30th Sep 2013 08:24
LONDON (Alliance News) - Environmental Recycling Technologies PLC Monday reported wider first-half losses even though revenues increased and it cut administrative costs, as it booked a GBP1.6 million charge to cover non-payment of a loan by 2K Manufacturing.
The company reported a net loss of GBP2.4 million for the six months to June 30, wider than the GBP1.5 million loss it reported a year ago, even though revenues increased to GBP99,000 from GBP30,000.
It booked a GBP1.6 million impairment charge as 2K Manufacturing failed to pay a loan that came due in July. Environmental Recycling said it had looked at acquiring 2K, but had decided that while the business is sound it is lacking the right investment strategy and clear strategic direction and therefore wouldn't continue talks until 2K had settled all its outstanding accounts.
"Subsequently, the company has taken legal advice to pursue all means open to it to recover the monies owed to it," Environmental Recycling said in a statement.
It holds the patent rights to the Powder Impression Moulding process which is capable of converting mixed waste plastics into commercially viable products.
The company has recently exhibited its products in the UK, China and Europe and said it has received "two serious enquiries" which mean it will have to start a significant recruitment drive to hire more expertise and the resources to do the work.
"The company will be continuing to promote the technology, but with the option of turnkey solutions, which may include product route to market, continuing after sales support, raw material supply and in house research and development," it said.
The company's shares were down 22% at 0.82 pence early Monday, one of the biggest declines on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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