Weak result but positive signs for OTAQ in first half of 2024
Aquaculture and offshore technology company OTAQ has reported encouraging progress with potential users of its Live Plankton Analysis System (LPAS) in the Southern Hemisphere.
The company has also identified further new interest from salmon farmers in its Sealfence seal deterrent in several major salmon production regions, having sold 19 Sealfence units into these markets in the first half of the year.
In a report containing its unaudited interim results for the six months to the end of June 2024, OTAQ also said that the sonar shrimp system that it developed for Canadian company Minnowtech LLC, is now gaining traction in its target markets, and has recently won the ‘Product most likely to change shrimp production’ at the Global Shrimp Forum in Utrecht.
“Disappointingly however, orders have yet to be placed this year by Minnowtech,” added OTAQ, which is headquartered in Lancaster and has offices in Ulverston and Aberdeen, and in Puerto Montt, Chile.
Operating loss
OTAQ made revenue of £1.51 million in H1 2024, down from £1.801m in the same period last year. Revenue was adversely impacted in the period by the delayed delivery of a key offshore product from a supplier pushing a significant sale into July.
The company made an operating loss of -£805,000 (H1 2023; -£709,00) in the first half of 2024. In H2 it has, among other things, implemented a cost reduction exercise to provide annualised cost savings greater than £500,000, with over £150,000 expected to impact in 2024.
Chief executive Phil Newby said: “We continue to push into new markets both for our existing product range and for the newly developed products such as LPAS and Minnowtech, in both our connectors and aquaculture businesses.
“The identified cost savings will allow the Group to focus on delivering against our key strategic goals, providing the funds to concentrate sales and marketing efforts to maximise the commercial impact of our newly completed developments.”
