3rd Sep 2013 10:22
LONDON (Alliance News) - Hydro International PLC Tuesday said its half-year pretax profit rose, despite decreased revenues from its UK operations, with its Americas operations contributing a higher percentage of revenues than this time last year.
Hydro International, which makes products to treat wastewater and control the effects of rainwater, such as flooding or pollution, said it made pretax profits of GBP409,000 for the six months to June 30, compared with GBP283,000 for the corresponding period the year prior.
"Hydro's markets continue to be challenging and the business remains exposed to the timing of major projects and the cyclical environment within certain sectors of our industry, most notably within the UK Wastewater division. Although these factors provide a level of continuing uncertainty, we have made solid progress during the first half-year and our expectations for the full year are in line with forecasts," Roger Lockwood, chairman, said in a statement.
The company saw slightly lower half-year revenues, down 1.3% to GBP15.1 million. It said a GBP2.4 million decline in revenues in the UK and Ireland due to the expiration of three major contracts with Thames Water was offset somewhat by increased the earlier-than-expected receipt of a wastewater contract in Calgary, Canada.
Hydro maintained its outlook that it does not anticipate other growth to completely make up for its expiring Thames contracts, which had been secured between 2010-11. They are due to expire over the coming year.
With its declining UK revenues and profits, Hydro's Americas operations are beginning to contribute more to Hydro's revenues and profits. As a percentage of Hydro's total revenue, it contributed 48%, up 16 percentage points on the corresponding period last year.
The company said it also secured its first orders in Saudi Arabia with stormwater contracts worth GBP2.4 million.
Hydro shares were Tuesday quoted at 98 pence per share, down 11.50 pence, or 11%.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
HYD.L