Specialising in the development and operation of projects and facilities that purify and process water for re-use in industrial applications

1. specialising in the development AND
operation of projects and facilities that
purify and process water for re-use in
industrial applications
OVERVIEW
Hydrology plc (“Hydrology” or “the Company”), a project finance
and development company, is seeking funding to develop commercial
opportunities in the treatment, purification and recycling of water. The
Directors believe that an investment in the Company will give investors
an opportunity to participate in the development of a portfolio of
commercial water facilities, which will also provide significant tax
benefits under the Enterprise Investment Scheme (“EIS”).
The Company has developed two water treatment facilities over the
last 18 months from finance raised through the issuance of debenture
loan stock. The projects are operational and one is already generating
revenue. Hydrology plans to develop at least two more projects this
year from its established pipeline of small-to-medium sized projects
with multi-national organisations looking to reduce costs and develop
a sustainable supply of water with on-going environmental benefits.
BUSINESS HIGHLIGHTS
• Excellent market fundamentals for water treatment – growing awareness
of water as a precious resource
• Current focus on commercial opportunities in the Americas with a
particular emphasis on Brazil
• Opportunities exist and will be explored in the UK due to deregulation
of the water markets in 2017
• Proven business model
• Existing projects already generating revenue
• Knowledgeable management team
• Anticipated return on equity for investors to be 30% plus
KEY STRENGTHS
MANAGEMENT TEAM
Management with proven experience in water, oil and gas, mining,
manufacturing, technology and environmental sector and financial markets
Chris MacNee, Director / CEO
Chris has over 25 years of global experience in natural resources. As CEO,
he is responsible for driving the overall strategy and business development
as well as overseeing the implementation of the Company’s projects.
Jamie Murray, Director / CFO
Jamie has over 20 years of experience in corporate management, developing
financial models, investor relations, compliance and administration.
THE TEAM ALSO INCLUDES
• Eddie Edmonstone – Non-Executive Director
• Joao Batista Meirelles – General Director, Brazil
• Heloisa Yamaguchi – Lead Engineer, Brazil
THE GLOBAL WATER MARKET OPPORTUNITY
Increasing populations and evolving consumption patterns, arising from
higher standards of living, are putting freshwater resources under considerable
strain. The growing gap between supply and demand, exacerbated by climate
disruptions and extreme weather events, is set to require substantial capital
investment in water treatment technologies and distribution infrastructure to
reduce these imbalances.
Thisopensthedoortoanumberofinvestmentopportunitiesforcompanieswho
provide new ways to treat, supply, conserve and produce a sustainable supply
of water for industrial, agricultural and domestic applications.
Todate,thewatersectorhasprovidedinvestorswithstrongrisk-adjustedreturns
and the Directors believe that it will continue to develop into a dynamic sector
within global equities, with significant long-term investment potential.
HYDROLOGY
PLC
The content of this promotion has not been approved by an
authorised person within the meaning of the Financial Services &
Markets Act 2000. Reliance on this promotion for the purpose of
engaging in any investment activity may expose an individual to
significant risk of losing all of the property and other assets invested.

2. STRATEGY
Hydrology plc has demonstrated the ability to take advantage of current
opportunities in the water treatment market and to deliver a water facility
to industrial companies on time and on budget
Having an understanding of water technology solutions together with
strong affiliates in the sector and experience working within regulatory
frameworks, Hydrology can fund project development, consistently
growing revenue to create a strong platform for growth.
BUSINESS MODEL
Hydrology plc has established a successful business model as a full-service
watertreatmentprovider.Fromprojectidentification,usinglocalmanagement
knowledge, to assessing, designing and valuing the installation, Hydrology
thenestablishesbudgetsandcostanalysis,usingbothdebtandequityfinance
as available. The Company utilises ‘best-of-breed’ technologies from world-
classmanufacturersforitssustainableprojectswhicharedeliveredwithinlocal
regulatoryandenvironmentalframeworks.TheCompanyselectsprojectsthat
providemultipleincomestreamsfromthetreatment,productionanddelivery
of sustainable water supply on long-term contractual agreements.
