30th Jun 2020 13:43
(Alliance News) - Verditek PLC on Tuesday said its loss narrowed in 2019 after a sizeable impairment the year before that wasn't repeated, and it is expecting to generate free cash flow in 2020.
Shares in Verditek were up 14% at 8.30 pence in London in afternoon trading.
Green technology investment firm Verditek reported a GBP1.9 million pretax loss for 2019, narrowed from a GBP2.7 million loss in 2018.
This resulted from a GBP624,926 impairment of an investment in an associate in 2018 that did not repeat in 2019. In addition, administrative expenses fell 11% to GBP1.7 million from GBP1.9 million.
No revenue was recorded, with all investment funds raised used for production equipment.
Chief Executive Robert Richards, who took over on June 2, said: "In the first weeks of my tenure, I have addressed the overheads within the company to make us lean for a more fit for purpose, hence significantly reducing the monthly burn rate. I expect that with the reduced overhead and expectant ramp up in revenues that we will be generating free cash flow within 2020."
On Monday last week said it had received its first order in the oil & gas industry for its ultra-lightweight solar product from SAF Group. The solar panels will be used to provide power for the construction camp at Shikarpur Compressor Station in Pakistan, where SAF is the local partner of Caterpillar Inc subsidiary Solar Turbines Inc. SAF will evaluate the operating performance of Verditek's solar with the potential to wider-scale deployment on their projects.
Richards said: "Having recently achieved our first commercial order in the oil and gas sector, the continued expansion into verticals in which we can displace liquid fuels, our strengthened global sales reach by increasing the number of agents and distributors appointed around the world, and our ongoing discussions with other complementary world leading manufacturers and suppliers to build strategic partnerships, fill me with excitement about the future of Verditek."
By Anna Farley; [email protected]
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