Modern Water PLC Trading Statement (5569W)
August 02 2018 - 2:01AM
UK Regulatory
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RNS Number : 5569W
Modern Water PLC
02 August 2018
Modern Water plc ("Modern Water" or "the Company")
Trading Statement
Modern Water is pleased to announce strong progress in the 6
months ended 30 June 2018. Group sales are expected to be up over
20% on the same period last year with gross profit up over 35%.
Overhead is flat on last year so that the loss after tax for the
period is expected to have been reduced by c. GBP400k compared to
H1 of 2017 (GBP1.8m).
Monitoring Division
Revenue is expected to be up almost 30% compared to the same
period of 2017 and gross profit increased by 50%. This growth was
driven by strong performances in both the USA and China.
The Division is expected to achieve cash-flow breakeven in 2018
despite a significant investment in building its local presence in
China and investment in product upgrades, in particular of its
best-selling toxicity product, the Microtox LX. The Division
remains on track to launch the upgraded Microtox LX in the second
half of the year.
Membrane Division
As a world-first, Modern Water's proprietary AMBC brine
concentration plant was installed and commissioned at a site in
India owned by Bodal Chemicals, the major international chemicals
company.
In China, Modern Water announced its joint venture with Hangzhou
Shangtuo Environmental Technology Co. Ltd. (trading as "Sunup")
with the aim of driving sales of Modern Water's AMBC technology.
The first plant for Sunup has been commissioned. Although no new
AMBC sales were announced in the first half of 2018, management
believes that all the pieces are now in place, including the
appointment in the first half of a full-time international sales
director, to drive this business forward.
Gibraltar
The Advance Works Contract with HM Government of Gibraltar for
the WWTP (Waste Water Treatment plant) continues to progress well
and both the Chief Minister and the Environment Minister reiterated
their commitment to the project in their recent budget
speeches.
Fabian Picardo, the Chief Minister, stated "we can expect to see
ground broken during the course of this calendar year".
Equity Investment and Open Offer
As announced in early July, Modern Water's joint venture partner
in China, Sunup has agreed to invest ca. GBP550k to buy a 5% stake
in Modern Water plc, subscribing 11p per share. Sunup will also be
granted a warrant per new share, exercisable within 12 months at
13p per share.
Upon foreign investment approval for the subscription by the
local Chinese authorities and receipt of the monies, Modern Water
will launch a 1 for 10 open offer of new shares at 11p per share,
which is expected to take place following release of the interim
results expected by early September.
---Ends---
For further information:
Modern Water plc +44 1483 696 000
Simon Humphrey, Chief Executive Officer
WH Ireland Limited +44 207 220 1666
Chris Fielding (Nominated Adviser)
James Sinclair-Ford
Tavistock +44 207 920 3150
James Collins
Notes to editors
Modern Water designs and supplies advanced membrane systems
using its world-leading membrane process technologies. The company
also develops and supplies advanced systems for water monitoring.
Its shares trade on the Alternative Investment Market of the London
Stock Exchange.
www.modernwater.com
Budget speeches by HM Government of Gibraltar can be found
here:
https://www.gibraltar.gov.gi/new/sites/default/files/press/2018/Topical%20Speeches/Chief%20Minister%20Budget%20Speech%202018.pdf
https://www.gibraltar.gov.gi/new/sites/default/files/press/2018/Press%20Releases/Cortes%20Environment%20Budget%202018.pdf
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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