MyCelx confirms $1.25m earn-out, downgrades revenue forecast
By Josh White
Date: Monday 07 Apr 2025
(Sharecast News) - MyCelx Technologies confirmed an earn-out of $1.25m from the first 12-month period following the 2024 sale of its Saudi Arabia business operations on Monday, with the potential for a further gain in 2025 based on the second-year performance, although it revised its revenue forecast downwards in the face of Donald Trump's tariffs on US imports.
The AIM-traded company said it expected to recognise the additional income in its current financial year.
In operational developments, MyCelx said it successfully completed a produced water treatment trial in the United States during the first quarter of 2025, working with a global integrated oil producer.
The trial reportedly demonstrated the superior performance of the company's MAC and REGEN system compared to conventional three-stage technologies, recovering over 99% of residual oil from water.
It said the recovered oil exceeded sales specifications, enabling the producer to generate revenue while recycling the treated water for other uses.
MyCelx described the outcome as a significant advancement in produced water treatment.
Looking ahead, the firm said it was planning to begin two per- and polyfluoroalkyl substances (PFAS) trials in the next four to six weeks.
It was also working with channel partners to commercialise its PFAS-Flex mobile system for use in AFFF and groundwater remediation.
Testing and project bidding activity remained ongoing.
MyCelx revised its full-year 2025 revenue forecast to a range of $12.5m to $15.5m, citing uncertainty caused by the introduction of US tariffs on imported steel equipment and parts.
The company noted that while it sources some materials from domestic fabricators, the increased costs due to tariffs could delay project timelines as contracts were requoted and renegotiated.
Despite that, management said the business remained profitable at the lower end of the revised range, supported by the recognised gain from the Saudi asset sale.
"I am pleased to provide a positive update relating to the first earn-out period of the Saudi Arabia business operations that we sold last year; alongside the highly successful results we achieved during a produced water trial we were involved in," said chief executive officer Connie Mixon.
"We also felt it prudent to revisit our revenue guidance for the 2025 financial year, in light of the reciprocal tariff implementation that was enacted on 2 April 2025."
Mixon said that while the company did not expect any major changes to its order backlog, given the timeline required to requote for certain projects, it believed the timing of its revenue recognition could be impacted during the period.
"We continue to make positive progress as we move into the second quarter of 2025 and we look forward to announcing our 2024 full=year results next month."
At 1038 BST, shares in MyCelx Technologies Corporation were down 7.77% at 23.98p.
Reporting by Josh White for Sharecast.com.
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