Itaconix PLC (AIM:ITX, OTCQB:ITXXF) jumped almost 8% on Monday morning after confirming new orders in Europe and the US and that profit margins were improving.
Total gross profit margins for the year so far have exceeded 35%, non-executive chair Peter Nieuwenhuizen said ahead of the company’s annual meeting on Monday.
This is against the 31% seen over the course of 2023, as further value is sought from Itaconix’s plant-based polymer products.
Alongside this, Nieuwenhuizen confirmed orders from important new accounts in Europe and North America, relating to dish detergent gel and sustainable leather.
“We expect revenues from these new accounts and meaningful volume growth [...] to predominantly fall in the second half of 2024 and beyond,” he added.
Nieuwenhuizen also highlighted recent regulatory approvals in China, Australia and New Zealand, alongside studies showing Itaconix’s water-soluble polymers did not persist in the environment.
Guidance for revenue to climb to a record US$7.9 million was reiterated, with a strong balance-sheet also being cited as the company eyes further commercial expansion.
“We remain optimistic about our goal to build a large, profitable company with recurring attractive-margin revenues from a large and broad base of customers that use Itaconix products as key enabling ingredients,” Nieuwenhuizen commented.
Shares climbed 7.9% to 151p.