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(HYR.L) Hydrodec Group PLC Buy/Sell
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| Date/Time | Headline | Source |
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| 19-11-09 | RNS |
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RNS Number : 7928C HydroDec Group plc 19 November 2009 19 November 2009 Hydrodec Group plc Trading Update Hydrodec Group plc (AIM: HYR) announces the following update on trading and prospects.
The Group continues to demonstrate strong recovery from the difficult first half of 2009 which was seriously impacted by a combination of the global financial crisis, the oil price collapse and initial operational challenges at the Canton plant. Group production and sales volumes in the third quarter of 2009 (5.2m litres and 3.7m litres respectively) exceeded those of the entire first half of the year. The ramp-up of production is continuing into the fourth quarter with record production at both Young and Canton recorded in October. Canton production is comfortably matching current sales demand while critical equipment continues to be closely monitored. The Board remain confident that production and sales levels will continue to increase into next year. Transformer oil prices remained soft well into the fourth quarter largely due to over-supply arising from depressed US industrial production which has also limited the growth in sales volumes in late September and early Q4. However, recently announced price increases of around 10% by the major refiners indicate the market is improving. In addition, feedstock costs, over which the Group have greater control, are being progressively reduced through a wider portfolio of feedstock suppliers. Negotiations for 2010 sales pre-commitments, together with continued success in reducing average feedstock costs, reinforce the Group's belief in improving margin dynamics. This is a key period of the year for negotiating pre-commitments from OEMs in the US for their 2010 transformer oil purchases. The Group is in advanced stages of negotiation for an off-take arrangement with one of its largest existing customers for more than 11 million litres of 2010 Canton SUPERfine production and expects to secure additional commitments for another 7.5 million litres before the year end. The balance of Canton production will be reserved for utility customers and serving new and existing export markets during the year. During 2010, the Group will accelerate the development of feedstock supply and SUPERfine demand, in preparation for the second US plant. Demand for oil from the Australian plant has improved significantly in the past two months, with October recording record sales of 0.5m litres, but at reduced pricing and with feedstock supplies remaining tight. A concerted effort by the Group to broaden its Australian feedstock supplies and customer base and improve pricing is now expected to continue producing improved results towards the end of this year and into 2010. The Japan opportunity continues to progress well. Approval to operate the technology in Japan as a PCB treatment system is expected early in the first quarter of 2010 and several site opportunities are under evaluation by our Japanese partners. Current trading is generally consistent with that projected in September, although the US operations are currently carrying a slightly increased level of stock that needs to be placed in the coming 6 weeks. The plants are operating well and are generating a positive net cash flow. Ongoing depressed general market conditions in the past months have resulted in sales prices and volumes being lower than expected and as a result the Group's overall cash position remains tight. The price increases announced in recent weeks are however indicating the first quantifiable signs of market stabilisation and improvement, and for the first time in nearly 12 months, a return to growth. The Group is currently investigating potential financing options to ensure there is sufficient capital to deliver the growth opportunities it has identified for 2010 and beyond. Growth activities include building sufficient stocks to service the increased demand on Canton production output in Q1, ramping up pre-sales and pre-construction development activities to underpin the viability of the second North America plant, and with our Japanese partners, commencing initial roll-out of the Japan and wider Asian opportunity. For further information please contact:
Neil Gaskell, Chairman Mark McNamara, Chief Executive Mike Preen, Company Secretary
Nominated Adviser: Simon Blank Corporate Broker: David Poutney / Alex Ham
Emma Davis This information is provided by RNS The company news service from the London Stock Exchange END
TSTZKLFFKFBFFBL More |
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| 19-10-09 | RNS |
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RNS Number : 0071B HydroDec Group plc 19 October 2009 19 October 2009 Hydrodec Group plc (the "Company") Change of Registered Office The Company announces that its registered office has changed to 120 Moorgate, London EC2M 6SS with immediate effect. For further information please contact:
Mike Preen, Company Secretary
Nominated Adviser: Simon Blank Corporate Broker: David Poutney / Alex Ham
Emma Davis This information is provided by RNS The company news service from the London Stock Exchange END
CROBKLFFKBBFFBF More |
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| 14-10-09 | RNS |
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RNS Number : 7253A HydroDec Group plc 14 October 2009 14 October 2009 Hydrodec Group plc (the "Company") Additional Listing Application has been made to AIM for the admission of 2,209,630 ordinary shares of 0.5p each in the Company ("Ordinary Shares") to trading. These Ordinary Shares, which will rank pari passu in all respects with the existing shares in issue, have been allotted pursuant to the conversion by holders of the Company's Fixed Rate Unsecured Convertible Loan Notes in the sums of £375,000 and £15,000. Conversion has been effected at the new adjusted conversion price of 17.65p per ordinary share (previously 19p per share), such adjustment being effected pursuant to the Company's placing of ordinary shares at a discount of greater than 10 per cent. to the prevailing market price announced on 12 June 2009. Following admission the issued share capital of the Company will comprise 324,094,672 Ordinary Shares. There are 56,673,333 Ordinary Shares treated as non-voting treasury shares and therefore the total number of Ordinary Shares with voting rights in the Company will be 267,421,339. Admission is expected to become effective on 20 October 2009. For further information please contact:
Mike Preen, Company Secretary
Nominated Adviser: Simon Blank Corporate Broker: David Poutney / Alex Ham
Emma Davis This information is provided by RNS The company news service from the London Stock Exchange END
LISBCBDGXUBGGCX More |
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| 25-09-09 | RNS |
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This news article is displayed preformatted as it may contain results tables
RNS Number : 6508Z
HydroDec Group plc
25 September 2009
25 September 2009
HYDRODEC GROUP PLC ("Hydrodec" or the "Company")
Unaudited Interim Results
Hydrodec Group plc (AIM: HYR) today announces unaudited interim results for the six months ended 30 June 2009.
