Ottawa clean-tech firm Thermal Energy (TSX-V:TMG) is crediting its shift away from a focus on landing large mega-projects for helping it record its second-highest profit in the company’s history.
Revenues climbed more than 82 per cent to $12.4 million during the 12-month period that ended on May 31, 2016.
The company’s net income rose to $259,000 during the year, an improvement from the net loss of almost $2.2 million it reported last year.
“After a disappointing fiscal 2015, our revenue rebounded,” William Crossland, Thermal Energy’s president and CEO, said in a release. “Importantly, we have made solid progress in growing our base business, thus relying less on mega projects, which we define as orders valued at or above $2 million.”
The company makes systems to recycle heat normally lost through exhaust stacks and steam traps that capture energy from boilers and steam systems, which it sells under the GEM branding.
For the three-month period that ended on May 31, 2016, it reported revenue of $4.1 million up 63 per cent from the $2.5 million it reported during the same period last year.
That pushed net income for the quarter to $268,000, up from a net loss of $338,000 during the same period last year.
“Our revenue has grown at a compounded annual rate of 17.6 per cent since 2009 when we acquired the GEM business. This past year, we continued to pursue client opportunities with potential for cross-selling and other repeat business, and executed a sector-based approach to our sales and marketing,” Mr. Crossland said.
“While hospitals and food and beverage customers were the largest sources of revenue for the year, we continue to see applications for, and orders from, a variety of other sectors. Additionally, as we look ahead to fiscal 2017, we have a healthy order backlog of approximately $7.3 million, up from $5.9 million a year ago.”
Thermal Energy’s shares were up a penny, or 25 per cent, to $0.05 on the TSX Venture Exchange Tuesday.