Water technology company Modern Water sees revenues grow with focus on China in 2009

10 March 2010

AIM-listed Modern Water said its entrance into the Chinese market and the deployment of its technology in Gibraltar and Oman were key factors in the company moving towards commercialisation during 2009, its executive chairman Neil McDougall told NewNet.

The company reported £23.1m cash reserves and no debt at year-end and generated its first revenues from sales of its Cymtox CTM toxicity monitoring unit in China, totaling a full-year profit of £100,000.

‘The Chinese market is looking very exciting for us. These are the first sales we have had of this technology and the Chinese are increasingly taking the lead in solving their environmental issues,’ McDougall said.

‘We are now looking to develop further markets for this in the US and Europe but China is taking up a lot of our capacity at the moment so we are very encouraged.’

The company said its Gibraltar plant continues to perform well and its experience in the region has been essential to the success of its larger plant in Oman.

McDougall said the global economic crisis, which brought down the profits of many in the clean technology space during 2009, did not adversely after Modern Water.

‘Our core business has not been that affected by the economic downturn because a lot of what we do is focused on cost reduction and improving the environmental aspects. Those two aspects remain key to most people’s way of thinking at the moment,’ he said.

Modern Water said investment in the Middle East region is set to grow significantly over the next ten years and as such become a key market for the company. During the year it started a manipulated osmosis plant in Oman and will install its first evaporating cooling system proving plant by mid-2010.

‘The Oman plant is producing water in an area where the population has not had high-quality drinking water,’ McDougall said.

In addition, the shockwaves that rocked investments in Dubai during the latter half of 2009 is proving to be a driver for the further deployment of its technology.

‘The core of our business is water and in the Middle East it is even more important than oil. We aren’t finding any issues about continuing to expand in the region irrespective of the financial problems. In many ways it is helping us because we can produce water much more efficiently than conventional processes,’ he said.

Copyright © 2010 NewNet

Tags: water

This story was published on Wednesday, March 10th, 2010 at 12:35 pm and is filed under Asia, Middle East, companies, water. You can follow any responses to article entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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