REG - Iofina PLC - Final Results
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RNS Number : 4819C Iofina PLC 30 April 2026
( )
30 April 2026
Iofina plc
("Iofina", the "Company" or the "Group")
(AIM: IOF)
2025 Full Year Results
Another Record Year: Production up 17%, Revenue up 22% and Adjusted EBITDA up
56%
Investor Presentation
Iofina plc, specialists in the exploration and production of iodine and
manufacturers of specialty chemical products, announces its audited full-year
results for the 12 months to 31 December 2025 (the "Period").
Increased iodine production, reflected in rising crystalline iodine sales,
drives 22% revenue growth:
· Revenue of $66.5m (2024: $54.5m); 22% increase; eighth successive
year of growth
o Crystalline iodine sales increased 42% to $35.0m (2024: $24.7m)
o Iodine derivatives sales increased by 5% to $17.8m (2024: $16.9m)
· Crystalline iodine production increased by 109MT (17%) to 743MT
(2024: 634.1MT)
· Gross profit of $18.0m (2024: $13.2m); 36% increase
· Adjusted EBITDA(1) of $11.8m (2024: $7.6m); 56% increase
· Operating profit of $8.7m (2024: $5.0m); 74% increase
· Profit before tax of $8.4m (2024: $4.8m); 75% increase
Robust balance sheet and further increase in net cash position:
· Cash of $11.7m at year-end (2024: $6.9m)
· Net cash increased by $2.3m from $2.9m to $5.2m
· Average realised iodine price for the year increased by 8% to
$74.02/kg
Investing for growth:
· Ongoing commitment of capital investment for new iodine plants and
Iofina Chemical processes was $8.4m in 2025 (2024: $9.5m)
· Signed an agreement for a larger iodine, IOsorb® production facility
in the Permian Basin with Western Midstream Partners in December 2025
· The Permian Basin plant is expected to be operational in Q3 2026,
which will be the Group's fourth new plant in four years
· Strategic focus to establish a new core area in the Permian Basin to
complement the Oklahoma core regions to further optimise the IOsorb®
processes
· Adding capacity by building multiple, larger IOsorb® plants and
expediting the roll-out of these facilities to ramp up iodine production
indicates a step-change in the Group's ambitions
· Close to achieving 1000MT crystalline iodine production on an
annualised basis once the Permian Basin plant comes online
2026 so far:
· Strong start to 2026, with production of 178.9MT of crystalline
iodine in Q1 2026 from Iofina's eight IOsorb® plants (Q1 2025: 124.1MT)
· The Company anticipates H1 2026 crystalline iodine production to be
in the region of 385MT, upgraded from 325MT-355MT
· Demand for Iofina's crystalline iodine remains strong, with the
iodine global spot price steadily above $70/kg, and prices are expected to
remain firm into the second half of 2026
· First plant in the Permian Basin is currently under construction,
expects to be delivered on time and in line with budget
(1)Refer to the Consolidated Statement of Comprehensive Income for calculation
Commenting, President and CEO, Dr. Tom Becker, stated:
"In 2025, Iofina delivered record revenues for the eighth consecutive year,
alongside record iodine production and EBITDA, which was driven by crystalline
iodine sales, higher pricing, robust demand, and continued operational
execution, with IO#11 commissioned in Q3 2025.
"Towards the end of the Period, we announced our expansion into the Permian
Basin with a larger-scale IOsorb® plant, marking the next phase of our
transformational plant growth strategy. This transition towards multiple,
larger plants is expected to drive further efficiencies and materially
increase production capacity. Our strong balance sheet and cash flow continue
to provide the financial flexibility to grow while maintaining disciplined
capital allocation.
"After a strong start to 2026, we have lifted the top-end of our H1 2026
production guidance and now expect H1 2026 production to be in the region of
385MT. The Company has a clear short-term pathway to exceed 1,000MT of annual
production and, in the forthcoming years, grow beyond 2,000MT through the
development of larger-scale plants.
"The capital-efficient nature of this model, backed by strong demand for
iodine and the Company's range of speciality products, underpins the Board's
confidence in delivering a sustainable, long-term growth strategy for Iofina's
shareholders."
Investor Presentation
The Group announces that Dr. Tom Becker, Chief Executive Officer and Malcolm
Lewin, Chief Financial Officer, will hold an investor presentation and Q&A
session on Wednesday, 13 May 2026, at 2:30pm BST via the Investor Meet Company
platform regarding the audited results for the twelve months ended 31
December 2025.
The presentation is open to all existing and potential shareholders. Investors
can sign up to Investor Meet Company for free on:
https://www.investormeetcompany.com/iofina-plc/register-investor
(https://www.investormeetcompany.com/iofina-plc/register-investor)
Investors who follow Iofina on the Investor Meet Company platform will
automatically be invited.
For further information, please email: iofina@yellowjerseypr.com
This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law by
virtue of the European Union (Withdrawal) Act 2018.
Enquiries:
Iofina plc
Dr. Tom Becker
CEO & President
Tel: +44 (0)20 3006 3135
Nomad & Broker:
Canaccord Genuity Limited
Henry Fitzgerald-O'Connor/Harry Rees
Tel: +44 (0)20 7523 8000
Financial PR and Media Contact:
Yellow Jersey PR Limited
Charles Goodwin/Shivantha Thambirajah/Maya Brookes
Tel: +44 (0)7747 788 221/+44 (0)7983 521 488
iofina@yellowjerseypr.com
About Iofina:
Iofina plc (AIM: IOF) is a vertically integrated company that specialises in
the production of Iodine and the manufacturing of specialty chemical products.
Iofina is the second largest producer of iodine in North America and operates
the manufacturing entities Iofina Resources and Iofina Chemical.
