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Highlights
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EQTEC PLC reported a tenfold revenue increase in the first half of 2024, reaching €1.45 million, compared to approximately €145,000 in the same period the previous year.
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Gross profit surged to €0.826 million, marking a significant improvement from €0.036 million, with gross margins rising above 50%, up from 15% for the entire previous year.
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The company's strategic pivot towards high-margin, intellectual property-rich services has enabled recurring revenue streams and reduced payroll costs by 14%.
Overview
EQTEC PLC {LSE:EQT} is a global clean technology company specializing in sustainable waste-to-value applications through its proprietary Advanced Gasification Technology. This technology efficiently converts a broad range of waste products into syngas, which can be utilized to generate various energy sources on a commercial scale.
In its first-half results released on 26 September 2024, EQTEC showcased a remarkable financial turnaround, with revenue skyrocketing tenfold to €1.45 million in the first six months of 2024, up from approximately €145,000 in the same period the previous year. Gross profit also improved significantly, reaching €0.826 million compared to €0.036 million a year earlier. This surge in revenue has translated into a gross margin improvement to over 50%, up from just 15% for the entirety of last year.
CEO David Palumbo attributed this positive trend to the company’s strategic shift towards high-margin, intellectual property-rich services while moving away from high-risk, capital-intensive development activities. Additionally, EQTEC successfully reduced payroll costs by 14%, further enhancing its cost efficiency.
On 16 September 2024, EQTEC appointed Murli Bhamidipati as operations director for EQTEC Iberia, its Spain-based subsidiary. Bhamidipati will also serve as managing director, commencing his role on 30 September.
In another significant development, EQTEC announced positive results from steam-oxygen gasification tests on 12 September, demonstrating the successful conversion of mixed waste feedstocks into high-quality syngas suitable for biofuel applications. These tests, conducted in collaboration with CompactGTL Limited, showcased EQTEC's capacity to transform complex materials, including plastics, into renewable natural gas (RNG) and sustainable aviation fuel (SAF).
Looking ahead, both Palumbo and Bhamidipati expressed optimism regarding EQTEC's potential for future growth, emphasizing the company’s innovative solutions and strong engineering capabilities. The strategic focus on recurring revenue and operational efficiency positions EQTEC favorably to capitalize on upcoming projects within its pipeline.
