18 September 2017
Itaconix plc
Unaudited interim results for the 6 month period to 30 June 2017
Progress in achieving commercial milestones and building relationships with key industry players
Itaconix plc (AIM: ITX) a leading innovator in sustainable specialty polymers (“Itaconix”, the “Company” or the “Group”), today announces its unaudited interim results for the 6 month period to 30 June 2017.
Business Highlights (including after the period end)
- Croda - exclusive global supply and joint marketing agreement signed in January to commercialize the odor removal additive Itaconix® ZINADOR™ 22L (“ZINADOR”) in household, municipal, animal and industrial applications
- AkzoNobel – JDA signed in January to collaborate on commercialization of itaconic acid technology in specific applications:
- In July, application agreement signed to develop new products for use in the coatings and
construction industries
- In September, application agreement signed to evaluate and develop new chelates based on
Itaconix® DSP™ and Itaconix® CHT™ in consumer and industrial detergent and cleaner
applications, under AkzoNobel’s Dissolvine® brand
- RevCare™ NE:
- Direct relationships established with a number of the global cosmetics houses
- Distribution arrangements set up in USA, Germany, France, Italy, Spain, Poland, South Korea and Japan
- First consumer hair styling product containing RevCareTM NE launched in Italy
The business also continues to work with other non-disclosed industry players, including funded collaborations, to develop new ingredients for a range of applications in its key markets of personal and consumer health care, homecare and industrial products.
Operational and Financial Highlights - Continuing Operations
- From 1 March the business was re-launched as a specialty chemicals group and the Company’s name was changed to Itaconix plc, reflecting its core product platform of novel bio-based polymers from itaconic acid
- Organisational and operational efficiencies were implemented in May. The resultant cost base savings are expected to be at least £1m per annum from 2018
- Cash, cash equivalents and short term investments of £5.4m at 30 June 2017 (30 June 2016 £6.1m, 31 December 2016: £8.8m)
- Revenue from specialty chemicals sales increased to £0.3m (30 June 2016: nil) and gross profit improved to £0.1m (30 June 2016: nil)
- The loss before taxation for the period was unchanged at £2.5m (30 June 2016: £2.5m), as was the loss after taxation at £2.2m (30 June 2016: £2.2m)
- R&D tax credits were £0.3m (30 June 2016: £0.2m).
Outlook
The re-launch of the business as Itaconix plc, focused on a specialty chemicals portfolio (primarily the itaconic acid bio-based specialty polymer platform) signals a new phase for the Group. The Board believes there is good reason to be positive about the outlook for the business. Revenues and gross profit for the period have matched reported full year 2016, and the cost base has been restructured and stabilized. The implementation of the Group’s strategy is starting to be reflected in financial performance, and our objective is to continue to drive product revenue starts and growth.
For further information please contact:
Itaconix +44 (0) 1244 283 500
Kevin Matthews / Rob Cridland
N+1 Singer +44 (0) 207 496 3000
Richard Lindley / Liz Yong (Corporate Finance)
Nick Owen (Corporate Broking)
Hudson Sandler
Charlie Jack / Emily Dillon +44 (0) 207 796 4133
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