# DEM - De.mem Limited



## System (19 February 2017)

De.mem Limited was incorporated for the primary purpose of designing, building and operating systems and technology for de-centralised water treatment sector in the Asia Pacific region.

The company's de-centralised water treatment systems are used to provide potable water or to treat waste water so that it can be recycled or discharged in compliance with government standards. It is currently providing water treatment systems to customers in both the industrial and municipal/residential sectors in Singapore and Vietnam, and intends to enter the Australian market after the Company's admission to the Official List. The company is targeting entry to the Chinese market during the third quarter of 2017.

It is anticipated that DEM will list on the ASX during March 2017.

http://demembranes.com


----------



## greggles (13 March 2018)

De.mem Limited looking like it could have bottomed out at 20c after an unfortunate 12 months since it listed last year. It touched 45c after debuting on the ASX but has since fallen to 20c.

This morning the company announced that forecast revenue for the 2018 calendar year will be between $8 million and $10 million, compared to 2017 calendar year revenue of $2.9 million. 245% year on year growth isn't bad at all.


> CY 2018 in Australia and Asia underpin this revenue growth. Revenues from existing or revolving BOO or Operations & Maintenance contracts alone are expected to generate ~A$3 million for the year.  A  full year contribution from the Akwa-Worx business acquired in September 2017 is also a contributing factor.
> 
> The company started 2018 with a cash balance of approx. A$3.3 million. De.mem is sufficiently funded to execute on its current growth objectives.




So, it seems like there is no capital raising on the horizon for DEM. Share price is up 28.63% this morning to 26c.


----------



## greggles (16 July 2019)

Something up at De.mem Limited. Lots of volume this morning followed by a Pause in Trading announcement which was followed by a Trading Halt which stated that an announcement is pending.

Looks like there are some loose lips involved here and if I were a betting man I'd say we're looking at a positive announcement shortly.

1.8 million shares traded this morning and a 37.1% gain to 24c. It certainly doesn't sound like bad news is coming.


----------



## Dona Ferentes (18 December 2019)

greggles said:


> Something up at De.mem Limited. Lots of volume this morning followed by a Pause in Trading announcement which was followed by a Trading Halt which stated that an announcement is pending.
> 
> Looks like there are some loose lips involved here and if I were a betting man I'd say we're looking at a positive announcement shortly.
> 
> ...



well picked ...... an acquisition. But is it transformative? Yes and no!
_acquisition of a 75% stake in industrial waste water treatment company Geutec GmbH based in Essen, Germany 
● Geutec develops, manufactures and sells innovative chemicals-based products and solutions for industrial waste water treatment to customers across Germany and Europe 
● Geutec’s strategic know-how and product range is highly complementary to De.mem’s innovative membrane solutions. Its range of water treatment chemicals including coagulants, cleaners and antiscalants is often sold in conjunction with membranes 
● De.mem’s existing customer base, particularly clients from the mining and resources sector, has expressed strong demand for products typically sold by Geutec 
● Furthermore, Geutec brings a strong, long-term customer base into the De.mem group as a platform for expansion into the European waste water treatment market 
● Consideration for the 75% stake is approx. A$915,000 in cash, or ~ 5x normalized earnings before ta_x


----------



## Dona Ferentes (18 December 2019)

and found this blog : http://justcultureinvestor.blogspot.com/2019/07/DEM.html

_"" am currently trying to better predict companies at or just before they reach an inflection point, DEM is in my opinion, just such a company. The market is assigning a market cap of just $25m, which is only 6 million higher than when they IPO’d back in 2017. Since then they have proven and increased their product offering, increased their revenue by 3657%, purchased a 32% stake in Aromatec, expanded into Australia through an acquisition (potentially again) and then further expanded within Australia by opening offices in Adelaide and Melbourne. The Australian revenue since DEM has taken over have increased by $3m (42.8%) and their new contracts to date (July) are 40.2% higher than the whole of CY2018. Whilst they have not yet produced a profit in any quarter, they got extremely close in Q2 and Q3 last year and I believe they are currently sitting just a stone’s throw away from hitting this massive milestone. However, due to this, I would recommend that only those with a considerable risk tolerance begin their own analysis, a lot of things need to come together for this thesis to work out. ""_


