13 February 2018
Itaconix plc (“Itaconix”) Year End Trading Update - Positioned for Growth
Itaconix, a leading innovator in sustainable performance polymers, today announces a trading update for the year ended 31 December 2017.
Itaconix is a leader in bio-based polymers based on itaconic acid. The Company uses an established proprietary process with break-through economics to produce unique or enhanced ingredients for the homecare, personal care and industrial markets.
Key provisional unaudited financial measures for the year ended 31 December 2017 were:
2017 (unaudited) 2016
| Revenue |
£0.6m |
£0.3m |
| Group Operating Loss* |
£5.2m |
£5.2m |
| Cash |
£3.6m |
£8.8m |
*: Group Operating Loss is stated before the non-cash impairments disclosed below.
Key Developments
- Routes to market established through key partnerships signed with:
- Croda Inc
- AkzoNobel Performance Additives
- AkzoNobel Chelates
- Distributor network established for the Personal Care business
- First sales and repeat sales of:
- Itaconix® ZINADORTM for malodor management
- RevCareTM NE 100S hairstyling polymer
- Royalties from first sales of EurecoTM RP103, a product developed by Itaconix and licensed to Solvay SA, and an announcement that Società Chimica Bussi S.p.A. has decided to invest in facilities for the scaled production of this material
- While the new product adoptions and sales partnerships have positioned Itaconix well for the future, sales revenue growth in 2017 was slower than anticipated (as already notified to the market at the time of the interim results in September 2017)
- As a result of the slower than anticipated growth, the goodwill associated with the acquisition of
Itaconix Corporation has been fully impaired by £6.1 million. In addition, the valuation of contingent consideration payable in shares to the original shareholders of Itaconix Corporation has been reduced from £3.4m on 31 December 2016 to £1.1m on 31 December 2017. The charges and credits, respectively, associated with these changes are non-cash and will be recognized as exceptional items in the income statement for 2017 below the Group Operating Loss stated above**
- Completed $1m investment programmed in polymer production capacity in New Hampshire
- In January 2018, concluded a license and assignment agreement of non-core polymer assets to
tremco-illbruck for use in construction sealants.
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