Modern Water seeking additional working capital

Shares in Modern Water fell down the plughole on Friday after the AIM-listed company said it was in talks with potential funding parties as it seeks additional working capital.

The waste water technology group said cash flows from the membrane division have been slower than expected, meaning it now needs additional working capital to meet its short-term requirements.

"The board is engaged with a number of potential funding parties with a view to providing the working capital needed, which may or may not include a new equity issue. Although no guarantees can be given that these talks will come to fruition, the board believes these options to be viable and a further update will be made as appropriate."

The company said its monitoring segment continues to trade in line with expectations and it is awaiting developments on the Gibraltar waste water contract.

At 1330 BST, the shares were down 16% at 3.45p.