29th Sep 2014 10:10
LONDON (Alliance News) - Shares in Environmental Recycling Technologies PLC fell by almost 20% Monday morning after it said it narrowed its first-half loss on the back of lower administrative expenses, after last year's results were hit by an impairment charge.
However, the company reported revenue of only GBP31,000 for the six months to June 30, compared with GBP99,000 a year earlier.
The company said higher finance costs in the first half were more than offset by an GBP1.6 million impairment it booked in the first half of last year, which pushed up overall administrative expenses and wasn't repeated.
It said this caused its pretax loss to narrow to GBP1.6 million from the GBP2.4 million loss in the first half of 2013.
The company's stock was trading 19% lower Monday morning at 0.465 pence.
Environmental Recycling Technologies holds worldwide intellectual property rights to the powder impression moulding process, a technology that enables companies to make plastic products that can be recycled at the end of their life. One such product is plastic covers for barges that transport commodities such as grain.
"Our existing licensees in the UK and US continue to perform well with record level order books. As previously reported, we continue to receive significant new interest in the US and indeed the Americas generally," the company said in a statement.
It said that given its progress made to date, the company expects to widen its intellectual property bank and commercial activities this year.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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