Hydro Intl Share Discussion Threads

[rivaldo] 21/2/2008 22:53

Orange1, the difference as I see it is that the RNS doesn't include the mention of profits that the internal PR release did. Waggle's post is probably a good summary, though I'm not sure I'd trust such an internally generated release to be entirely accurate on profit margins - orders and revenues are much easier to calculate!

The point about HYD's US expansion is that to date most of it has been through distributors etc as I understand it, so HYD has had to spend very little and achieved a lot. Hopefully that will continue.

[nhb] 21/2/2008 17:38

Hope they don't get fined or worse for that breach.

[orange1] 21/2/2008 17:26

What am I missing? What is the difference between the unofficial and the official announcement?

[waggle] 21/2/2008 16:49

oops slapped wrists all around!!! the most heartening aspect is the increase in order book of 80%...bodes very well for 2008. not so good iro margins tho...revenues up by 40%,but profits by only 10%....I suspect that this may be indicative of cost of expanding sales operation, and that 2008 will mark a quantum lift-off...

[rivaldo] 21/2/2008 15:24

Looks like someone jumped the gun in the USA :o))



Good to see the US news out in the public domain anyway. This should drive home the point about the US expansion.

Results confirmed as 28th February.

[rivaldo] 21/2/2008 12:39

Skippy, your trade has turned up now (can't remember the NMS, but any trades of £5k or more here take a while to be reported).

Peel Hunt have 12.91p EPS forecast for this year, so that's a current year P/E of only 13, which for a company with HYD's global potential is imho peanuts. And with probably £3.5m cash against the £24m m/cap the P/E with cash stripped out probably reduces to 10.5 or so.

I believe the correct P/E is nearer 18, which would see HYD at around 230p - even in the current market the requirement for HYD's products will only grow and grow, as is the demand to invest in ethically and environmentally sound companies like HYD, of which there are relatively few around.

[greek islander] 21/2/2008 12:04

This 10p rise could indicate a few gains in the coming week as we near results time. Mind you the amount of movement/activity is hardly mindblowing.

Good one I think to hold for the medium term.

[skippy11] 21/2/2008 11:31

been looking at these for some time,finally took the plunge today.
took 45 minutes for waterhouse to get me 4990 shares and had to pay
4.5p premium. what is the nms?can't find it anywhere.

[rivaldo] 21/2/2008 09:10

Nice move this morning - I was told results would be out on 28th February, so only a week to go now.

[rivaldo] 20/2/2008 11:09

Agreed. I'll be perfectly happy with nicely in-line results and a healthy increase in the cash pile. But it seems obvious to me that HYD are gearing up for much bigger things in the USA and elsewhere, and that the gearing up is starting to bear fruit. As you say gac, the outlook statement - and the order book - should be very interesting.

More news flow - and new products to meet anti-pollution requirements:



"20/02/2008 - Hydro offers sustainable stormwater treatment solutions at IFAT 2008 (Stand 103 Hall A1)
THE benefits of Hydro International's unique advanced hydrodynamic vortex separation technology will be showcased through its portfolio of sustainable stormwater treatment and drainage solutions at IFAT 2008 (5-9 May).

Hydro will be unveiling its new Up-Flo™ Filter filtration technology which can be configured to remove a wide range of pollutants as well as Downstream Defender® a brand-leading separation system for removing silts and sediments at all flow speeds. Hydro's Storm King® Overflow with Swirl-Cleanse™ Screen for wastewater treatment plant protection will also be strongly featured.

Hydro's design philosophy of sustainable treatment solutions has been built on vortex technology, with minimal maintenance or power requirements. Its systems have been widely used by water engineers in the UK and internationally to meet pollution and flow control consistent with Water Framework Directive requirements.

