease agreements in which the other party, as lessee, is to be regarded as the economic owner of the leased 
assets give rise to accounts receivable in the amount of the discounted future lease payments. These 
receivables amounted to £nil as of 31 December 2015 (2014: £12,000).
The receivables under finance leases for 2015 are as follows:
£’000
Total future 
payments
Unearned 
interest 
income
Present 
value
Not later than one year – – –
As at 31 December 2015 – – –
The receivables under finance leases for 2014 were as follows:
£’000
Total future 
payments
Unearned 
interest 
income
Present 
value
Not later than one year 14 2 12
As at 31 December 2014 14 2 12
The leases, which relate to d
2
Detectors, are typically cancellable after the first six months and run for a period 
of two years. The contracts include an option to purchase the leased equipment at any time between the initial 
six month period and the full term of two years. The purchase price lies between 33% and 75% of the gross 
investment at the inception of the lease, resulting from the timing the option to purchase is exercised and 
reflecting substantially all of the fair value of the asset. Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
39
17 Cash and cash equivalents
2015 
£’000
2014 
£’000
Loans and receivables:
 Cash at bank and in hand  122 938
The carrying amount of cash equivalents approximates to their fair values. There is no collateral on the  
above amounts.
18 Equity
 Group and Company Group
Ordinary shares 
Number
Ordinary 
shares 
£’000
Share 
premium 
£’000
Retained 
earnings 
£’000 Total £’000
At 1 January 2014 128,119,377 1,281 1,650 (502) 2,429
Loss for the year – – – (305) (267)
Proceeds from shares issued 16,450,000 165 1,427 – 1,592
At 31 December 2014 144,569,377 1,446 3,077 (807) 3,754
At 1 January 2015 144,569,377 1,446 3,077 (807) 3,716
Loss for the year – – – (3,332) (3,332)
Proceeds from shares issued 5,370,000 53 456 – 509
At 31 December 2015 149,939,377 1,499 3,533 (4,139) 893
Proceeds from shares issued
The following ordinary shares were issued during the year:
Date
Ordinary shares 
Number Details
Consideration 
£
Premium 
£
12 May 2015 220,000 Exercise of options 6,050 3,850
20 May 2015 50,000 Exercise of options 1,188 688
09 June 2015 5,000,000 Placing 500,000 450,000
22 June 2015 100,000 Exercise of options 2,375 1,375
Share options and warrants
As at 31 December 2015 the Group maintained an approved share-based payment scheme for employee 
compensation. For the options granted to vest, the Group must have achieved an earnings per share in excess 
of 0.001p and employees must serve a specified amount of time. 
All share-based employee compensation will be settled in equity. The Group has no legal or constructive 
obligation to repurchase or settle the options. As at 31 December 2015 there were 2,805,000 staff options 
outstanding. No staff options were issued in 2015.
On 09 June 2015 the Group granted 2,200,000 warrants exercisable at 15p for three years to Somerston 
Environmental Technologies Ltd. Mr Shaun Robinson, a Director of Symphony Environmental Technologies Plc 
has interests of 13.33% in Somerston Environmental Technologies Ltd which represents 293,260 warrants. Symphony Environmental Technologies plc
Annual Report & Accounts 2015
40
18 Equity continued
The Group has also issued unapproved share options and warrants. Approved and unapproved share options, 
warrants and weighted average exercise price are as follows for the reporting periods presented:
Number
2015 Weighted average  
exercise price  
£ Number
2014 Weighted average 
exercise price  
£
Outstanding at 1 January 23,126,500 0.09 17,626,500 0.06
Granted 2,800,000 0.14 6,700,000 0.15
Exercised (370,000) 0.03 (700,000) 0.02
Forfeited/lapsed (800,000) 0.12 (500,000) 0.05
Outstanding at 31 December 27,756,500 0.09 23,126,500 0.09
The weighted average share price at the date options were exercised was 9p (2014: 9p).
The number of share options and warrants exercisable at 31 December 2015 was 27,756,500 (2014: 23,126,500). 
