LONDON (Alliance News) - Modern Water PLC on Wednesday said it has started 2018 strongly with revenue and profit rising significantly in the first quarter.
The water technologies firm said revenue was up 37% for the three months to the end of March compared to the same period the year before. The results were driven by good performance from both its Monitoring and Membrane divisions, it said.
The improved performance in the Monitoring division came after the company's decision to terminate the contract of its sole Chinese distributor and pursue a multi-channel sales approach in one of its most important markets.
In the Membrane division, growth was boosted by progress made on Modern Water's waste-water treatment plant in Gibraltar, which is estimated to be completed in 2020.
Gross profit rose 40% year-on-year while the company's overheads fell 8.0%.
Modern Water said it had GBP343,000 in cash as at Friday last week, down from GBP500,000 it had at the end of 2017. In March, the company entered into a new GBP500,000 two-year loan facility with Barclays Bank PLC, which, Modern Water said, remains un-utilised.
Looking ahead, the company said it expects its Monitoring division to return to earnings before interest, taxes, depreciation, and amortization breakeven for 2018.
Shares in Modern Water were trading 22% higher at 8.50 pence per share on Wednesday.
