HaloSource, the global clean water technology company trading on London’s AIM, has today announced its unaudited interim results for the six months ended 30 June 2014.

Overall revenue for H1 2014 increased to $7.3 million, up 24% from H1 2013, broken down as follows:

• drinking water revenues increased to $2.0 million, up 124% from H1 2013
• environmental water revenues increased to $1.2 million, up 29% from H1 2013
• recreational water revenues increased to $4.0 million, up 1% from H1 2013
• antimicrobial coatings revenue were $0.1 million, versus $0.1 million in H1 2013

Gross margins increased two percentage points (from 37% to 39%) representing approximately $0.7 million of margin improvement versus the same period a year ago. Operating expenses fell by more than 7% to $8.4 million, versus the same period a year ago, representing a $0.7 million reduction, as a result of a continued focus on cost management across the company.

Martin Coles, President and Chief Executive Officer of HaloSource, said:

 “As envisaged, we continued to see accelerated revenue growth in H1 2014 driven by increasing orders from existing and new partners across our portfolio of water solutions. The inherent scalability of our operating and financial model enables us to expand revenue and gross margin with minimal increases in administrative expense.  As a result, we expect continued decreases in cash burn in line with current market expectations.”

“Our strategy, put in place almost three years ago, is yielding significant and increasingly positive results as we continue to take our differentiated technology to market in partnership with leading multi-national companies in the rapidly growing multi-billion dollar global market for water purification and remediation solutions.”

Martin Coles attributed progress across all sectors to HaloSource’s  three clearly defined and relevant platform technologies in place for water disinfection, turbidity removal and dissolved solids absorption (lead, arsenic, selenium etc.). He added:

 “We are ideally positioned for growth into the second half of 2014 led by the critical drinking water segment.”

 “We remain confident that our focus on what we do best, innovation in the chemistry of water purification, coupled with strategic partnerships with key players in each segment, will deliver continued rapid sector and geographic growth in revenue, margins and profitability.”