The weighted average exercise price of those shares exercisable was 9p (2014: 9p). 
The weighted average option contractual life is eight years (2014: eight years) and the range of exercise prices 
is 2.375p to 15p (2014: 2.375p to 15p).
Directors
Directors’ interests in shares and share incentives are contained in the Remuneration Report.
IFRS2 expense
There is an IFRS share-based charge for the year of £nil (2014: £nil), as based upon the assumptions set out 
above, management consider the potential charge to be immaterial.
19 Trade and other payables
2015 
£’000
2014 
£’000
Financial liabilities measured at amortised cost:
 Trade payables 400 464
Social security and other taxes 77 71
Accruals and deferred income 375 218
852 753
Fair value is not materially different to book value. There is no collateral on the above amounts.
20 Interest bearing loans and borrowings
Non-current
2015 
£’000
2014 
£’000
Finance lease liabilities 6 –
6 –
Current
Financial liabilities measured at amortised cost:
 Bank overdraft 5 353
 Other loans 161 797
Finance lease liabilities 4 3
170 1,153
The bank overdraft of £5,000 (2014: £353,000) is included within the cashflow statement within cash and cash 
equivalents.
Other loans include:
An amount due relating to the invoice financing facility totalling £161,000 (2014: £147,000). Interest is charged 
at 2.96% over HSBC Bank plc base rate per annum. Loans of £150,000 from Michelle Laurier, spouse of Michael 
Laurier, and £500,000 from an unconnected individual were repaid in January 2015, interest charged on these 
loans was 2% per month (see note 23), and 12% per annum respectively.
Notes to the Annual Report  
and Accounts continued
  Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
41
Commitments under finance leases and hire purchase agreements mature as follows:
Gross 2015 
£’000
Gross 2014 
£’000
Net 2015 
£’000
Net 2014 
£’000
Amounts payable within one year 4 3 4 3
Amounts payable between one and two years 4 – 4 –
Amounts payable between two and five years 2 – 2 –
10 3 10 3
The finance leases are for the purchase of sundry equipment (note 11).
There is no collateral on the above amounts except for finance lease liabilities which are secured against the 
asset that they finance.
21 Net cash used in operations
2015 
£’000
2014 
£’000
Loss after tax (3,332) (305) 
Adjustments for:
 Depreciation 101 89
 Amortisation 29 29
 Impairment of intangible assets 1,279 –
 Loss on disposal of tangible assets 14 10
 Tax credit (111) (85)
 Impairment of deferred tax asset 1,142 –
 Interest expense 16 126
Changes in working capital:
 Inventories 99 (47)
 Trade and other receivables 584 (24)
 Trade and other payables 99 27
Cash used in operations (80) (180)
22 Commitments
The future aggregate minimum lease payments under non-cancellable operating leases are as follows:
2015 
£’000
2014 
£’000
No later than one year 137 128
Later than one year and no later than five years 439 471
Greater than five years – 29
576 628
23 Related party transactions
The loan to the company from Michelle Laurier, spouse of Michael Laurier, was fully repaid in January 2015. At 
31 December 2015 the balance outstanding on the loan was £nil (2014: £150,000). 
24 Post balance sheet events
There have been no significant post balance sheet events. Symphony Environmental Technologies plc
Annual Report & Accounts 2015
42
25 Capital management
The Group’s capital management objectives are:
• to ensure the Group’s ability to continue as a going concern; and
• to provide an adequate return to shareholders
The Group monitors capital on the basis of the gearing ratio calculated as net debt divided by total capital.  
Net debt is calculated as total borrowings as shown in the consolidated statement of financial position less 
cash and cash equivalents. Total capital is calculated as equity as shown in the consolidated statement of 
financial position plus net debt.
The Group’s goal in capital management is to maintain an optimal gearing ratio (the ratio of net debt over  
debt plus equity).
The Group manages the capital structure and makes adjustments to it in the light of changes in economic 
conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital 
structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, 
issue new shares, or sell assets to reduce debt.