The revolutionary Up-Flo™ Filter system from Hydro International turns conventional stormwater technology on its head, using three stages of treatment - settling, screening and filtration to improve discharge quality in a small footprint, efficiently and cost-effectively. The patented system ensures high flow rates with low head loss, easy filter media replacement and the opportunity to tailor the filter media type to meet specific pollutant profiles.

Downstream Defender® is an advanced hydrodynamic separator designed to remove sediment, floatables and associated pollutants from stormwater. Downstream Defender® provides greater pollutant removal and retention in a smaller footprint compared to conventional gravity or simple swirl-type devices. Flow modifying components create a stable hydrodynamic flow regime that is ideal for solids / liquid separation and preventing washouts over a wide range of flow rates.

Hydro will also be exhibiting its stormwater control and storage solutions which include Hydro-Brake® Flow Control, Stormcell® storage and attenuation and other storage, infiltration and soakaway systems."

[gac100] 19/2/2008 23:10

Must say I'm really looking forward to the upcoming results. For a while now I've been expecting a surge in growth for HYD's North America business that could take the market by surprise. It could conceivably come in these results, although there's been no results-significantly-ahead-of-expectations RNS. Riv's been posting fantastic newsflow from the US throughout the year, but perhaps we won't see the full effects of that until 2008: the outlook statement should be particularly revealing. Whatever the results though imo its difficult to see that they won't support a higher share price than that which HYD is currently on. Roll on the results...

[rivaldo] 19/2/2008 22:54

Hmmm....interesting stuff from the USA. These snippets are particularly intriguing in advance of the results...

"As National Sales Manager, Mongeau oversaw a 34 percent sales growth in the US Stormwater business in 2007."

"In 2007 Raymond led his team to achieve record performance by increasing the US Wastewater Division's order intake by 80 percent, its revenue 40 percent and its profits 10 percent over the previous year's statistics.

Here's the article:


"Hydro Marks Growth in National Sales with Creation of Two New Roles
19-Feb-2008

Hydro International Promotes Dave Mongeau and Neil Raymond to General Managers of Stormwater and Wastewater Divisions

Hydro International today announced the appointment of Dave Mongeau as General Manager of Stormwater and Neil Raymond as General Manager of Wastewater.

Both General Manager positions are newly created roles at Hydro. As General Managers of their respective divisions, Mongeau and Raymond will be responsible for the day-to-day operations and management of Hydro International's Stormwater and Wastewater Divisions, respectively. Mongeau and Raymond will develop and deliver all aspects of the annual budget for Hydro International US – including managing, enhancing and expanding Hydro's US business by increasing sales and maximizing profits in their divisions.

Dave Mongeau has 25-years of technical sales and management experience, with the last 17 years directly in the water treatment industry. Mongeau has been at Hydro since 1999, first as New England Regional Stormwater Sales Manager, then moving up to National Stormwater Sales Manager in 2006. Over Mongeau's time at Hydro, he has generated over $8.5 Million in sales during his 7-year tenure as Regional Sales Manager of the New England territory. Mongeau is responsible for securing one of the largest domestic orders of Downstream Defender® stormwater treatment devices in the history of Hydro US – the Greenbush transit line ($289,000). As National Sales Manager, Mongeau oversaw a 34 percent sales growth in the US Stormwater business in 2007.

Neil D. Raymond joined Hydro International in May of 1999 as a Proposal Engineer for the company's Wastewater products. Over Raymond's time at Hydro he has served various functional and general management assignments to include oversight of the Contracts and Sales operations of the business. Raymond was influential in securing two of Hydro US' largest contracts to date – the Grit King® contract for the City of Clearwater, FL ($1.8 million) and Downstream Defender® contract for Chevron Nigeria ($380,000). Since 2005 he has overseen nearly $25 million dollars worth of contracts through the business. In 2007 Raymond led his team to achieve record performance by increasing the US Wastewater Division's order intake by 80 percent, its revenue 40 percent and its profits 10 percent over the previous year's statistics.

