The Advance Nanotek Ltd (ASX: ANO) share price dropped 1.37% yesterday to close at $5.77. Advance NanoTek shares performed marginally worse than the market average, with the S&P/ASX 200 (INDEXASX: XJO) falling by 1.34% at the close of trade.
Late in the day, Advance NanoTek released its financial results for the second half of 2019.
What does Advance NanoTek do?
Advance NanoTek is a developer, manufacturer, and marketer of products based on a range of proprietary advanced material technologies and manufacturing processes. Its main activities relate to the manufacture of aluminium oxide powder (Alusion), zinc oxide dispersions and zinc oxide powder (collectively ZinClear) for the Personal Care Sector. The company continues to benefit from the growing demand in the personal care sector for zinc-based ingredients.
Advance NanoTek half-year results
The company revealed a net profit after tax (NPAT) of $3.37 million for the half-year ended 31 December 2019, compared to $1.74 million in the first half of 2018.
Advance NanoTek's profit before tax result was even more impressive, coming in at $4.82 million, 2.77 times greater than what was achieved in the corresponding half-year ended 31 December 2018.
Sales revenue for the 6 months to 31 December 2019 was $11.31 million compared to $4.74 million for 6 months to 31 December 2018.
The company's ZinClear XP powder sales were up 4.6 times in the period compared to the 6 months to 31 December 2018.
Operational update
During second half of 2019, Advance NanoTek received TGA approval on the Brisbane manufacturing facility.
Advance NanoTek is in the early stages of a feasibility study to leverage the capture of its CO² emissions from its zinc oxide production equipment and convert the CO² into oxygen through the growth in hydroponics, on-site at Shettleston Street Rocklea. The company reported witnessing a reduction in its energy consumption with the installation of solar panels completed in December 2019.
Advance NanoTek will look to utilise this solar energy and battery storage as part of its hydroponics feasibility study.