----------



## aus_trader (28 December 2019)

Entered as one of the top picks for CY2020 competition. A junior stock in the water purification space. Based on some of the big winners of 2019 in this space (PET, SDV), this stock has a good chance of getting a boost to share price as well since it is flying under the radar at the moment. In terms of the advanced Osmosis water treatment technology used by DEM, it's potential to join the leaders in this space should not be underestimated:






Much lower valuation compared to peers:


----------



## jbocker (30 December 2019)

Thanks for the info @aus_trader.
A few years back I looked for some listings that had water rights. Found Blue Sky (BLA) which had some associated interests, wasn't much else about. BLA has dropped considerably at a healthy increase over a few years. I got out earlyish and didn't fully enjoy the ride BUT missed the razor slide.

Anyways I like this stock DEM as it is focus is on recycling and if there is 1 resource we want to manage better then WATER is it. It appears to be off to a reasonable start, I hope it continues on with much success. I bought a small holding.


----------



## Dona Ferentes (30 December 2019)

jbocker said:


> Thanks for the info @aus_trader.
> A few years back I looked for some listings that had water rights. Found Blue Sky (BLA) which had some associated interests, wasn't much else about...



*Duxton Water D2O *is a pure 'water rights' company


----------



## aus_trader (31 December 2019)

jbocker said:


> Thanks for the info @aus_trader.
> A few years back I looked for some listings that had water rights. Found Blue Sky (BLA) which had some associated interests, wasn't much else about. BLA has dropped considerably at a healthy increase over a few years. I got out earlyish and didn't fully enjoy the ride BUT missed the razor slide.
> 
> Anyways I like this stock DEM as it is focus is on recycling and if there is 1 resource we want to manage better then WATER is it. It appears to be off to a reasonable start, I hope it continues on with much success. I bought a small holding.




Glad to hear you saved yourself from total capital destruction from BLA, it wasn't pretty.

DEM is a much smaller play and likely to grow over time. So let's see where it ends up in a year's time...

D2O is a water rights company as Dona Ferentes said, so in a slightly different category to water purification / waste water treatment company such as DEM, which is why it wasn't included in the table of peers for comparison purposes above. So as far as I can tell, D2O makes money from selling the water entitlement rights to farmers/primary producers and similar industries.


----------



## jbocker (31 December 2019)

Dona Ferentes said:


> *Duxton Water D2O *is a pure 'water rights' company



I saw D2O also in the 2020 competition entries and I am quite interested in it, there is a bit of a nagging concern, that someone raised with me in a discussion recently (probably not D2O specific). He was explaining the costs of water in recent times compared to costs a number of years back. The difference was _very _significant but I am not sure where this was, I think it was the Murray Darling. I didn't mention BLA but I did think wow can the farmers afford further increases!? So I don't if it is related or if there is much left in raising the cost of supply without killing the golden goose. Just nagging questions left with me after that discussion, I wish I could remember with whom I was chatting, amongst too much Christmas cheer.


----------



## jbocker (31 December 2019)

Just to add to my previous post and round out the BLA discussion there are a couple of brief comments on posts #3-5 (Sept 2014) relating to water rights and water quality.
https://www.aussiestockforums.com/threads/bla-blue-sky-alternative-investments.24189/​


----------



## aus_trader (31 December 2019)

jbocker said:


> Just to add to my previous post and round out the BLA discussion there are a couple of brief comments on posts #3-5 (Sept 2014) relating to water rights and water quality.
> https://www.aussiestockforums.com/threads/bla-blue-sky-alternative-investments.24189/​



Interesting reading, also was really saddened by the BLA management misleading it's investors and general public with false numbers while doing big cap raisings from them etc. Appalling and such practices should be treated as criminal !


