Transformer oil recycler Hydrodec Group says that second half trading conditions continued to be favourable and there will be a significant increase in 2011 revenues.
Hydrodec generated revenues of $17.8 million in 2010. Higher prices have helped revenues to grow in 2011, and gross margins improved because of improved feedstock supplies. Even so, the company remains loss-making. Although Hydrodec sold more of its SUPERFINE oils in the second half than in the first half, the year-on-year volume was flat at 20.3 million liitres.
A new management team has started at the company. Ian Smale has taken over as chief executive, David Robertson has become chief operating officer and Lee Taylor is head of business development.
Hydrodec has received draft approval from the US Environmental Protection Agency (EPA) to treat polychlorinated biphenyl (PCB) contaminated used oil. The full approval process should start shortly. EPA approval will enable Hydrodec to receive and reprocess high-level PCB-contaminated transformer oil in the US.
In Japan, the required planning approvals are taking longer than expected, so the company's first plant will not start operations until the first half of 2013.
Last November, Hydrodec raised £5.5 million at 10p a share so the balance sheet is strong.
The company's 2011 figures will be published in April.
Market: AIM
Symbol: HYR
Price: 10.12p
12-month high/low: 10.25p/5.75p
Market cap: £41.5 million
