16th Sep 2019 10:38
(Alliance News) - MyCelx Technologies Corp on Monday said its profit decreased significantly in the first half of 2019 due to a slowdown in bidding activity.
The clean water technology company reported pretax profit of USD450,000 for the six months to the end of June compared to USD2.1 million profit generated a year earlier, a 78% decline. Revenue fell by 25% to USD9.1 million from USD12.2 million year-on-year.
MyCelx said it has delivered a strong first quarter but has encountered delays in previously anticipated project bids. The company also highlighted that one of its key clients has not been immune to the effects of the current macro-economic "pressures".
Selling, general and administrative expenses increased by 8% to USD4.2 million due to additional staff added in 2018, MyCelx said, to support the "rapid" growth during that year.
Looking ahead, Chief Executive Connie Mixon said: "MeCelx remains well placed to respond to market opportunities in its core market in the second half. However, given the challenges currently facing the oil and gas market in the Middle East, we now expect revenue in 2019 to be at the lower end of our current forecast."
In mid-June, MyCelx had revised its revenue expectation for 2019 to USD20.0 million, below last year's revenue of USD27.0 million. Earnings before interest, taxes, depreciation and amortization was expected to fall to USD2.5 million from USD5.6 million last year, and net profit was projected slide to USD500,000 from USD3.1 million.
MyCelx shares were trading 2.9% lower on Monday in London at 66.00 pence each.
Related Shares:
Mycelx Di