LEI: 213800QDMFYVRJYYTQ84
ISIN: GB00B2QL5C79
Iofina Resources
Iofina Resources develops, builds, owns, and operates iodine extraction plants
using Iofina's WET® IOsorb® technology. Iofina operates eight IOsorb®
plants in Oklahoma and consistently uses technology and innovation to improve
and expand its operations.
Iofina Chemical
Iofina Chemical has manufactured high-quality halogen speciality chemicals
derived from raw iodine, as well as non-iodine-based products. Iofina
Chemical celebrated its 40(th) anniversary in 2023 as a preeminent
halogen-based specialty chemicals company.
www.iofina.com (http://www.iofina.com/)
Contents
COMPANY
INFORMATION.......................................................................................................
..2
CHAIRMAN'S
STATEMENT........................................................................................................
..3
FINANCIAL
REVIEW..................................................................................................................
10
DIRECTORS'
BIOGRAPHIES……................................................................................................
13
STRATEGIC
REPORT..................................................................................................................
15
S172
STATEMENT……………………………………………………..............………..…………........………………….26
CORPORATE
GOVERNANCE…………………………………………………………………………..………………………28
DIRECTORS'
REPORT.................................................................................................................
29
CORPORATE GOVERNANCE
STATEMENT...................................................................................
31
SUSTAINABILITY AND
GOVERNANCE……………………………………………………....……..………….…..……39
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF IOFINA
PLC.................................... 43
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
................................................... 56
CONSOLIDATED BALANCE SHEET
..............................................................................................
57
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS'
EQUITY.................................. 58
CONSOLIDATED CASH FLOW STATEMENT
.................................................................................
59
COMPANY BALANCE SHEET
....................................................................................
................. 60
COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS'
EQUITY............................................. 61
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS.......................................................... 62
COMPANY INFORMATION
Directors
L J Baller
T M Becker
M T Lewin
J F Mermoud
M Fallin Christensen
T J Hughes
Secretary
Simon Holden
Company number 05393357
Registered office 48
Chancery Lane
London WC2A 1JF
Auditor
UHY Hacker Young
Quadrant House
4 Thomas More Square
London E1W 1YW
Nominated Adviser and Broker Canaccord Genuity Limited
88 Wood Street
London EC2V 7QR
Solicitors
Keystone Law Limited
48 Chancery Lane
London WC2A 1JF
Registrar
MUFG Corporate Markets (UK) Limited
Central Square
29 Wellington Street
Leeds LS1 4DL
Financial
PR
Yellow Jersey PR Limited
Thanet House
231-232 Strand
London WC2R 1DA
CHAIRMAN'S STATEMENT
2025 Highlights
Record year for revenue, EBITDA and production - the Group's strongest
financial results in its history.
Key Metrics 2025 2024 Change
Iodine production (metric tonnes) 743 MT 634 MT +17%
Revenue $66.5m $54.5m +22%
Gross profit $18.0m $13.2m +36%
Adjusted EBITDA $11.8m $7.6m +56%
Adjusted EBITDA margin 18% 14% +4pts
Profit before tax (excl. subsidies) $8.4m $4.8m +75%
Post-tax earnings $7.9m $2.9m +172%
Net cash* $5.2m $2.9m +$2.3m
Avg. realised iodine price (per kg) $74.02 $68.65 +8%
* Excludes lease liabilities
Introduction
I am pleased to present Iofina's Annual Report and Accounts for the year ended
31 December 2025. This has been a year of meaningful progress across every
dimension of the business; operationally, financially, and strategically, with
the results reflecting the accumulated effort of the management team that has
executed consistently with a clear and disciplined growth plan.
When I reflect on where Iofina stood just a few years ago compared to today,
the transformation is considerable. Total crystalline iodine production has
grown substantially year after year. Our plant network has expanded from five
to eight operating IOsorb® facilities in the past three years, with each
being delivered on time and within budget. Our revenue and profitability have
risen in step and now, with construction underway on our first plant in a new
geographical region outside Oklahoma, our largest to date, in the Permian
Basin, the Company is entering a new development phase. I believe 2025 will
come to be seen as an important moment in our journey.
Iofina continues its progression setting out to do what no other iodine
production company in the world had ever done; extracting iodine from dirty,
oily brine water, a by-product from third party oil producers, and turning a
waste-managing cost for our partners into sustainable cashflow. Before the end
of 2026, Iofina will reach an annualised production rate, with the addition of
our newest plant coming online in the third quarter, in the region of 1,000
metric tonnes. This will take us close to becoming the largest iodine producer
in North America, which will accomplish another key milestone. Iofina is the
leader in new area development, brine sampling, land development and
construction of new iodine extraction plants utilising its WET® IOsorb®
technology. Iofina sells IOflow®, IOprill® iodine and iodine derivatives
through our global network of end users and distributors. We are the only
iodine producer to test, build, lease and produce iodine in multiple states
since inception, and we continue to explore iodine extraction opportunities
globally as we move to the next chapter of growth.
Financial Performance
In 2025, Iofina delivered the strongest financial performance in the Group's
history. Full-year revenue grew 22% to $66.5 million, exceeding market
expectations set at the beginning of the year, while Adjusted EBITDA increased
56% to $11.8 million, representing an 18% margin which was also ahead of
forecast. This performance reflects strong production volumes, a favourable
pricing environment, and a strong sales cycle across the year, including the
benefit of elevated opening inventory and robust December sales activity. The
Board is pleased to have not only met but exceeded the targets set at the
start of the year.
Gross profit increased by 36% from $13.2 million to $18.0 million,
representing 27% of revenue compared to 24% in 2024. This margin improvement
reflects the operational leverage inherent in the IOsorb® model as production
volumes scale. Profit before tax, excluding the one-off ERTC payroll subsidies
of $2.1 million received under the CARES Act, grew by 75% from $4.8 million to
$8.4 million. Post-tax earnings rose from $2.9 million to $7.9 million.