Both General Managers will report to COO Chris Williams, with Mongeau reporting on the growth and expansion of the Stormwater Division, and Raymond reporting on the growth and expansion of the Wastewater Division.

"Hydro's US operations have enjoyed great success and growth, and we now see an even greater opportunity in the stormwater and wastewater sectors," said Chris Williams, COO, Hydro International. "Dave and Neil have the industry knowledge and the proven sales experience to drive our stormwater and wastewater divisions to a whole new level. We look forward to leveraging their superior skill sets to grow our business.""

[rivaldo] 18/2/2008 22:35

More good coverage:



"Edited by the Buildingtalk Editorial Team on 8 February 2008

Action to avoid future flood devastation

Severe flooding has once again highlighted the weaknesses in Britain's surface water drainage infrastructure.

The urgent need is for a strategic Government commitment to plan and invest to avoid future devastation, experts are warning. The New Year onslaught came with 2007's summer floods still fresh in the memory - two thirds of which are reported to have been caused by surface water. A 'joined-up' government plan and significant investment in so-called 'Sustainable Drainage' are essential to plan for the long-term effects of climate change, warn stormwater control experts Hydro International.

The environment agency revealed last summer that more than five times as many households were flooded as a result of overflowing drains and sewers than that of river flooding.

To reduce the impact of future flooding, it will be important to provide for increased storage and treatment technology within our existing surface water drainage infrastructure to hold back the rainfall at source.

'Recent enquiries by Sir Michael Pitt, the parliamentary EFRA committee and the soon-to-be announced DEFRA Water Strategy are all welcome responses; but action, planning and investment in surface drainage technology must urgently follow these words,' says Hydro's Chief Operating Officer, Chris Williams.

'As climate change takes hold we can expect repeating patterns of flooding to become a regular occurrence'.

'The amount and intensity of winter rain are expected to rise steadily, exposing an ever greater number of properties to the risk of flood damage.2 Meanwhile our expanding population is demanding more and more homes - already the Government is committed to building 3 million new homes by 2020'.

'At the same time, the amount of impermeable surface and hard-standing is growing dramatically'.

'For example, two thirds of gardens in London are at least partially paved over'.

'When surface water has nowhere to go, it overwhelms our sewerage system, devastates our homes and transports silt and pollutants into our rivers and seas'.

Too many misperceptions still abound about the concept of sustainable drainage, which is hindering its correct and speedy implementation.

Recent comments by Phil Woolas the Environment Minister, together with recent policy changes by Scottish Water, show a worrying lack of appreciation of the technology choices available to efficiently hold back and treat surface water as close as possible to the point of falling'.

'It's fifteen years since Hydro published 'Urban Drainage - The Natural Way' highlighting the importance of Source Control and sustainable drainage (SUDS), now accepted as a standard principle by many water and planning authorities'.

'Yet SUDS is still over-associated with 'soft' drainage solutions such as ponds and swales, often inappropriate for space-strapped urban areas.

'Equally, suggestions that householders and developers should no longer have a divine right to create more impermeable surfaces are welcome, but it is not as simple as removing the right to connect surface drains to the sewerage system as has been suggested in some circles'.

'The use of silt control and filtration technology at the point of falling is essential to eliminate silt build up within the sewer, which would make drainage less efficient and increase the need to treat water further down the line.

Extracting stormwater pollution from roads and hard surfaces at source will also become increasingly important'.

'But, there is a disconnect between the sewerage and planning authorities in meeting the European Water Framework Directive's demand for an integrated approach to controlling and treating water, from the point where it falls through its onward journey through surface drains and the sewerage system and onward through our rivers to the sea'.

'Each of the existing stakeholders involved in the UK water cycle, from DEFRA, the EA, through to water companies and planning authorities, has a separate role and delineated responsibilities'.

'This makes it hard to plan a system in which water is treated efficiently at every stage in the process'.

'A single, unitary authority responsible for stormwater would be the best, if radical, solution'.

