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Modern Water

Modern Water lifted by Oman plant news, Cymtox technology order

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Shares in desalination technology group Modern Water PLC (AIM: MWG) were lifted this morning by news that its second proving plant, based in Oman, is in the final stages of commissioning and that it has secured the first order for its Cymtox toxicity monitoring technology.

The group was trading up more than 6 percent by midmorning in London.

Modern Water also reported results for the six months to end-June 2009, showing a pretax loss of £2.06 million, compared with a £1.15 million loss a year earlier, due to higher administration costs and lower finance income in the period.

The group’s first proving plant in Gibraltar has been supplying water to the local system since May 2009, using Modern Water’s proprietary Manipulated Osmosis Desalination technology.

The second, larger plant at Al-Khaluf in Oman is in the final stages of commissioning, and it views the facility as an important showcase in the Middle East, a key region for Modern Water’s technology. The project faces challenging conditions, and has been installed alongside an existing desalination plant in order to demonstrate the benefits of the company’s technology compared with traditional methods.   

Modern Water is currently evaluating a number of locations for the first proving plant to use the manipulated osmosis technology within cooling towers, with a view to improving the cost efficiency and environmental performance of cooling towers, typically associated with power stations and oil refineries.

It also said it has now secured the first orders for its Cymtox Continuous Toxicity Monitoring (CTM) unit in China. The device monitors constantly for the presence of water-borne toxins and immediately warns of suspicious changes. 

It sees many applications for this technology, including drinking water intake and distribution, water supplies to high security installations, and monitoring industrial discharges. Modern Water has increased its stake Cymtox Ltd to 76 percent to maximise the benefits of CTM to the company.

Chairman Neil McDougall said: “While we continue to take significant steps forward across the breadth of our business, our financial position remains strong, with £25.3 million of net cash in hand. The business is well positioned to move ahead and we look forward to delivering further progress in the coming months.”

Quick facts: Modern Water

Price: £0.02

Market: AIM
Market Cap: £2.3 m
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