The trials and tribulations of Hydrodec (HYR) continued throughout 2015, culminating in the departure of chief executive Ian Smale. In December, the former executive at BP (BP.) called it a day as boss at the Aim-traded oil re-refining and recycling business.
Under Mr Smale the group opened a waste oil recycling plant in the UK. But with the headline selling price in this division battered by the plummeting oil price, operating losses widened to $7.1m (£5m.), compared with $2.7m in 2014. The group sold the business and its £1.2m of debt for £1 last month.
The US re-refining business also struggled, as the rebuild of the Canton Plant in Ohio took longer and was more costly than previously anticipated. But now the plant is back up and running, with a capacity to re-refine 45m litres of oil. 2016 has started well for the plant with high margin transformer oil sales increasing.
Prior to these results, broker Canaccord Genuity expected an adjusted loss per share of 0.7p this year, falling to 0.1p in 2017.
HYDRODEC (HYR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2.6p | MARKET VALUE: | £19.2m | |
| TOUCH: | 2.5-2.7p | 12-MONTH HIGH: | 9.9p | LOW: 2.2p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 3ȼ* | NET DEBT | 66% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 22.4 | -11.9 | -3.2 | nil |
| 2012 | 26.1 | -14.5 | -3.5 | nil |
| 2013 | 39.7 | -18.1 | -3.5 | nil |
| 2014 | 46.2 | -8.9 | -1.1 | nil |
| 2015 | 42.3 | -31.1 | -4.2 | nil |
| % change | -8 | - | - | - |
*Includes intangible assets of $9.6m, or 1.3ȼ a share £1=$1.42 | ||||