'Otherwise a Government strategy implemented by a strong lead authority may be the answer'.

Hydro International has been a pioneer and champion of sustainable drainage (SUDS) for more than 20 years.

The principle is now increasingly widely adopted by UK planning authorities to ensure low-maintenance drainage is installed as close as possible to the point that the water falls, with minimal impact on the local environment.

However, more needs to be done to ensure that SUDs are adopted on a more widespread basis throughout the UK.

Hydro International is a leading international specialist supplier of stormwater control, storage and recycling technologies, including products such as the brand leading Hydro-Brake Flow Control, Stormbloc or Stormcell modular stormwater storage systems, Up-Flo Filtration and pollution removal systems or StormBankTM rainwater harvesting."

[rivaldo] 18/2/2008 12:14

The new StormBank Pro commercial rainwater harvesting system will be launched next week at EcoBuild.

I like this - "These are now being installed in major building and commercial developments across the UK as part of the increased pressure for stormwater control within the framework of the water management cycle as well as at source flood prevention":



"Edited by the Buildingtalk Editorial Team on 20 December 2007
Hydro sustainable stormwater solutions at Ecobuild

Hydro will launch StormBank Pro commercial rainwater harvesting system, extended from the successful StormBank domestic rainwater harvesting system
Hydro International's range of sustainable stormwater drainage and control solutions will be demonstrated on Stand E252 at Ecobuild 2008, 26-28 February Earls Court. New Hydro initiatives for 2008 include innovative sustainable drainage techniques, a wider range of rainwater harvesting solutions, and sustainable solutions to flooding and Water Framework Directive requirements.

The new system reinforces the message of the Save The Rain campaign, aimed at persuading Government to include rainwater recycling in the building regulations for new buildings of any size (www.savetherain.info).

Additional exhibits include the modular Stormcell and Stormbloc storage and infiltration systems.

These are now being installed in major building and commercial developments across the UK as part of the increased pressure for stormwater control within the framework of the water management cycle as well as at source flood prevention.

Also on show will be the latest designs of Hydro's widely used Hydro-Brake Vortex Flow Control systems, offering low maintenance stormwater runoff control capacity from housing developments to major area catchment and flood prevention schemes.

Hydro's integrated approach to dealing with stormwater extends from rainwater harvesting through flow control and SUDS systems to wastewater treatment."

[rivaldo] 14/2/2008 09:30

Time for sales of HYD's SUDS (Sustainable Urban Drainage Systems) to take off:



"Wednesday, 13 February 2008, 18:13 GMT

UK 'ill-prepared' against floods

The UK's disaster management is woefully inadequate, says the man leading a government review into last summer's flooding.

Sir Michael Pitt told a meeting of the Local Government Association that preparations and warnings for surface water flooding were not in place.

He called for more resources to prevent a similar disaster from recurring.

Thousands of homes and businesses were affected by the flooding, generating insurance claims of more than £3bn.

Sir Michael said preparations and warnings for surface water flooding were not in place in the same way as for coastal and river flooding."

[rivaldo] 12/2/2008 19:33

From Impax Environmental's monthly report today - a teeny-weeny slice of $202.5 billion would do HYD just fine. If you read the above posts in conjunction with this.....

"In water treatment and pollution control, a report by the Environmental Protection Agency estimated $202.5 billion of investment is needed in the US to control wastewater pollution, in order to meet Clean Water Act objectives. The findings represent an 8.6% increase on 2000 estimates, reflecting population growth, rising standards and ageing infrastructure."

[rivaldo] 09/2/2008 07:46

I see KBC Asset Mgmt sold a few shares yesterday. I'd guess there was a willing buyer out there in an illiquid stock and they took the chance to take some profit. The question is, who was the buyer?