At the interim stage, the Group reported record revenues for the first half of
2025 of $29.2 million, a 12.3% increase on the $26.0 million recorded in H1
2024. Total iodine sales for the period grew by 22% to $26.1 million, driven
by a 9% increase in crystalline iodine volumes to 208 metric tonnes and an 11%
increase in the average realised price to $74.27 per kilogram. Iodine
derivative sales also grew strongly, rising 16% to $9.2 million, supported in
part by the introduction of a new animal feed product additive from the
beginning of 2025.
The strong second-half performance was driven by record production volumes and
robust product sales, and resulted in full-year revenues and EBITDA exceeding
market expectations. The momentum built through H1 2025 continued and
accelerated in the second half, which is a testament to both the operational
performance of our plant network and the effectiveness of our commercial team
in converting production into sales.
The Group's balance sheet remained in good health throughout the year. Net
cash at 31 December 2025 stood at $5.2 million, an improvement on the $2.9
million held at the end of 2024, supported by net cash inflow from operating
activities of $8.9 million. Capital investment in the year was $8.4 million,
the majority of which related to the construction of IO#11 and early-stage
expenditure on the new Permian Basin plant. The Group's banking arrangements
with First Financial Bank of Ohio provide further headroom to support capital
requirements, if required in 2026. The Board is confident that the Group's
financing structure is appropriate for its current stage of development, and
that the business will fund its continued growth through its own cash flow
generation and existing banking facilities.
Production Records
Total crystalline iodine production for 2025 was 743.2 metric tonnes, a new
record for the Group and was a 17.2% increase on the 634.1 metric tonnes
produced in 2024. This was achieved at the upper end of our stated production
guidance range, and it represents the continuation of a multi-year trend of
consistent production growth delivered with impressive reliability.
To put this in context: in 2023, Iofina produced approximately 559 metric
tonnes, by 2024, that had grown to 634 tonnes, and now in 2025, we have
reached 743 tonnes. Each year the business has added significantly to its
production base without sacrificing quality, cost discipline, or safety
standards. The average production cost per kilogram across all plants was only
2% higher than in 2024, a commendable result given the pace of expansion.
The second half of 2025 was particularly strong, with production of 437.6
metric tonnes, a record for any six-month period in the Company's history, and
at the upper end of the 400-440 metric tonne guidance range issued at the
interim period. Q3 2025 was a record quarter at 215.8 metric tonnes,
representing a 32% increase on Q3 2024, while Q4 2025 contributed 221.8 metric
tonnes, up from 194.1 tonnes in the prior-year period.
The primary driver of the second-half acceleration was the commissioning of
the IOsorb® plant, IO#11, which came online in July 2025 and completed
construction on time and within its $5.3 million budget, the third consecutive
year in which Iofina has delivered a new plant to schedule and within cost.
This consistency reflects the depth of experience our operations and project
teams have developed over successive plant builds, and the proprietary nature
of the WET® IOsorb® technology that underpins every facility we operate.
IO#11 ramped up quickly following commissioning. By August 2025 the Group had
set a new monthly production record of 74.3 metric tonnes. Production across
all eight Oklahoma plants remained stable and consistent through Q4 2025, with
water volumes performing as expected. This operational stability has given the
Board confidence in the reliability of our production base into 2026.
For the first half of 2026, the Group recently announced that it anticipates
producing in the region of 385 metric tonnes of crystalline iodine, compared
to 305.5 metric tonnes in H1 2025. This has been supported by a strong Q1
2026 performance of 177.8 metric tonnes against 124.1 metric tonnes in Q1
2025, which was an increase of 43.4%. As communicated consistently over recent
years, production is always second half weighted, reflecting the impact of
winter conditions on Oklahoma oilfield operations. The H1 2026 guidance
implies enhanced growth over the prior year and positions the Group well for
another strong full-year performance.
Permian Basin Expansion
The agreement announced in December 2025 with Western Midstream Partners, LP
to develop Iofina's next IOsorb® plant in the Permian Basin is, in the
Board's view, the most strategically significant development in the Company's
recent history. It represents not simply the addition of another plant to the
network, but the establishment of a new core area of operation at a materially
larger scale than anything Iofina has previously undertaken.
The Permian Basin, situated between Western Texas and Southeastern New Mexico,
is the largest oil-producing basin in the world, accounting for 48% of total
US crude oil production in 2024. It generates an extraordinary volume of
produced brine water as a by-product of oil and gas operations, with
water-to-oil ratios ranging from three to eleven times. Managing this produced
brine water is one of the most significant operational and environmental
challenges facing producers in the region. Our agreement with Western
Midstream offers a commercially attractive and environmentally beneficial
solution: we extract iodine from the produced water before it is returned for
disposal, transport, or recycling, turning what would otherwise be a waste
stream into a valuable resource.
Under the terms of the agreement, Western Midstream will supply up to 50,000
barrels of produced water per day, approximately double the maximum brine
throughput capacity of our existing Oklahoma IOsorb® plants, in exchange for
a fee on production. The new facility carries an annualised production target
of between 170 and 220 metric tonnes of crystalline iodine. At the midpoint of
that range, the Permian plant would on its own add more iodine output annually
than any single year of Iofina's total new production prior to 2021.
The new plant is being built, funded, and operated by Iofina at an estimated
capital cost of $8-9 million. This represents a notably capital-efficient
investment relative to the production capacity it delivers; for context, our
most recent plants in central Oklahoma cost ~$5.5m each and each facility
added ~100-150MT of crystalline iodine production annually. The Group believes
that larger plants with proportionally lower capital intensity, are central to
how we expect the business to evolve, they will positively help dictate the
pace and profitability of future growth.
