Chartres, 4 February 2025, 6:00 pm - The OSMOSUN® Group, a leading provider of solar-powered seawater and brackish water desalination solutions, is currently fine-tuning its year-end reforecast for 2024 and finalising a new roadmap to revive and sustain the Company's development. (ISIN: FR001400IUV6 - Symbol: ALWTR)
2024 forecasts update
Due to the deferral of revenue recognition[1] from 2024 to 2025 on the two major projects in Mauritania and Saint Kitts, 2024 revenues are expected to be close to €2.6 million (vs €3.0m in 2023) compared to the €3 million target announced last October. These two flagship projects delivered in January now provide drinking water to the local population.
The time lag will inevitably impact earnings and an EBITDA loss of around €5 million is now expected for 2024 (vs -€1.9m in 2023).
At 31 December 2024, the order backlog (signed contracts) stood at €0.7 million, compared to €2.6 million at 31 December 2023, mainly because no new major projects were signed in 2024. Since the end of the financial year, OSMOSUN has signed new orders worth €0.5 million, including three projects won by the subsidiary OSMOSUN Maroc, which began operating in January.
Cash and cash equivalents amounted to €1.6 million at 31 December 2024 (vs €7.2m at 31 December 2023). Based exclusively on contracts signed to date, the Company estimates that it has a cash horizon until the end of September 2025, including the final collection of €0.8 million expected within the next few weeks for the project delivered in Mauritania. This horizon does not take into account the potential renegotiation of bank loan repayment deadlines or potential rollout of a cost-cutting plan.
The horizon will be extended accordingly if new contracts in the pipeline under advanced negotiation are signed (see definition in the appendix).
As a precaution, the Group is currently looking into alternative financing solutions to strengthen cash flow, including the possible extension of its debt repayment schedule (€0.7 million in repayments expected for 2025).
New roadmap
After his appointment as Chairman and CEO last October, Maxime Haudebourg initiated an audit and strategic review to define the strategic guidelines the Company will follow in order to sustain its development.
The new roadmap, which is currently being finalised, should be definitively endorsed at the next Board of Directors meeting scheduled for 14 February 2025.
The idea is to focus the Company's development on a standardised, modular offer of small to medium-capacity, limited-cost equipment (up to 24 m3/hour in seawater and up to 70 m3/hour in brackish water), quick to produce and ready for sale or hire together with the corresponding maintenance services.
This new strategy will significantly shorten the project business cycle, minimise project financing requirements and accelerate delivery lead times. It will reduce dependence on large projects, which demanded significant financial and human resources at the pre-sale stage in 2024.
The commercial pipeline (projects targeted by OSMOSUN) has been revised to reflect this new commercial orientation: in particular, large turnkey custom projects have been excluded and the Company will now exclusively target projects for which OSMOSUN offers an identified competitive advantage and where battery-free solar desalination is a critical feature of the specifications.
At the moment, projects at the highly advanced negotiation stage, defined as AVPD[2] (projects for which a firm offer has been made, awaiting response, but still exposed to potential competing offers) represent an amount of €17 million, covering around a dozen projects including three worth over €2 million. Despite the significant progress made on these projects, visibility on the timing of the final decision remains uncertain and, depending on the nature of the project, delays may occur between signing and receipt of payments.
Projects at the advanced negotiation stage, defined as AVPS[3] (projects subject to revision during negotiation for which a firm offer has not yet been issued) represent an amount of €30 million.
As a reminder, at December 31, 2023, all AVPS and AVPD projects represented a total of €70 million.
The Group will no longer report on the "identified projects" indicator, which covers projects where all the elements are not yet known or fixed, and which are still being qualified (maturity greater than 12 months), as well as identified projects for which initial discussions have already taken place with the customer.
In view of the Group's repositioning, the previously published medium and long-term targets defined by the former management team have now been shelved.
A tightened Board of Directors to steer the new strategic roadmap
Following the resignation of three directors, Karine Vernier, Isabelle de Gavoty Coville and Christophe de Melinette, the Board of Directors decided not to replace them in the short term but to adopt a leaner, more agile structure to drive the transformation of the Group's strategy.
The Board of Directors now comprises:
- Maxime Haudebourg, Chairman and CEO,
- Dorothée Chabredier, independent director,
- Hervé Bachelot, representing Go Capital,
- Louis Maurice, representing OKwind Group,
- Bruno Jas, representing UI Investissement.
Scheduled to meet on 14 February to definitively endorse the broad outlines of the roadmap, the members of the Board of Directors fully support the development of the new strategy and will actively oversee its implementation.
In addition, in order to bolster the Management Committee, the recruitment of a Deputy CEO experienced in the water treatment and SME development sector is currently underway.
Next financial publication : FY 2024 revenues, 19 March 2025 after market close
ABOUT OSMOSUN®
Founded in 2014, OSMOSUN®'s ambition is to become a leading player in the low-carbon water market in order to make drinking water accessible to all.
OSMOSUN® has developed a unique, patented, cost-effective, clean and sustainable solution for solar-powered battery-free seawater and brackish water desalination. This innovation makes OSMOSUN® units among the most energy-efficient and cost-effective solutions in the world. The water production capacities of its units range from 1 m3 to 50,000 m3 per day.
At 31 December 2023, 69 desalination units have been sold in 27 countries.
More information: OSMOSUN® | Create water where life is
| CONTACTS |
| FINANCIAL PRESS | INVESTOR RELATIONS |
| Deborah Schwartz | Hélène de Watteville |
| dschwartz@actus.fr | osmosun@actus.fr |
| +33 1 53 67 36 35 | +33 1 53 67 36 33 |
Appendix - Glossary
1. Revenue recognition: the Company uses the percentage-of-completion method to recognise revenues from turnkey projects specifically negotiated under a contract. Revenues under each contract are recognised at the balance sheet date on a percentage-of-completion basis in accordance with the ratio of costs incurred to date over budgeted project costs. Income from the sale of equipment and spare parts is recognised upon transfer of ownership.
2. Preliminary detailed design (PDD): projects for which the Company has made a firm offer and where the client is expected to sign the contract. There is a risk of non-conversion into a firm order and limited visibility on the timing of conversion.
3. Preliminary summary design (PSD): projects already qualified and subject to revision during negotiation, for which a firm offer has not yet been issued. There is a risk of non-conversion into a firm order and limited visibility on the timing of conversion.
[1] See Appendix
[2] See Appendix
[3] See Appendix
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