28 Jul 2015 07:00
28 July 2015
HaloSource, Inc.
("HaloSource" or the "Company")
TRADING UPDATE
HaloSource, Inc. (HAL.LN, HALO.LN), the global clean water technology solutions company traded on London's AIM, today issues a trading update for the six-month period ended 30 June 2015.
Total revenues for the period increased 3% to $7.5 million (H1 2014: $7.3 million) driven by a 33% increase in drinking water revenue. The Company also continued to reduce its use of cash in operations compared to the first half of 2014. At 30 June 2015, the Company had a cash balance of $9.8 million and was debt free after repayment of its line of credit in India of $1.0 million during the first half of 2015.
The Company remains committed to accelerating the commercialisation of its unique, proprietary water purification technologies by leveraging the go-to-market capacity of multinational consumer goods corporations ("MNC") through strategic partnerships. As experienced in previous years, our financial results will be more weighted to the second half of 2015. As a result, management remains confident that revenue and net earnings for the full year will be in line with market expectations.
Drinking Water
Drinking Water revenue for the period increased 33% to $2.7 million (H1 2014: $2 million), driven by continued growth with key strategic partners in China, India and Latin America including Perfect, Eureka Forbes, Jarden and others deploying HaloPure® disinfection technology in their products.
o Volumes shipped to Perfect increased 47% year-over-year (225,000 cartridges in H1 2015 vs. 153,000 cartridges in H1 2014)
o Jarden continued to build on its successful device launches in Peru, Chile and Colombia in 2014 and has plans to launch in Mexico and Brazil in the coming months
o As announced in December 2014, HaloSource extended its standstill agreement for exclusivity in the gravity fed retail and e-commerce channel segments in China with one of the world's largest MNC's with a payment of $500,000 (HaloSource received similar payments in 2012 and 2013). HaloSource continues to ship cartridges in support of the MNC's commitment to drive an entirely new category of water purification for Chinese consumers via more affordable gravity fed devices
o Progress continues with both our existing customers as well as several other segment leaders in Asia-Pacific and Latin America to incorporate HaloPure's bromine-based contact kill system into additional product introductions in the future
Recreational Water
Recreational Water revenue decreased 10% to $3.6 million (H1 2014: $4 million). Excluding a one-off stocking order of approximately $0.7M in H1 2014, year-over-year revenues are up 9%.
o Seeing continued sales growth in the packaged business driven by new partners such as Fluidra.
o Structural changes made in the Recreational Water sales team have improved the profitability of this business segment despite lower year-over-year revenues.
Environmental Water
Environmental Water revenue was stable at $1.2 million (H1 2014: $1.2 million) as the Company continued to focus its efforts on partnering with established solution providers such as Rain for Rent and Stormtec in North America in two key segments: mining and construction sediment removal.
Martin Coles, CEO of HaloSource, commented:
"We remain pleased with our continued progress in the important Drinking Water business as we deepen and broaden relationships with key industry players in high opportunity geographies and customer segments. We are also continuing to drive new relationships with a number of other significant MNCs who are committed to enter this exciting growth category in the coming 12-24 months.
Against this growth backdrop, we remain focused on achieving cash flow breakeven and profitability at least in-line with market expectations through continued revenue growth, margin expansion and tight control of costs."
Enquiries:
HaloSource | |
Martin Coles, Chief Executive Officer | +1 425 974 1975 |
James Thompson, Chief Financial Officer | +1 425 974 1993 |
Liberum Capital (NOMAD and Broker) | |
Richard Bootle/Jill Li/Steve Pearce | +44 203 100 2222 |
Allenby Capital (Joint Broker) | |
Chris Crawford/Kat Perez | +44 203 328 5656 |
Newgate (PR Adviser) | +44 207 680 6550 |
James Benjamin/Alex Shilov/Andre Hamlyn | halosource@newgatecomms.com |
About HaloSource
HaloSource, Inc. creates innovative solutions for water purification that serve people, preserve the planet and protect our most valuable resource. The Company works with scientists and industry experts across the globe in search of new ways to improve water quality and has been awarded more than 70 patents for its ground breaking chemistries, which provide effective and environmentally responsible solutions to the growing issue of water stress.
Founded in Seattle, Washington, HaloSource has grown to become an influential leader in three market segments: drinking water, recreational water, and environmental water treatment and remediation. HaloSource is headquartered in the US with operations in China and in India. Learn more about the Company's research and development and future cutting edge technologies by visiting www.halosource.com.
HaloKlear, HaloPure, SeaKlear and HaloShield are either trademarks or registered trademarks of HaloSource, Inc. All other trademarks, brand names or product names belong to their respective holders.