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Modern Water starts year 'strong', shareholders told
(WebFG News) - Investors in water and wastewater treatment technology firm Modern Water were told how the company had started 2018 "strongly" on Wednesday, as they gathered for the annual general meeting.
The AIM-traded company's group revenue in the first quarter was 37% higher than in the same period last year, they heard.
Both divisions were said to be performing "well", with China the primary driver for the monitoring division and the advance works contract for the Gibraltar wastewater treatment plant boosting the membrane division.
Gross profit in the first quarter was 40% higher than 2017, and group overhead was 8% lower.
The group's cash position as of 20 April stood at £0.34m, and the $0.6m finance facility secured on Modern Water's receivables remained un-utilised.
"Management is confident that the strategic decision to terminate the contract of our sole Chinese distributor and pursue a multi-channel sales approach in one of our most important markets, was correct and first-quarter financial results clearly support that," said non-executive chairman Alan Wilson.
"We expect further progress in the remainder of 2018 and for the monitoring division is expected to return to EBITDA breakeven for the year.
"In the membrane Division, our principal process engineer is currently on site in India overseeing the final commissioning of our first full-scale all membrane brine concentrator (AMBC)."
Wilson said two further paid-for trials with other industrial customers had been "successful".
The company was also well-positioned in China, and its first AMBC project was due to be commissioned shortly, he added.
"With reference AMBC plants operational in both our key markets, we expect to see an acceleration of licence sales for this product during 2018.
"The Gibraltar advance works contract is progressing well and we remain committed to helping HM Government of Gibraltar to achieve its goal of completing the waste water treatment plant in 2020."