TIDMHAL TIDMHALO
RNS Number : 3639H
HaloSource Inc
11 July 2012
FOR IMMEDIATE RELEASE
11(th) July 2012
This press release contains certain forward-looking statements.
All statements contained in this press release that do not relate
to matters of historical facts should be considered forward-looking
statements. Forward-looking statements include statements with
respect to the operations, performance and financial condition of
the Company, the market for and benefits of its products and
services, the Company's introduction and deployment of new
products, the potential benefits of business relationships with
third parties, and the Company's plans and strategies for future
growth. By their nature, these statements involve uncertainty since
future events and circumstances can cause results and developments
to differ materially from those anticipated. The forward-looking
statements reflect knowledge and information available at the date
of preparation of this press release and the Company undertakes no
obligation to update these forward-looking statements. Nothing in
this press release should be construed as a profit forecast. These
statements about future events are subject to risks and
uncertainties that could cause HaloSource's actual results to
differ materially from those that might be inferred from the
forward-looking statements. HaloSource can make no assurance that
any forward-looking statements will prove correct.
HALOSOURCE, INC.
("HaloSource" or "the Company")
TRADING UPDATE
Seattle, U.S.A. - HaloSource, Inc. (HAL.LN, HALO.LN) the clean
water technology company traded on London's AIM, announced today
that it has made solid progress against its strategic initiatives
during the first half of 2012 whilst generating six-month revenue
of US$5.8 million, an increase of 7% from H1 2011. This included
significant gains from its two main growth divisions, drinking
water and environmental water. The Company has enjoyed positive
momentum and improving results since implementation of its new
strategic plan under the leadership of Chief Executive Officer,
Martin Coles.
HaloSource will announce its half-year results on 3 August 2012.
The Company takes this opportunity to provide an update on trading
since 31 December 2011.
Trading
-- Overall revenue increased to US$5.8 million for H1 2012, up 7% from H1 2011
- Water Clarification revenues grew to US$4.9 million, up 8%
from 2011. The Company's HaloKlear products were a primary driver
with growth in excess of 200% over H1 2011 in the rapidly expanding
environmental water business
- Water Purification revenues grew to US$0.7 million, up 41% from 2011
- Antimicrobial Coatings revenue was US$0.2 million, down 53% from 2011
-- Cash burn has been reduced by 50% from US$10.7 million during
H1 2011 to US$5.4 million during H1 2012. At 30 June 2012, the
Company had cash and cash equivalents, restricted cash and
short-term investments totaling US$8.0 million.
Operating Performance
-- During the period under review, the Company signed agreements
with three global partners related to four major project areas in
its Water Purification and Water Clarification business
segments:
o February 2012: A joint development agreement with Servicios de
Ingenieria Geosintetica, S.A. ("SIGSA"), located in Costa Rica, to
develop and deploy HaloSource's unique eco-friendly HaloKlear(TM)
Dual Polymer System ("DPS") water treatment technology. SIGSA
provides constructed solutions to a variety of industries for
treatment of storm water and wastewater streams in Central and
South America.
o April 2012: An exclusive partnership agreement with Perfect
Water Purification Manufacturing Co. Ltd. ("Perfect") pursuant to
which the Company will provide HaloPure(R) cartridges for use in
pressurized water purification devices sold by Perfect through its
direct sales channels in China. To date, the Company has shipped
45,000 cartridges under this contract.
o May 2012: A major supply agreement with PT. Basuki Water,
Indonesia for sales of the Company's HaloKlear(TM) products
throughout the Indonesian market. It is expected that first year
sales will be approximately US$0.5 million.
o June 2012: An exclusive supply agreement with SIGSA for sales
of certain HaloKlear(TM) DPS products in Latin America and Spain.
To maintain exclusivity, SIGSA is required to purchase a minimum of
US$0.5 million of products in the initial contract year, including
US$0.25 million in H2 2012.
The Company continues to remain focused on its four previously
announced strategic initiatives: 1) Driving deeper and more
meaningful strategic partnerships with key industry players having
significant geographic reach; 2) A relentless focus on consumer and
end user driven technology innovation; 3) Driving brand awareness
and "in use" experience with key end users and consumer groups in
each business category; 4) Investing in its people ensuring the
right people, in the right place, with the right skills, at the
right time.
Since Martin Coles' appointment in October 2011, there have been
a number of major changes in Sales, Marketing, Business Development
and other operating functions around the world. This has
significantly increased the capacity of local commercial leadership
while shortening decision making time and improving the Company's
ability to act on local opportunities.
