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HaloSource Reiterates Confidence In Meeting Market Expectations

July 29, 2014

Hana Stewart-Smith

LONDON (Alliance News) - HaloSource Inc Tuesday reiterated its confidence in meeting market revenue and earnings expectations for the full-year, as it saw revenues rise in the half-year to the end of June.

The clean water technology company saw revenues of USD7.3 million for the half-year, up from USD5.9 million, boosted by a particularly strong performance at its Drinking Water business which more than doubled its revenue.

HaloSource said it has significantly reduced its cash burn by 35% compared to the first-half of 2013, ending the period with USD8.3 million in cash.

The Drinking Water business saw revenue rise 124%, driven by growth with key strategic partners in China and India. HaloSource extended an agreement with a consumer goods operations in China with a second one-time payment of USD500,000. The company is currently shipping assembled cartridges to this partner, it said, to support its transition to a full market launch.

It believes this partner could be a significant contributor to its drinking water business in the coming years, it said.

In its Environment Water segment revenue rose 29% as it focused on partnering with service providers in North America in the mining and construction sediment removal areas. Recreational Water revenues rose only 1% as the North American speciality chemicals market shrank in the first half as adverse weather hit the pool and spa industry.

"We view 2014 as a year where Drinking Water and Environmental Water contribute in a rapidly increasing way to our overall financial performance. We remain focused on achieving cash flow breakeven and profit through revenue growth, margin expansion and tight control of spending," said Chief Executive Martin Coles in a statement.

Shares in HaloSource were trading up 5.9% at 7.15 pence Tuesday morning.

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Source: Alliance News

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