LONDON (Alliance News) - Modern Water PLC Wednesday said its loss narrowed in 2013 as it cut costs and signed a number of new contracts, while its cash burn was also reduced.
The company, which develops and supplies systems for water monitoring, posted a pretax loss of GBP4.8 million compared with a loss of GBP5.5 million in 2012, even though revenue fell to GBP3.5 million, from GBP3.8 million. It cut both its cost of sales, pushing up gross profit to GBP1.7 million, from GBP1.4 million, and its administrative expenses.
Crucially, its cash outflow reduced to GBP3.9 million during the year, from GBP5.5 million in 2012. It ended 2013 with cash of GBP11.4 million, up from GBP5.8 million in 2012, and no debt.
Modern Water said its continued losses reflect the early stage of commercial roll outs of a number of products prior to securing significant sales contracts, particularly in its membrane division.
Modern Water's two main divisions - membrane processing and monitoring - experienced mixed fortunes. The membrane division saw revenue dip to GBP36,000 from GBP378,000, while the monitoring division improved with revenue rising to GBP3.5 million from GBP3.4 million.
Modern Water said its significant deals during the year included three key contracts in China as part of the the UK government's Chinese trade mission, and its monitoring division signed a new product development contract with a United Phosphorus Inc. which will see Modern Water develop a new herbicide testing system.
Looking ahead the company said it expects its monitoring division to be in a position for further growth with a good line-up of new products and a strong order book.
"We look forward to continuing the growth of the company into 2014, targeting new and existing markets and territories," Executive Chairman Neil McDougall said in a statement. "We remain focused on increasing the reach of our marketing activities, providing leading technology to customers and maximising shareholder value."
The company isn't currently paying a dividend.
The stock was trading at 37.30 pence Wednesday afternoon, up 0.67 pence or 1.8%.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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