----------



## Dona Ferentes (14 January 2020)

Bushfire aftermath







> Environmental engineers have warned that residents in bushfire-affected states could soon be drinking yellow-tinged tap water and face ramped-up water restrictions, with treatment facilities set to struggle with a barrage of ash and other pollutants in dams.





> As NSW authorities launched a last-ditch effort to install curtains that trap ash, to stop it entering Sydney’s largest dam ahead of predicted rain this week, water experts said the bushfires could give the city’s drinking water a “musty and earthy flavour” in the coming weeks and months.



 you'd have to think there's something in this for DEM and others?

But maybe not.
 The Army may get the job. The centralised decision making will not be nimble enough to respond.


----------



## aus_trader (15 January 2020)

Dona Ferentes said:


> you'd have to think there's something in this for DEM and others?




DEM does have some work ties with municipalities/councils etc with cleanup operations, so you neve know if they can strike a bigger deal like treating state wide water.


----------



## Dona Ferentes (30 January 2020)

Highlights (for the Quarter)

• Strong operating quarter with A$3.3 million in cash receipts, representing 69% growth over prior corresponding period... Adjusted December Quarter cash receipts of A$4.2m (including cash for work completed and invoiced but cash not yet received) are up +24% on September Quarter 2019, representing a record quarter for the Company
• Strong recurring revenue base, commencing FY20F with outlook for a minimum A$10m of recurring revenue (comprising services, BOO and chemicals/consumables sales)
• Strong FY20F outlook, comprising recurring revenue and equipment sales plus approx. A$1.0-1.5 million in contracted project revenues carried over from FY19
• Strong balance sheet, with cash balance of A$8.2 million as at 31 December 2019


> • Strong Build, Own, Operate segment momentum, with contract signed with a multinational corporate customer in Singapore during the quarter which will contribute to further revenue growth in CY 2020
> • Strategic bolt-on acquisition, with smooth integration of Geutec Industrie- und Abwassertechnik GmbH acquisition, marking the Company’s entry into the German industrial waste water treatment market, expanding the Company’s product range, presenting multiple cross-sell opportunities and providing a base for wider European market entry.
> • Company uniquely positioned to capitalize on the industrial water and waste water treatment market opportunity through its integrated product and services offering, comprising its innovative portfolio of patented water treatment membrane technology, chemicals, consumables, services and BOO offer



- going from '_strength to strength_' ...up a cent


----------



## aus_trader (30 January 2020)

Dona Ferentes said:


> Highlights (for the Quarter)
> 
> • Strong operating quarter with A$3.3 million in cash receipts, representing 69% growth over prior corresponding period... Adjusted December Quarter cash receipts of A$4.2m (including cash for work completed and invoiced but cash not yet received) are up +24% on September Quarter 2019, representing a record quarter for the Company
> • Strong recurring revenue base, commencing FY20F with outlook for a minimum A$10m of recurring revenue (comprising services, BOO and chemicals/consumables sales)
> ...




Good stuff, good numbers reflected in the share price... 






Unlike what's reported by NEA, and even worse reaction by the market...


----------



## barney (30 January 2020)

aus_trader said:


> Good stuff, good numbers reflected in the share price...




I thought that too Aus, then I had a squiz at the 4C which raised a couple of questions for a non-fundamental guy 

Their 4C shows Staff costs and manufacturing costs basically = the cash receipts for the Quarter which leaves them with admin etc costs of a $1 million … 

The current cash balance is basically the result of the recent $8 million cap raise so I assume there is still a way to go to become cash flow positive? 

Is that fair comment or are they travelling better than I am seeing?






aus_trader said:


> Unlike what's reported by NEA, and even worse reaction by the market...




So they drop their guidance by a minimal amount and get hammered by the market .... No wonder I have trouble with Fundamentals

ps i hope you didn't hold too many or any (preferably) with that reaction Aus?
​


----------



## aus_trader (31 January 2020)

barney said:


> I thought that too Aus, then I had a squiz at the 4C which raised a couple of questions for a non-fundamental guy
> 
> Their 4C shows Staff costs and manufacturing costs basically = the cash receipts for the Quarter which leaves them with admin etc costs of a $1 million …
> 
> ...




