Gamble of the week: Make money from water

This resilient water-cleaning small-cap is well placed to profit from the global rise of water usage, says Paul Hill. A buy for the more adventurous.

People around the world, even in heavily polluted emerging markets such as China, expect the water in their rivers, lakes and seas to be clean. Western voters especially expect firms to invest in projects that reduce flooding and prevent factory waste from contaminating public areas.

This is where Hydro International steps in. It designs and sells proprietary water treatment and storm control equipment primarily in Britain (34% of profits) and America (54%). In order to stay lean and maximise cash flow, all of its equipment production has been outsourced to third-party manufacturers.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.