HydroDec Group plc Q1 2017 Trading Update (2582C)
12 April 2017 - 4:00PM
UK Regulatory
TIDMHYR
RNS Number : 2582C
HydroDec Group plc
12 April 2017
12 April 2017
Hydrodec Group plc
("Hydrodec" or the "Company")
Q1 2017 Trading Update
Hydrodec Group plc (AIM: HYR), the cleantech industrial oil
re-refining group, is pleased to provide an update to the market in
respect of 2017 performance to date and expectations for the
year:
-- Revenue growth (from continuing operations) of approximately
25% in Q1 compared to Q1 2016, on volumes of 7.7 million litres
(2016: 8.2 million litres). Transformer oil sales are expected to
grow to 47% of all oil sales for the quarter (2016: 24%) leading to
a significant increase in margin of approximately 10c per litre on
the prior year
-- The Company expects to achieve positive EBITDA in the first
quarter, traditionally the most difficult period of the year,
particularly in respect of feedstock collection and
availability
-- Q2 has begun positively and revenues and EBITDA are expected
to grow further throughout the year - performance at EBITDA level
will be determined by the continuing improvement in margin as the
price of oil continues to stabilize and overall feedstock
availability improves
-- The Board continues to monitor its working capital position
for its current requirements whilst also looking to ensure that the
Company is well positioned to take advantage of an improving market
outlook
Commenting on the update, Chris Ellis, Chief Executive Officer
of Hydrodec said: "I am pleased to report continued progress in
establishing a profitable business with world leading technology.
The increase in margins in the first quarter provide an excellent
platform for a continuing improvement in profitability for the rest
of the year."
2016 full year results are expected to be released on 12 May
2017.
For further information please contact:
Hydrodec Group plc 01372 824750
Chris Ellis, Chief Executive
Officer
Canaccord Genuity (Nominated 020 7523
Adviser and Broker) 8000
Henry Fitzgerald-O'Connor
Richard Andrews
Vigo Communications (PR 020 7830
adviser to Hydrodec) 9700
Patrick d'Ancona
Chris McMahon
Notes to Editors:
Hydrodec's technology is a proven, highly efficient, oil
re-refining and chemical process initially targeted at the
multi-billion US$ market for transformer oil used by the world's
electricity industry. MarketsandMarkets forecasts that the global
transformer oil market is expected to grow from US$1.98 billion in
2015 to US$2.79 billion by 2020 at a CAGR of 7.14%. Spent oil is
currently processed at two commercial plants with distinct
competitive advantage delivered through very high recoveries (near
100%), producing 'as new' high quality oils at competitive cost and
without environmentally harmful emissions. The process also
completely eliminates PCBs, a toxic additive banned under
international regulations. Hydrodec's plants are located at Canton,
Ohio, US and Bomen, New South Wales, Australia.
Hydrodec's shares are listed on the AIM Market of the London
Stock Exchange. For further information, please visit
www.hydrodec.com.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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