Waste-to-energy technology group Compact Power has flagged up another agreement, this time a collaboration deal with waste management services company HLC to jointly identify and develop integrated waste management projects. Operating from a plant in Bristol, Compact Power has developed a technology based on pyrolysis, gasification and high temperature oxidation for the safe, economic and environmentally friendly processing of a range of wastes with energy recovery. The company raised £7.5m through a placing at 90p in April 2002. It recently clinched a framework deal with a Spanish engineering group to jointly develop projects in Catalonia. Acton believes Spain is a fast growing market for thermal waste treatment solutions. This followed a collaboration agreement with SNCL in December to exploit project opportunities in France and the Benelux countries. In the half to September, pre-tax losses were £2.4m (£2.1m) on turnover of £171,000, which came from processing high value wastes. But it was also debt free and had £4.8m cash. House broker Rowan Dartington sees pre-tax losses of £4.3m for 2003, with a £2.4m deficit to follow in 2004. A cash call looks very possible in the not too distant future. Avoid.