10th Sep 2015 08:57
LONDON (Alliance News) - Clean water technology company Mycelx Technologies Corp Thursday said that expense control measures will allow it to be cash neutral in its second half and supports its goal of being cash generative in 2016, as it posted a narrowed pretax loss for the first half of 2015.
For the half year to end-June the company reported a pretax loss of USD1.3 million, narrowed from a pretax loss of USD2.2 million, as revenue rose to USD8.7 million from USD7.5 million.
Revenue growth was driven by a rise in revenue from consumable filtration media and services as a result of work on two plant turnaround projects with an integrated petrochemical plant in Qatar and a Saudi Arabia Basic Industries Corp affiliate during the half year, which offset a decline in revenue from equipment sales and leases.
Operating expenses during the period were cut to USD5.8 million from USD6.3 million as part of the company's efforts to reduce costs, shedding USD400,000 in staff costs and USD170,000 in consulting and accounting fees, although it saw a USD60,000 increase in property and office costs associated with its new warehouse location in Houston.
Mycelx said that market conditions during the first half continued to be challenging for the oil and gas industry and associated service sector. The company believes that these volatile market conditions will likely continue into 2016, and as a result it has implemented cost-control measures. It said these initiatives will not hinder its ability to convert its current pipeline into revenue generation.
"We have adopted a risked approach to our revenue outlook which together with our cost cutting initiatives means we are on track to achieve our goal of being operationally cashflow neutral in H2 2015 and are well positioned to be cashflow generative in FY2016," said Chief Executive Officer Connie Mixon in a statement.
Shares in Mycelx were untraded Thursday morning. They last closed at 40.00 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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