This week: Transense gains traction, Imaginatik slips and Stanelco passes round the hat
Corac Group (LON:CRA) (23.5p, £25.36m)
Corac, the specialist engineer supplying the oil and gas sectors, announced its finals to December 2009 which saw revenues of £1.34m (£0.66m) with a loss before tax of £3.69m (£3.48m). The group ended the period with £5.34m net cash, which allowing for a net cash raise of £5.79m, gives underlying cash usage for the year of £2.56m. The group is making good progress on the down-hole gas compressor technology with on-going trials and development with Eni SpA, though Corac has already warned the trials have been delayed to later this year. Talks are under way with two additional opportunities, one for a system using coiled tubing that will be less expensive than that being trialled with Eni and another with a group that is looking to use the system above ground to move gas between wells of unequal pressure. In the industrial space the group now has two machines with over 7,000 hours of operation and has installed the system as a booster for an existing compressor system in Austria. The shares have drifted of their recent high of 55p in August last year and are now looking attractively priced.
Hydrodec Group (LON:HYR) (8.75p, £31.66m)
Hydrodec, the green tech company that produces new speciality oils using spent oil as the primary feedstock, gave a trading update and final results to December 2009 which saw revenues of $10.39m ($7.01m) with a loss before tax of $13.56m ($15.47m). The group ended the period with net debt of $7.71m (net debt $6.44m) post asset/investment disposals that brought in $1.30m and a net cash raise of $10.82m, implying an underlying cash burn of some $13.39m during the year. Since the year end the group has raised some £2m with the issue of 20.26m shares at 10p. The group issued a trading update in March in which it noted an uptick in demand and recovery in the US base market. Importantly not only has the price recovered but the supply of waste oil to be refined, the feedstock, has increased. As a result of lower feedback costs and higher selling prices the margin has recovered by some 7 cents per litre in both the Young and Canton sites. The improvement in cash-flow means that the group will now…
