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The Markets
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The Markets
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Chemicals

Itaconix says project delays weigh on performance, but remains upbeat on prospects

"While project delays can be rather frustrating, our commercial momentum continues to build, we remain confident about our outlook, and our future remains equally bright," said chief executive John Shaw

Polymers specialist Itaconix said it was accelerating “key revenue opportunities”, but cautioned its full-year sales will be below current market expectations because of project delays.

Even so, progress to date has been significant. Turnover for the first three quarters of the year was £700,000, up 78% on the comparable period last year. Revenues in the second half will be higher than the first six months.

Itaconix, which produces bio-based functional ingredients that improve the safety and performance of homecare, personal care and industrial products, said it had a strong pipeline.

It added that it was “undertaking efforts to accelerate key revenue opportunities, particularly in water treatment and detergents”.

Chief executive John Shaw said: "The use of our novel products in an increasing range of end-products is establishing a broad customer base for long-term revenue growth and ultimate profitability.

“While project delays can be rather frustrating, our commercial momentum continues to build, we remain confident about our outlook, and our future remains equally bright."

Itaconix said the loss for the final six months will be broadly in line with the £1mln shortfall at the EBITDA level seen in the opening six months. The deficit last year was £3.9mln.

More importantly, year-end cash will be in line with expectations “due to significant improvements in working capital utilisation”.

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