The gearing ratios at 31 December 2015 and 2014 were as follows: 
2015 
£’000
2014 
£’000
Total borrowings 170 1,153
Cash and cash equivalents (122) (938)
Net debt 48 215
Total equity 893 3,716
Borrowings 170 1,153
Overall financing 1,063 4,869
Gearing ratio 5% 4%
The Group has kept a low gearing ratio which is suitable for the position of the Group and its general 
requirements. 
26 Capital commitments
The Group had capital commitments totalling £nil at the end of the year (2014: £nil). 
The following pages contain the balance sheet and accompanying notes for the parent Company prepared 
under FRS 102, ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.
 
Notes to the Annual Report  
and Accounts continued Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
43
Company Balance Sheet
at 31 December 2015
Company number 03676824
Note
2015 
£’000
2014 
£’000
Fixed assets
Tangible assets 28 3 4
Investments 29 1,150 2,150
1,153 2,154
Current assets
Debtors 30 1,007 3,301
Cash at bank and in hand 5 921
1,012 4,222
Creditors: amounts falling due within one year 31 63 593
Net current assets 949 3,629
Total assets less current liabilities 2,102 5,783
Capital and reserves
Share capital 33 1,499 1,446
Share premium account 34 3,533 3,077
Profit and loss account 34 (2,930) 1,260
2,102 5,783
The Company has applied the exemption under section 408 of the Companies Act 2006 not to present a  
profit and loss account for the year ended 31 December 2015. 
These financial statements were approved by the Directors on 19 April 2016 and are signed on their behalf by:
I Bristow FCCA
Finance Director
 
The accompanying notes form an integral part of these financial statements. 
  Symphony Environmental Technologies plc
Annual Report & Accounts 2015
44
Company Statement of Changes  
in Equity
for the year ended 31 December 2015
Share 
capital
£’000
Share 
premium
£’000
Retained 
earnings
£’000
Total equity
£’000
For the year to 31 December 2015
Balance at 1 January 2015 1,446 3,077 1,260 5,783
Issue of share capital 53 456 – 509
Transactions with owners 53 456 – 509
Loss and total comprehensive income for the year – – (4,190) (4,190)
Balance at 31 December 2015 1,499 3,533 (2,930) 2,102
For the year to 31 December 2014
Balance at 1 January 2014 1,281 1,650 1,182 4,113
Issue of share capital 165 1,427 – 1,592
Transactions with owners 165 1,427 – 1,592
Loss and total comprehensive income for the year – – 78 78
Balance at 31 December 2014 1,446 3,077 1,260 5,783
The accompanying notes form an integral part of these financial statements. Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
45
Company Cash Flow Statement
for the year ended 31 December 2015
Note
2015
£’000
2014
£’000
Operating activities 36 (1,091) (729)
Adjustments for:
Intra-group interest receivable 168 109
Net cash used in operating activities (923) (620)
Financing activities
Repayments of borrowings (500) –
Proceeds from share issue 509 1,592
Interest paid (2) (60)
Net cash generated in financing activities 7 1,532
Net change in cash and cash equivalents (916) 912
Cash and cash equivalents, beginning of year 921 9
Cash and cash equivalents, end of year 5 921
The cash and cash equivalents are represented by cash at bank and in hand.
The accompanying notes form an integral part of these financial statements.  Symphony Environmental Technologies plc
Annual Report & Accounts 2015
46
27 Principal accounting policies
Basis of accounting
Symphony Environmental Technologies plc (“The Company”), is a public limited company. It is incorporated 
and domiciled in England (Company number 03676824). The address of its registered office is 6 Elstree Gate, 
Elstree Way, Borehamwood, Hertfordshire, WD6 1JD, England. The Company’s shares are listed on the AIM 
market of the London Stock Exchange and as a level 1 ADR in New York.
The principal activity of the Company is to hold investments in subsidiaries which develop and supply 
environmental plastic additives and products, and develop waste to value systems.
