30 May 2018
Itaconix plc (“Itaconix”, the “Company” or the “Group”)
Operational Update
Itaconix, a leading designer and manufacturer of specialty polymers, announces that it is implementing a restructuring of its UK subsidiary to focus the Group’s resources on growing revenues of its core products. The majority of Itaconix’s activities will be consolidated into its US operations, thereby improving the link between product support and manufacturing. Only certain key individuals in marketing and product support will be retained within the UK business. The Board’s decision follows the ongoing successful execution of its strategy to launch and grow the sales of its performance, bio-based ingredients, through collaboration with market leaders as exemplified by the recent announcement regarding AkzoNobel Chelates and the ongoing relationship with Croda.
Whilst the full financial effect of these changes will not be achieved immediately due to the costs of implementation, the cash fixed cost base of the Company (excluding capital expenditure and working capital) is forecast to fall to £3m - £3.5m per annum from 2019. The Board remains confident, subject to the availability of further funding, that the Company is well positioned to continue to deliver revenue growth through 2018 in line with expectations.
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