25th Jan 2016 08:35
LONDON (Alliance News) - HaloSource Inc said Monday it expects to report a fall in revenue for 2015, but has now "fully resolved" some operational challenges that had hit its business during the year.
The company, which makes clean water technology, expects to report revenue of around USD16.3 million for 2015, down from the USD21.0 million it reported in 2014.
Around USD1.9 million in orders that had previously been expected to be shipped in 2015 have now been pushed back to the first quarter of 2016, HaloSource said.
Shares in the company were down 31% at 3.99 pence Monday.
Revenue in its drinking water segment fell to USD4.2 million from USD6.3 million, the company said, due to delays in key customer roll-outs and an unscheduled shut-down at its manufacturing facility in China. This facility has since resumed full production.
In its environment water segment, revenue fell to USD2.4 million from USD3.0 million, hit by the drier than average weather across the US throughout 2015.
Finally, in its recreational water segment revenue fell to USD9.7 million from USD11.5 million, on reduced sales from two of the company's larger, lower margin customers.
"We have implemented a number of structural changes during 2015 which we expect to continue to improve gross margins in both the recreational and environmental water businesses while we continue to explore strategic opportunities to strengthen our balance sheet and improve cash reserves," said President and Chief Executive Officer Martin Coles in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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