Western Midstream is an ideal partner for this project. As one of the largest
produced-water midstream service providers in the Permian Basin, currently
handling more than 2.7 million barrels of water per day, Western Midstream
brings the infrastructure, expertise, and scale required to supply the volumes
our new plant will require. Their recent acquisition of Aris Water Solutions
has further strengthened their capabilities in produced-water recycling and
beneficial reuse.
Groundwork on the new plant commenced before the end of 2025, and the facility
is expected to be operational in Q3 of 2026. The agreement also establishes a
framework for additional plants in the Permian Basin, and the Board expects to
be able to report on further opportunities as the Group develops its presence
in the region. The Board sees this as the beginning of a new chapter, not a
single transaction.
Iodine Market Outlook
The global iodine market continued to provide a supportive backdrop for
Iofina's operations throughout 2025, and the Board's expectation is that this
will remain the case in the period ahead. The iodine spot price held
consistently above $70 per kilogram for the full year, with the average
realised price for Iofina's crystalline iodine at $74.02 per kilogram on a
100% basis, up 8% on 2024. With global iodine consumption in 2025 expected to
approach 40,000 metric tonnes the underlying drivers of demand remain intact.
The largest and most important application for iodine is iodinated contrast
media, used in medical imaging procedures such as CT scans and angiography.
Demand for contrast agents continues to grow, driven by increasing volumes of
diagnostic imaging in developed markets and by the expansion of healthcare
infrastructure in emerging economies. This is a long-term structural growth
driver that is not sensitive to short-term economic cycles.
Other significant end markets include LCD screens, pharmaceutical synthesis,
biocides, and animal health applications. Iofina Chemical's derivative product
portfolio is well-positioned across several of these segments. The addition of
a new animal feed product additive in 2025 has already become one of the
division's highest-volume derivative products, and the IC team continues to
invest in research and development to expand its product range in anticipation
of growing iodine output from the Iofina Resources side of the business.
The Board expects iodine prices to remain firm as we move through 2026. While
spot prices can be subject to short-term fluctuation, the balance of supply
and demand continues to support pricing above $70 per kilogram. In this
environment, Iofina's growing production volumes and improving cost per
kilogram are expected to generate increasing returns for shareholders.
Emerging Demand: Perovskite Solar Cells
A significant and fast-moving new source of iodine demand has emerged in the
form of next-generation perovskite solar cells, in which lead iodide is a
critical ingredient. Perovskite technology has advanced rapidly, with
certified power conversion efficiencies of single-junction cells now exceeding
27% and silicon perovskite tandem cells surpassing 34%. These cells can be
manufactured at lower temperatures and lower cost than conventional silicon
panels, making them an increasingly attractive option for expanding global
solar capacity.
Commercially, momentum is building. UK-based Oxford PV began shipping tandem
panels to the United States for utility-scale installation in September 2024,
and Korea-based Qcells reported a world record efficiency of 28.6% for
large-scale panels in December 2024. Japan, the second-largest iodine producer
in the world, has prioritised perovskite technology under its revised national
energy plan, targeting 20 gigawatts of perovskite-generated electricity by
2040.
For Iofina, this represents a meaningful long-term demand driver. Growing
perovskite solar manufacturing at scale will require significant quantities of
iodine and iodide compounds, and it is a structurally new end market, distinct
from the established medical imaging and LCD screen applications that have
historically driven iodine consumption. The Board will continue to monitor
developments in this sector closely.
Emerging Demand: Iodine in Refrigerants
A further area of emerging interest is the use of trifluoroiodomethane (CF3I)
as a component in next-generation low global warming potential refrigerants.
CF3I is a non-flammable, non-toxic compound with a GWP below 5, an atmospheric
lifetime of just 1.2 days, and it is manufactured using elemental iodine as a
direct feedstock. Honeywell has developed R-466A (Solstice N41), a
non-flammable replacement for R-410A used in commercial and residential air
conditioning systems, in which CF3I comprises approximately 39.5% of the blend
by weight.
While R-466A has not yet reached commercial-scale adoption, with some OEMs
continuing to assess long-term material compatibility, the direction of travel
in refrigerant regulation strongly favours lower-GWP alternatives, and
CF3I-containing blends represent one of the more technically promising
pathways. Should CF3I-based refrigerants achieve widespread adoption, the
iodine demand implications would be considerable given the volumes of
refrigerant consumed globally. The Board regards this as a medium-term
opportunity worth monitoring as the regulatory and commercial landscape
continues to evolve.
These are examples of new iodine technologies which will continue to grow the
market, and thus, expanding Iofina's production is the right pathway.
Safety and Our People
Safety is a core value at Iofina and a non-negotiable aspect of how we
operate. I am pleased to report that across the Group's operations in 2025,
there was only one minor lost-time incident and only one in aggregate in the
past five years. This is a record we are proud of, and one that reflects the
safety culture embedded throughout our workforce. As the business grows and
our operations expand into new geographies, maintaining this standard will
require continued vigilance and investment, and the Board is committed to
ensuring that safety remains the first priority.
Board and Governance
The Board continues to provide oversight and challenge the management team as
the Group pursues its growth strategy. We believe that maintaining strong
governance disciplines, in capital allocation, financial reporting, risk
management, and stakeholder engagement, is as important during periods of
growth as at any other time. The Board will continue to review its composition
and processes as the Company evolves, to ensure that it has the skills and
experience necessary to support the business effectively.
