I am pleased to report that Seprotech’s strong order backlog entering into the current fiscal year has translated into revenues up 32% over the same six month period last year, stated Martin Hauschild, president and chief executive officer of Seprotech. However the economic environment remains difficult and it will be challenging to maintain growth until the global economy turns. Management has implemented cost savings measures in keeping with the continued downturn and is working to address the Company’s working capital requirements going forward into the second half of the year.
Base revenue consistency was aided by the acquisition of Envirosearch Operations Inc. completed in January of this fiscal year. We expect to see the full benefits of the acquisition materialize over the coming year as Envirosearch is fully integrated into Seprotech said Mr. Hauschild. This accretive transaction builds on Management’s strategy to develop a utility division and is consistent with our core strategy for growing Seprotech into an integrated water treatment solutions provider. There are large technical and regulatory barriers to entry in the water plant operations business, which the acquisition of Envirosearch allows us to quickly hurdle, added Hauschild.
We have some short and medium term challenges before us as we work through the negative impact of the current recession but we remain focused on the long-term water business, added Seprotech’s new Chairman, Jordan Grant. The addition of plant operations allows Seprotech to meet the growing demand for turnkey infrastructure models that include water treatment equipment and operations. This ability to meet all aspects of its clients’ water and wastewater treatment needs is a clear competitive advantage which provides the Company with many revenue growth opportunities going forward, concluded Grant.