Yes I have to agree with you barney, that the cost of providing the services are high at the moment. Not sure if these are somewhat fixed and can be minimised such that the margins can improve quickly if they win more business and grow revenues. What would be negative in my opinion is if they have a poor business model where their cost of providing the service grows in-line with the growth of revenues, making it very hard to reach break-even point. I did see encouraging comments from CEO about reaching cash flow positive...






Not holding, but both were on my watchlist for possible purchase. Just scratched NEA off from the watchlist, I can do without such nasty surprises. FYI: I have DEM as one of my picks for CY2020 compo and also have traded NEA in the past.


----------



## Dona Ferentes (16 March 2020)

I'm not sure making a topical announcement then revealing $10,000 of sales cuts it in the current environment


----------



## barney (16 March 2020)

Dona Ferentes said:


> I'm not sure making a topical announcement then revealing $10,000 of sales cuts it in the current environment




SP has been hammered over the last 6 weeks disregarding the current world economics, so I guess management are willing to try anything to turn it around ….. Down another 8% today so nobody appears too impressed as you suggest DF.


----------



## Dona Ferentes (30 April 2020)

DEM came out with their Quarterly with a _*Market Sensitive
*_
*Key Highlights *
_* • *Strong quarter, generating approx. A$3.3 million in cash receipts, representing approx. 65% growth over prior corresponding period  
• March Quarter 2020 confirms the structural shift to recurring revenues, with highest ever recurring revenue contribution to cashflow of 67% in March Quarter 2020   
• Strong underlying performance of acquired businesses, with Pumptech Tasmania subsidiary achieving its best-ever March Quarter  
• All contracted projects proceeding as expected
 • On track for best annual revenues on record
 • Strong balance sheet, with A$7.3 million cash as at 31 March 2020_


----------



## jbocker (30 April 2020)

Dona Ferentes said:


> DEM came out with their Quarterly with a _*Market Sensitive*_



Where can I find what market sensitive means? To me I think of, the market is touchy and this over-rides the company's fundamentals (even with good news!). Or, this is doing OK for now, but in this climate, many clients at risk of going down and this company could go cactus.
But wouldn't that apply to most company stocks at this level at this time.


----------



## Dona Ferentes (30 April 2020)

jbocker said:


> Where can I find what market sensitive means? To me I think of, the market is touchy and this over-rides the company's fundamentals (even with good news!). Or, this is doing OK for now, but in this climate, many clients at risk of going down and this company could go cactus.
> But wouldn't that apply to most company stocks at this level at this time.



It would be there in Listing Rule 3.1  - Continuous Disclosure / Market sensitive ?
https://www.asx.com.au/regulation/rules/asx-listing-rules.htm


----------



## jbocker (30 April 2020)

Dona Ferentes said:


> It would be there in Listing Rule 3.1  - Continuous Disclosure / Market sensitive ?
> https://www.asx.com.au/regulation/rules/asx-listing-rules.htm



Ahh got it. I thinking it was 'rating' related. Thanks DF. The report was good news btw, lets hope it continues.


----------



## Dona Ferentes (12 May 2020)

DEM comes out with a Market Sensitive Announcement today.

I didn't see anything too dramatic. Growth still happening, Positive cash flow a way off.


> • On track for record revenues in CY20
> • FY20F cash receipts/revenue guidance of $14-18m, driven by ~$9m of recurring revenues and $1.4m FY19 contract rollover, with $3.3m cash receipts in March Qtr2020 (seasonally weakest quarter)
> • Visible path to sustainable operating cash positive with diminishing operating cash outflow



Maybe some Corporate action - an acquisition and then going to markets for $$s?


----------



## Dona Ferentes (7 July 2020)

some nibbles on the BUY side. Order book weighted that way as well (not that it means anything)

But I'd like some orders, sales, action, movement, growth.

