Eneraqua Technologies PLC on Thursday said it expects to post higher interim revenue, but warned of the impact of the UK government’s recent changes to net nutrient neutrality legislation on its earnings.

Shares in Eneraqua were down 22% at 74.10 pence each in London on Thursday midday.

The London-based energy and water efficiency solutions provider said for the six months to July 31, revenue is expected to be at least 8.3% higher to £26.0 million from £24.3 million a year prior. It also expects to be profitable on an earnings before interest, tax, depreciation and amortisation basis, in line with its expectations.

However, the company noted the UK government’s ‘unexpected’ announcement on Tuesday, in which it proposed changes to the legislation that governs the development in nitrate-sensitive areas.

Eneraqua said it is now waiting to fully understand the implications of the proposals, which means its clients will likely delay their projects until there is greater clarity.

As a result, the company now expects full-year Ebitda to fall ‘materially below’ the current market expectations of £8.8 million.

Eneraqua’s financial year ends January 31.

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