9th Sep 2014 09:19
LONDON (Alliance News) - HaloSource Inc Tuesday posted a narrowed pretax loss in the half-year to the end of June, driven by higher revenues and lower costs.
HaloSource produces clean water and antimicrobial technology.
The company posted a pretax loss of USD5.7 million, narrowed from USD7.0 million, as revenue rose to USD7.3 million from USD5.9 million, and it lowered operating expenses as it reduced executive team wages. Additionally, the settlement of litigation with Molycorp Minerals in 2013 has led to reduced legal expenses going forward.
Revenue growth was driven by increasing orders from existing and new partners across its portfolio, HaloSource said. Drinking water revenue rose to USD2.0 million from USD980,000, due to growth with key strategic partners in China and India. Environmental water revenue rose to USD1.2 million from USD950,000, as it partnered with North American providers in the mining and construction sediment removal segments.
Recreational water revenue was broadly in line with the previous year at USD4.0 million, hit by weakness in the North American speciality chemicals market in the first-half as adverse weather hit the seasonal pool and spa industry.
Gross margin rose to 39% from 37% due to the result of decreased raw material costs in its recreational water business, and increased economies of scale.
It said that its operating and financial model means it can expand its revenue and gross margin with minimum increases in its administrative expenses, and as a result, expects its cash burn to decrease in line with market expectations.
"We remain confident that our focus on what we do best, innovation in the chemistry of water purification, coupled with strategic partnerships with key players in each segment, will deliver continued rapid sector and geographic growth in revenue, margins and profitability," said Chief Executive Martin Coles in a statement.
Shares in HaloSource were trading down 3.3% at 6.53 pence per share Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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