Modern Water’s restructured membrane division to break even by 2018
Modern Water says it can turn around its struggling membrane division sales following a restructuring to break even by 2018...
LONDON, England – British water technology company Modern Water says it can turn around its struggling membrane division sales following a restructuring to break even by 2018.
The company’s share price jumped 9% on release of its 2016 financials today, showing a 12% increase in revenue to £3.6 million (2015: £3.2m), with gross profit up 54% to £1.9m (2015: £1.2m).
Losses in the company’s membrane division were reduced to £951,000 from £1.6 million in 2015.
Following stagnant sales of forward osmosis (FO) membranes for municipal water, the company restructured its membrane division to include brine concentration technology, selling its first unit to an Indian textiles company, a well as a containerized reverse osmosis (RO) unit, with its first order signed last summer in Oman
Modern Water initially targeted municipal drinking water with its FO systems, with installations in Gibraltar and Oman.
It has since repacked the FO technology to target the pre-treatment market for thermal desalination, as well as offering an evaporative cooling system for industrial applications.
Alan Wilson, chairman, said: “With an un-geared balance sheet, a cash generative monitoring division, the membrane division expected to break even in 2018 and a trade finance facility secured, we believe the group now has the resources in place to become a genuinely sustainable, profitable business.”
He added: “Clearly the strategy review we undertook in 2015 is now bearing fruit. The monitoring division delivered its first positive EBITDA since 2012 and we have successfully commercialized our AMBC technology, all whilst significantly reducing our cash burn. We enter 2017 with growing confidence.”