Sulnox Group (AQSE:SNOX) on Thursday reported record second-quarter revenue of £984,200, up 44.9% on the same quarter last year and 19.3% ahead of the first quarter.
In a trading update, covering 1 July to 30 September, the Aquis-listed greentech company, which markets a fuel-conditioning treatment called Sulnox Eco to marine and land-based fuel users, said revenue for the first six months of the financial year reached £1.81m, up 48% on the comparable prior-year period.
Volumes sold rose 58.3% year-on-year in the quarter and 64.6% over the first half, growth the company attributed to repeat and expanding orders from existing marine customers alongside new customer sales.
Sulnox said it is now engaged with more than 100 companies across the marine sector, shipowners, managers and charterers, with combined fleets of approximately 8,000 vessels, up from around 6,000 a year earlier.
The cash balance at 30 September stood at £747,300, down from £1.53m at the end of June, which the company said reflects increased investment in inventory to fulfil new four-year supply agreements with Eastern Pacific Shipping and Spring Marine Management.
Sulnox signed the Spring Marine agreement in September, covering at least 34 vessels and approximately 600,000 litres of Sulnox Eco over four years, alongside a commitment from Spring Marine to invest up to £1.1m through share subscriptions at 40p each, in quarterly tranches linked to purchases.
Vessel telemetry monitoring has shown average fuel savings of approximately 5% for Spring Marine, alongside lower emissions and improved engine condition, Sulnox said.
Independent testing also confirmed Sulnox Eco's compatibility with all marine fuels tested, including a around 28% improvement in lubricity in hydrotreated vegetable oil and a threefold improvement in oxidative stability in neat B100 biofuel.
"Another record quarter reflects customers moving beyond evaluation to repeat orders and longer-term commitments," said Ben Richardson, chief executive of Sulnox.
"Our four-year agreements with EPS and Spring Marine provide a stronger foundation for growth, backed by increased inventory to fulfil those commitments," he said.
Sulnox said sales momentum has continued into the third quarter, and pointed to distributor appointments in India, Sri Lanka and Pakistan as strengthening its route to market in South Asia, alongside growing diesel and petroleum consumption in Ghana, Nigeria and India cited as supporting demand.
