Modern Water Warns On 2017 Results Amid Changes In Sales Model

21st Mar 2018 13:16

LONDON (Alliance News) - Modern Water PLC said Wednesday it expects revenue and profit to be below market forecasts for 2017 due to sales model changes, which have also resulted in sales acceleration in the new year.

The water treatment technology firm said that - although broadly in line with 2016's figures - 2017 revenue and operating profit before exceptional items will be below current market expectations.

In 2016, Modern Water generated GBP3.1 million in operating loss and revenue of GBP3.6 million. Pretax loss stood at GBP2.6 million.

Modern Water expected the weaker results "primarily due to a shortfall in anticipated revenue originating from its Monitoring Division in China following its change in 2017 of its product sales model from exclusive distributor to multiple channels."

Modern Water emphasised that due to this change in sales model, however, its Monitoring Division sales were 17% higher in the first two months of 2018 than the same period in 2017. It also reported a "substantially" stronger order book.

Modern Water expects to report full year results by the end of March.

Shares in Modern Water were 8.5% lower at 9.84 pence on Wednesday.

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