Business Review
Water Clarification
The Water Clarification business saw continued growth over H1
2011 driven by rapidly increasing revenue in environmental water
solutions using the Company's HaloKlear(TM) products. Revenues
related to HaloKlear(TM) products and services increased over 200%
in H1 2012 vs. H1 2011 and comprised 13% of total revenues in H1
2012 as compared to 5% for H1 2011. The Company continues to
develop innovative products and partnerships through its
HaloKlear(TM) offering and sees significant opportunity for growth
in a variety of industries, including municipal water treatment,
construction, oil and gas, and mining, each of which produces
significant amounts of water requiring remediation before recycling
or returning it to the environment.
Revenues in the U.S. pool and spa industry, sold primarily under
the SeaKlear(R) brand, have been relatively flat despite an early
start to the pool season due to generally warmer seasonal
conditions across much of the U.S. The Company believes this is
attributable primarily to high inventory levels, which remained
with the Company's key distributors coming off a relatively weak
pool and spa season in the prior year.
Mr. Coles said, "We remain confident that meaningful innovation
coupled with our strong stable of existing products will enable us
to drive solid growth in the medium to long term, in an industry
that has become progressively commoditized over time. As with other
segments of our business, we believe strong strategic relationships
where we bring our science, technology and innovation to the
partnership will allow us to redefine the game in the segments
where we participate."
Water Purification
Water Purification revenues increased by 41% resulting largely
from the newly signed partnership with Perfect in China. The
Company considers the Perfect relationship as key in terms of its
entry into the consumer device market in China. The partnership
with Perfect ties directly into the Company's strategy of
developing relationships with leading companies that can
successfully deploy water purification devices powered by our
HaloPure(R) media.
The Company continues to focus on its relationships with key
market participants including Eureka Forbes and Bajaj in India
while driving innovation, new strategic partnerships and consumer
awareness of the efficacy of the disinfecting power and benefits of
water purification devices powered by HaloPure(R) media.
Anti-microbial Coatings
Revenues from anti-microbial coatings were US$0.2 million in H1
2012, down 53% from the prior year. The Company considers the lower
revenue to be primarily a timing issue associated with a packaging
change in its existing business. Despite these circumstances, the
Company remains bullish on the opportunity for sustainable growth
through innovation-led expansion of its product offering created in
collaboration with its existing partners.
Outlook
The Company will continue to drive growth through expansion of
strategic global partnerships and maintaining focus on its
strategic initiatives. The Company has demonstrated revenue growth
in its primary operating segments in H1 2012 and believes
acceleration of its product and technology innovation will create
opportunities for continued growth.
Martin Coles commented, "I am encouraged by our progress so far
in 2012. We are gaining traction across all aspects of our business
from innovation to partner relationships that are deeper and closer
to our end-user. We have enormous opportunities in every business
segment and we are barely scratching the surface of the potential
that already exists today. We are also making significant progress
in improving our capacity to execute and we are building the team
on the commercial and innovation side of our business to ensure
that we are able to sustain rapid business growth. Our innovation
pipeline is expanding rapidly and we are confident that this will
power our efforts to create meaningful differentiation for our
customers in the industries we serve."
Enquiries
HaloSource http://ir.halosource.com
James Thompson, Chief Financial Officer +1 425 974 1993
Martin Coles, Chief Executive Officer +1 425 974 1975
Buchanan
Charles Ryland/Clare Akhurst +44 207 466 5000
Liberum Capital (NOMAD)
Simon Atkinson/Richard Bootle +44 203 100 2222
Notes to Editors
About HaloSource
HaloSource is a global clean water technology company
headquartered in Seattle, Washington U.S.A. and is focused on the
provision of cleaner, clearer and safer water using its proprietary
technologies across four platforms:
-- HaloKlear(TM) products employ natural bio-polymers to provide
water clarification on an industrial scale with dramatic reductions
in ecological impact
-- HaloPure(R) media became the first drinking water technology
in 30 years to be registered by the United States Environmental
Protection Agency ("USEPA"). In 2010, HaloPure(R) media was
approved by China's Ministry of Health ("MOH") and widely
recognized as the world's most stringent performance requirements
for water purification, a key differentiator for our multi-national
partners
-- SeaKlear(R) Pool and Spa treatment products bring both
natural bio-polymers and antimicrobial applications for treating
recreational water
-- HaloShield(R) products consist of antimicrobial coatings
solutions that employ unique technology that binds chlorine-based
bleach to textiles such as sheets, lab coats and towels for use as
a non-toxic biocide.
HaloKlear, HaloPure, SeaKlear and HaloShield are either
trademarks or registered trademarks of HaloSource, Inc. All other
trademarks, brand names or product names belong to their respective
holders.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTLLFSEDEIILIF
Halosource Cp (LSE:HALO)
Historical Stock Chart
From May 2024 to Jun 2024
Halosource Cp (LSE:HALO)
Historical Stock Chart
From Jun 2023 to Jun 2024