TIDMHAL TIDMHALO
RNS Number : 2331X
HaloSource Inc
09 January 2014
For Immediate Release 9 January 2014
This press release contains certain forward-looking statements.
All statements contained in this press release that do not relate
to matters of historical facts should be considered forward-looking
statements. Forward-looking statements include statements with
respect to the operations, performance and financial condition of
the Company, the market for and benefits of its products and
services, Company's introduction and deployment of new products,
the potential benefits of business relationships with third
parties, and the Company's plans and strategies for future growth.
By their nature, these statements involve uncertainty since future
events and circumstances can cause results and developments to
differ materially from those anticipated. The forward-looking
statements reflect knowledge and information available at the date
of preparation of this press release and the Company undertakes no
obligation to update these forward-looking statements. Nothing in
this press release should be construed as a profit forecast.
Trading Update
20% revenue growth led by Drinking Water and Recreational Water
segments
BOTHELL, WA (US)- HaloSource, the clean water and antimicrobial
technology company today is updating its revenue expectations for
2013 to be in the range of US$16.0-16.5 million, which represents a
growth in revenue of approximately 20% for the year as a whole and
approximately 40% for H2 2013 as compared with H2 2012. This growth
was driven by a robust performance in Recreational and Drinking
Water, but some temporary challenges in Environmental Water
resulted in the Group revenues ending the year in a range around
10% below market consensus.
The revenue growth achieved during 2013 is attributable to:
-- Drinking Water: Revenues for the year grew by more than 50%
driven primarily by increased sales to Perfect in China, where
volumes shipped in H2 were up more than 300% compared with H1. In
addition, the Company continues to supply customers elsewhere,
including Eureka Forbes, as well as having added Tupperware,
Pentair and H2O International as customers during 2013. The Company
expects both the volumes shipped and the number of customers to
continue to increase in 2014, driving substantial revenue growth in
this business.
As separately announced today, HaloSource has also extended its
stand-still agreement for market segments in China with one of the
world's largest multinational consumer goods companies in exchange
for a one-time payment of US$500,000 (HaloSource received a similar
payment in 2012). The Company is currently shipping product to this
partner to support a market launch.
-- Recreational Water: Full year 2013 revenues grew by
approximately 29%. This was driven by a broadening of product
distribution in general and strong sales of Mighty Pods(TM)
self-dissolving pouch products, launched in November 2012. The
Company's expanded distribution at traditional pool and spa retail
outlets and through partnerships with major mass-market players,
combined with strengthened sales execution under new leadership,
led to a market share gain in a generally flat market. The success
of Mighty Pods(TM) products reinforces the importance of the
Company's drive towards consumer-focused innovation, and HaloSource
is confident of achieving further growth in this segment during
this year.
-- Environmental Water: Expected revenue growth in this segment
has not been achieved, with revenues for 2013 down by approximately
35%, which negatively impacted the overall expected growth in 2013.
In addition to experiencing drought conditions in the Western
United States, international partners did not perform to
expectations due to both regulatory and competitive issues. With US
construction activity expected to increase in 2014 and key
international regulatory approvals now achieved, the Company
expects to see an improved performance in this business in 2014 and
beyond.
Martin Coles, CEO of HaloSource, commented, "We achieved much
good progress during 2013 in particular with the growth we're
seeing in our Drinking Water and Recreational Water segments. This
clearly underscores the latent demand for our sector leading
technology and consumer focused solutions.
While our business continues to grow clearly we are disappointed
in the slower than expected pace of revenue growth in Environmental
Water. While it is taking us longer than expected to grow this
segment we continue to believe that growth opportunities for our
biopolymer based water treatment technologies are as strong as
previously anticipated."
The Company continues to be encouraged by the engagement of new
and prospective partners with its Drinking Water business.
HaloSource remains confident of its prospects of strong growth in
2014 and beyond. With nearly US$13m of cash resources at the close
of 2H 2013, the Company has adequate capital to execute against its
growth plans.
Enquiries:
HaloSource
James Thompson, Chief Financial
Officer +1 425 974 1930
Martin Coles, Chief Executive
Officer +1 425 974 1930
Buchanan +44 207 466 5000
Charles Ryland/Clare Akhurst
Liberum Capital (NOMAD)
Simon Atkinson/Nick Walker/Richard
Bootle +44 203 100 2222
HaloSource Technologies that Protect Water and Textiles:
-- HaloPure(R) media is the most flexible, price-competitive
disinfection solution for clean drinking water in the industry. In
2009, it became the first drinking water technology in 30 years to
be registered by the United States Environmental Protection Agency
(USEPA), widely recognized as having the world's most stringent
performance requirements for water purification. In 2010, HaloPure
media was approved by China's Ministry of Health (MOH) and
recognized for meeting the world's most stringent water
purification requirements, a key differentiator for our
multi-national partners. In Brazil, the use of HaloPure media has
met or exceeded all appropriate standards of the National Institute
of Metrology, Standardization and Industrial Quality (INMETRO).
-- SeaKlear(R) Pool and Spa treatment products bring both
natural biopolymers and antimicrobial applications for treating
recreational water.
-- HaloShield(R) products consist of antimicrobial coatings
solutions that employ unique technology that binds chlorine-based
bleach to textiles such as sheets, lab coats and towels for use as
a non-toxic biocide.
HaloSource Technologies that Preserve the Environment:
-- HaloKlear(TM) products use natural biopolymers providing
industrial water clarification with dramatic reductions in
ecological impact.
HaloSource Initiatives that Celebrate Clean Water:
-- HaloSource supports organizations dedicated to sustainable
clean water projects. Earlier this year, we were proud to be a
presenting sponsor in the 2012 Carry5 awareness and fundraising
event benefiting Water 1(st) International.
HaloKlear, HaloPure, SeaKlear, HaloShield and Mighty Pods are
either trademarks or registered trademarks of HaloSource, Inc. All
other trademarks, brand names or product names belong to their
respective holders.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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