MyCelx Technologies swings to loss amid slowdown

Oil and gas industry clean water technology company MyCelx Technologies reported revenue of $11.9m (£9.68m) in its final results on Wednesday, down from $27m year-on-year.

The AIM-traded firm said its gross profit for the year ended 31 December stood at $6.1m, down from $14.1m, while it made an EBITDA loss of $1.2m, compared to earnings of $5.6m in 2018.

Its net loss totalled $3m, swinging from net profits of $3.1m.

MyCelx said its total operating expenses were reduced by 12% year-on-year.

On the operational front, the company achieved three contract extensions and two new contracts in Saudi Arabia, and made its first sale into PFAS remediation in Australia.

Since the period ended, it said it had signed three new purchase orders - two in the Middle East, and one in Nigeria.

It also noted that during the year, Tom Lamb was appointed to the board as a non-executive director and as chairman of the compensation committee.

MyCelx added that, following the slowdown in bidding activity in the first half of 2019, it took “decisive action” to reduce costs across the group.

“Whilst we experienced a strong first quarter in 2019, global macro events led to a number of project delays and a slowdown in bidding activity, which impacted our financial performance during the year,” said chief executive officer Connie Mixon.

“However, despite the conditions, we were able to sign a number of new contracts during the period, in addition to extending two existing contracts in our core market of Saudi Arabia.

“We maintained our strategy of remaining close to existing and target customers and conducting trials with potential customers, which we believe will deliver results in due course.”

Mixon said that in 2020, the firm now faced “some of the most challenging conditions” it had ever encountered, with the onset of a global pandemic and lower oil prices, and as a result had “gone to great lengths” to protect its employees and safeguard its financial position by installing a number of cost saving initiatives.

“In terms of our operations, we remain busy and are actively speaking to our customers and vendors regarding new and currently active projects.”

At 0937 BST, shares in MyCelx Technologies were up 1.08% at 47p.