Modern Water PLC AGM Statement (9663L)

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RNS Number : 9663L

Modern Water PLC

25 April 2018

25 April 2018

Modern Water plc ("Modern Water" or "the Company")

AGM Statement

At today's Annual General Meeting of Modern Water Plc, the owner of leading technologies for water and wastewater treatment and for the monitoring of water quality, Alan Wilson, Non-Executive Chairman, will make the following statement:

"Modern Water has started 2018 strongly with Group revenue in the first-quarter 37% higher than in the same period last year. Both Divisions are performing well, with China the primary driver for the Monitoring Division and the Advance Works Contract for the Gibraltar waste-water treatment plant boosting the Membrane Division.

Gross profit in the first quarter was 40% higher than 2017 and Group overhead was 8% lower than the same period last year. The Group's cash position as of 20(th) of April 2018, stood at GBP343,000 and the finance facility ($600,000) secured on Modern Water Inc's receivables remained un-utilised.

Outlook

Management is confident that the strategic decision to terminate the contract of our sole Chinese distributor and pursue a multi-channel sales approach in one of our most important markets, was correct and first-quarter financial results clearly support that. We expect further progress in the remainder of 2018 and for the Monitoring Division is expected to return to EBITDA breakeven for the year.

In the Membrane Division, our principal process engineer is currently on site in India overseeing the final commissioning of our first full-scale All Membrane Brine Concentrator (AMBC). Two further paid-for trials with other industrial customers have been successful. We are also well-positioned in China and our first AMBC project is due to be commissioned shortly. With reference AMBC plants operational in both our key markets, we expect to see an acceleration of licence sales for this product during 2018.

The Gibraltar Advance Works Contract is progressing well and we remain committed to helping HM Government of Gibraltar to achieve its goal of completing the Waste Water Treatment Plant in 2020."

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For further information:

 
                                       [phone] 
 Modern Water plc                       000 
 Simon Humphrey, Chief Executive 
  Officer 
 
 WH Ireland Limited                    [phone] 
 Chris Fielding (Nominated Adviser) 
 
 Tavistock                             [phone] 
 Andrew Dunn 
 James Collins 
 

Notes to editors

Modern Water owns, installs and operates broad based membrane systems using world-leading Forward Osmosis (FO) membrane technologies; supplies packaged seawater Reverse Osmosis (RO) desalination systems; supplies wastewater treatment solutions; and develops and supplies advanced systems for water monitoring. Its shares trade on AIM.

Modern Water's patented forward osmosis (FO) technology's benefits include lower energy consumption and a reduction in environmental impact in a variety of industries. With a sales presence in almost 60 countries, the Group's Monitoring Division includes a leading real-time continuous toxicity monitor and trace metal analysers for monitoring the quality of drinking water.

www.modernwater.com

This information is provided by RNS

The company news service from the London Stock Exchange

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April 25, 2018 02:00 ET (06:00 GMT)