14th Jun 2019 14:30
(Alliance News) - Clean water technology firm MyCelx Technologies Corp said Friday it expects 2019 revenue and profit to be lower than the year prior and market expectations due to delays to anticipated project bids.
In 2019, MyCelx anticipates revenue to be around USD20 million. This is, the firm explains, "below existing market expectations."
With lower than expected revenue as well as the impact of cost reduction measures, earnings before interest, taxes, depreciation and amortisation is anticipated around USD2.5 million and net profit about USD500,000.
MyCelx expects to end the year with net cash of USD4.5 million.
In 2018, MyCelx reported adjusted Ebitda of USD5.6 million from revenue of USD27.0 million. Net profit had stood at USD3.1 million.
The AIM-listed firm adjusted the forecasts lower after it experienced delays to previously anticipated bids, despite a strong first quarter. A significant number of these delayed project are now either moved to 2020 or later in 2019.
In response to these delays, MyCelx has taken action to reduce costs associated with the delayed project bids.
MyCelx did emphasise that historically bid activity is more "active" in the second half of the year. Consequently, it expects bid activity to improve in the remainder of 2019.
"Whilst it is disappointing to have to reduce our financial guidance for 2019, especially after recording a strong performance in the first quarter, we continue to maintain a robust pipeline of opportunities," MyCelx Chief Executive Officer Connie Mixon said.
"Although the timing is difficult to predict, historically MyCelx has been more active on project bids in the second half of the year, so we remain well positioned to capitalize on unexpected project opportunities that are not accounted for in the new guidance", Mixon added.
Shares in MyCelx were 46% lower at 102.00 pence in London on Friday.
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