Australian-Singapore wastewater treatment company De.mem (ASX: DEM) has strengthened its bottom line having today announced a new contract acquisition from Swiss cosmetics and fragrances manufacturer Givaudan (SWX: GVN), valued at a minimum of $1.7m.
The contract will see De.mem operate a wastewater treatment system at the Swiss conglomerate’s Singapore production facility, treating wastewater to meet local safety standards to be discharged into the public sewerage.
“The new contract highlights De.mem’s unique capability to offer Build, Own, Operate solutions to industrial clients,” said De.mem CEO, Andreas Kroll.
“Given our existing cash reserves, strong institutional shareholder base and potential debt finance solutions, we are increasingly able to offer more BOO solutions to corporate clients over extended periods of time.”
“We see strong interest in this particular service offering from our customer base and look forward to building it further in the near-term.“
With revenues of more than AUD $8 billion annually, Givaudan produce fragrances and cosmetic products which are sold worldwide. This new $1.7m contract will be the second awarded from the Swiss giant to De.mem.
It also continues a strong run of business development from the water treatment Company, which announced a $1.1m contract extension in September from U.S workforce accommodation corporation Civeo (NYSE: CVEO).
The strong run has seen De.mem report an operating loss of just $30,000 in their most recent quarterly reporting, with expectations of the next quarterly report to see De.mem inflecting into cash flow positivity.
Shares in DEM reached an intra-day high of $0.29, a rise of 9.4% on the previous day’s close price of $0.265.