Water recycler De.mem makes a splash with 20pc revenue upgrade
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.