News from the USA:



"Hydro International's Robert Andoh to Speak at New England Water Environment Association Conference
22-Jan-2008

Director of Innovation Will Discuss Saco, Maine, Sewer Project;
Company Exhibit Will Showcase Grit Removal, CSO Solutions at Jan. 27-30 Conference

Hydro International today announced that Director of Innovation Robert Andoh will deliver a paper at the New England Water Environment Association (NEWEA) annual conference being held Jan. 29 in Boston.

Dr. Andoh will deliver his paper during a Tuesday afternoon session addressing wet weather planning and analysis. The paper focuses on the Hydro International Combined Sewer Overflow (CSO) solution deployed in Saco, Maine, and carries the title "Optimal CSO Control and Treatment at the Saco Wastewater Treatment Plant Using Advanced Vortex Technology."

A Hydro International exhibit booth at the conference will showcase the company's grit-removal solutions and its full line of products addressing CSO treatment, CSO screening and wet-weather flow control solutions.

The NEWEA conference is the largest wastewater environment conference held in New England. It features more than 170 exhibitors and attracts more than 1600 regulatory officials, wastewater utility engineers, consulting engineers, treatment plant operators and other interested parties. The 2008 show is being held at the Boston Marriott Copley Place Hotel.

Hydro's exhibit booth will include displays highlighting its industry-leading Grit King® process for removing grit from wastewater streams. The Grit King device is an advanced hydrodynamic separator that augments gravitational forces to separate grit from water. The Grit King System consists of the separator unit and a grit washer/classification unit. Valving, grit classifiers, grit pumps, dewatering decanters, and control systems are available as part of a comprehensive grit-removal package. The exhibit will also focus on Hydro's full range of CSO solutions, which includes equipment to treat CSO outflows to primary treatment equivalence to accessory technologies for designing deep tunnel separation and storage schemes.

Hydro will be represented by several top executives and sector experts including Andoh, Chief Operating Officer Chris Williams, Wastewater General Manager Neil Raymond and National Wastewater Sales Manager Ken Medlin."

[traderabc] 06/2/2008 11:16

It is now approaching its long term trend line,we should get some strong support between here and the 145 area.

[gac100] 05/2/2008 07:10

"Hydro International, the provider of innovative products for the control and
treatment of water, announces the appointment of Michael Stevens as a
non-executive Director with effect from 3 March 2008 ..."



The appointment of an additional non-exec director has been expected for a while. It looks a decent enough appointment to me.

[rivaldo] 31/1/2008 20:57

I got sent this as a news alert today so thought I'd pass it on as it's interesting:



"Chris Watt, director of the Jupiter Environmental Income Fund: Hydro International

"This is a stock we have held for a long period, but it is very topical given the recent weather conditions in the United Kingdom. It specializes in the control and treatment of storm water and waste using proprietary technology based on vortex. This is a good example of the type of business that interests us: small, at an early stage of its development, but has developed real traction using a unique technology in a growing market. That is why we believe it has the potential to become a major market leader. ""

[rivaldo] 31/1/2008 14:01

With 12.91p EPS forecast for this year HYD has a current year P/E of 12.3, falling to probably around 10.5 going forward. And if you strip out the £3m cash pile the net P/E falls to say around 10.5 and 8.5 respectively.

IMHO that represents pretty good value.

And there is a strong possibility (as you say williebiz) of corporate activity - whether HYD is the acquiror or the recipient.

[williebiz] 31/1/2008 13:03

I wasn't thinking about progress over more than 6 months, though I did run some graphs back to see what has been happening to both over the last few years.

Atorka building up strategic stake in AFS, now 23%. Announced 29/11/07, interest sparked, now waned.

Sector could be ripe for bit of consolidation when M&A monies free up. HYD still pricey but could be justified.

[rivaldo] 31/1/2008 11:36

:o)) Willie, why don't you take the end of 2005 as your starting point - you'll find that HYD is up almost 40% whilst AFS is static. But then that wouldn't suit whatever point you're trying to make would it.....

There's charts, statistics, figures - all can be manipulated :o))