British forward osmosis pioneer Modern Water has reported positive financial results for 2013 with gross profit up to £1.7 million from £1.4 million in 2012 and has high hopes set for the Chinese membrane market following the signing of contracts.
Highlights from its 2013 financial results included operating losses reduced to £4.9 million from £5.6 million in 2012 and cash of £11.4 million, up from £5.8 million cash in 2012.
Last year the company reported strong growth in its water monitoring equipment division, with 2012 sales reaching £3.4 million, up from £1.2 million in 2011 (see WWi story).
In 2013 the company’s monitoring division showed continued growth, albeit to a lesser extent, raising £3.5 million in revenue. The firm put this down to the trace metal range monitoring products, which saw a 9% increase in sales from 2012.
Revenue from its membrane division was down to £36,000 in 2013 from £378,000 recorded in 2012.
However, Modern Water believes China will be a strategic market and further proving ground for its FO membranes, which are currently being used in two facilities in Oman and one in Gibraltar.
Three new contracts were agreed by the company when attending a UK government mission to China in December 2013, led by Prime Minister David Cameron.
The most significant signing was for an outline contract to provide a 500 m3/day FO desalination plant at the XuGong Island development in Hangzhou Bay, near Shanghai.
Furthermore, a distributor agreement was signed with Chinese desalination equipment and construction company Hangzhou Water (see WWi story).
It was in February 2012 when China's State Council announced its 12th Five-Year Plan (FYP) for desalination, establishing a higher than expected target of 2.2 - 2.6 million m3/day of online capacity by 2015, versus less than 1 million m3/day today (see WWi story).
Other 2013 highlights included the first year complete of its operation and maintenance contract for its largest FO plant (200 m3/day) located in Al Najdah, Oman.
Neil McDougall, executive chairman of Modern Water, said: “The year began with the highly successful share placing in February before ending positively with the agreement of three new contracts in China, a key market for our development, as part of the UK Government trade mission.”
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