Clearford Water Systems’ M&A strategy is yielding higher revenues for the Ottawa-based cleantech firm, according to its third-quarter results released this week.
Clearford (TSX-V:CLI), a local developer of water management systems, reported revenues of $1.6 million for the three-month period ending Sept. 30, compared with $910,697 in the same period a year ago.
The jump in revenue can be largely attributed to Cleaford’s acquisition of Koester Canada last November. In financial filings, the company says $831,014 of its sales in the quarter relate to its acquisition of Clearford Koester and its subsidiary.
Earlier this year, Clearford acquired an Ontario-based water utility firm as part of an ongoing M&A strategy. The company announced in mid-2017 that it would switch gears to become a full-suite water and wastewater management systems provider for municipalities and private developers, building out its services portfolio through acquisitions.
One of the highlights of its past quarter was a deal to provide wastewater treatment systems for Amazon’s new one-million-square-foot distribution facility on Boundary Road in Ottawa. The warehouse requires its own wastewater treatment system because of its distance from the main city.
The Ottawa firm reported a net loss of $2.8 million for the quarter, more than double last year’s Q3 losses. To date, the company has doubled its net losses in each quarter of fiscal 2018.
Clearford CEO Kevin Loiselle said in a statement that the integration of the acquired companies was taking longer than previously expected. Still, he was high on the company’s future prospects and promised strong results to come.
"The strategic business plan is working and there is a real sense that the company has turned a corner, with the fourth quarter of 2018 marking a new beginning for Clearford and significant revenue growth starting in 2019,” he said.