A spate of new contracts in fiscal 2017 have added some steam to Ottawa clean-tech firm Thermal Energy International’s balance sheet, pushing revenues to a record high.
Thermal Energy said Monday its revenues were $13.2 million for the fiscal year ending May 31, 2017, a year-over-year increase of 6.4 per cent.
The company touted a number of major deals that helped fuel the rise in revenues, including installations at a “global brewing company” and “a leading food products business,” as well as an increase in orders from a “leading performance materials company” and a “multinational biotech company.” The firm typically does not name its clients.
Thermal Energy (TSX-V: TMG) makes technology that captures and reuses heat from the exhaust and steam traps of large buildings, such as hospitals and industrial facilities. This helps cut its customers’ energy bills and reduces emissions.
In a news release, the company said revenue from its flagship GEM steam-trap system rose a whopping 28.6 per cent over fiscal 2016.
Last summer, the company entered the cogeneration market, selling systems that simultaneously generate electricity and heat.
The firm’s gross profit rose 9.5 per cent to a record high of $7.4 million, compared with $6.8 million a year earlier. Thermal’s overall net income jumped nearly 52 per cent to $393,000.
“Our record highs in revenue and gross profit in fiscal 2017 are the result of the successful execution of our strategy on multiple fronts,” Thermal CEO William Crossland said in a statement.
“We gained new customers; sold more to existing customers; and continued to develop our corporate accounts. We look to build on our momentum and capitalize on the very favourable market conditions we have been witnessing around the world for emission reduction and energy-efficiency solutions.”
The company’s fourth-quarter revenues were $4.8 million, a year-over-year increase of 15 per cent. Gross profit rose 16 per cent to $2.4 million, while the firm’s net income climbed nearly a third to $354,000.
Thermal has landed a number of deals since its fiscal year-end, including one worth more than $3 million from a “Fortune 500 food and beverage customer.” Those contracts helped raise its order backlog to about $9 million as of Sept. 22, up from $7.3 million a year earlier.
Thermal’s stock price was unchanged in morning trading at nine cents on the TSX Venture Exchange.