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HaloSource warns on full year result but remains confident

Published: 19:30 20 Nov 2015 AEDT

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The firm is a clean water tech specialist

Shares in water purification specialist HaloSource (LON:HALO) dropped at the open as it warned its net loss for 2015 would be higher than market expectations but remained confident on its strategy.

The firm attributed this to increasing manufacturing capacity at its drinking water facility in China, which delayed fulfilling orders, along with other delays in key customer rollouts.

Total revenuess for the year to December 31 will be materially lower than market expectations and, consequently, the net loss for the full year will be higher than market expectations, the group said.

However, the group is confident the production delays would not impact  demand for its class-leading HaloPure disinfection technology for 2016 and beyond.

In addition, HaloSource said it remained confident in its business strategy and growth opportunities as a water technology solutions provider for global corporations.

"In particular, the benefits of various operational developments are starting to take effect," it said.

These include new product launches by partners like Panasonic Corporation in India; the emergence in 2015 of another national partner in China using HaloPure bacteriostatic cartridges and optimisation of the group's environmental wter production and sales coverage implemented in the second half of 2015.

Shares dipped almost 25% to 14.5p.

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