ClearFlowPlus plc (CFP), a wholly owned subsidiary of the Water Services Corporation (WSC), has improved the company’s overall profitability, reporting a profit before tax of €1,457,478 for year ending December 2024, an increase of €511,991 or 54.2 per cent when compared to the previous year.
ClearFlowPlus primarily provides services related to reverse osmosis plants including after-sales support, desalination solutions, sewage treatment operations, laboratory testing, IT services, and the sale of spare parts.
It also serves as a finance vehicle for WSC and issued a €25 million Green Bond that was on-lent to WSC. The company attributes its positive results to an increase in net finance income arising from this loan. The Green Bonds were used to finance upgrades to the various parts of Malta’s water production and distribution infrastructure, and to install photovoltaic panels.
This increase in net finance income was driven by the recognition of a full year's worth of interest income on loans provided to WSC, along with higher returns generated through term deposit investments. The net finance income rose to €736,399 in 2024 when compared to €366,237 achieved in the year 2023, an increase of 101 per cent.
This information was announced in the company’s annual report for the financial year ending 31st December 2024, released on Thursday.
In terms of revenue, CFP has seen an increase to €2,087,716 in 2024 when compared to €1,983,403 achieved in 2023, an increase of 5.3 per cent.
The main contributor to the company’s income stream remains waste management, contributing 39 per cent to the total revenue for the year 2024. In the year 2023, this accounted to 42 per cent.
When it comes to the cost of sales, CFP reported that the majority of its expenses were directly related to servicing its reverse osmosis and dispenser systems. The company reports a decrease in the cost of sales, falling to €887,695 from €979,797 in 2023. This reduction therefore contributed to a 57 per cent improvement in its gross profit margin.
Due to CFP’s dependence on the WSC, the company reported an administrative expense increase of €53,819 for the year ending 31st December 2024, partially caused by higher professional fees.
The company reported a total asset base of €29.1 million, representing an increase of €0.4 million compared to the €28.7 million recorded in 2023.
In the span of the year, CFP registered its equity at €3.6 million, an increase of €1 million when compared to 2023. The company’s total liabilities reached €25.5 million, an improvement from the previously recorded €26.1 million in 2023.
Describing CFP’s statement of financial position as “robust”, the company reiterates a shift in asset composition as proof of their dedication to promoting meaningful, environmentally responsible investments, while maintaining financial stability and creating long-term value to its stakeholders.
The Directors of the company did not recommend the payment of a dividend, and therefore the retained earnings amounted to €3,357,987, which will be carried forward to the next financial year.
