17 June 2005
17 June 2005
ZCL Composites Inc, manufacturer of underground fibreglass storage tanks, reported record results for the fourth fiscal quarter and year ended March 31, 2005 with revenues increasing by over 14 percent.
The Canadian company reported revenues for the year ended March 31, 2005 increased by 14.2% to a record $38.8 million, from $33.9 million for the year ended March 31, 2004. Net income increased by $1.5 million for the year, to a record $3.5 million from $2.0 million last year.
A current focus of the Company is the final testing and marketing of tank lining technologies. New lining materials and processes have been developed in conjunction with customers and suppliers to deliver a product with superior quality and performance and inherently safe installation techniques.
Product development costs of $518,000 were deferred during the year (2004 - $141,000). Final field testing is scheduled to be completed in the early part of fiscal 2006. With the imminent listing by Underwriters’ Laboratories (UL) and Underwriters’ Laboratories of Canada (ULC), this new product is expected to add to revenue this fiscal year. Lining systems will be cautiously introduced to the marketplace and the lining program will be ramped up as field experience is gained and qualified applicators are trained in all aspects of this new system.
The Company has alliance agreements and long-term contracts with many of its key customers. A number of major long-term contracts were signed during the year, as well as two further contracts announced subsequent to March 31, 2005.
“These relationships are the foundation of our success and reflect our commitment to consistently supply high-quality products and services,” said Ven Côté, President and CEO. “Our lining products leverage our core competencies and customer relationships and adapt proven technology from our double wall tank manufacturing processes.”
“We are focused on the profitable growth of our business, through both internal expansion and acquisitions,” added Mr. Côté. “With continued strength in our traditional markets, and growth of new products, we are confident we can meet our revenue growth objective of 15% to 20% for the next year.”
ZCL Composites Inc. trades on the Toronto Stock Exchange and is Canada’s largest manufacturer of fibreglass underground storage tanks.