H2O reaps rewards of reducing water wastage

Aug 25 2009 by Andrew Mernin, The Journal

THE European-wide drive to protect dwindling water supplies has put a North East firm on target to triple its turnover to £5m as it expands across the Continent.

As the world faces up to an impending water shortage amid climate change and poor resource management, government’s across Europe are becoming increasingly aware of the need to use more eco-friendly drainage and water treatment systems.

And, as developers and construction firms are encouraged to install infrastructure which cuts out water wastage, a Sunderland firm is reaping the rewards.

H2O Group has seen a surge in orders across the UK and Europe for its water pollution, flood management and sewage treatment services and products.

On the back of a number of deals in mainland Europe and Cyprus, the company expects its annual turnover to jump from £1.7m this year to up to £5m next year. The firm has landed a deal to supply sewage treatment systems to 5,000 homes in Cyprus initially worth £2m-a-year.

Meanwhile, in the UK, the company recently tied up a £1m-a-year distribution deal with one the UK’s largest civil engineering suppliers.

It is also gearing up to roll out its new flood prevention and flood water re-use product Stormpod. The system was developed in partnership with Newcastle University’s Resource Centre for Innovation and Design alongside support from regional development agency One North East.

As well as harvesting rainwater, the all-in-one drainage system prevents flooding by managing surface water and can also be integrated into existing sewerage systems.

According to managing director Damone Armstrong, the company has already secured a number of lucrative distribution agreements in UK and Europe for the product.

He said: “We have become a market leader in our sector in the UK and our exploits are moving strongly into Europe and across the world with distribution already set up in France, Belgium Germany, Cyprus and Israel.

“We have bucked the recession and although trading has been hard in the first part of this year, we still managed to sustain growth within the group and with the support of lending from our bank RBS we could see a growth in turnover to up to £5m next year.”

Stormpod was launched at this year’s Ecobuild in London where it was nominated in the top three of the most innovative products at the show out of 2000 rival products.

In the North East, the firm recently won a contract to supply around 75 rainwater harvesting systems to regeneration specialists Frank Haslam Milan and Hartlepool Housing.

H2O Group employs 15 people at its headquarters on Rivergreen Industrial Park.