The financial statements have been prepared in accordance with United Kingdom accounting standards, 
including Financial Reporting Standard 102 – “The Financial Reporting Standard applicable in the United 
Kingdom and Republic of Ireland” (“FRS 102”), and with the Companies Act 2006. The financial statements 
have been prepared on the historical cost basis.
This is the first year in which the financial statements have been prepared under FRS 102. There have been no 
adjustments required as a result of the transition.
The Company has taken advantage of section 408 of the Companies Act 2006 and has not included its own 
Profit and Loss in these financial statements. The results for the year are given in note 34.
The financial statements are presented in Sterling, the functional and presentational currency of the Company 
and are expressed in round thousands unless otherwise stated (£’000s).
Fixed assets
Tangible fixed assets are stated at cost, net of depreciation and any provision for impairment.
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the 
useful economic life of that asset as follows:
Plant and machinery 20% reducing balance.
Motor vehicles 20% reducing balance.
Leasing and hire purchase commitments
Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of 
the asset have passed to the company, and hire purchase contracts, are capitalised in the balance sheet and 
are depreciated over their useful lives. The capital elements of future obligations under the leases and hire 
purchase contracts are included as liabilities in the balance sheet.
The interest elements of the rental obligations are charged in the profit and loss account over the periods of 
the leases and hire purchase contracts and represent a constant proportion of the balance of capital 
repayments outstanding.
Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over 
the lease term, unless the rental payments are structured to increase in line with expected general inflation, in 
which case the Company recognises annual rent expense equal to amounts owed to the lessor.
The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised over the 
lease term on a straight-line basis.
Pension costs
Company pensions are operated within the Group pension scheme. The Group operates a defined contribution 
pension scheme for employees. The assets of the scheme are held separately from those of the Group.  
The annual contributions payable in respect to the Company are charged to the profit and loss account as  
they are incurred.
Taxation
Current tax is the tax currently payable based on taxable profit for the year.
Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is 
generally provided on the difference between the carrying amounts of assets and liabilities and their tax bases. 
Tax losses available to be carried forward as well as other income tax credits to the Group are assessed for 
recognition as deferred tax assets, insofar as Group companies are entitled to UK tax credits on qualifying 
research and development expenditure, such amounts are recognised when received and presented in the 
income tax line within profit and loss. 
Notes to the Company  
Balance Sheet Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
47
Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the 
extent that it is probable that the underlying deductible temporary differences will be able to be offset against 
future taxable income. Current and deferred tax assets and liabilities are calculated at tax rates that are 
expected to apply to their respective period of realisation, provided they are enacted or substantively enacted 
at the balance sheet date.
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in profit or loss, 
except where they either relate to items that are charged or credited directly to equity in which case the related 
deferred tax is also charged or credited directly to equity, or where they relate to items charged or credited in 
other comprehensive income the deferred tax change is recognised in other comprehensive income.
Foreign currencies
Monetary assets and liabilities in foreign currencies are translated into Sterling at the rates of exchange  
ruling at the balance sheet date. Transactions in foreign currencies are translated into Sterling at the rate of 
exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the 
operating profit.
Investments
Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.
Impairment of assets
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets 
have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of 
any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is 
lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is 
recognised immediately in profit or loss.
If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate 
of its recoverable amount, but not in excess of the amount that would have been determined had no 
impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised 
immediately in profit or loss.
Financial instruments
Financial assets
Financial assets are divided into the following categories: loans and receivables, and available-for-sale financial 
assets. Financial assets are assigned to the different categories by management on initial recognition, 
depending on the purpose for which they were acquired. 
All financial assets are recognised when the Group becomes a party to the contractual provisions of the 
instrument. Financial assets are initially recognised at fair value plus transaction costs. 
The Group currently has the following financial assets:
Trade receivables
Trade receivables are categorised as loans and receivables. Trade receivables are non-derivative financial 
assets with fixed or determinable payments that are not quoted in an active market. Trade receivables are 
measured subsequent to initial recognition at amortised cost using the effective interest method, less provision 
for impairment. Any change in their value through impairment or reversal of impairment is recognised in profit 
or loss.
