Itaconix Plc (LON:ITX) chairman Dr Bryan Dobson said the polymers specialist made “real commercial progress” in 2017, although he admitted this had come at a slower rate than envisaged.
In a trading statement, he added: “The business is now well positioned with products in market and channels in place, both through major strategic partnerships with parties such as Solvay, Croda and AkzoNobel as well as a distribution network for personal care.
“The board is confident that the company is now well positioned to deliver revenue growth from 2018."
In the update, Itaconix said it had established routes to market for its products with chemicals giant Croda, and two divisions of the multi-national, AkzoNobel. First and repeat sales of the odour neutraliser ZINADOR and RevCare hair products were recorded.
The firm also completed a US$1m investment programme in polymer production capacity in New Hampshire and last month it concluded a licence and assignment agreement of non-core polymer assets to coatings firm tremco-illbruck for use in construction sealants.
In the update,Itaconix provided provisional figures for last year which showed revenues had doubled to £600,000, while the operating loss was static at £5.2mln. The company was sitting on cash of £3.6mln at the end of the period.
While up strongly, sales were lower than anticipated and as a result the company said the goodwill associated with the acquisition of Itaconix Corporation has been fully impaired by £6.1mln.
At the same time, the deferred payment for the business (to be satisfied in shares) has been reduced to £1.1mln from £3.4mln.
Itaconix said charges and credits, respectively, associated with these changes are non-cash and will be recognised as exceptional items in the income statement for 2017.