Water technologies group Modern Water (LON:MWG) saw shares sink 6 percent on Wednesday, despite boosts to both revenue and profit.

Group revenue increased 37 percent to 1.56 million, with group gross profit increasing by 15 percent to £0.67 million. Group overheads were also reduced, down by 4 percent to £2.08 million in line with management strategy.

£1.75 million raised from issue of new shares, with the group’s chairman, Alan Wilson, saying the fund raise had achieved the Board’s objectives.

“We are now able to make further investment in our growth and accelerate our work in developing new products, which are already taking shape in the USA.

“The impressive performance of our All Membrane Brine Concentrator (AMBC) in the cleaning of process waste-water for an Indian-based textiles company was widely marketed and has encouragingly resulted in new enquiries from companies in a range of countries and industrial sectors. We are also beginning to see increasing market interest in our other membrane technologies, with sales of licences and products in China, India and Oman”, Wilson said.

Shares in Modern Water are currently trading down 4.44 percent at 10.81 (1040GMT).