Eneraqua describes 'encouraging' trading in year-to-date

Energy and water efficiency technology company Eneraqua said in an update that, after its initial public offering in November, trading in the first half of the financial year had been “encouraging” as it remained on course to deliver on its growth plans.

The AIM-traded firm, which was holding its annual general meeting, said that as well as delivering on contracts in the current year to 31 January, it was also building a “strong pipeline” of opportunities for the following year and beyond.

Its order book currently provided full revenue cover for its full-year revenue target, and 67% for the 2024 period.

“As reported, we were delighted to secure the first agritech contract in May to provide our ‘ClimateSmart; agricultural water efficiency solution to the State of Uttarakhand in India, and following this are in discussions with other states across India,” the board said in its statement.

“In the UK, the use of our ‘Control Flow HL2024’ products for domestic water efficiency and net water neutrality programmes is progressing well and attracting wider interest.

“The challenge from climate change is widely recognised globally, as is the need to increase the resilience of our energy markets to dislocations such as that caused by Russia's attack on Ukraine.”

Eneraqua said those challenges were creating further demand for its work, adding that a “stable legislative framework” around climate change and fuel poverty was important for its clients.

“In response to the growing opportunities we are witnessing, we are also investing further in our capability, in particular in people, to enable the group to deliver higher levels of activity in future years.

“This includes increasing our investment in training and development to bring forward the skills and experience of our people to enable us to deliver an even better outcome for our clients.”

That, the board said, also allowed it to manage challenges in its supply chain.

“We continue to focus on delivering strong growth in energy and continued expansion of the water business's operations both in the UK and overseas.”

At 1548 BST, shares in Eneraqua Technologies were up 1.51% at 269p.

Reporting by Josh White at Sharecast.com.