Outlook
The Board has commenced 2026 in a position of measured confidence. The Group
has a track record of delivery, implementing a clear strategy, and has the
financial resources to continue executing its plans. The Oklahoma plant
network is performing well and is expected to grow further. Construction of
the Permian Basin plant is underway, and its anticipated commissioning in Q3
2026 will add a significant new production capability to the Group. Beyond
this, the pipeline of future plant opportunities, in both existing and new
areas, continues to develop. The Group is on course to surpass the key
milestone of 5% of world iodine production within the next three to four
years, and our five-year strategic plan is designed to deliver significant
long-term value for shareholders.
The iodine market provides a favourable backdrop, and Iofina's integrated
model positions it well to convert growing production into growing revenues
and profits. We believe there is a short-term clear path to over 1,000 metric
tonnes of annual crystalline iodine production. Over the medium term, we
have a plan to surpass 2,000 tonnes, as the business develops larger plants in
multiple core areas. The capital efficiency of this model, growing at a faster
rate without proportionately increasing costs or leverage, is what gives the
Board confidence that this growth can be delivered sustainably and in a way
that generates increasing value for shareholders.
Conclusion
I want to close by expressing my sincere thanks to the entire management and
operational team at Iofina for another year of strong execution. Building and
commissioning new iodine plants, managing a growing chemical manufacturing
operation, and developing new commercial partnerships simultaneously is a
demanding undertaking, and it is carried out to a consistently high standard.
I also want to thank our employees across all our operations for their
dedication and professionalism.
To our shareholders: thank you for your continued support and confidence in
Iofina. We remain focused on delivering the growth that we believe this
business is capable of, and we look forward to keeping you informed of our
progress throughout the year ahead.
Yours sincerely,
Lance J Baller
Non-Executive Chairman
Iofina plc
29 April 2026
FINANCIAL REVIEW
Summary 2025 v 2024
· Record year for revenue, EBITDA and production
· Iodine production increased by 109MT (17%) to 743MT
· Revenue increased by 22% from $54.5m to $66.5m
· Gross profit increased by 36% from $13.2m to $18.0m
· Adjusted EBITDA increased by 56% from $7.6m to $11.8m (18% of
revenue)
· Post-tax earnings increased from $2.9m to $7.9m (after pre-tax
subsidies of $2.1m)
· Net cash increased by $2.3m from $2.9m to $5.2m*
· Capital investment into chemical and iodine plants was $8.4m (2024:
$9.5m)
*excludes lease liabilities
Trading results
Turnover Crystallised 2025 Crystallised 2024
Iodine 85% Sales Iodine 85% Sales
MT $m MT $m
Crystallised iodine 556 35.0 423 24.7
Iodine Derivatives 224 17.8 206 16.9
Prilled iodine 6.5 5.1
Total iodine sales 780 59.3 629 46.7
Non-iodine 7.2 7.8
Total sales $66.5 $54.5
Revenue increased by 22% from $54.5m to $66.5m, driven by an increase in
production and continued demand for the Company's iodine products. Iodine
production increased by 17% from 634MT to 743MT. Iodine production sold
increased by 24% from 628MT to 780MT, the latter figure including 2024 sales
orders for 42MT of crystallised iodine that missed year end shipping cut-offs
and were therefore deferred into 2025. The biggest increase was in sales of
raw crystallised iodine, where there was a 32% volume increase from 423MT to
556MT, and in addition the average 100% realised iodine price increased by 8%
from $68.65 to $74.02, resulting in an overall revenue increase of 42% from
$24.7m to $35.0m.
Derivative compounds turnover showed a relatively modest increase of 9% in
volume of iodine sold (from 206MT to 224MT) and a 5% increase in revenue from
$16.9m to $17.8m. Sales of non-iodine products fell by 8% from $7.8m to $7.2m,
mainly due to a volume decline in orders for the principal product (etchant
gas). The prilled iodine resale activity increased its turnover by 30% from
$5.1m to $6.5m.
The 17% increase in plant production from 634MT to 743MT reflected a full
year's production from IO#10 plant, which was only in production for the last
3 months of 2024, and also 5 months production from IO#11, the newest plant,
which was commissioned as of August 2025. The average production cost per kilo
across all plants was only 2% up on the 2024 cost.
Gross profit increased by 36% from $13.2m to $18.0m, and was 27% of sales
(2024 24% of sales). Margins were slightly better than in 2024, but the key
factor was the increase in volume described above.
Adjusted EBITDA increased by $4.2m (56%) from $7.6m (14% of sales) to $11.8m
(18% of sales). As well as the factors mentioned above, administrative
expenses increased by $0.5m (10%) with some investment in personnel and
programmes to support the planned expansion of the business.
ETRC subsidies received
Government payroll subsidies of $2.1m relating to COVID impacts on employers
were received as part of the resumption of payments under the program (see
Note 6). Tax is payable on these receipts.
Profit before tax
Profit before tax increased by $3.6m (75%) from $4.8m to $8.4m after excluding
the one-off subsidies referred to above. The improvement was mainly due to
increased volumes of sales, some price improvements, and ongoing control of
costs creating an operational gearing benefit.
Tax
Substantial tax allowances have been generated by an internal review of the
prior treatment of capital items and the increases in capital tax allowances
enacted by the One Big Beautiful Bill Act in July 2025. Consequently,
favourable timing differences between book and tax depreciation have been
created that have offset potential tax liabilities, and resulted in the
creation of deferred tax provisions rather than tax payments.
Capital investment
The Group invested $8.4m in capital projects and equipment in the year (2024:
$9.5m). Approximately $4.8m relates to the construction of the IO#11 plant in
Oklahoma, with a further $0.5m early stage expenditure on the new IO#12 plant
in the Permian Basin. There was also $0.8m expense on maintenance/improvement
of the other Oklahoma plants, and some $1.2m spent on ongoing acquisition of
landowner leases for recently constructed plants. $1.0m was spent primarily on
process improvements and replacements at the Iofina Chemical plant.
