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Proventec

  • BY: Andrew Hore |
  • POSTED: 03/08/2009 |

Proventec has fallen into loss but it remains confident about its long-term prospects.

Short-term, though, trading continues to be tough. The healthcare operations have been brought into one division. Sales of steam cleaning equipment have been disappointing because of its high cost and lack of capital investment spending. A division focused on the industrial sector, particularly food manufacturers, will be launched in 2010. Cost savings have been implemented by the group.

Revenues rose by 10% to £15.4m, while a profit of £1.34m was turned into a reported loss of £28.6m in the year to March 2009. Gross profit improved slightly but the increase in admin expenses more than covered that so Proventec would have been loss-making even without the £26.7m of write-offs. The corresponding period included a one-off gain of £1.13m. 

The shares fell 1.5p to 65p each, which values the steam cleaning technology developer at £10m.

A £1.5m fundraising at 50p a share back in July has improved the balance sheet since the year end. Net debt was £16m at the end of March 2009. The Italian manufacturer of the company’s steam cleaning equipment has asked for better payment terms. 

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