27th May 2020 12:21
(Alliance News) - MyCelx Technologies Corp on Wednesday reported a deterioration in its earnings for 2019, after project delays led to a fall in revenue.
MyCelx provides water treatment technology to the oil & gas and manufacturing sectors.
Shares were trading 1.1% higher at 47.00 pence each on Wednesday morning in London.
For 2019, MyCelx posted revenue of USD11.9 million, down 56% from USD27.0 million reported for 2019. Pretax loss was USD2.5 million, a sharp swing from a profit of USD4.4 million the year prior.
The dive in revenue was attributed to project delays and postponements of bidding activity in Saudi Arabia due to political issues in the Middle East. The decrease in in oil prices also hurt the company's trading performance.
Looking ahead, MyCelx said it is cutting costs to mitigate the negative effects of the virus pandemic and lower oil prices.
"Whilst we expect to see a global economic slowdown over the coming year, our core markets and key customers will continue to operate and require our solutions although potentially at lower production levels. The company has taken specific employee safety and cost-saving actions in light of Covid-19 and plunging oil prices to ensure the team members remain safe while following effective guidelines, and the company is poised to move quickly when the unprecedented global market disruption eases," said Chair Tim Eggar.
As at the end of December, MyCelx had cash of around GBP3.6 million.
By Ife Taiwo; [email protected]
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