20 Apr 2011 07:00
20 April 2011
Modern Water plc
("Modern Water" or the "the Group")
AGM Statement
Modern Water plc, the owner of leading water technologies focused on addressing the scarcity of fresh water, the treatment of wastewater, and monitoring of water quality will hold its Annual General Meeting at 10:am today, 20th April, at the Group's head office in Guildford. Neil McDougall, Modern Water's Executive Chairman, will provide the following statement at the meeting:
"Modern Water recorded many important achievements in 2010. Our various technologies demonstrated in situ operating excellence and received important industry and customer recognition for their cost saving qualities.
"During the first half of the year, we began operating our first Manipulated Osmosis evaporative cooling plant in Oman. Subsequent testing of the system exceeded expectations and the potential for our technology to reduce power consumption and expenditure costs within a commercial setting has now been proven.
"Our desalination plant at Al Khalouf in Oman also received important recognition during the year following a visit by the country's Public Authority for Electricity and Power. The Authority subsequently verified that operating expenditure is significantly reduced compared with a standard reverse osmosis plant. We also impressed the industry's leading trade journal, Water Desalination Report, which gave our MO technology its highest ranking after visits to the two Omani plants. These very positive responses to our desalination technologies give us further confidence in their attractions to markets where fresh water scarcity continues to be a fundamental economic and social problem. We believe that we are well placed to win further orders for our desalination technology.
"After the year-end, the Group was also able to make two further important announcements. In February, we were delighted to report that we had acquired Cogent Environmental, a global environmental and process monitoring business, marking an important strategic step forward in the Group's water monitoring business. Cogent's products and services fit well with our existing water monitoring technology, the combination of which will provide access to additional production capability and new routes to market. As a result of the acquisition, we have established a new division, MW Monitoring, to consolidate our activities in the developing instrumentation and monitoring industry.
"Two weeks later, we announced a boost to the new Monitoring Division when Cymtox secured a further order for 25 of its Continuing Toxicity Monitor Units from China. This new order was the result of a pipeline of potential sales which followed previous orders from this important region. We expect this key market to experience major growth in coming years as legislation to monitor toxicity levels of surface waters strengthens.
"Our financial position remains strong with £19.3 million in cash at the year-end and no debt. The key drivers for our business remain firmly in place. Global demand for clean water is increasing while supply remains under severe pressure. We are also making progress in our efforts to translate the potential of our various technologies into more commercial orders. Modern Water remains committed to the delivery of solutions for its existing customer base while developing market opportunities with new customers across all our areas of expertise, thereby growing revenues and enhancing value for our shareholders."
For further information:
Modern Water plc
Neil McDougall, Executive Chairman
www.modernwater.co.uk 01483 696 011
HeadLand Consultancy
Howard Lee 020 7367 5225
Nomura Code
Juliet Thompson or Phil Walker 020 7776 1200