( _hold; added to at recent lows_ )


----------



## Dona Ferentes (17 August 2020)

Dona Ferentes said:


> some nibbles on the BUY side. Order book weighted that way as well (not that it means anything)
> 
> But I'd like some orders, sales, action, movement, growth



still nibbling. A decided lack of selling? Reporting soon


----------



## Dona Ferentes (31 August 2020)

Highlights
 • Record half-year cash receipts of $7.4 million in 1H20, up 45% vs $5.1m in 1H19
 • On track for record CY20 annual cash receipts
 • On track to achieve CY20 cash receipts guidance of A$14-18m, assuming no further global deterioration in the COVID19 pandemic

_- bouncing along the baseline, really_


----------



## Dona Ferentes (20 January 2021)

Quarterly out...
*Key Highlights *
• _Inaugural positive quarterly operating cashflow of +$544k, successfully completing key business milestone.  
• Record quarterly cash receipts of $5.6m, up 53% vs September Quarter 
• Record full-year CY2020 cash receipts of ~$16m, up 36% vs CY2019 
• Record growth of acquired businesses, with De.mem-Pumptech (Tasmania) cash receipts up+67% in CY2020 to ~$4.0m and De.mem-Geutec (Germany) up +18% to ~$2.6m in CY2020.  
• Strong balance sheet, with $5.4 million cash and term deposits as at 31 December 2020. 
• Successful transition to ~58% recurring revenues in CY2020, up from ~38% in CY2018. 
• Strong outlook momentum for CY2021, with ~$13m of visible cash receipts comprising ~$3m of CY2020 contracted cash receipts from equipment sales carried over into CY2021 and ~$10m of recurring cash receipts_

.... and up 15%.
I like it when small companies achieve what they set out to do (and a bit more)


> _"We ended the year with the achievement of several key milestones, including our first-ever cash positive quarter, record full-year cash receipts, locking in our structural shift to recurring revenues and stellar performance in our recently integrated businesses, particularly De.mem-Pumptech (Tas). __Record order intake during the second half of CY2020 and our growing recurring revenues provide sufficient confidence in continued growth in CY2021, despite challenging global conditions due to the Covid-19 pandemic. "  _





> _ "Our unique portfolio of hollow-fibre membrane technologies has gained a strong place in the market, which will generate further organic growth opportunities for De.mem. We believe that our balance sheet strength, strong investor support, significant recurring revenues, stable and resilient customer base and one-stop shop offering position De.mem to emerge as a market leader in industrial water treatment". _



(HOLD)


----------



## Dona Ferentes (1 March 2021)

_*Key Highlights ... CY2020 Consolidated Financial Report*_

• Inaugural *operating cash flow positive* of +$544k in December Quarter 2020.  
• Strong sales growth, with +41% customer cash receipts growth to $16.5m during CY2020. 
• Substantially improved revenue quality, with growing recurring revenues and diversification.  
• Substantial growth of strategic business acquisitions.  
• Strong balance sheet, with $5.4m cash and term deposits as at 31 December 2020. 
• Strong outlook, with ~$14m CY2021 visible revenues (~$10m recurring plus ~$4m contracted revenues) and strong momentum


_De.mem’s strong CY2021 outlook is driven by its visible revenues (recurring and contracted) and strong operating momentum.  

De.mem commences CY2021 with ~$14m of visible cash receipts (~85% of CY2020 cash receipts) comprising: 
 • ~$10m of recurring revenue; and  
• ~$4m of CY2020 water treatment equipment sales contracted to De.mem, with goods delivery and cash receipts due in CY2021.  

De.mem’s growth momentum accelerated in the second half, with $7.4m cash receipts in 1H and $9.1m in 2H.  

