Water recycler De.mem makes a splash with 20pc revenue upgrade
Food & Agriculture
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Water purifier De.Mem, which recently moved into the food business, has upgraded its revenue forecast by 20 to 25 per cent.
Revenue for calendar 2018 was now expected to be $10 million to $12 million compared to a March forecast of $8 million to $10 million.
De.Mem reported $2.9 million revenue last year.
De.meme banked $2.5 million in customer receipts last quarter, but remained in negative cashflow territory, burning through $713,000 in the period.
It had $2.5 milion cash at the end of March and expected to spend $2.3 million this quarter.
“De.mem remains well funded with a healthy cash balance, and together with a reduced cash burn and a growing revenue base, is strongly positioned to become cash flow positive in the near term,” said CEO Andreas Kroell.
Mr Kroell put the improved numbers down to a increase in projects including a $1.7 million contract to build a water treatment system South Australia.
“The significant increase in expected revenue is underpinned by a number of projects, from which revenues will be realised in the near term, as well as a strong order book growing in both Australia and Asia.”
De.mem’s recently acquired Akwa-Worx business “also underpins this revenue guidance increase” the company said.