OTAQ [AQSE:QTAQ], the marine technology services company operating in the aquaculture and marine energy industries that recently cancelled its listing on the Standard Segment of the London Stock Exchange and listed on the Access Segment of the AQSE Growth Market, published its six-months results to end-September 2022.
The company reported revenues of GBP2m, up 11.3% from 1H21, with profits of GBP1m a 25.2% increase from profits of GBP826,000 this time last year and EBITDA of GBP13,000, a 107.6% turnaround from the loss of earnings of GBP171,000 in 1H21.
OTAQ only listed on Aquis on 9th November and opened trading at 1p, raising GBP3.6m (GBP3.2m net of expenses), which will be used for working capital for the next 12 months. OTAQ closed trading on AQSE at 4.5p on 17th November. OTAQ originally listed on the LSE on 31st March 2020 and raised GBP1.5m at IPO. With regards to switching from the LSE to AQSE, a spokesperson for the company said that: “given OTAQ’s size and general market liquidity concerns, management decided that the Aquis Growth Exchange was a more appropriate listing for the company and would support the company’s growth plans in a more efficient way.”
Cash buffer
The money raised from the AQSE listing increased QTAQ’s cash balances to GBP2.7m after paying suppliers and settling acquisition costs, which gives the company a reasonable buffer to continue operations and accelerate the development and commercialization of its pipeline of new products.
In a statement the company said: “These funds have comfortably addressed the uncertainty expressed at the time of the full year results announced in September 2022 regarding the company’s ongoing cash position. The proceeds of the fundraising will enable the company to accelerate the development and commercialization of its strong pipeline of new products in OTAQ’s core markets of Aquaculture and Offshore as well as building out the new Geotracking division, which has been launched following successful sales to customers of its prototype technology.”
Phil Newby, the company’s chief executive said in a statement this morning: “The funding recently completed will allow the group to focus on further product development and allow OTAQ to make additional investment in sales and marketing resource to deliver new revenue and growth. It is notable that, across its key geographies, the group has several key relationships that are expected to deliver in the near future, with others fast approaching commercialization.”
New product lines
He continued: “The board remains committed to continuing with the launch of innovative new products and significant business development throughout the next period in order to return the company to growth and improved profitability.”
The Lancaster-based company, with a market capitalization of GBP5.8m, manufactures marine technology products. One of its main products areas is in aquaculture, where it produces sensory and software products for the salmon farming industry (and other aquaculture systems) that creates a robust marine acoustic barrier that deters predator attacks on fish farms from seals and sealions and is used in Scotland, Chile, Finland and Russia. The company also produces low-optics, underwater cameras and plankton/algal bloom sensors and a sonar device to scan shrimp in ponds and water quality monitoring, in order to maximize welfare and production yields. It is also developing a real-time plankton monitoring system for finfish and shellfish farmers.
OTAQ also manufactures products for the offshore sector – oil and gas and wind farms – that includes subsea leak and cement detection, laser measurement systems, underwater imagery & telemetry solutions, as well as subsea survey solutions, using optics, electronics, video processing, machine vision and artificial intelligence to sense changes in subsea structures. Additionally, OTAQ provides seabed survey devices and subsea electrical connectors and penetrators.
Period of adjustment
OTAQ anticipates a period of adjustment whilst its new products are launched and developed commercially. The funding recently completed will allow OTAQ to focus on ensuring these products are correct for the markets in which they are intended and to make additional investment in sales and marketing resource in order to deliver new revenue and growth as quickly as possible.
In a statement, the company said: “The group’s investment, collaboration and supply agreement with Minnowtech is expected to deliver new sales in the near future as is the group’s relationship with Track Tracker for our tracking technology. The investment in Blue Lion Labs and the resulting development of harmful algal bloom detection technology is nearing commercialization with collaborations underway with potential customers in Chile, Scotland and Australia.”
The chief executive said that OTAQ’s offshore division has launched new products with more under development and the group is investing in additional sales resources, particularly in North America, with a view to developing these large markets. The company is committed to continuing with the launch of innovative new products and significant business development throughout the next period in order to return the company to growth and, ultimately, profitability.
