- Water cleaning specialist Phoslock Environmental Technologies (PET) expects to double its sales revenue in the 2020 financial year
- The company is forecasting roughly $60 million in sales next year, compared to the current target of roughly $30 million
- The company has several water-cleaning projects around the globe
- Phoslock’s biggest revenue generator, however, is China
- Phoslock shares have been trading strong today up 2.91 per cent at midday and worth 88 cents each
Water cleaning business Phoslock Environmental Technologies (PET) plans to double its sales revenue in the 2020 financial year.
The company is currently on track to meet its 2019 financial year sales forecast of between $27 million and $30 million.
Phoslock told investors today, however, expects this sales figure to hit between $50 million and $70 million for 2020, largely due to a doubling of its factory capacity and its ongoing projects in China.
Phoslock’s namesake technology is designed to treat unhealthy and polluted water until it is once again suitable for animal and human consumption. The tech permanently binds excess phosphorus in a water column and sediments, which in turn stops the growth of harmful algal blooms.
While Phoslock has roughly 20 different projects around North America, South America, and Europe, the company’s most valuable treasure is found at the bottom of some Chinese waterbodies.
Phoslock has been contracted by the Chinese government to clean up some polluted bodies of water around the country in an effort to increase general health and boost tourism.
The company has five major projects around the country, the biggest of which is the treatment of the 34-square-kilometre Xingyun Lake. Roughly 3500 tonnes of Phoslock’s treatment will have been pumped into the lake by the end of December, with some big orders already put in to continue to treatment next year.
Phoslock Chairman Laurent Freedman said the business has seen some rapid growth in all aspects, hence the strong sales forecast.
“While we forecast a 100% sales increase for 2020, several large potential projects have not yet met our pipeline criteria,” Laurence said.
“The Engineering and Ground-Remediation areas are both growing strongly and will contribute substantially more revenue next year and beyond,” he said.
The company made a point to note, however, that external factors like extreme weather could affect the application of the Phoslock tech and subsequent sales figures.
Still, Phoslock shares have been trading strong today, up 2.91 per cent at midday and worth 88 cents each.