Hydrodec sees Q1 revenue growth as volumes fall

Cleantech industrial oil re-refining group Hydrodec's shares fell more than 9% has confirmed revenue growth from continuing operations of about 25% in first-quarter 2017, from the same period in 2016, on volumes of 7.7m litres, versus 8.2m litres.

It said transformer oil sales were expected to grow to 47% of all oil sales for the quarter, against 24% in 2016, leading to a significant increase in margin of about 10 cents a litre on the prior year.

"The company expects to achieve positive EBITDA in the first quarter, traditionally the most difficult period of the year, particularly in respect of feedstock collection and availability," it said in a trading update.

"Q2 has begun positively and revenues and EBITDA are expected to grow further throughout the year -- performance at EBITDA level will be determined by the continuing improvement in margin as the price of oil continues to stabilize and overall feedstock availability improves."

Hydrodec said its board continued to monitor its working capital position for its current requirements, whilst also looking to ensure the company was well positioned to take advantage of an improving market outlook.

At 11:45 GMT, shares in AIM-quoted Hydrodec were down 9.82% to 2.52p each.