Cash flow
Cash started the year at $6.9m and ended $4.9m higher at $11.7m, after paying
off $1.4m of the bank term loan in accordance with the borrowing schedule and
investing $8.4m in capital projects. There were also favourable effects from
drawing $4.0m of bank capex facilities, receiving the $2.1m subsidies
described above, and having negligible net tax payments principally due to
accelerated tax allowances on capital items. The previous net cash position of
$2.9m improved by $2.3m to $5.2m. Net cash inflow from operating activities
was $8.9m excluding Government subsidies (2024 $11.5m) after taking into
account $2.9m of unfavourable working capital movements (2024 $4.7m positive
movements), the main driver being the amount and timing of sales receivables.
Bank facilities
During 2025 there were drawdowns of $4.0m against a $10.0m bank facility to
support capex expenditure. The drawdown period for that facility terminated in
March 2026, and a further $10.0m capex facility is being finalised with the
bank. Repayments of amounts drawn under these facilities are in equal monthly
instalments over seven years, and there are no penalties for accelerated
repayments. There is also a $6.0m working capital revolving line of credit
facility with a term to the end of 2026, currently in the process of being
extended to end 2027. No drawings were made on this facility in 2025, and no
amounts are outstanding for repayment.
Malcolm Lewin
Chief Financial Officer, Iofina plc
29 April 2026
DIRECTORS' BIOGRAPHIES
Lance J. Baller, Non-Executive Chairman
Mr. Baller was co-founder, CEO and President of Iofina Plc prior to his
departure for health reasons in June 2013. Mr. Baller was the Group's Finance
Director from 2007 until his appointment as CEO in 2010. Mr. Baller returned
as Chairman in April 2014. Mr. Baller currently serves as a director and as
sole or principal shareholder of several privately owned businesses, including
Baller Enterprises, Inc. (personal holding company), Ultimate Investment
(personal investment company), Titan Au, Inc, Empire Leasing LLC, Valdez Au,
Inc, Extrac Technologies Limited, Extrac Technologies, Inc, Wyoming Sand
Company LLC, 44 Aggregate Inc, High Speed Aggregate Inc, GBB Management LLC
and Shaver Gross Consultant PLLC (which all are in gold, road aggregate,
silica mining, real estate, CPA services, taxes and planning), and Baller
Family Foundation, Inc. (personal family foundation) plus many others that he
has founded and successfully sold over the years. He is the former managing
partner of Shortline Equity Partners, Inc., a mid-market merger and
acquisitions consulting and investment company. Mr. Baller is also the former
Managing Partner of Elevation Capital Management, LLC and is the former
alternative investment hedge fund manager of the Elevation Fund. He is also a
former Vice-President of Corporate Development and Communications of
Integrated Biopharma, Inc. and prior to that a vice-president of the
investment banking firms UBS and Morgan Stanley. Mr. Baller has been a CEO,
interim CEO, Chairman, CFO and secretary of various private and public listed
companies throughout his career. He has served as Chairman of various
companies and has led successful restructurings. Mr. Baller has had extensive
experience in all aspects of corporate finance. Mr. Baller currently serves on
the boards of the Front Range Infrastructure Authority, Real Weld Metropolitan
District, and Real Colorado Soccer Club. He is also a Trustee of Cyber Hornet
Trusts, which includes one mutual fund and multiple NASDAQ-listed ETFs, where
he serves as Chairman of the Audit Committees and as the Audit Committee
Financial Expert under the Sarbanes-Oxley Act.
Dr. Thomas M. Becker, Chief Executive Officer
Dr. Becker has served as President/CEO of Iofina plc since 2014 and has led
Iofina Chemical since March 2010. Previously, Dr. Becker was the Vice
President of Research and Development at H&S/Iofina Chemical. Iofina
bought H&S in July 2009. Dr. Becker has conducted extensive research in
both inorganic and organic halogen-based chemistry. Dr. Becker has written a
magnitude of published technical papers in his career. Prior to H&S Dr.
Becker worked as an Oak Ridge Scholar on behalf of the US EPA and for various
other chemical manufacturing companies. Dr. Becker earned a BS in Chemistry
from Indiana University, and a PhD in Chemistry from the University of
Cincinnati. He has extensive experience in the scale-up of chemical processes
from laboratory to pilot to full scale production. Dr. Becker is a former
member of the Board of Governors of the Society of Chemical Manufacturers and
Affiliates ("SOCMA").
Malcolm T. Lewin, Chief Financial Officer
Mr. Lewin was named CFO and a director of the Group in November 2016 after
having joined Iofina as interim CFO in February 2016. Mr. Lewin is based in
the UK and has over 30 years of experience in finance and accounting for both
public and private companies. As well as being a partner in a chartered
accounting firm for 11 years, he has acted for various companies listed on AIM
and other exchanges. In particular, from 2000 to 2003, he was the Finance
Director of Oxford Metrics plc, an AIM company supplying motion capture and
visual geometry systems. From 2004 to 2006, he was the Finance Director of
Real Estate Investors plc, an AIM property investment company with interests
in quality commercial and industrial properties. From 2006 to 2011, he was a
Director and CFO of Hunter Bay Minerals plc, a junior mining company listed on
the Toronto Venture Exchange with interests in South America and Canada. From
2011 to 2014, he was CFO and Treasurer of VolitionRX Limited, an OTC life
sciences company focused on developing blood tests for a broad range of cancer
types and other conditions. Mr. Lewin has an MA in Classics from Oxford
University and qualified as a chartered accountant with Coopers & Lybrand.
