Portfolio Update: Splash/Hydrocycle

Splash delivered its strongest financial results to date this quarter. For the first time, Hydrocycle, its water treatment and recycling business, contributed the majority of group revenue. Because a single Hydrocycle project can generate revenue comparable to several months of carwash operations, the business is reshaping Splash’s growth profile without requiring expansion of its carwash network in China.

Hydrocycle reached a key milestone by shipping its first European system, a wastewater treatment and recycling installation for Romania’s largest medical waste manager, with commercial operation targeted for November. Industrial laundries in France and the Czech Republic have verbally confirmed new orders, and discussions are underway across medical waste, food processing, and other sectors. Splash, meanwhile, continues to manage costs carefully to keep its carwash operations stable through challenging market conditions and a severe rainy season.

For Splash, Hydrocycle provides a path to financing future growth without relying entirely on external capital:

• Record performance: The group posted its highest revenues and lowest losses on record.

• European presence: The Romanian installation provides a reference site for future customers across Europe.

• Repeat business potential: One of the laundry customers operates a national network, creating opportunities for additional installations.

• Experienced technical leadership: Hydrocycle’s new Chief Engineer has designed over 100 systems across 31 industries.

• Efficient operating model: Hydrocycle draws on Splash’s existing team for operational support, allowing it to scale without significant added overhead.

  
  

Please contact Tony Coretto or Mitchell Hauser for more information or to arrange a meeting with Rob Shesol, CEO of Splash.