MyCelx Tech shares drop on project delays, while profits leap

12th Sep 2013 10:38

MyCelx Technologies, a clean water technology and engineering company, has posted an 85 per cent leap in first-half revenues, returning the company to a profit. However, the group warned that unforeseen end-user delays had occurred on some of its projects and are expected to defer associated revenues into 2014, therefore reducing projected equipment sales in the second half. "This is likely to result in revenue and gross profit expectations that are generally consistent with first-half results," MyCelx said. As a result, full-year results are likely to be affected and the group expects to be more cautious with its 2014 guidance. Before tax, profit totalled $0.33m (2012 H1: loss $1.54m), on revenue of $9.42m (2012 H1: $5.09m). Equipment revenues were up 41.9% to $3.93m (2012 H1: $2.77m), while recurring revenue from consumable filtration media and service rose 136.6% to $5.49m (2012 H1: $2.32m).The gross profit up 131.5% to $5.14m (2012 H1: $2.22m), while gross profit margins increased to 54.5% (2012 H1: 43.5%). The contracted order book was also looking healthy, at $7.42m compared to $3.33m a year earlier. Chief Executive Officer Connie Mixon said: "We are pleased with our results for the first half of 2013. Strong revenue growth and careful cost control means we are profitable at the pre-tax level at the half year. We are also seeing further momentum generated by our new Texas-based demonstration center. "The real-time demonstration of our technology and equipment capabilities is already translating into additional significant project opportunities with a number of super majors in the Gulf of Mexico." The group added that it was very well positioned to exploit the needs of the industry to implement a cost effective, proven technology.Looking ahead it said its order book still underpins substantial growth next year and it looks forward to the future "with confidence".The share price dropped over 9% by mid-morning. NR