27 May 2010 07:00
27 May 2010
Hydrodec Group plc
("Hydrodec" or the "Company")
Trading Update
The Chairman of Hydrodec Group plc, the cleantech industrial oil refining group (AIM:HYR), will make the following statement at the Annual General Meeting of the Company which will be held later today.
Sales volumes continue to increase following a difficult first quarter as market acceptance of the SUPERfine product gains momentum. The Company has recently taken its first orders from a new US customer, which is a major original equipment manufacturer. The order followed rigorous testing by the customer whose independent validation of SUPERfine's performance as a leading, high specification transformer oil is considered an important breakthrough in terms of further developing the customer portfolio across the sector.
US market conditions continue to stabilise with more balanced supply and demand in the base oil market generally. Performance in Australia has strengthened measurably. The availability of feedstock continues to improve from the tight supply experienced earlier in the year and as a result the improvement in the Company's margins since the start of the year has been maintained.
These performance improvements, together with the measures taken by the Company after its announcement of 23 March, have contributed to an improved working capital position. The Board now expects that, on current market conditions and expected sales volumes, the Company will have adequate working capital for the financial year and beyond.
The Japanese strategic alliance with Kobelco Eco Solutions continues to make steady progress. The approval of the Japanese patent office to the re-registration of the Japanese patent in the name of Hydrodec from CSIRO, the original patent holder, has now been received. The first Japanese site has now been selected and local government approvals are well advanced. A second site, for a further Canton-size plant, has also been identified.
For further information please contact:
| Hydrodec Group plc | 020 7786 9810 |
| Neil Gaskell, Chairman Mark McNamara, Chief Executive Mike Preen, Company Secretary |
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| Numis Securities Limited | 020 7260 1000 |
| Nominated Adviser: Simon Blank Corporate Broker: David Poutney, Alex Ham |
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| Corfin Communications | 020 7977 0020 |
| Neil Thapar, Harry Chathli, Alexis Gore |
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