23rd Jun 2014 07:38
LONDON (Alliance News) - Environmental Recycling Technologies PLC saw its shares rise Monday as it reported a narrowed loss for 2013 and as its US licensee won a first big order for barge covers made using the company's technology.
The company holds worldwide intellectual property rights to the powder impression moulding process, a technology enabling 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 things like grain.
In a statement, it said North American licencee Brown Water Plastics, which is a subsidiary of James Marine Inc, has secured a first order for its barge covers made using the powder impression moulding technology. The order is worth significantly more than GBP1million to Brown Water Plastics, it said.
"This order follows a resurrection in the fortunes of the North American barge freight industry which has benefitted from the bumper 2013 North American grain harvest and the improved economic backdrop. The contrasts sharply with the previous year when the industry had faced the combination of a weak 2012 harvest and floods on the Mississippi. BWP expects to secure further significant orders, which are currently under negotiation," Environmental Recycling Technologies said.
Separately, Environmental Recycling reported a GBP3.5 million pretax loss for 2013, narrower than the GBP3.7 million loss it reported in 2012, as revenue rose to GBP119,000, up from GBP40,000, and administrative and finance costs fell.
It said it is in advanced talks to license the powder impression moulding process in China, and is actively looking for new partners and licensees in the UK.
"We have several enquiries that will require significant project design, implementation and delivery. Your board sees converting these enquiries and further licencee prospects to be our primary goal, therefore delivering the necessary business growth," it said in its earnings statement outlook.
"We believe that commercial interest in PIM is gathering momentum and that the strategic alliances and licence agreements either in place or in prospect will generate significant revenue growth in the near future," it added.
Environmental Recycling Technologies shares were up 28.9% early Monday, the biggest increase on the AIM All-Share index.
By Steve McGrath; [email protected]; @SteveMcGrath1
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