J. Frank Mermoud, Non-Executive Director
Mr. Mermoud has more than 30 years' of experience in international business,
facilitating trade and investment in both the public and private sectors. He
has held senior international, economic and commercial policy positions within
the United States Government, having served as the Secretary of State's
Special Representative for Commercial and Business Affairs at the U.S.
Department of State from 2002 to 2009. Mr. Mermoud has served as a
Non-Executive Director of Cub Energy Inc. an oil and gas company headquartered
in Houston, Texas, Director of ATC Communications and as a Senior Advisor to
TD International
Mary Fallin Christensen, Non-Executive Director
Mary Fallin Christensen has served the State of Oklahoma for over 30 years.
She was elected the first female Governor of the State in 2010 and was
re-elected for a second term in 2014. Prior to serving as Governor, she held
several state and federal positions, including serving as US Congresswoman for
Oklahoma's 5th district between 2007-2011 and serving as Lieutenant Governor
of Oklahoma between 1995-2006. Mary has been a major contributor to natural
resources industries in Oklahoma, and implemented the State's first
comprehensive energy plan as well as its state-wide water plan. She has held
several positions, including Chair of the Southern State Energy Board, Chair
of the Interstate Oil & Gas Compact Commission, and has served on the
natural resource committee of the National Governors Association (NGA).
Previously, she also served on the United States House of Representatives
Committee on Small Business, was Small Business Chairman on the Republican
Policy Committee, and was named the "Guardian of Small Business" by the
National Federation of Independent Business. Mary has also served on numerous
Boards of Directors for both commercial organisations and non-profits.
Tim Hughes, Non-Executive Director (appointed January 1, 2026)
Tim has significant experience in general management in the specialty chemical
industry as well as corporate and sustainability matters. Tim was a member of
the Executive Committee of Synthomer plc for 11 years until 2023 as the
divisional director for the industrial specialties global business, which
included the company's specialty iodine business. Tim then became President of
Corporate Development, where he was responsible for investor relations,
external affairs and the development of the company's sustainability strategy.
Prior to Synthomer, Tim led the Urethane Technologies joint venture business
for Chemtura Corporation and spent 14 years in business leadership and
marketing roles at Courtaulds plc. Tim is based in the UK and holds a BSc in
Chemistry from the University of Manchester and an MBA from Cranfield
University.
STRATEGIC REPORT
Principal activities and review of the business
Iofina plc ("Iofina" or the "Company") is the holding company of a group of
companies (the "Group") involved in the exploration and isolation of iodine
and the production of specialty chemicals. Iofina Resources, Inc. is the
Group's wholly owned subsidiary, which utilises proprietary Wellhead
Extraction Technology® (WET®) and WET® IOsorb® methods to produce iodine
from brine water. Large volumes of brine water are sourced from partnerships
with third-party oil and gas operators and saltwater disposal ("SWD")
operators in the United States, and these brines are used as a raw material to
produce iodine at the Group's multiple IOsorb® plants. The Group's unique
business model isolates a resource, iodine, from a produced waste stream that,
without Iofina's technology, would be lost. The Company's WET® IOsorb®
technology has unique elements that allow Iofina to handle brines which
contain residual hydrocarbons and efficiently produce high-quality iodine. The
Directors of the Company believe that Iofina's production process, which
utilises brine water from third-party oil and gas production, is advantageous
for long-term sourcing of the raw material, minimises production and expansion
costs, and is the most environmentally friendly iodine production process in
the world. Iofina has an active geological team which models and explores for
economically viable sources of brines for iodine production. Compounds
containing iodine or other specialty chemicals are produced at and sold
through the Company's wholly owned subsidiary, Iofina Chemical, Inc., with the
major raw material being the Group's IOflo® crystalline iodine. Additionally,
the Group's crystalline iodine is sold directly to other iodine end-users.
Iodine is a rare element that is produced only in a few countries in the
world, with approximately 90 percent of global production coming from Chile
(~60%) and Japan (~30%, including recycled waste streams). Iodine and its
compounds have many human health-related applications, including X-ray
contrast agents, pharmaceuticals, antiseptics, thyroid function, and others.
Additional high-volume uses of iodine include LCD screen technology, material
heat stabilisation, animal feed additives, biocides, catalysts and more. New
iodine product applications in solar cells and refrigerants are potential
iodine growth market catalysts. The Group produces iodine in the United
States, where the overall global iodine production is approximately 5.5% of
the world's total production, but where there is a large consumption of the
world's iodine by various American users. Iofina believes it is the
second-largest producer of iodine in North America.
The ability of the Group to expand its iodine production quickly, at a
low-cost, utilising a waste-stream, differentiates Iofina from other iodine
producers. This has been proven by the expansion of production and opening of
Iofina's newest IOsorb® plant IO#11, which opened in July 2025, and was the
third IOsorb® plant opened in three years. Iofina is currently building a
larger iodine production facility in the Permian Basin, which is scheduled to
open in Q3 2026, and will be the fourth plant in four years for the Group.
Additionally, the Directors believe that the Group's technology to produce
iodine is far more environmentally friendly compared to other producers. By
using a produced water waste stream from the oil-and-gas industry to isolate
iodine versus isolating iodine from ores, Iofina's process is considered
ecologically efficient in obtaining a valuable product from a waste stream
versus the environmentally intensive processes of mining iodine from ores by
Chilean producers.
Economically viable iodide-rich brine co-produced during oil and gas
production is not common, and the Group's proprietary geological model to
locate and anticipate iodide-rich sources is unique. The Directors of Iofina
are committed to producing its products in a sustainable and environmentally
friendly manner, and to improving communications regarding our long-term
strategy in respect of Iofina's sustainable operations and other responsible
business practices.
