Water technology specialist Modern Water celebrated two landmarks in the first six months of the year: the sale of its first commercial forward osmosis desalination plant in Oman and the first significant revenues from its water monitoring division.
The sale of the Oman plant, which has a contract value of £500,000, followed the successful demonstration of Modern Water's unique technology, which produces desalinated water more cheaply than traditional methods. It has also proved to be particularly robust in demanding conditions, according to the company. The new plant should be up and running early next year and the pipeline of interest it has generated in the region is strong, says chairman Neil McDougall. The company is also exploring opportunities in other water-stressed regions, in particular China where water forms a key plank of the current five-year plan.
It is also in China that Modern Water has had most success with its water monitoring technologies, sales of which have reached £430,000 so far this year, compared with £27,000 in the whole of 2010. The core water toxicity monitoring technology has been complemented by the acquisition of other technologies, including Cogent's metal analyser. Further acquisitions are likely to boost the product range, which is now available through distributors in 20 countries.
MODERN WATER (MWG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 49p | MARKET VALUE: | £28.9m | |
| TOUCH: | 46-51p | 12-MONTH HIGH: | 74p | LOW: 38.5p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 55p* | NET CASH: | £16.7m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Net div per share (p) |
|---|---|---|---|---|
| 2010 | nil | -2.05 | -3.44 | nil |
| 2011 | 0.43 | -2.13 | -3.54 | nil |
| % change | - | - | - | - |
*Includes intangible assets of £15.3m, or 26p a share | ||||
