Trading and Middle East operations update

Symphony Environmental Technologies Plc (AIM:SYM), global specialists in technologies that make plastic and rubber products "smarter, safer and sustainable", announces that as a result of management- driven strategic change in its Middle East operation, Group revenue for the year ending 31 December 2025 is now expected to be approximately £5.4 million, and a comparable adjusted LBITDA to that incurred in the previous year of £0.9 million.

Significant transformation of operations in the Middle East

The Board is pleased to announce that it has successfully commenced its new manufacturing agreement with Pure Polymers in Jeddah, Saudi Arabia. This is a key pillar of the Group's strategic expansion in the Middle East to capture increasing share of anticipated growth in Middle East markets driven by regulatory enforcement and general macroeconomic dynamics.

This milestone builds on previous positive statements by the Company where we noted the increasing demand for d2w biodegradable plastic masterbatch technology in the region, supported by improved enforcement of SASO 2879 plastic regulations. These regulations mandate the use of oxo-biodegradable products and specifically exclude "compostable" and non-biodegradable alternatives. Symphony's d2w masterbatches, now produced locally in Saudi Arabia, are fully compliant and have received approval from SASO (Saudi Arabian Standards, Metrology and Quality Organization), ensuring both regulatory approval and environmental responsibility. Symphony is also strengthening its direct sales force in the region to accelerate progress in this market.

In line with this development, manufacturing operations in Dubai have ceased, reflecting the Company's focus on Saudi Arabia, where the Government is actively encouraging local manufacturing initiatives. As a result of the changeover process, d2w volumes in the Middle East H2 2025 are expected to be nearly 70% lower than H2 2024. However, since commencing manufacture with Pure Polymers earlier in December, volumes are expected to exceed FY 2024 levels going forward in 2026.

Saudi Arabia is recognised as the world's largest producer of plastic, with its plastic products market valued at approximately $8.3 billion and projected to reach $10.87 billion by 2032. The Saudi government has, quite rightly, not agreed to a reduction in plastic supply, maintaining that the focus should instead be on implementing better waste management practices. This approach reflects Saudi Arabia's commitment to sustainability and responsible resource use, as demonstrated by ongoing efforts to improve product lifecycle design, enhance waste management systems, and encourage collaboration between government, industry, and research institutions.

The Board remains confident that the strategic shift to Saudi Arabia, combined with the new collaboration agreement and strengthened management and sales team, Symphony is well placed to benefit from the expected sharp increase in demand in 2026. The Company continues to work closely with local authorities, manufacturers and other stakeholders to ensure full compliance with regulatory requirements and to support the Government's objectives, particularly Saudi Vision 2030. https://www.vision2030.gov.sa/en

Further updates will be provided as the Company progresses its expansion in Saudi Arabia and the Middle East region.