- Xebec Adsorption (TSXV:XBC) has reported a 144 per cent increase in revenue for the year ending December 31, 2019
- Total revenue for the year came in at C$49.3 million compared to $20.2 million in 2018
- Net profit for the year totalled $2 million, a significant improvement over a net loss of $2.9 million the year before
- Selling and administrative expenses increased to $4 million for 2019, mainly due to an organisational scale-up of employees and associated costs
- Despite the current market turmoil, the company will stand by its previously announced guidance for 2020
- Xebec Adsorption (XBC) is currently up 6.35 per cent to $3.35 per share, with a market cap of $288.03 million
Xebec Adsorption (TSXV:XBC) has reported a 144 per cent increase in revenue for the year ending December 31, 2019.
Based in Montreal, the company provides gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace.
Total revenue came in at C$49.3 million for the 2019 year, which is a substantial increase over the $20.2 million reported in 2018.
Xebec also turned a profit of $2 million last year, compared to a net loss of $2.9 million the year before.
The company said that the improved financial performance was largely due to a higher volume of major clean tech contracts, as well as the acquisition of CDA Systems, which closed on December 10, 2019, for a cash consideration of $6,782,433.
However, in order to keep up with the increase in contracts, order backlog and building quote log, Xebec was forced to undertake an organisational scale-up of its workforce and wider operations. As such, selling and administrative expenses for the year were up $4 million over those in 2018.
At the end of 2019, Xebec had a strong balance sheet with $22.7 million in cash, and $36.9 million in working capital.
Kurt Sorschak, President and CEO of Xebec Adsorption, said it was a transformative year for the company, with record revenue, profit and order backlog numbers.
“With our improved balance sheet, our strong order backlog, our growing quote log, our pipeline of potential acquisitions, and our position as an essential business in a time of crisis, Xebec will be well able to maneuver through what will be a difficult economic environment in the year ahead.
“We believe that we will emerge from this crisis even stronger than we entered it,” he added.
Xebec Adsorption (XBC) is currently up 6.35 per cent to $3.35 per share at 11:37am EST.