The unaudited interim results represent the first results where Hydrodec has adopted the US dollar as its presentational currency. The Group's comparative results have been adjusted accordingly.
Highlights
* Revenue up 10% to USD$4.5 million (2008: USD$4.1 million)
* Post period end cash generative following resolution of operational problems at start of year
* Consistent production at Canton (c.60,000 litres per day)
* Improving sales prices and volumes as acceptance of the Hydrodec technology and SUPERfine product continues to grow
* Further progress on our Japanese alliance, a significant growth driver for the future with completion of first site anticipated by 2012
Hydrodec Chairman, Neil Gaskell, commented: "The Group has had a difficult first half of 2009. The combination of the oil price collapse announced in February and initial operational problems at Canton have resulted in a disappointing operating loss. During the latter half of the period prices started to improve and Canton's operational problems were progressively resolved. During the third quarter good progress has been in made in Canton and overall performance has steadily improved so that we are now generating a positive net cash flow in addition to funding some modest but essential capital expenditure. We are currently operating at or very close to breakeven at the operating profit level, as a result of increasing volumes in both Young and Canton and steadily improving margins in the US, but still at a net loss after non-operating costs.
I am delighted with the progress of our alliance in Japan with Kobelco Eco-Solutions. This is the result of much effort over many months to produce a firm foundation for the Company to pursue its long term expansion into Japan and the neighbouring countries.
Finally, on behalf of myself and the rest of the Board, our thanks go to John Gunn who, as Chairman until July this year, has piloted the Group through the sometimes stormy waters we have faced both earlier this year and before that."
For further information please contact:
Hydrodec Group plc 020 8528 1015
Neil Gaskell, Chairman
Mark McNamara, Chief Executive
Mike Preen, Company Secretary
Numis Securities Limited 020 7260 1000
Nominated Adviser: Simon Blank
Corporate Broker: David Poutney / Alex Ham
Curve PR 07764 197003
Emma Davis
CHIEF EXECUTIVE'S REPORT
The first half of 2009 has been a difficult operating period resulting in the Group reporting a disappointing operating loss due in part to the steep decline in oil prices at the end of 2008 and the beginning of the year, a longer than anticipated ramp up of the Canton plant and slower sales in the Australian market.
Since the impact of the rapid decline in oil prices was identified and announced to the market in February, there has been some recovery in the pricing though it remains below the levels experienced in 2008. In response to this the Company has agreed pricing mechanisms on the purchase of feedstock and sales of SUPERfine that give the Group greater protection against future price fluctuations.
Management has also identified and resolved the operating issues experienced at the Canton plant and it is now operating consistently at approximately 60,000 litres a day. Production for the third quarter of 2009 is expected to be greater than the entire first half of 2009 and all current year production is fully committed to sales. The response to the Company's SUPERfine brand in the US continues to be positive. The Australian operation has developed its market more slowly in the period than had been hoped but the plant has operated well and changes made during the third quarter are beginning to produce improvements so that the potential of the plant can be fully exploited.
The result for the half year has been reported in US dollars, compared with previous reporting in Sterling. The Board has taken the view that the presentational currency for the Group should be US dollars reflecting not only the importance of the US operations to the Group but also that the US dollar is the currency most widely used around the world in oil pricing. The comparative information has been restated to reflect US dollar values.