Provision against trade receivables is made when there is objective evidence that the Group will not be able to 
collect all amounts due to it in accordance with the original terms of those receivables. The amount of the 
write-down is determined as the difference between the asset’s carrying amount and the present value of 
estimated future cash flows, discounted using the original effective interest rate. 
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and demand deposits, together with other short-term, highly 
liquid investments that are readily convertible into known amounts of cash and which are subject to an 
insignificant risk of changes in value.
Financial liabilities
Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Group 
becomes a party to the contractual provisions of the instrument.  Symphony Environmental Technologies plc
Annual Report & Accounts 2015
48
27 Principal accounting policies continued
The Group’s financial liabilities include trade payables, other payables, bank overdraft, bank loans and other 
loans. These are classified as financial liabilities measured at amortised cost.
Financial liabilities measured at amortised cost are initially recognised at fair values net of direct issue costs. 
Finance charges are charged to profit and loss, where applicable, on an accruals basis using the effective 
interest method and are added to the carrying amount of the instrument to the extent they are not settled in 
the period in which they arose.
A financial liability is derecognised only when the obligation is extinguished, that is, when the obligation is 
discharged or cancelled or expires.
Classification as debt or equity
The Group has share warrants in issue which have been accounted for as equity instruments, as the substance 
of the contractual arrangement is such that the warrants evidence a residual interest in the assets of the Group 
after deducting all liabilities.
Equity-settled share-based payments
All share-based payment arrangements granted after 7 November 2002 that had not vested prior to 1 January 
2007 are recognised in the financial statements.
All goods and services received in exchange for the grant of any share-based payment are measured at their 
fair values. Where employees are rewarded using share-based payments, the fair values are determined by 
reference to the fair value of the instrument granted to the employee. This fair value is appraised at the grant 
date and excludes the impact of non-market vesting conditions. The fair value is charged to the profit and loss 
account between the date of issue and the date the share options vest with a corresponding credit taken to 
shareholders’ funds.
Significant judgements and estimates
Preparation of the financial statements requires management to make significant judgements and estimates. 
The items in the financial statements where these judgements and estimates have been made include:
Judgements - impairment 
An impairment loss is recognised for the amount by which the asset’s or cash generating unit’s carrying 
amount exceeds its recoverable amount. To determine the recoverable amount, management estimates 
expected future cash flows from each cash-generating unit and determines a suitable discount rate in order to 
calculate the present value of those cash flows. In the process of measuring expected future cash flows 
management makes assumptions about future operating results. These assumptions relate to future events and 
circumstances. In most cases, determining the applicable discount rate involves estimating the appropriate 
adjustment to market risk and the appropriate adjustment to asset-specific risk factors. Details of assumptions 
made and impairments recognised in the period are given in notes 29 and 30.
28 Tangible fixed assets
Motor 
vehicles 
£’000
Total 
£’000
Cost
At 1 January 2015 35 35
At 31 December 2015 35 35
Depreciation
At 1 January 2015 31 31
Charge for the year 1 1
At 31 December 2015 32 32
Net book value
At 31 December 2015 3 3
At 31 December 2014 4 4
Included within the net book value of £3,000 is £nil (2014: £nil) relating to assets held under finance leases and 
hire purchase contracts. The depreciation charged to the financial statements in the year in respect of such 
assets amounted to £nil (2014: £nil).
Notes to the Company  
Balance Sheet continued Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
49
29 Investments 
Shares in Group undertakings
2015 
£’000
2014 
£’000
At beginning of the year 2,150 2,150
Impairment (1,000) –
At end of the year 1,150 2,150
Group undertakings are detailed in note 13.
An impairment provision of £1,000,000 has been made against the Company’s investment in Symphony 
Environmental Limited (2014: £nil). See Note 30 below.
