25th Sep 2019 11:55
(Alliance News) - Eqtec PLC on Wednesday said it intends to focus on cost reductions after higher finance expenses resulted in widened loss in the first half of 2019.
The waste to energy technology company said its pretax loss widened to EUR2.0 million in the six months to the end of June from EUR1.9 million reported a year earlier, as finance costs rose to EUR855,504 from EUR681,149.
Therefore, Eqtec said it has identified a series of cash cost reduction initiatives, including cash salary reductions currently agreed through to July 2020, which are being implemented and which the company believes will lead to an eventual current annualised cash cost reduction of 30%.
Meanwhile, revenue tripled to EUR1.6 million from EUR546,288 year-on-year, as it has made progress across all of its three projects.
"During the first half of 2019, we continued to make strong progress in developing our project pipeline in all targeted sectors and this has continued into the second half of the year," said Non-Executive Chair Ian Pearson.
"The focus of the Board will be on building on the foundation for growth, focusing on increasing sales in the context of a leaner organisation, continuing to solidify the capital structure of the group and focus on funding requirements including establishing new funding structures for project finance and additional funds to continue with its activities and its planned development programme," added Pearson.
Eqtec shares were trading 3.9% lower on Wednesday in London at 0.20 pence each.
By Evelina Grecenko; [email protected]
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