Itaconix PLC sees improved momentum in its first-half with strong demand for its
The specialty polymers group said unaudited revenues for the first six months of the year were US$1.1mln, representing around 80% growth over the equivalent period in 2019
() () shares rose on Wednesday as the firm said it continued to enjoy improved momentum in its first-half with strong demand for its range of specialty polymers.
In a trading update for the half-year to June 30, 2020, the leading innovator in sustainable specialty polymers, said unaudited revenues for the first six months of the year were US$1.1mln, representing around 80% growth over the equivalent period in 2019 and about 62% over the second half of 2019.
As a result of the increase in revenues, the group added, its unaudited underlying loss (LBITDA) has decreased in line with management’s expectations.
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Itaconix said volumes and revenues increased from new and recurring orders in detergent, odour control, and personal care applications.
It noted that significant revenue growth has come from customers successfully launching new dishwashing products using Itaconix formulas based on the Company’s new TSI 322 detergent polymer.
In addition, the group said, several existing customers have increased the size of their recurring orders during the year partly to satisfy increased consumer buying related to stay-at-home practices in response to coronavirus (COVID-19).
The company pointed out that it has increased production rates to keep up with anticipated demand across an increasingly diverse customer base.
Itaconix noted that its net cash balances as at June 30, 2020, were US $0.5mln with the company’s recent US$2.2mln fundraise, completed after June 30, not reflected in this total. The net proceeds from the fundraise are expected to provide sufficient funding for the group until at least the end of 2021, during which the company expects to make significant progress towards its medium-term plan to achieve break-even profitability.
John R. Shaw, CEO of Itaconix, commented: “Our proprietary polymers are validated as essential ingredients in a growing range of consumer products based on performance and sustainability. With demand increasing for all of our products and a $2.2 million fundraise completed, we are entering the second half of 2020 on a new revenue trajectory with a strong balance sheet.
“I am particularly encouraged by our progress at converting our detergent project pipeline with aggregate annual revenue potential of $20 million into new customer product launches, including the volumes under the New Wave detergent polymer agreement. Our revenue opportunities are expanding, and we look forward to the future with growing confidence.”
In morning trading, Itaconix shares were 1.9% higher at 1.35p.
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