Modern Water Share Discussion Threads

[top tips] 11/4/2017 16:02

cyberhub if gross revenues were to tripple from £3.6m in 2016 to £10.8m in 2017 they would be making over £8m gross profit all other things being equal (and potentialy even more profit as the benefits of the improved Monitoring Division margins, and overall cost reductions, continue to come through).

However it is not just revenues that contribute to profits, e.g. in 2016 a 12% increase in overall revenues contributed to a 54% improvement in gross profits. Other factors are involved.

Basically its a series of moving lines with crossover now in sight.

"With an un-geared balance sheet, a cash generative Monitoring division, the Membrane division expected to break even in 2018 and a trade finance facility secured, we believe the Group now has the resources in place to become a genuinely sustainable, profitable business."

[p1nkfish] 11/4/2017 15:14

They have products from disposables to 100'sK GPB.
Feasible, yes.

[cyberbub] 11/4/2017 15:08

From the last accounts, they need to roughly treble revenues to move into profitability. Is that feasible?

[hottingup] 11/4/2017 10:47

Interesting company. Might start a new thread. Does look like profit is in sight as cash outflows have been reduced and will fall further, while revenues will continue to grow from new orders and recurring service contracts and reagent sales. The new 'trade finance facility' means they have access to more cash if needed.

Plenty of newsflow in the pipeline including -

Membrane Division -

Our innovative AMBC technology will be used to treat wastewater produced by an India-based customer involved in the textiles industry. The project will be executed in partnership with Advent Envirocare Technology during the course of 2017. Once commissioned, this plant will provide us with a fantastic shop window for our technology and will provide us with a springboard into other markets and geographies.

Forward Osmosis

Following a joint design exercise, a pilot plant is being constructed by BDB in Abu Dhabi, with the first field trials due to take place in 2017.

Aquapak -

We continue to actively generate a significant number of enquiries and are pursuing a number of projects. We are confident of receiving further orders in the coming months.

[euclid5] 11/4/2017 09:52

Tp tips, thanks for the post above

What is their burn rate per month / per year as they only have £1.1m cash left?

Thanks

[tradermick1] 11/4/2017 08:25

top tips

How you doing effiert/twitterman ?

[top tips] 11/4/2017 08:23

MWG looks like a loaded spring if I understand this correctly in the Annual Results.....



Monitoring division delivered positive EBITDA.

strategy review undertook in 2015 bearing fruit and now in a position where we are working on a variety of new product developments which we believe will add to our portfolio and positively impact sales and profits as we move forward.

Revenue and gross profit increased on the prior year, whilst overheads continued to reduce.

financial position was debt free, with cash of GBP1.1m

Membrane division expected to break even in 2018

trade finance facility secured

Group now has the resources in place to become a genuinely sustainable, profitable business.


With an un-geared balance sheet, a cash generative Monitoring division, the Membrane division expected to break even in 2018 and a trade finance facility secured, we believe the Group now has the resources in place to become a genuinely sustainable, profitable business.

joint venture between Modern Water and Northumbrian Water, where our JV has preferred bidder status and has satisfied all its responsibilities and obligations.

-----

So they will be in profit in 2018, continue to grow revenues and there is the added bonus of the chance of the JV with Northumbrian Water on which they are "preferred bidder" getting the go-ahead on the £20m contract for the new Gibralter water treatment plant, no share issues needed because they have a finance facility in place, plus they are involved in the new "cutting edge" graphene research project at Manchester Uni., and Directors have been stakebuilding recently.

Share price 9p gives just a £7m valuation.

MWG were 43p in 2014, 63p in 2013 and 136p in 2007. Must be worth somewhere in that range now.

[top tips] 11/4/2017 08:15

Modern Water to contribute to cutting-edge graphene research with the Masdar Institute and the University of Manchester

www.modernwater.com/assets/downloads/press/170328%20Press%20release%20Masdar%20UoM%20(v_final).pdf

[p1nkfish] 11/4/2017 00:12

Beijing too, Mexico City etc.

Amazing there is so much water but not in the right place or unfit for consumption.

[cyberbub] 10/4/2017 22:53

There is already international political conflict over water in parts of North East Africa, and also in Uzbekistan/Kyrgyzstan.Countries like Bolivia, and indeed any of the many countries which depend on melting glaciers for water supply from the Andes or Himalayas, are going to be in big trouble in the next 2 or 3 decades max.The Gulf countries are already in trouble, but their dirt cheap oil reserves give them the energy to be able to desalinate cheaply, but long will cheap oil last - they need a Plan B quickly.

[p1nkfish] 10/4/2017 21:19

I agree with this but those owning unique IP will get taken out first, especially undervalued micro cap with the IP.

[p1nkfish] 10/4/2017 17:08

I haven't seen anything just the moves they have been making slowly.

Time is coming for the market to wake up to some of the IP they have and its applications.

I also think it is slowly being de-risked.

[pugugly] 10/4/2017 15:54

Looks like tipped somewhere over the weekend - Anyone seen anything ??

[bamboo2] 10/4/2017 12:15

Bought a few on the dip. Not able to get more than 10k without an order.

[argylerich] 10/4/2017 11:26

Nearly 1% of stock traded in the AM alone, let's hope that they are following up those Aquapak sales and yes, opening the door to China for the membrane division would be a huge uplift.

[p1nkfish] 10/4/2017 10:56

A little news on China could do it before though. About time something happened there.

They have planted some very useful seeds.

[p1nkfish] 10/4/2017 10:56

2018 most likely.

[argylerich] 10/4/2017 09:57

Fingers crossed for those membrane sales p1nkfish, then capital may not needed after all.

[p1nkfish] 10/4/2017 09:52

AR, its undervalued.

Have spent a while investigating and given the market demand, the IP and the capabilities of MWG it is well placed.

It might need more capital.

Monitoring is OK, membranes next off the launch pad.
When you look into the target markets its not just clean whater its also energy saving and even in the Gulf States that is becoming a major demand on plant.

The Indian tie-up was a very sensible move and will prove worth the current market cap alone in my humble opinion as the TAM is huge.

Patience needed anc care by management.

[argylerich] 10/4/2017 09:40

Even with this price rise, there isn't much stock being released

[battlebus2] 10/4/2017 09:37

Bought a few myself but need to see more evidence before adding.

[bamboo2] 10/4/2017 08:58

Couldn't get quantity, so took a small amount on confirmed INVH&S bottom target price 9.2 - 10

[argylerich] 10/4/2017 08:51

Nice rise on limited stock, now we just need the sales to push it further