30 Debtors 
2015 
£’000
2014 
£’000
Amounts owed by Group undertakings 1,000 3,286
VAT 5 5
Other debtors – 5
Prepayments 2 5
1,007 3,301
An impairment provision of £3,394,000 has been made against intra-group receivables (2014: £nil). The 
balance of intra-group receivables and holding investment value in subsidiary companies has been derived 
from a discounted cash flow projection of the Symphony Environmental Limited performance over five years 
using an appropriate market rate of interest.
31 Creditors: amounts falling due within one year 
2015 
£’000
2014 
£’000
Trade creditors 7 21
Loans – 500
Accruals 56 72
63 593
32  Contingent liabilities
The Company has guaranteed all monies due to its bankers by Symphony Environmental Limited, Symphony 
Recycling Technologies Limited and Symphony Plastics (2010) Limited. At 31 December 2015 the net 
indebtedness of these companies amounted to £nil (2014: £nil). 
33 Share capital
The Company’s share capital is detailed in note 18.
34 Parent Company own accounts
Symphony Environmental Technologies plc has not presented its own profit and loss account and related notes 
as permitted by Section 408 of the Companies Act 2006. The loss for the financial year dealt with in the 
financial statements of the parent Company is £4,190,000 (2014: profit £78,000). Symphony Environmental Technologies plc
Annual Report & Accounts 2015
50
35 Directors and employees
All employees of Symphony Environmental Technologies plc are Directors. See note 7 of the Group 
consolidated accounts. 
The average number of staff employed by the Company during the financial year amounted to:
2015 
No.
2014 
No.
Management 3 2
The aggregate payroll costs of the above were:
2015 
£’000
2014 
£’000
Wages and salaries 95 65
Social security costs 10 7
105 72
The Company has taken advantage of the FRS 102 exemption that allows intra-Group transactions with a 100% 
subsidiary to not be disclosed.
There were no other related party transactions throughout the period.
36 Net cash used in operations
2015 
£’000
2014 
£’000
(Loss)/profit after tax (4,190) 78 
Adjustments for:
Depreciation 1 2
Disposal of tangible fixed assets – 5
Impairment of investments 1,000 –
Impairment of group company balances 3,394 –
Interest expense 2 60
Intra-group interest (168) (109)
Changes in working capital:
Group company balances (1,108) (768)
Trade and other receivables 8 (5)
Trade and other payables (30) 24
Cash used in operations (1,091) (729)
Notes to the Company  
Balance Sheet continued Symphony Environmental Technologies plc
Annual Report & Accounts 2015
www.symphonyenvironmental.com
FINANCIAL STATEMENTS CORPORATE GOVERNANCE BUSINESS REVIEW
51
COMPANY REGISTRATION NUMBER
03676824
REGISTERED OFFICE
6 Elstree Gate
Elstree Way
Borehamwood
Hertfordshire
WD6 1JD
DIRECTORS
N J Deva DL, FRSA, MEP
Non-Executive Chairman 
M N Laurier
Chief Executive Officer
I Bristow FCCA
Finance Director
M Stephen LL.M
Commercial Director & Deputy Chairman 
N Clavel
Non-Executive Director
S Robinson
Non-Executive Director
SECRETARY
I Bristow
NOMINATED ADVISER AND BROKER
Cantor Fitzgerald Europe
One Churchill Place
Canary Wharf
London 
EC14 5RD
BANKERS
HSBC Bank Plc
103 Station Road 
Edgware
Middlesex
HA8 7JJ
SOLICITORS
Olswang
90 High Holborn 
London
WC1V 6XX
AUDITORS
Grant Thornton UK LLP
Chartered Accountants
Statutory Auditors
Grant Thornton House
202 Silbury Boulevard
Central Milton Keynes
MK9 1LW
REGISTRARS
Capita Asset Services
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU 
Company Information Symphony Environmental Technologies plc
Annual Report & Accounts 2015
52  Symphony Environmental Technologies plc Annual Report & Accounts 2015
www.symphonyenvironmental.com