It has been a year of strong progress for Hydro International, the Clevedon company which has developed a range of technologies to control urban run off, treat stormwater, combined sewage overflows and municipal wastewater.
Announcing pre-tax profits up from £2.4m to £2.5m, CEO Steve Hides said the group delivered a solid financial performance, with revenue and profits increasing in line with expectations in the 12 months to December 31. It had been achieved "by adhering to a proven business model and a focus on managing our business to maximise the potential in core areas," he said.
"We have also developed the group's strategy, which is now being implemented to create a robust platform for future growth across the broader water sector, both in our core markets of the UK and US, but also increasingly internationally."
The group also operates in Ely, Cambridgeshire, as well as across the US from bases in Portland, Maine, and Hillsboro, Oregon. It has a growing presence outside of its core US and UK markets in Ireland, Egypt, Middle East, Mexico, the European Union, Malaysia, Singapore, Japan, Korea, Australia and New Zealand.
Successes flagged up for 2011 include its UK Wastewater business delivering major contracts for Thames Water. In addition:
- US Wastewater secured the group's largest Hydro-Sludge Screen order to date, with a prestigious $1.7m contract for a major treatment plant in Washington DC.
- A 12% growth in US Stormwater revenues.
- International expansion plans accelerated with the appointment of an international business director and new distribution arrangements in Japan.
- Strategic expansion planned into new markets for Hydro technology across the water sector, including municipal drinking water and industrial water applications.
- The launch of a Hydro Consultancy business to meet demand for flood risk advice and support stormwater sales in the UK.
Chairman Roger Lockwood said despite ongoing economic uncertainty, and a lack of substantive recovery in construction markets, progress in wastewater markets during 2011 had increased revenues by 10% to £31.1m – ahead of the 2008 pre-recessionary levels of trading for the first time. Adjusted operating profits (which exclude amortisation of acquired intangible assets) increased by 9% to £2.9m and adjusted earnings per share also rose by 11% to 12.86p.
He added: "We are pleased with the momentum we carry into 2012, and are looking forward to making further progress in the year ahead."
The shares closed up 2.46% or 3.5p at 146p, their highest point since the autumn of 2008.
