4th Mar 2014 12:38
LONDON (Alliance News) - Hydro International PLC Tuesday said its pretax profit fell significantly in its full-year 2013 as revenue figures and expenses hit the company.
The environmentally sustainable water treatment technology company said its pretax profit fell 39% to GBP1.4 million from GBP2.3 million the previous year as revenue fell 7.2% to GBP32.2 million from GBP34.7 million in 2012.
The company said revenues fell due to major contracts for Thames Water reaching their conclusion and a fall in new projects being placed by the UK water companies, leading to a 46% fall in revenues from the company's Europe Wastewater operations.
Hydro International said it expects the difficulties it faced in its European Wastewater Business during 2013 to continue into 2014 and impact its first-half year figures in particular.
The company left its full-year dividend flat at 3.6 pence, despite its policy to increase or decrease dividends progressively with growth or loss in profits.
Hydro also increased its administrative expenses 5.7% to GBP11.3 million from GBP10.6 million in 2012 as higher staff costs, including increased profit-related bonus costs for employees in the firm's US-based divisions, and incremental costs associated with the recruitment and remuneration of its Chief Executive hit the company.
However, the company's revenue figures outside of Europe were strong, with a 38% increase in revenues from its Americas Stormwater operations and a 79% increase in revenues from the company's international operations with strong order intake and expansion plans in China.
Hydro International shares were down 6.9% to 115.00 pence, putting it in the top AIM fallers Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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