Annual Report & Accounts
Itaconix (LSE: ITX) (OTCQB: ITXXF), a leading innovator in sustainable specialty polymers, is pleased to announce its audited results for the year ended December 2019 (“2019”).
A copy of the Annual Report & Accounts is available for download on Itaconix’s website at www.itaconix.com.
2019 Financial Highlights
Financial results for 2019 show increased demand for the Company’s products, significant cost savings from the restructuring of operations in 2018, and the full exit from the nicotine gum business. The Company transitioned its reporting currency from UK Sterling to US Dollars.
· Total revenues increased by 46.2% to $1.3m from $0.9m in 2018.
· Gross profits increased by 221.4% to $0.45m in 2019 from $0.14m in 2018 reflecting an increase in gross profit margin to 34.9% in 2019 from 15.9% in 2018.
· Net losses decreased by 86.2% to $1.4m in 2019 from $9.9m in 2018.
· Losses before interest, tax and non-cash items decreased 58.8% to $2.8m in 2019 from $6.8m in 2018.
· Cash reserves at the end of 2019 were $0.8m, down from $2.7m at the end of 2018.
· In May 2019, Itaconix completed its divestment of its minority interest in Alkalon for a total cash consideration of c. £242,000.
2019 Operational Highlights
The Company achieved important progress and major milestones in establishing the value of its core products and developing a broad base of customers for continued revenue growth in its major application areas:
· Use of the Company’s detergent polymers increased, including new orders from customers in Europe.
· The Company transitioned the marketing and sales of its hairstyling polymer to Nouryon to expand global awareness and usage.
· The Company added a new odour control product and saw expanded use of its products through its global marketing and sales collaboration with Croda.
In addition, the Company continued to develop its organisation with the appointment of Laura Denner as Chief Financial Officer. Mike Townend stepped down as a Non-Executive Director after many years of dedicated service to the Company.
Post Year End
· In May 2020, Itaconix Corporation received a US Government Paycheck Protection Program Loan for $0.2m to support the business through the Covid-19 pandemic.
· In July 2020, the Company provided a trading update on unaudited revenues and revenue growth for the first six months of 2020. Full interim results are expected to be released by the end of October.
· In July 2020, the Company completed an equity raise with gross proceeds of $2.2 million to fund operating losses and working capital needs as revenues advance toward break-even profitability.
John R. Shaw, CEO of Itaconix, stated: “Our 2019 results show the transformation in revenue and profit potential that we created from our focus on sustainable specialty ingredients and the restructuring of operations in 2018. We exited 2019 as a lean commercial operation with a growing base of customers and recurring revenues from our direct success in detergents and our blue-chip collaborations with Croda and Nouryon. With product demand in the first half of 2020 reflecting the ramp up we expected to start in late 2019 and the proceeds from our July equity raise, we have the commercial momentum and operations in place for continued strong revenue growth.”