DeepVerge PLC reported record revenue in its first-half results following an uptick in demand for its goods and services.
Sales for the six months ended 30 June 2022 rocketed 94% to £6.4mln for the environmental and life science group, with March’s production orders of £5mln for Modern Water equipment contributing to higher inventories.
Demand for Modern Water's monitoring and membrane solutions grew on the impact of climate change and global drought, the company said.
“The company continues to expand across all divisions with record H1 half-year sales and expectations of £18mln for the full year,” Gerry Brandon, chief executive, commented.
Rapid expansion in demand for products and services along with more staff members meant administration costs dropped and, therefore, operational losses fell 7.4% to £2.1mln.
The reduction was due to an uptick in gross profit of 4% on higher revenues and delivering a significant decrease in adjusted EBITDA loss over the same period.
DeepVerge, which develops and applies AI and IoT technology for the analysis and identification of bacteria, viruses and toxins, had net assets of £22.6mln on 30 June.
Its total comprehensive loss reduced by 26% to £1.98mln, with the board anticipating demand to continue well into next year.
The board recently announced the separation of the two business units in environmental health and life science and is exploring options on how to achieve the best return of value to shareholders, it said in a statement.
“The company has a substantial order book of £8.87mln for H2 supply and expects to continue its year-on-year history of revenues weighted in H2 over H1 since 2018,” Brandon added.