Results for six months ended 30 June 2009
Turnover for the period increased by 10% over the first half of 2008 to USD$4.5 million (2008: USD$4.1 million), with an overall loss of USD$5.0 million (2008: USD$3.7 million). The operating loss includes USD$1.1 million of depreciation and amortisation (2008: USD$1.0 million). Net assets decreased by 8% to USD $50.4 million (30 June 2008: USD $54.3 million).
Commercial developments
* USA
Profitability at the start of the year was significantly affected by the collapse in oil prices which resulted in sales under one contract being temporarily at a loss and others at reduced margins. Since then not only have margins recovered but a much more robust mix of sales contracts has been achieved with greater protection from future oil price movements.
The Canton plant sold 2.7 million litres (2008: Nil litres) of SUPERfine during the half year. This was less than expected due to start-up operational issues at the plant. During the half year production was impacted by the failure of some production critical equipment which has now been replaced. The cost of the equipment and the loss caused by the interruption to the operations was insured. The insurance claim has been agreed and Hydrodec has to date received USD $0.5 million and expects to receive a further USD$0.75 million. The claim has been reflected within the first half results.
The plant is now consistently producing approximately 60,000 litres of SUPERfine a day. All SUPERfine produced is being sold at improving prices and during the third quarter of 2009 the plant is expected to produce an operating profit.
Our SUPERfine product continues to be supported by major transformer manufacturers such as Howard Industries as well as major utilities such as Exelon. I would like to thank them for their assistance and support during this period and I hope our partnership will remain strong into the future. We have also recently started selling into Canada and other export markets.
Plans for the second US plant remain on hold, with the Board continuing to assess the options as the business model in the US matures and the ability to access debt funding improves.
* Japan
The Company has now reached the position with Kobelco Eco-Solutions, a subsidiary of the Kobe Steel Group, to move forward on building a plant in Japan by 2012 as the first step to entering Japan and neighbouring countries. Kobelco Eco-Solutions and Hydrodec have jointly completed a demonstration of the technology for the Japanese Ministry of the Environment in order to seek regulatory consent to operate the technology in Japan.
* Australia
The Australian operation was impacted by trials for Japan and the movement of key personnel to the US to assist with technical issues at Canton, with production slowing to 1.4 million litres for the period (2008: 2.0 million litres). However the plant has operated well and organisational changes made during the third quarter are beginning to produce improvements with an expectation of increasing production and sales in the second half of the year. The pilot plant attached to the Young facility was granted an Environmental Protection Agency (EPA) licence to destroy PCB contaminated material with a concentration of up to 5,000 parts per million (ppm). This licence was granted with no requirement to monitor air emissions. We believe this is the first high level PCB destruction process to be granted a licence based upon nil emissions.
Technology
The patent originally held by CSIRO in respect of the Hydrodec technology (which to date has been licensed globally to Hydrodec) has now been assigned to Hydrodec's Australian operating subsidiary, and that patent shall be re-registered in Hydrodec's name in all relevant jurisdictions.
Placing
Hydrodec performed placings of new shares in February (19,230,114) as well as in June (22,857,153) in order to raise a total of £5.1 million to fund, primarily, the ongoing working capital requirements of the Group.
Disposals
During the period Hydrodec disposed of its condition monitoring business for AUD$0.8 million and the Molectra shares, which were acquired as part of the Virotec acquisition, for £0.3 million. These disposals produced cash without affecting the core business of the Group and neither had a material effect on the Group's results or financial position for the period.
Following the difficulties experienced in the first half of the year, the Board believes that it is no longer possible for the Group to make a full year profit. However, we believe that the Group will be at or about breakeven at an operating profit level for the second half of 2009.
