8th Mar 2016 10:27
LONDON (Alliance News) - Clean water technology company HaloSource Inc on Tuesday said its pretax loss widened in 2015 after it restructured its operations and it was hit by weaker-than-expected demand.
HaloSource's pretax loss for 2015 was USD9.4 million, compared to USD7.5 million the year earlier. Revenue fell to USD13.9 million from USD17.9 million in 2014 but was not matched by a corresponding fall in its cost of sales, squeezing gross margins. The company also booked a goodwill charge on the sale of its environmental water business.
HaloSource is now focused on its drinking water division and sold the HaloKlear environmental water unit to Dober Chemical Corp for around USD2.0 million in February. Weaker-than-expected demand, however, meant drinking water revenue fell to USD4.2 million in 2015, from USD6.3 million a year earlier.
This was driven by orders expected in 2015 being pushed into the first quarter of 2016, as flagged by the company in January. Looking to 2016, HaloSource said the year will be focused on further cost-cutting, with another 20% of its US-based workforce to be cut by the end of the first quarter, followed by modest expansion in India and China.
"We are implementing our plans to focus exclusively on the growth of HaloSource's Drinking Water business, whilst continuing to aggressively reduce our cost of goods and operating expenses," said Chief Executive and President Martin Coles.
HaloSource shares were untraded on Tuesday, having last traded at 4.50 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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