This clean tech company has the momentum that could lift its stock price in 2016
Samus Prasla | Green Investing and Sustainability Writer | April 21, 2016: BluMetric Environmental Inc. (CVE:BLM) provides cost-effective water based environmental solutions to different sectors. Over the years, the Company has built its reputation by understanding its clients’ operation and providing sustainable environmental solutions that helps them meet the environmental and regulatory standards. And with just 27.9 million fully-diluted shares outstanding, its stock price could move up quickly following more positive developments in 2016.
There are all kinds of companies that use water to drive their core business operation. Of these, companies in the mining and oil and gas industries are considered the biggest polluters of natural habitat and water supply system surrounding the operational sites. BluMetric Environmental Inc. (CVE:BLM) is one of the clean-tech companies providing cost-effective water based environmental solutions to different sectors. With the help of highly experienced and diversified team, BluMetric also focuses on soil, air and energy solutions.
BluMetric Environmental serves various clients across Canada and abroad covering many industrial sectors and all levels of government, through two groups: the Professional Consulting Services group and the Water Systems group. Its Professional Consulting Group provides services that include environmental earth science and engineering, contaminated site remediation, water resource management, industrial hygiene, occupational health and safety, and renewable energy and also sub-disciplined services like geomatics and unmanned aerial vehicle data gathering. While the Water Systems group provides design-build and pre-engineered solutions to industrial and commercial water and wastewater treatment needs.
In its recent Q1/2015 financial and operating results, BluMetric Environmental’s revenue rose by 2% to $7.9 million from $7.8 million in Q1/2014.
This upward push came from the fee-for-service work with a slight decline in engineered solutions projects in the Water Systems group. The gross margin slipped from 22% to 19% in Q1/2015. The lower quarterly financial performance was due primarily to the seasonal trend where the Company’s operational activities decrease during the winter and spring months each year. However, on a year-over-year basis, its revenue increased 22.59% to $33.48 million in 2015, resulting in an increase in gross margins and flipping the net loss of $6.93 million to a net profit of $1.01 million.
During the past two years, BluMetric’s stock price has been stuck in a trading range of between $0.10 and $0.30. This year, though, could prove to be a positive turning point for its investors.
BluMetric Environmental announced recently that it was awarded a three-year contract by a multinational technology company to provide Occupational Hygiene/Health and Safety services for its retail outlets and corporate offices.
This contract will generate approximately $1 million in revenues, along with provisions to extend the contract for similar services in the future. As well, the Company’s CEO assumed the President and COO duties back in March as part of its ongoing restructuring movement.
Over the years, BluMetric has built its reputation by understanding its clients’ operation and providing sustainable environmental solutions that helps them meet the environmental and regulatory standards. And with just 27.9 million fully-diluted shares outstanding, its stock price could move up quickly following more positive developments in 2016.
BluMetric Environmental Inc. is a component company of the benchmark-beating Ubika Sustainability 20 index (See the other top-performing stocks here).
