HydroDec Group plc AGM Statement (3717A)
June 07 2016 - 2:00AM
UK Regulatory
TIDMHYR
RNS Number : 3717A
HydroDec Group plc
07 June 2016
7 June 2016
Hydrodec Group plc
("Hydrodec" or the "Company")
AGM Statement
Hydrodec Group plc (AIM: HYR), the clean-tech industrial oil
re-refining group, will be holding its Annual General Meeting at
8.30am today at the offices of Canaccord Genuity Limited, 88 Wood
Street, London EC2V 7QR. At the meeting, Chris Ellis, Chief
Executive of the Company, will make the following statement:
I have referred to previously my strategy to implement a
fundamental turnaround for the Company and refocus on the core
transformer oil re-refining technology. The first step of that
strategy was the disposal of Hydrodec's UK operations announced in
early March. I also stated that the next stage of that plan would
be focused on delivering increased operational performance, reduced
costs and ultimately the achievement of a profitable 2016. I would
like to provide an update in respect of the progress which we have
made in implementing this plan.
I am pleased to report significant progress against all of our
key objectives since the beginning of the year. I will talk you
through them now.
Our core objective this year has been to optimise the
performance of our Canton facility and to increase production
levels through a combination of leveraging the experience gained by
operating the plant since the end of last year along with specific
targeted operating improvements. These improvements have been
validated by the significantly lower number of production hours
lost due to unscheduled stoppages and the record monthly production
performances of the plant in March of 2.56 million litres
superseded in May with 2.82 million litres produced.
Another key objective relates to improving the sales mix between
higher margin transformer oil and lower margin base oil produced
from our Canton plant. At the beginning of the year our January
transformer oil sales represented 19% of US volumes sold. We have
made significant improvements in this area and in May transformer
oil represented 54% of sales and June's confirmed orders would
indicate approximately 80% transformer oil for the month.
We have also been concentrating on our operations in Australia
and more specifically, feedstock availability. Since the move to
the Southern Oil Refinery we have had to work extremely hard to
re-establish our commercial position in the market. I am pleased to
report that in May, the Australian business enjoyed one of its
highest feedstock acquisition months since 2012 and the underlying
pipeline is growing steadily.
We have also worked hard this year to materially reduce
corporate costs. We have made good progress in this area, however
it is one in which we will continue to seek to make improvements.
Significant reductions have already been realised and we expect the
benefits from more recently implemented initiatives to filter
through in H2 with corporate costs and overheads forecast to reduce
by US$767k or 40% from H2-15 to H2-16.
In summary, whilst the above is not an exclusive list of the
initiatives that have been my focus since the beginning of the year
I believe that the information provided today confirms significant
progress in the turnaround of the Company over this time period.
Our key objective during the rest of the year is to strengthen
margins as we grow market share whilst continuing the program of
cost reduction.
The slides accompanying this statement are also available on the
Company's website at
http://www.hydrodec.com/investors/results-and-presentations/2016
For further information please contact:
020 3300
Hydrodec Group plc 1643
Chris Ellis, Chief Executive
Officer
James Hodges, General Counsel
and Company Secretary
Canaccord Genuity (Nominated 020 7523
Adviser and Broker) 8000
Guy Marks
Henry Fitzgerald-O'Connor
Vigo Communications (PR adviser 020 7830
to Hydrodec) 9700
Patrick d'Ancona
Chris McMahon
Notes to Editors:
Hydrodec's technology is a proven, highly efficient, oil
re-refining and chemical process initially targeted at the
multi-billion US$ market for transformer oil used by the world's
electricity industry. MarketsandMarkets forecasts that the global
transformer oil market is expected to grow from US$1.98 billion in
2015 to US$2.79 billion by 2020 at a CAGR of 7.14% from 2015 to
2020. Spent oil is currently processed at two commercial plants
with distinct competitive advantage delivered through very high
recoveries (near 100%), producing 'as new' high quality oils at
competitive cost and without environmentally harmful emissions. The
process also completely eliminates PCBs, a toxic additive banned
under international regulations. Hydrodec's plants are located at
Canton, Ohio, US and Bomen, New South Wales, Australia.
Hydrodec's shares are listed on the AIM Market of the London
Stock Exchange. For further information, please visit
www.hydrodec.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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