Other factors supporting the Company’s strong outlook include: 
• New Australian sales team in place, managing a growing pipeline across Australia.  
• Increasing customer focus on buying from Australian suppliers to avoid global supply chain risks.  
• Re-commissioning of projects previously paused due to Covid-19.  
• New Zealand growth opportunity as international markets re-open.  _


----------



## Dona Ferentes (15 March 2021)

TH for Cap Raising


----------



## Dona Ferentes (17 March 2021)

Dona Ferentes said:


> TH for Cap Raising



•_ Accepted commitments for ~$9m from leading strategic and institutional investors through a placement of ordinary equity at *$0.28 per share* in an oversubscribed capital raising. 
• Welcomes follow-on investment from existing institutional shareholders and new investment from several leading institutions, including impact investment funds and specialist ESG funds.  
• *Share Purchase Plan* available for Eligible Shareholders.  
• The additional capital is primarily intended to fund the previously announced acquisition of Capic and expansion of the Company’s Build, Own, Operate and services segment.  
• De.mem’s indicative post-capital raising position including Placement proceeds, assuming the target SPP of ~$1.2m, after acquisition payment and transaction costs, is ~$11.5m cash and term deposits_.  

The Company intends to acquire the *Capic *business subject to final commercial and legal due diligence. 

*Key Highlights *
• Capic provides high-value added, speciality chemicals for blue-chip, West Australian-based mining clients. 
• The proposed acquisition provides De.mem with increased scale; geographic diversification into the key strategic market of Western Australia; a complementary product range; a complementary blue-chip, institutional customer base and potential revenue cross-sell synergies. 
• De.mem has a strong acquisition value-add track record, with strong growth in recent acquisitions, Pumptech and Geutec.

*Capic Overview *

Capic is a well established, Perth-based supplier of specialty chemicals for water treatment applications, focusing on “high value add”, high margin, speciality products. 
Capic has a high quality, institutional customer base including BHP Billiton, Northern Star, Pilbara Minerals and Iluka Resources. 
Capic’s specialty chemical products include scale and corrosion inhibitors, process additives such as defoamers, viscosity modifiers and dewatering aids, reverse osmosis membrane antiscalants and cleaners and a complete range of cooling tower water treatment chemicals.


----------



## Dona Ferentes (1 April 2021)

the closing date for SPP has been brought forward to 12 April.  This is somewhat curious, as the trading price or DEM has been 27c to 27.5c for most of the time since its announcement, while the offer is at 28c.


----------



## Dona Ferentes (9 April 2021)

Dona Ferentes said:


> the closing date for SPP has been brought forward to 12 April....



and recent days have seen  buying return after the 'supply shock'.  An update provided today should help sentiment

*Outlook *

_The Company is pleased to report a strong outlook._
• ~$14.5m CY2021 cash receipts for De.mem stand-alone already visible (excluding any potential additional project awards, organic growth, Capic historical cash receipts and cross-sell potential).
• 1H2021 outlook is for ~18-25% organic growth vs pcp, with actual cash receipts for 1Q21 plus contracted and recurring cash receipts for 2Q21 of ~$7.9-8.4m as at April 2021 (excluding any potential additional project awards and impact from Capic acquisition), an increase on $6.7m in 1H20 (see ASX release, June 2020 Quarterly Report, dated 29 July 2020).
• 2Q2021 outlook is for ~33-47% organic growth vs pcp, with actual cash receipts for 2Q21 plus contracted and recurring cash receipts for 2Q21 of ~$4.5-5m as at April 2021 (excluding any potential additional project awards and impact from Capic acquisition), an increase on $3.4m in 2Q2020 ..






(Hold, and token participation)


----------



## Dona Ferentes (15 April 2021)

*Highlights*: 
• _Share Purchase Plan approximately 34% oversubscribed, raises approximately $1.61 million _
_• Significantly strengthened balance sheet, with indicative post-capital raising and post-SPP cash position of ~$11 million (cash and term deposits as at 31 December 2020: $5.4 million_) 

Highlight for me was that the "_Board has decided to accept oversubscriptions to enable all interested shareholders who applied before the SPP’s closure to participate._* " (the catch being the SPP closed a week early .... gotta check those Announcements, folks!!*


----------



## Dona Ferentes (7 September 2021)

De.mem Presents Next Generation Membrane Technology 

 De.mem launches new, proprietary _graphene oxide _enhanced membrane technology  
 The new technology provides significant customer benefits including increased throughput and therefore,  reduced operating cost, and superior filtration performance  
 The new Intellectual Property complements our existing membrane technology portfolio and further   positions De.mem as a leader in hollow fibre membrane technology and development

 De.mem’s  existing  technology  portfolio  comprises  three  _wholly owned,  royalty free _ product  families  (categories),  complemented  by  additional  IP   exclusively  licenced  from  world leading  research  institute,   Nanyang Technological University, Singapore. NTU was ranked no. 2 globally in membrane research  technology by Lux Research (2013).   

