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MYCELX swings to earnings in 2017 final results
Clean water technology company MYCELX Technologies Corporation announced its audited results for the year ended 31 December on Tuesday, reporting a 74% improvement in total revenue to $13.8m.
The AIM-traded firm's gross profit margin remained strong at 54%, up from 52%, while it swung to EBITDA earnings of $0.5m for 2017, compared to $1.6m losses a year earlier.
It reported cash and cash equivalents, including restricted cash, of $5.7m at year-end, up from $5.6m, while its gross profit increased 82% to $7.5m.
"I am very proud of our achievements in 2017, as we were able to financially safeguard the business and generate strong momentum, which resulted in the company's largest ever contract win in Saudi Arabia in early 2018," said chairman Tim Eggar.
"Our customer focussed approach during the year, where we sought to work with clients to better understand their water challenges and educate them on how our technology can provide cost efficiencies and production enhancements, yielded considerable results.
"We exceeded expectations this year both in terms of outperforming our financial metric targets, increasing our customer base and entering new geographic territories, all of which helped us grow revenues by 74% and return to levels of activity not seen since 2014."
Eggar said that, from a macro perspective, the board was "pleased" to see an improvement in overall market sentiment with a higher oil price environment and greater investment in the petrochemical sector in its key market of Saudi Arabia.
"With our financial position more assured, we are now well positioned for when the industry does recover and stabilise."
Connie Mixon, chief executive officer of MYCELX Technologies, added that 2017 was a "pivotal year" for the company, which saw it put in place "strong foundations" to support its ongoing strategy to focus on profitable growth.
"We are happy to report that the actions we took last year paid off and allowed us to secure near term revenue opportunities," Mixon explained.
"We exceeded our initial revenue forecast by 30%, thanks to the efforts of our team in Houston who made a significant first sale into Nigeria and the team in Saudi Arabia who secured a record three new projects in one year within SABIC."
Mixon said the company was "pleased" to announce its first contract win in Nigeria, for an onshore production project.
"The sale was of particular strategic importance to the company as both producers and regulators are searching for a new standard in water treatment in country.
"We also conducted a number of successful trials in Canada and West Texas and whilst projects in North America generally require a longer lead time we are hopeful that these trials will convert to revenue generation in due course.
"The momentum that our team has generated in Saudi Arabia continues with exciting new projects that underpin our outlook for 2018."