Darco Water Technologies (BLR) H1 2023 earnings summary

Executive summary

• H1 revenue rose 25.1% YoY to $38.712m; gross profit rose 32.0% to $5.946m, and profit before tax was $516k versus a $482k loss.

• Net profit was $506k versus a $480k loss; currency translation losses of $657k resulted in total comprehensive loss of $151k.

Financial highlights

• Revenue increased to $38.712m from $30.950m; cost of sales was $32.766m versus $26.446m, and gross profit was $5.946m versus $4.504m.

• Other income rose to $411k from $201k, including a $279k write-back of other payables.

• Finance costs increased to $434k from $117k, mainly reflecting interest on liabilities to non-controlling interests after an interest suspension in the prior year.

• Profit attributable to equity holders was $48k versus a $304k loss; basic and diluted EPS were 0.05 cents versus a loss of 0.32 cents.

Outlook and guidance

• Results were described as in line with the outlook commentary made with FY2022 results.

• Ba Lai, the 50-year design-build-own-operate water project in Vietnam, commenced operations in June 2023.