EQTEC PLC has released an update on its 2023 financial results and the progress of its business strategy. The company reported unaudited revenues of approximately €2.5 million for 2023, in line with its guidance. It also highlighted steady monthly revenues in the fourth quarter of 2023 and the first quarter of 2024, with expectations for equipment sales and commissioning revenues in the second half of 2024.
The company has shifted its focus from high-risk, large-capital project development to recurring revenues from technology innovation, licensing, and engineering services. This strategic pivot aims to support the deployment of its syngas technologies into projects and plants owned by leading industrial, utility, and waste operators. The company believes this shift will allow it to deliver services across a larger number of projects, reducing dependency on any single project or set of projects.
In 2023, EQTEC took action to reduce corporate risks, liabilities, and engagement with non-strategic work or partners. This included the sale of project company Grande-Combe SAS (France) to Idex, discontinuation of the Billingham project in the UK, and formal legal action to recover project development loans at the Deeside project in Wales. The company is also considering an impairment provision of development assets on its balance sheet as part of its review of the 2023 financial results.
The company has seen a reduction in liabilities and is driving its strategic transition through careful selection of clients and projects, as well as delivery partners to minimize development and execution risks. It has delivered steady monthly revenues in the first quarter of 2024, with expectations for this trend to continue and grow throughout the remainder of 2024, particularly from engineering services and revenues from early-stage equipment orders on specific projects.
EQTEC Italia MDC Srl, the company's first reference plant, became operational in March 2023 and has been moving toward continuous and sustained operations. The company expects revenues from the plant in late 2024. The company also anticipates initial equipment orders in the second half of FY 2024, including a first equipment order from French utility infrastructure owner Idex, continuing into FY 2025.
Overall, EQTEC PLC is focused on its strategic pivot towards technology innovation, licensing, and engineering services, aiming to establish more consistent revenues and reduce dependency on any single project or set of projects.