Mark McNamara
Chief Executive
25 September 2009
UNAUDITED CONSOLIDATED CONDENSED INCOME STATEMENT
6 months to 6 months to
30 June 30 June
2009 2008
USD$'000 USD$'000
Continuing operations
Revenue 4,520 4,064
Cost of sales (2,228) (989)
------------------------- ----------------------
Gross profit 2,292 3,075
Administrative costs (6,134) (5,637)
------------------------- ----------------------
Operating loss (3,842) (2,562)
Interest income 1 422
Interest costs (1,154) (1,567)
------------------------- ----------------------
Loss before tax (4,995) (3,707)
Income tax expense - -
------------------------- ----------------------
Loss for the period (4,995) (3,707)
============== ===============
Basic loss per share (2.16) (2.00)
============== ===============
UNAUDITED CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Loss for the period (4,995) (3,707)
Exchange differences on 7,740 903
translation of foreign operations
--------------------- ------------------
Total comprehensive income for the 2,745 (2,804)
period
============ ============
UNAUDITED CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION
6 months to 30 6 months to 30
June 2009 June 2008
USD$'000 USD $'000
Non-current assets
Property, plant and equipment 25,090 19,506
Goodwill 3,459 4,141
Investment - Molectra - 4,440
Other intangible assets 24,819 25,822
Prepaid royalty 4,118 5,391
------------------ ------------------
57,486 59,300
------------------ ------------------
Current assets
Inventories 587 211
Trade and other receivables 2,967 3,005
Other current assets 105 -
Cash and cash equivalents 4,978 17,922
------------------ ------------------
8,637 21,138
------------------ ------------------
Total assets 66,123 80,438
------------------ ------------------
Current liabilities
Trade and other payables 4,869 13,162
Short-term provisions 53 233
------------------ ------------------
Total current liabilities 4,922 13,395
------------------ ------------------
Non-current liabilities
Long-term borrowings 7,380 8,598
Deferred tax liabilities 3,460 4,141
------------------ ------------------
Total non-current liabilities 10,840 12,739
------------------ ------------------
Total liabilities 15,762 26,134
------------------ ------------------
Net assets 50,361 54,304
============ ============
Equity attributable to equity holders
of the parent
Share capital 2,533 2,656
Share premium account 52,853 47,591
Equity reserve 16,240 19,013
Merger reserve 49,463 59,189
Treasury reserve (44,655) (53,085)
Employee benefit trust (1,345) (1,609)
Option reserve 5,474 5,363
Profit and loss account (38,093) (25,805)
Translation reserve 7,891 991
------------------ ------------------
Total equity 50,361 54,304
============ ============
UNAUDITED CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY
Share Share Equity Merger Profit and loss Share Treasury Employee Total
capital premium reserve reserve account option reserve benefit
reserve trust
Foreign
exchange
reserve
$'000 $000 $000 $000 $000 $000 $000 $000 $000 $000
At 1 January 2008 1,922 37,759 18,998 - 306 (22,000) 4,915 - (564) 41,336
Exchange differences - 351 15 - 685 (98) (401) 351 - 903
Loss for the period - - - - - (3,707) - - - (3,707)
Acquisition 622 - - 59,189 (53,436) 6,375
Share-based payment - - - - - - 849 - - 849
Issue of shares 100 9,866 - - - - - - - 9,966
Issue of convertible loan 12 - - - - - - - - 12
Issue costs - (385) - - - - - - - (385)
Purchase of shares - - - - - - - - (1,045) (1,045)
At 30 June 2008 2,656 47,591 19,013 59,189 991 (25,805) 5,363 (53,085) (1,609) 54,304
At 1 January 2009 2,014 38,506 13,648 43,064 4,992 (28,203) 4,210 (38,878) (1,170) 38,183
Exchange differences 299 6,336 2,028 6,399 2,899 (4,895) 626 (5,777) (175) 7,740
Loss for the period - - - - (4,995) - - - (4,995)
Share-based payment - - - - - - 638 - - 638
Issue of shares 210 8,054 - - - - - - - 8,264
Issue costs - (408) - - - - - - - (408)
Conversion of loan stock 10 365 564 - - - - - - 939
At 30 June 2009 2,533 52,853 16,240 49,463 7,891 (38,093) 5,474 (44,655) (1,345) 50,361
UNAUDITED CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
Note 6 months 6 months
ended ended
30 June 2009 30 June 2008
USD$'000 USD$'000
Cashflows from operating
activities
Loss before tax (4,995) (3,707)
Depreciation 584 488
Amortisation of other 536 522
intangible assets
Finance costs 1,153 1,145
Profit on disposal of assets (533) -
Share based payment expense 638 425
Foreign exchange movement (490) 684
Increase in inventories (452) 53
(Increase)/decrease in amounts (113) 1,467
receivable
Increase/(decrease) in amounts 1,419 (2,290)
payable
Net cash outflow from operating (2,253) (1,212)
activities
Cashflows from investing
activities
Purchase of property plant and (1,557) (6,325)
equipment
Purchase of investment - (8,195)
Sale of property, plant and 487 -
equipment
Sale of Investment 432 -
Interest paid (15) (330)
Bank interest and other income 5 399
received
Net cash outflow from investing (648) (14,450)
activities
Cashflows from financing
activities
Issue of new shares 8,264 9,966
Costs of share issue (408) (385)
Repayment of lease liabilities (80) (174)
Net cash inflow from financing 7,776 9,407
Increase/(decrease) in cash and 4,875 (6,255)
cash equivalents
Movement in net cash
Opening cash and cash 103 24,177
equivalents
Increase/(decrease) in cash and 4,875 (6,255)
cash equivalents
Closing cash and cash 4,978 17,922
equivalents
NOTES TO THE UNAUDITED INTERIM REPORT
1 Basis of Preparation
Hydrodec Group plc is the Group's ultimate parent company. It is incorporated and domiciled in Great Britain. Hydrodec Group plc's shares are listed on the Alternative Investment Market of the London Stock Exchange.
