Global provider of direct fibre nanofiltration (NF) technology for water NX Filtration reported 1.5 years delay in the roll out of its original business plan, that is caused by longer lead times to convert pilot projects into large full-scale projects. This is driven by both pilot trajectories taking longer than anticipated, and longer lead times towards larger projects after the pilot phase. The current financing environment negatively impacted its customers’ capital expenditure plans, and its original equipment manufacturers (OEMs) in maintaining stock of its modules in anticipation of upcoming projects.
Its full-year 2023 revenues are expected to be €8m, below the communicated outlook on total revenues of €10m to €14m. A delay of orders in 2023 are still part of the company’s pipeline for delivery this year. For 2024, NX Filtration’s total revenue outlook is €16m. Its current cash position at €50m is expected to fully finance the construction of a new megafactory in 2024, with its completion and start of commissioning planned for the end of Q1 2024. An asset-based financing on its €58m fixed asset base as per December 2023 is explored to increase its financial flexibility.
Its CEO Jeroen Pynenburg said, “In the context of the delayed roll out of our business plan we have taken cost control measures without impacting our medium and long-term growth ambitions.” He added that NX Filtration will move all of its existing operations into the new megafactory. “Despite the delay in our revenue growth, our major opportunities planned to deliver in 2023 are still part of our pipeline today,” he said. “The underlying drivers for our business are stronger than ever: the market is developing favourably, and we experience traction with major global water companies that are entering the next stage of roll out of our technology.”
Its 2023 annual report will be published on 9 Feb 2024.