Iofina PLC (AIM:IOF, OTC:IOFNF) announced its fourth consecutive year of record revenues and underlying earnings (EBITDA), with pre-tax profits quadrupling.
The specialist in the exploration and production of iodine saw revenue in 2021 rise by 31% to US$39.0mln from US$29.7mln in 2020.
EBITDA improved by 47% to US$6.9mln from US$4.7mln the year before while profit before tax soared to US$5.1mln from US$1.3mln.
The company said its margins have been bolstered by a strong iodine price, particularly over the last six months, and reiterated its expectation that these high prices will continue during 2022.
Crystallised iodine production was 518 tonnes in 2021 compared to 610 tonnes in 2020. Sales of crystallised iodine, both as raw iodine and in derivative compounds, increased by 53% to 732 tonnes from 479 tonnes in 2020.
Lower brine supply from its oil and gas partners affected iodine production in 2021 but the company is hopeful supply will improve this year as oil and gas companies reinvest to boost production.
Cash started 2021 at US$3.5mln and ended US$1.8mln higher at US$5.3mln, after paying off US$1.4mln of the bank term loan and also depositing US$2.7mln of funds to reduce the bank line of credit to zero, thus avoiding interest charges.
As previously announced, the company said it is finalising an agreement with a new brine supply partner and expects to have a further update on this shortly.
"Iofina Chemical continued to perform well and was integral to the group's sales and earnings. We have been working on enhancements to improve efficiencies and capacity for certain iodine and non-iodine products, and we expect a laboratory upgrade in Q2 2022 to improve the company's R&D capabilities,” said Tom Becker, the chief executive officer of Iofina.
"With market fundamentals remaining favourable, a much-improved balance sheet, and continued strategic investment in our growth, the board remains confident in the future success of the business and looks forward to keeping shareholders updated on progress," Becker added.