Clearford reaps benefits of UV Pure acquisition in Q1

Clearford Water Systems reported a major boost in revenue for the first quarter of 2015 compared with a year earlier, thanks in large part to its November 2014 acquisition of Toronto-based UV Pure Technologies.

The Ottawa-based wastewater collection and treatment firm posted revenues of $776,149 for the quarter, up from $298,245 in the same three-month period in 2014. UV Pure’s revenue accounted for $746,000 of that total.

“We are very pleased with UV Pure posting 28 per cent year-over-year growth in revenue, and solid profitability in its first full quarter post-acquisition,” Clearford CEO Kevin Loiselle said in a statement.

The company’s operating loss before finance costs was $805,245, compared with $752,370 for the same quarter in 2014.

Net financing costs for the quarter were $532,985, compared with $299,272 a year earlier. Clearford’s net loss for the quarter was $1,338,140, or two cents per share, compared with $1,051,642 for the first quarter of 2014.

Clearford (TSXV: CLI) ended the quarter with cash on hand of $468,924, compared with $710,299 on Dec. 31, 2014.

Mr. Loiselle said the future looks bright for the company, pointing to India as a market for continued growth for sales of the firm’s flagship product, Clearford One.

“These markets will develop more slowly than we expect to see in North America, but the scope is enormous,” he said. “Clearford has been active for more than three years in developing a position in India and is working with large contractors in India to partner for delivery of Clearford One to that market.”