(Alliance News) - OTAQ PLC on Friday said its pretax loss narrowed in the first half of its financial year, following a rise in sales for the company's Offshore division.
The Lancaster-based producer of marine technology for offshore oil and gas industries reported a pretax loss of GBP538,000 in the six months that ended September 30. This was reduced from a loss of GBP881,000 a year before.
OTAQ's revenue rose 11% to GBP2.0 million from GBP1.8 million. Most importantly, the Offshore division reported a 33% rise in revenue to GBP1.2 million from GBP900,000 in the first half of 2021, due to increased rental contracts for the division's OceanSense product.
However, revenue in the Aquaculture division declined by 11% to GBP800,000 from GBP900,000.
The revenue growth has meant that earnings before interest, tax, depreciation and amortisation swung to a profit of GBP13,000 from a loss of GBP171,000 a year before. OTAQ said improved overhead cost control and a change in the sales mix also led to the increase.
Looking ahead, OTAQ said it anticipates a period of adjustment whilst new products are launched and developed commercially, after having raised GBP3.6 million in fresh funds to pay for all this.
Chief Executive Phil Newby said the group will continue to launch new products and "significant" business development throughout the next period in order to return OTAQ to growth and improved profitability.
OTAQ shares were traded on AQSE in London at 4.66 pence on Friday morning, up 3.6% from their previous close of 4.50p.
By Jaskeet Briah; jaskeetbriah@alliancenews.com
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