OTAQ, a marine technology group headquartered in Lancaster, has made an announcement regarding its anticipated surpassing of revenue forecasts for the fiscal year ending December 31, 2023, as well as its reduction in adjusted EBITDA loss. This optimistic outlook is attributed to a notably robust second half of the year, surpassing the performance of the previous financial period.
The company projects that it will report revenues of approximately £4.4m for the year 2023, constituting an increase from £4m in 2022, and exceeding the management’s prior revenue expectations. This growth is attributed to a strong performance in the second half of the year, with revenues expected to reach no less than £2.5m, marking a significant 93% increase from the same period in the previous fiscal year.
Furthermore, OTAQ also anticipates reporting a reduced adjusted EBITDA loss of around £245,000 for the year, down from £331,000 in the prior year. This enhancement can be attributed to a one-off deposit returned in respect of SealFence and other restructuring costs.
The company’s revenue generation has been bolstered by its Offshore division, which has experienced sustained demand and increased orders for its Connector solutions and OceanSense products. Additionally, its Aquaculture division saw significant traction in the latter half of the year, particularly with the delivery of two significant orders of Shrimp Sonar Devices to Minnowtech.
OTAQ has also deployed 42 Live Plankton Analysis Systems (LPAS) with customers, providing essential plankton images. These systems are set to undergo beta testing with salmon farmers in various countries, including Scotland, Ireland, Chile, Australia, and New Zealand.
Despite the challenges posed by inflationary pressures and supply chain disruptions, the company has effectively managed its cash resources. As of December 18, 2023, OTAQ had a cash balance of £400,000, along with a strong debtor book of £1.1m.
Phil Newby, the Chief Executive of OTAQ, expressed the board’s satisfaction with the company’s progress. He highlighted the improving market backdrop in the Offshore division and the potential for global growth opportunities. Newby also emphasized the company’s strategy to exploit opportunities in the Aquaculture space, particularly with the live deployment of LPAS systems.
Looking ahead, OTAQ is focused on further developing its presence and customer base within its core markets, as well as exploring potential acquisitions. The company’s aquaculture products and acoustic deterrent devices aim to maximize welfare and production yields, while also aiming to expand into the high-accuracy location tracking market for specialist applications.
In conclusion, OTAQ’s strong performance in the second half of the year has exceeded expectations and positioned the company for further growth. With a strategic focus on both the offshore and aquaculture markets, OTAQ is poised to capitalize on emerging opportunities and solidify its position as a leading marine technology group.
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