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Last close As at 07/06/2023
-0.27
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Market capitalisation
70m
Research: Healthcare
BioLargo reported record revenue of $1.86m for 2019, a 36% increase over 2018 and a record single quarter revenue of over $560,000 for Q4. Odor-no-More (ONM) had its best year to date with $1.46m in revenue ($832,000 gross profit). However, ONM fell short of its goal of breaking even for the year with a loss of $337,000 (albeit improved from the 2018 $433,000 loss) due to increased headcount for future growth. The company noted that in 2020 it will focus on increasing sales through improved distribution and strategic alliances and will keep its headcount constant. This will be supported by a new $10m equity facility from Lincoln Park.
Written by
Nathaniel Calloway
BioLargo |
A record-setting year
Healthcare & industrial services |
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2 April 2020 |
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BioLargo reported record revenue of $1.86m for 2019, a 36% increase over 2018 and a record single quarter revenue of over $560,000 for Q4. Odor-no-More (ONM) had its best year to date with $1.46m in revenue ($832,000 gross profit). However, ONM fell short of its goal of breaking even for the year with a loss of $337,000 (albeit improved from the 2018 $433,000 loss) due to increased headcount for future growth. The company noted that in 2020 it will focus on increasing sales through improved distribution and strategic alliances and will keep its headcount constant. This will be supported by a new $10m equity facility from Lincoln Park.
COVID-19: Some plans on hold, but new opportunities
Although BioLargo is continuing operations during the COVID-19 pandemic, the disease has affected some of its development plans. A series of contracts for BLEST to develop air pollution control systems for a potato grower have been put on hold until after the pandemic subsides. However, there are avenues for the company to assist and it is developing a formulation of Clyra’s wound care product for hand sanitization in response to a call to action from the Canadian government, with potential applications in other products such as masks. We also expect limited revenue disruption as ONM is a supplier for essential services.
ONM enters Korean joint venture
BioLargo signed a memorandum of understanding in Q319 with Korean water treatment company BKT to explore CupriDyne Clean in the city of Daegu. This collaboration has expanded into a joint venture, announced in March 2020, in which the joint venture will manufacture and BKT will distribute CupriDyne Clean-based products for the Korean market. BioLargo hopes to leverage this venture to expand into other Asian markets. The company stated this program is moving forward and would not be delayed over COVID-19 concerns. BKT invested $150,000 in the venture and BioLargo $100,000. BKT also purchased $350,000 of BioLargo stock. There is also potential for collaboration with the company’s BioLargo Water unit.
BLEST PFAS program advances
BLEST is developing a low-cost solution to remove PFAS (perfluoroalkyl substances), a class of highly resistant contamination, from drinking water. The company previously received a Phase I grant from the EPA and has developed a new technology called the Aqueous Electrostatic Concentrator that can remove over 99% of PFAS contaminants. The company has applied for a Phase II EPA grant to support building a pilot in a commercial or industrial setting.
Historical financials
Source: BioLargo reports |
BioLargo is a research client of Edison Investment Research Limited
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Research: Industrials
The developing coronavirus pandemic has affected year-end trading for Norcros, with an indicated c £4m impact on EBIT. Operational shutdowns mirroring those of its customers have been undertaken and, as elsewhere, actions to preserve cash are being taken. The company has up to c £110m headroom under existing banking facilities representing a strong year end liquidity position. Forward guidance and our estimates for FY21 onwards have been withdrawn pending greater clarity on the scale and duration of the lockdown conditions being widely enacted currently.
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