Results were primarily down to commissioning of the new Canton plant
Companies: Hydrodec Group plc
Hydrodec Group (LSE: HYR) announced a whopping 148% increase in revenues in its interims this morning, as the AIM-listed firm continued to make significant progress towards profitability. The results were primarily down to the full commissioning of the new Canton plant at the tail-end of last year, coupled with increasing market penetration.
The clean-tech industrial oil re-refining group saw revenues from continuing core operations increase to $8.1m, up from $3.3m H115 (+148%). Group EBITDA improved dramatically during the period, falling to $1.1m loss down from $3.4m loss in H115. The group expect to record positive EBITDA in H2. The company's overall loss for H1 was $5.3m, a significant improvement on the $8.4m loss in H1 last year.
Gross unit margins were higher YoY as the groups focus on reducing corporate costs made strong progress, falling from $2.1m H115 to $1.5m. This was against a backdrop of increasingly challenging market conditions.
CEO Chris Ellis said he was pleased to report significant progress in moving Hydrodec towards profitability and re-establishing its position in the transformer oil market, despite tough trading conditions:
"Whilst market conditions and margins, particularly in the US, remain challenging, both operations are generating positive EBITDA and the focus now for the rest of this year is to improve margins and profitability as well as taking advantage of any opportunities the current market may yet present to grow the business within both our existing platforms and in new markets."
Hydrodec's technology is focused on oil re-refining and chemical process, and the company targets the multi-billion US$ market for transformer oil used by the world's electricity industry. HYR expect the global transformer oil market to grow from $2 billion in 2015 to US$2.79 billion by 2020.
The company currently processes spent oil at two commercial plants in Canton, Ohio and Bomen, Australia.
