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Ocean Technology Group (OTAQ), the technology innovation entity targeting the aquaculture, geotracking and offshore market announced unaudited interim results for the six months ended September 30, 2022. Among its financial highlights, the company reported a year-on-year increase in profits of more than 25%, achieved on the back of increased revenues.
The company has released unaudited interim results, which show revenue up 11.3% to GBP 2,026 million in the first half of FY2022/23. Gross profit was GBP 1,034 million, up 25.2% on H1 2021/22.
Adjusted EBITDA (earnings before income, tax, depreciation, exceptional costs, impairment, share option charges and amortization), meanwhile, was GBP 13,000, compared with a loss of GBP 171,000 in the first half of last year.
Reporting data for the period, Phil Newby, Chief Executive Officer of OTAQ, said: “As the business diversifies, the Board is pleased with these results, which show an improvement in revenue, gross profit and adjusted EBITDA compared to the same period last year. The Board believes that the Group can deliver on the long-term strategic objectives it has set for itself to leverage OTAQ’s potential and significantly increase shareholder value”.
Strategic and operational aspects
The report highlights strategic and operational aspects such as the creation of a new geo-referencing division. The first of these is the successful sales of its prototype technology applied in sporting events and for geofencing security products in industrial markets.
Also completed was the development of an innovative custom-designed sonar for the Minnowtech company from the shrimp sector, a key growth area with an estimated initial target market size of GBP 24 million. These products are aimed at scanning shrimp in ponds and monitoring water quality, focusing on maximizing welfare and production yield.
In addition, live plankton analysis systems were deployed at customer sites in Scotland, Chile and Ireland that “could be a game changer for fish and shellfish farmers”. In this area, prototype versions are expected to be installed in January 2023. Its initial estimated target market in the region of GBP 24 million.
OTAQ recorded, on the other hand, an increase in rentals of the Offshore division’s OceanSense core product. As reported, the development of new technologies in this division supports the cross-deployment of skills and technologies in aquaculture and geotracking. Initial customer contracts have already been signed for Water Quality Monitoring products in Scotland.
Previously, it was admitted to trading on the AQSE Growth Market of the Aquis Stock Exchange. The placing was successful, raising approximately GBP 3.2 million net of expenses. As a result, cash balances of approximately GBP 2.7 million are expected at November 30, 2022, following full settlement of onerous supply contracts and deferred acquisition costs.
In that regard, they detailed that the new funds enable the Company to accelerate the development and commercialization of its strong pipeline of new products.
Additional investment in sales and marketing resources
OTAQ is a highly innovative technology company targeting the aquaculture, geotracking and offshore markets. It already has a number of established products in its portfolio and is focused on further developing its presence, customer base and cross-selling opportunities within key markets, both organically and through acquisitions.
“The recently completed financing will allow the Group to focus on further product development and will enable OTAQ to make additional investment in sales and marketing resources to deliver new revenue and growth. Importantly, in its core geographies, the Group has a number of key relationships that are expected to deliver results in the near future, with others rapidly approaching commercialization,” Newby commented.
The Board of Directors, said OTAQ’s Chief Executive Officer, “remains committed to continuing to launch innovative new products and significant business development over the next period in order to return the Company to growth and improved profitability”.
Opportunities in the seafood sector
OTAQ, which already has customers in safety and multi-sport/racing applications, has made it clear that it is investigating wider market potential, including opportunities in the seafood sector.
OTAQ’s offshore product range includes OceanSense subsea leak detection, Eagle IP camera systems, Lander seabed scanning devices and subsea electrical connectors and penetrators. The company is targeting a number of growth opportunities in new territories and has a strong customer base including Expro, Amphenol and National Oilwell Varco.
