Global provider of direct nanofiltration (dNF) technology for pure and affordable water NX Filtration reported a delay in revenue growth that is caused by longer lead times to convert pilot projects into large full-scale projects. This accounts for both pilot trajectories taking longer than anticipated, and longer lead times towards larger projects after the pilot phase caused by permitting lead times, decision-making and engineering.
Its half-year 2023 revenues came in at €3.7m which echoed its first half-year of 2022 but is lower than anticipated, caused by longer lead times to convert pilot projects into large full-scale projects.
Its full-year 2023 revenue is anticipated to come in lower than previous outlook of €18m to €22m, although still expected to increase from full-year 2022.
It lowered its total revenues outlook from €14m to €10 for its full-year 2023 while its gross margins increased to 58.9% from 55.3% in the first half-year of 2022. In the first half-year of 2023, NX Filtration had 104 pilots projects, 28% more than in the first half-year of 2022. It also entered into cooperation agreements with original equipment manufacturers (OEMs) such as Veolia, Aqualia, Suez, Greentech and Nijhuis Saur.
Jeroen Pynenburg, CEO of NX Filtration, said, “Unfortunately, we have to update the market on the delay in our revenue growth. [But] our major opportunities that we had planned to deliver in the first half of 2023 are still part of our pipeline today. The market is developing favourably, our pipeline continues to grow, and we experience traction with customers that are entering the next stage of roll-out of our technology. We put our shoulders to the wheel and continue to stick to our medium- and long-term objectives.”