Hydrodec's consolidated interim financial statements are presented in United States Dollar (USD$), which is also the functional currency of the group.
These consolidated condensed interim financial statements have been approved for issue by the Board of Directors on 24 September 2009.
The interim consolidated financial statements for the six months ended 30 June 2009 have been prepared under applicable International Financial Reporting Standards adopted by the European Union ("IFRS") which include International Accounting Standards and interpretations issued by the International Accounting Standards Board and its committees, which are expected to be endorsed by the European Union. This interim financial information has been prepared on the historical cost basis. The accounting policies applied are consistent with those adopted and disclosed in the annual financial statements for the period ended 31 December 2008.
The financial statements have been prepared on the going concern basis, which assumes that the group will have sufficient funds to continue in operational existence for the foreseeable future.
The group has constructed the Canton, Ohio, plant and is in the process of bringing the plant to full production capacity. Currently, the group is economically dependent upon the ability of this plant to produce sufficient SUPERfine oil at satisfactory margins to sustain adequate cash flow to meet the group's requirements. The Directors are satisfied that at current margins and if production continues at its current levels, the Group's operating cash flow requirements will be met. However, margins are affected by, amongst other things, the world price for oil, about which there is material uncertainty, and which is beyond the control of the Directors.
The Directors believe that it is appropriate to prepare the financial statements on a going concern basis as they believe that the operating parameters outlined above will be met or exceeded. The financial information is unaudited and has not been reviewed by the auditor.
2 publication of non-statutory accounts
The financial information set out in this interim report does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006.
3 TAXATION
There is no tax charge for the period.
4 EARNINGS PER SHARE
6 months ended 6 months
30 June 2009 ended
30 June 2008
USD$'000 USD$'000
Loss for the financial period (4,995) (3,707)
Number Number
of shares of shares
Weighted average number of 230,755,436 185,611,148
shares in issue*
* The weighted average shares on issue have been
reduced by the weighted average number of Treasury
and EBT shares held.
Basic loss per share (2.16) cents (2.00) cents
5 RECONCILIATION OF MOVeMENT IN SHAREHOLDERS' FUNDS
As at
30 June 2009
No.
Authorised
Ordinary shares of 0.5 pence each 800,000,000
Issued and fully paid - ordinary shares of 0.5 pence each
At 31 December 2008 277,824,101
Issued on conversion of convertible loan notes 1,973,684
Issued for cash 42,087,267
At 30 June 2009 321,885,042
The company issued the following 0.5 pence ordinary shares during the period:
Date of issue Number of shares Issue price Total consideration
£
20 February 2009 19,230,114 10 pence 1,923,011
12 June 2009 1,973,684 19 pence 375,000
25 June 2009 22,857,153 14 pence 3,200,000
5,498,011
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEEEFLSUSELU
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I noticed adverts on elance and writingbids websites for translations of
hydrodecs marketing brochure into spanish and portugese. The ads are originated by hydrodec. Enquiry by someone or possible first stage marketing into new territories More | View thread (1) | Respond | Login to Vote up | Login to Vote down |
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There is also the possibility that other smaller loan note holders have a need to raise cash urgently and have converted at a higher than current sp and sell at a loss to obtain cash which would create an overhang of stock, however I have been unable to find any mention of other loan note holders.
Ludgate converting at 17.65p now which means an immediate loss and the loss of the 8% coupon on that part of the loan on the surface does not make much sense. Unless of course they see the sp going up soon and converting at a discount to the original 19p now to take advantage of this. More | View thread (5) | Respond | Login to Vote up | Login to Vote down |
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No worries - good to see someone else is looking at this BB which is like a ghost town. Also must be good if they are converting at higher than the current price right?
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| 14-10-09 | ||||
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sorry, thought you were refering to this mornings announcement, oh for an edit button.
As to who is buying the shares, I expect it is just the mms soaking them up. More | View thread (5) | Respond | Login to Vote up | Login to Vote down |
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They have not been approved or issued by Interactive Investor Trading Limited.
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