And the first to arrive was the half year report from Recyctec. Indications of a terrible report came as a ‘status update’ came out the day before the actual report. The bad news was hidden behind some good. The main point was a postponement of breakeven to fourth quarter 2016. Cause? A piece of equipment with copper, causing a miscolouring of the products. The pieces is replaced, but before the end of August, the production will still be low.
The effect of the production problems was almost no turnover in Q2 – symbolic 1,650 SEK. The no-turnover in Q2 and half of Q3 puts heavy pressure on cash and to compensate that the company announced an private placement of 10 MSEK – the third private placement this year.
To make it short: The share dropped from 8.05 on Wednesday to 6.40 on Friday – down 20.5 %.
The good news
To be fair: it was not only bad news that came with the report. In August, the company expects to have an agreement with a distributor of EarthCare glycol. In a former post on Recyctec, I assumed this partner could be Kemetyl. An agreement of this sort will secure the platform for large scale sales of their products at the home market. But of course, the products must be made, before they can be sold…
On the international markets, the representative in South Chorea have made progress and have scheduled meetings in September. In Norway, there are contacts with a probable business partner. Talks will begin in August.
There are good news on the insider-front as well. On Friday, the sales and marketing manager Namer Younan bought app. 16,000 shares. He also bought shares in June.
More reports in August
The main month for half-year reports is August. I hope that the majority of these will be better that this report from Recyctec. I especially look forward to the reports of Dignitana, Nexam and Heliospectra. All three of them, I hope, will show significant progress in sales.