 De.mem’s wholly‐owned product families / categories are: 
_ 1. De.mem’s hollow fibre nanofiltration membrane, which, based on its minimized pore size in the  nanometer  range,  produces  high  quality   treated  water  in  a  simple,  low‐pressure  and  low‐energy   consumption process; 
 2. De.mem’s ultrafiltration membrane,   an established water treatment process deployed for potable water   generation to industrial waste water treatment applications as well as for Reverse Osmosis (i.e. seawater  desalination) pretreatment;  
3. De.mem’s new GO‐enhanced membrane_.


----------



## Dona Ferentes (28 February 2022)

• Strong sales growth, with revenues up by +28% to $18.1m in CY 2021  
• Strong growth momentum, with 11 successive quarters of cash receipts growth vs prior corresponding periods as of 31 December 2021 (pcp) 
• Substantially improved revenue quality with revenues from high margin recurring revenue segments up to approx. 70% of total (from 38% in CY 2018) 
• As a result, gross margin up to 34% (from 25% in CY 2018)  
• Presented “next generation” membrane technology based on Graphene-Oxide enhanced polymer membranes  
• Signed key Build, Own, Operate contracts, deploying De.mem membranes with Australian industrial clients 
• Substantial growth of strategic business acquisitions, in particular Capic (Western Australia) 
• Adjusted EBITDA loss for the CY 2021 reduced to $-2.2 million (from $-3.1 million in CY 2020; amount includes the ongoing investment in Singapore membrane technology R&D) 
• Visible pathway to EBITDA breakeven; expected at approx. $25 million in revenues and/or cash receipts 
• Well-funded for further growth with $8.6m in cash as at 31 December 2021 
• Strong outlook with further growth expected in CY 2022 and strategic focus shifting towards EBITDA break-even 

De.mem Chief Executive Officer Andreas Kroell said:   


> “..._Our track record of top-line growth is outstanding. With our strategic focus on our high value and high margin recurring revenue segments, which are now contributing almost three quarters of our revenues, we have significantly enhanced the quality of our revenue and business model. The recently acquired businesses have been integrated successfully, with outstanding growth rates being accomplished. _





> _"Our growth is driven by our advanced membrane technology and comprehensive product and service offering in particular for blue chip industrial clients. Key project awards during the previous year, such as the recent contract with an Australian snow resort, underpin our attractive offering for our customers. _





> _"We expect the growth to continue with the further easing of Covid-19 restrictions in Australia, and with a continued focus on our recurring revenue segments. Along with the successful growth of our business, our strategic focus will shift towards sustainable operating cash flow and EBITDA break even." _




_- a few too many forceful adjectives in the narrative, for my liking. Otherwise, a result in the right direction; still holding._


----------



## Dona Ferentes (22 March 2022)

_and building a pan-Australian network_>


De.mem Ltd to acquire 100% in the shares of Stevco Seals & Pumps Victoria Pty Ltd, Epping, Victoria 
Consideration will be $1.25 million in cash and $250,000 in DEM shares, plus an additional $180,000 in cash and $30,000 in shares for Stevco’s inventory;  
Priced at approx. 4.5x normalized EBITDA (excluding the payment for Stevco’s inventory and potential milestone payments) 
Strong strategic rationale  - Stevco brings an extensive, well-established industrial customer base in Victoria into De.mem group 
o Substantial opportunity to cross-sell De.mem’s wide product range and advanced membrane technology  
o Strong operational synergies with De.mem-Pumptech business in Tasmania 
o Completion of De.mem group’s Australian-wide footprint with nationwide service & support capability 
o Recurring revenue focus as large part of revenues generated from operations & maintenance services  
o Profitable business with approx. $330,000 in normalized EBITDA per annum generated  
o Accretive and well-priced acquisition 

