Water treatment company Parkway Corporate achieves record revenue of $2.28 million for Q3 FY24
Company rapidly transitioning to profitability with record EBITDA of $440k for Q3 FY24
Strategic acquisition of Tankweld progressing positively and underpinning significant growth
Special Report: Parkway Corporate has achieved a step-change in operating performance, announcing record revenue of $2.28 million for Q3 FY24 and EBITDA of $440k with its acquisition of Tankweld during the quarter contributing positively to its bottom line.
Leading industrial water treatment technology company Parkway Corporate (ASX:PWN) has released its Q3 FY24 results, its first since its acquisition of leading Melbourne-based industrial engineering solutions provider Tankweld, announced in mid-March.
Although Tankweld only operated under PWN ownership for a few weeks towards the end of the March quarter, it managed to contribute $880k in revenue during the time, which PWN says highlights the prospect of a much more significant contribution in future periods.
PWN also built upon its growing profitability, generating $440k in EBITDA for the quarter.
‘Just getting started’
PWN managing director Bahay Ozcakmak says as the company continues to significantly grow its revenue base it expects to improve operating leverage across the business, which will further support improving profitability.
“This really is an important inflection point for our company, and a milestone we expect the more sophisticated investors in the market will eventually recognise as being an important catalyst for value recognition by the market,” he says.
“There is no doubt that this is a very important milestone for Parkway,” he says.
Ozcakmak says reaching critical mass in terms of the scale of its operations with a team of around 70, and already being able to generate initial profits before ramping-up operations, is very encouraging and a testament to the calibre of the business PWN is building.
“We are just getting started,” he says.
PWN was previously highlighted by Stockhead in June last year as a junior tech company to keep an eye on in terms of near-term profitability potential.
PPT and PPS make significant strides during quarter
PWN say its Parkway Process Technologies (PPT) and Parkway Process Solutions (PPS) divisions also made significant progress during Q3 FY24.
PPS provides conventional water treatment solutions while PPT is particularly focused on processing concentrated or complex wastewater containing heavy metals or reagents such as acids, which have been traditionally difficult to process.
The company says evaluation of various proprietary process technologies and flowsheets was ongoing during the quarter for PPT, while establishment of the Parkway Centre for Brine Technologies (PCBT) is now well advanced.
The PCBT is supported by Victoria University (VU), a recognised leader in industrial water treatment related technologies.
PWN says PPT bench scale activities and installation of large-scale piloting equipment is continuing.
The company says it continued to make progress on its master plan, released last year and dedicated to creating innovative solutions for the complex wastewater challenges impacting the Queensland coal seam gas (CSG) sector.
During Q3 FY24 PPT completed a supplementary pre-FEED study for a major CSG project.
Evaluations regarding near-term solutions based on upstream technology are ongoing, while additional activities include optimisation of innovative salt splitting technology.
PWN says PPS continued to build its strategic positioning during Q3 FY24 and achieved a robust operating performance, whilst investing in key strategic capabilities.
PPS was awarded a contract to design and supply an integrated water treatment plant for an Australian Defence Force site.
It is also seeing strong inbound interest from industrial markets seeking innovative process solutions.
Focused on tech-based milestones
Ozcakmak says the PWN team is very focused on achieving significant technology-based milestones.
“As we continue to grow, day in day out, we are assisting many large companies and government clients, meet their water treatment related objectives,” he says.
PWN is hoping to follow in the footsteps of Scidev (ASX:SDV), which operates in a similar market segment, and has seen its share price surge more than 70% in the past month after an uptick in profitability in its latest quarterly report.
Turnkey industrial water treatment projects
In its quarterly results PWN says following a range of recent developments, including the acquisition of Tankweld, the company is now capable of delivering turnkey industrial water treatment projects involving engineering, procurement & construction, EPC and design & construct, D&C.
“The acquisition of turnkey project delivery capabilities has been a key aspiration for Parkway, with the achievement of this transformational milestone expected to underpin significant sustainable long term value creation,” Ozcakmak says.
He says the company is setting up for a transformational year building on its capabilities to provide turnkey water infrastructure related solutions.
“The fact that the company is leading the way in terms of the development of innovative water treatment technologies and is well-advanced in terms of establishing the Parkway Centre for Brine Technologies, all the while building and operating a successful and now profitable business is quite the achievement,” he says.
This article was developed in collaboration with Parkway Corporate, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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