The degradable plastics firm raised Ј500,000 through a share placing

UK degradable plastics company Symphony Plastic Technologies has raised Ј500,000 (E750,000), equivalent to around 8% of its capitalisation, through the placing of 5 million ordinary shares at 10p (15 euro cents).

The company plans to use the additional funding to extend its sales coverage in the UK and overseas, boost product development and for working capital.

Chief executive Michael Laurier has supported the placing by buying 700,000 of the new shares. He said: “I strongly believe this fundraising will give Symphony the impetus it needs to take advantage of the rapid changes in attitudes to environmental issues worldwide.”

News of the placing follows last Friday’s annual general meeting, when chairman Nirj Deva noted an 89% sales increase to Ј7.63m (E11.4m) last year. Operating losses over the last three half years have been trimmed from Ј1.06m (E1.59m) in the second half of 2002 to Ј470,000 (E705,000) in the second half of 2003.

Symphony made a provision in its 2003 to cover in full the unrecoverable costs in its legal dispute with technology licensor EPI. The trial is scheduled for November. A total of Ј1.7m (E2.5m) of exceptional costs were accounted for last year of which Ј1.26m (E1.89m) was the write off of the intangible licence fee asset.