Stevco founders will join De.mem management team 
Integration of Stevco will add further to De.mem’s move towards EBITDA break even 
_*Stevco – Business Overview *_

Established in and operating since 2004, Stevco is a well-known supplier of pumps, small water treatment equipment and related operations & maintenance services to industrial and municipal clients in Victoria. Stevco has a reputation of supplying highest quality products and services.  
Stevco’s long-term customer base includes leading industrial players from the food & beverage, agricultural and heavy industrial sectors, as well as a number of municipalities in Victoria.  
The company generated approx. $2.3 million in annual revenues during the past 3 business years (on average) prior to the transaction. It generated approx. $330,000 in normalized EBITDA (adjusted for one-off items). Revenues are largely recurring and a significant percentage is generated from the rendering of operations & maintenance services. 
Stevco is based and operates out of their workshop in Epping/Melbourne, Victoria, which will continue to serve as the base for De.mem’s operations in Victoria.


----------



## Dona Ferentes (19 July 2022)

_De.mem Signs Partnership Agreement for Commercialization of Graphene Oxide Membrane Technology;  Intends to Enter into North American Market_

The new GO membrane technology has been validated in industrial trial projects in Singapore, and is proven to deliver 20 to 40% higher water flux (= throughput, or volume of clean water produced) vs. standard polymer ultrafiltration membranes in combination with a superior rejection of contaminants.

_..... still bouncing around 17c._


----------



## Dona Ferentes (26 July 2022)

_Thirsty work
_


> trading halt is requested pending an announcement by the Company to the market in relation to a capital raising


----------



## Dona Ferentes (28 July 2022)

De.mem announces A$3m Placement to acquire remaining stake in German subsidiary and support Build, Own, Operate opportunities

Key Highlights 

_De.mem has received commitments of approximately A$3.0m from institutional and sophisticated investors through a placement of ordinary equity at a price of $0.14 per share_
_The Placement was strongly supported by new and existing institutional and sophisticated investors _
_The capital raised will fund the acquisition of the remaining 25% ownership of De.mem-Geutec GmbH as well as several Build Own Operate opportunities. _
_Additional funds will be used to allow future acquisitions and general working capital. _
28


----------



## Dona Ferentes (31 August 2022)

Key Highlights – H1 CY 2022: 
 Record H1 cash receipts of $10.7m, 27% above prior corresponding period 
 Record H1 revenues of $9.2m, 1% above pcp (large, one-off project revenue recorded in pcp)
 Strong growth momentum maintained with 13 consecutive quarters of cash receipts growth vs pcp
 Recurring revenue segments now account for more than 90% of total revenue (38% in CY 2018) 
 Gross margins have continued increasing to 34.1% in H1 CY 2022 (25% in CY 2018) 
 EBITDA loss significantly reduced to $800,000 in H1 CY 2022, thereof $470,000 in Q1 and $330,000 in Q2 
 Strategic focus shifting towards profitability with quarterly EBITDA and/or operational cash flow break even expected by H1 2023  
 Strong operational progress during the period:
 o Signed three-year service agreement with Rio Tinto worth $1.7m  
 o Delivered on two BOO contracts worth $3m over five-year term, invoicing starting from H2 
 Completed strategic acquisition of Stevco Seals & Pumps (Victoria) Pty Ltd in Melbourne, Victoria 
 Appointment of Danny Conlon as Non-Executive Director, former CEO and Managing Director of Veolia Australia & New Zealand 
 Closed $3m share placement after the end of the reporting period, which supports growth prospects, cash balance on pro forma basis of $6.8m 

_"Continued growth, strong operational progress, focus on margins & profitability"_

........... _well, I'm glad they are;  someone has to._


----------

