The assessment accompanied a trading update for the year ended 31 December, where the AIM-listed company reported that its adjusted EBITDA loss had widened to US$3.2mln from US$1.2mln while revenues fell to US$11.6mln from US$14.9mln.
Hydrodec blamed the falling revenues on “working capital constraints”, which it added would also be reflected in its operating performance for the first quarter of its current year.
Chris Ellis, the company’s chief executive and interim executive chairman, said while the prior had been “extremely disappointing”, there were some “encouraging signs of early successes” with the firm’s sustainability strategy and “traction with major US utility companies” which gave him “greater optimism going into 2020”.
Hydrodec’s growing traction in the US included a three-year deal with utility firm Duke Energy to process used transformer oil, which the company said could be extended for a further two years.
The shares tumbled 27.8% to 7.4p in early trading.