Once a project’s development costs has been returned, normally two to
three years, the Company will then decide to either, continue to operate the
facility through the end of the contracted term, or sell the project to a fund
foritsfuturecashflowwiththeCompanyretainingprojectmanagementfees.
INVESTMENT AND USE OF FUNDS
Hydrology plc is seeking to raise up to £5million under EIS provisions.
Net proceeds from this investment will be used to fund the continuing
development of the Company’s projects.
CURRENT PROJECTS
SWD, WYOMING PROJECT
• 10-year contract with Brazilian
industrial conglomerate
• Desalination plant commissioned to
treat water from Sao Joao River
• Plant using reverse osmosis and bio-
digester technology
• Delivering fresh water to the petro-
chemical plant, providing a cost
effective solution
• Project processes up to
5,000 bbl saltwater per day
produced by oil and gas wells
• Saltwater is a natural
bi-product of oil and gas
production
• Strict environmental laws
creating strong demand for
licensed water processing
facilities
GROWTH POTENTIAL
The Company’s focus has been on commercial opportunities in the UK and
the Americas, with a particular emphasis on Brazil. With a proven track
record of successfully delivering water projects to industrial companies,
Hydrology expects to consolidate and grow its position in these regions.
Future growth strategy is expected to include Russia, India and China
where opportunities have been identified and local partnerships are being
established. In addition, the deregulation of the UK market will provide
good business potential as it becomes more diversified and competitive.
Hydrology has an established project pipeline over a range of industrial
sectors that require sustainable supply of water and include:
• Aluminium plant - Treating effluent from recycling cans
• Food Manufacturing – Expansion of existing wastewater treatment
• Beverage – Automation of water and wastewater treatment plant
• Steel – Desalination treatment
• Desalination - Expansion of Unigel project
EIS TAX BENEFITS
Subscriptions for Shares under this offer will benefit from the significant
advantages of EIS tax relief.
THE MAIN EIS TAX BENEFITS ARE:
• 30% income tax relief in the tax year of investment up to max qualifying
amount of £1,000,000
• Any gains realised are free of CGT
• Reliefs can be carried back to prior tax year subject to available allowance
• Loss relief available to set against income tax
• Inheritance Tax Relief – EIS qualifying company treated as ‘relevant
business property’ and IHT relief of up to 100% of the value of the
investment
KEY RISKS:
• The value of shares and income from them may go down as well as up,
and you may not get back the amount originally invested
• An investment in smaller and unquoted companies carries a higher risk
than many other forms of investment
• Investments in the company will be illiquid and difficult to realise
• Prospective investors should regard an investment in the Company as a
long term investment
• You should not invest in an EIS Company unless you can afford to lose
some or all of your capital
• Tax reliefs are dependent upon an investor’s individual circumstances
and are subject to change
For further information regarding the offer please contact:
Henwick Park Distribution Limited
Attention: Sarah Dawson
County House, St Marys Street,
Worcester, WR1 1HB
Attention Sarah Dawson
Tel: +44 (0)1905 697994
Email: s.dawson@henwickpark.co.uk
www: www.henwickpark.co.uk
GLOBAL
WATER
CHALLENGES
• Population growth
• Industrialisation
• Failing Infrastructures
• Climate Change
• Environmental and
government regulation
• Focus on re-cycling and reuse
• Carbon Offsetting
This document is provided for informational purposes only and should not be construed as an offer to invest. This document is exempt from the financial
promotion restriction (in section 21 FSMA) to engage in investment activity on the grounds that it is directed only at Investment professionals (article 19) and
to other persons who it may lawfully be promoted within the exemptions set out in the Financial Services and Markets Act 2000 (Financial Promotion) Order