The focus of Iofina's current business model is the production of iodine from
brine and the creation and sale of specialty chemicals through Iofina
Chemical. The Directors feel strongly that diversification within the business
whilst focusing on our core expertise is important. Iofina Resources
diversifies its iodine production through multiple IOsorb® production plants,
with multiple brine supply partners. Currently, the Group operates eight
separate iodine production plants in Oklahoma and is building a ninth plant in
the Permian Basin. The technology the Group has developed, which utilises a
waste resource already being produced, allows Iofina the ability to expand its
operations quickly with minimal capital expenditure. Continued growth in the
number of IOsorb® plants increases production, profit, and diversification.
Continued expansion of the Group's geological model provides opportunities for
Iofina outside of its current core areas. Iofina has identified and is
pursuing numerous iodine production opportunities to continue our growth
ambitions whilst maintaining diverse sources of brine. Expansion into the
Permian Basin as well as other Oklahoma opportunities for future iodine
plants, many of which are expected to be larger facilities than current
operations, are expected to accelerate iodine production for the Group.
Iofina Chemical produces a wide range of iodine-based products with
applications in various industries including agricultural, pharmaceutical,
biocides and others, whilst additional diversification is realised by the
production of non-iodine-based products. The demand for various products can
change, and Iofina Chemical's ability to produce a variety of products allows
the Group to take advantage of growing markets while not being as affected by
temporarily depressed or declining markets.
Iodine spot prices rose significantly between 2021 and mid-2022, exceeding
$70/kg by July 2022, and since that time, the iodine spot price has fluctuated
between the mid-sixties and upper seventies dollars per kilogram. Supply and
demand changes, as well as manufacturing cost increases, are the major factors
influencing the iodine price. As an iodine manufacturer, iodine prices have a
significant impact on the Group's gross profit margins.
During 2025, Iofina believes the total global demand for iodine grew slightly
from the prior year, and is approaching a total global demand of 40,000 MT. A
significant factor in this increase continues to be the demand for X-ray
contrast media applications. In 2025, prices were fairly stable and
comfortably above $70/kg and higher than in 2024. Iofina's average selling
price of our crystalline iodine on a 100% basis in 2025 was $74.02/kg versus
$68.60/kg in 2024. Generally, global contracted iodine prices for large
customers are slightly lower than spot prices. Demand for Iofina's iodine and
most of our iodine derivatives was robust in 2025, with Iofina Chemical seeing
mixed demand for some of its iodine derivatives but strong demand for Iofina's
crystalline iodine. Although it is difficult to predict, we expect global
demand for iodine to slightly increase in 2026 compared to 2025 levels led by
the growth of iodine in human health applications. A recession in the USA or
other major markets would likely have a negative effect on demand and prices.
Although not certain, we expect 2026 iodine prices to be near current levels.
The delayed Bull Mine project from Chilean producer S.C.M. Cosayach is likely
to commence production late in 2026 or early 2027. Iofina believes that any
increased production from this mine will not cause an imbalance in supply but
simply take on some of the industry's growth requirements. SQM, the world's
largest iodine producer, is constructing a sea water pipeline project which is
likely to be completed in 2026 and give SQM further flexibility in its
production as needed for market demand.
The Directors recognised that, as the Company built its IOsorb® plants,
Iofina's iodine production costs needed to be amongst the lowest in the
industry to be competitive. Between 2014 and 2017, numerous initiatives were
successfully implemented to optimise Iofina's technology and lower production
costs. Iofina remains committed to controlling costs both through technology
improvements and improved sourcing of inputs. In 2025, a dedicated sourcing
manager was hired for the Group and has had an immediate positive impact on
raw material pricing.
In 2017, Iofina implemented a business plan with a focus on prudent growth. In
early 2018, the Group's newest iodine plant at the time, IO#7, was completed.
By expanding our operations and building IO#7, the Group successfully lowered
its overall iodine production costs with its most efficient plant at that
time. The next major growth development occurred in Q2 2019 when the Company
performed an equity raise to reduce debt and provide working capital for
expansion projects. The result was the construction of IO#8, which began in
late 2019 and was completed in early April 2020. More recently, the Group has
executed a more rapid expansion of its iodine production and successfully
opened and operated three new plants in three years: IO#9 in June 2023, IO#10
in September 2024, and IO#11, in July 2025. The next phase of Iofina's
growth plan is commencing now and will be a further, progressive step-change
for the organisation.
The Group is committed to establishing new routes to growth and is
investigating new locations and partnerships to expand iodine production.
Iofina's management team is utilising the experience from past business
expansions to play a role in scoping future acquisitions of prospective iodine
plants, as well as iodine market conditions and projections, in deciding how
fast the growth rate should be. That said, the Directors feel now is the time
to increase iodine production capacity at Iofina at a faster pace. Iofina has
worked tirelessly to improve the Group's balance sheet, and this has helped us
prepare for a more rapid expansion of the business. Iofina's business
development group has outlined an established pipeline of iodine production
projects, many of which are much larger iodine production opportunities than
our current sites. Iofina's geological and business development teams are
working in concert with future brine supply partners to evaluate and
prioritise these opportunities. Our next plant is currently under construction
and scheduled to open later this year, located in a new core area for Iofina
in the Permian Basin. This IOsorb® plant will be the first plant in Iofina's
next phase of strategic expansion. This new plant will be a larger facility,
capable of processing twice as much brine water as our current facilities.
Assuming continued positive market conditions, the Group expects to invest
more rapidly in the next number of years to build multiple, larger iodine
plants to significantly increase Iofina's iodine production output. When the
new Permian plant comes online later this year, we are likely to be close to
1000MT of crystalline iodine production rate on an annualised basis. With our
established technology and a pipeline of new, larger opportunities, the
pathway for Iofina to produce 2000MT of crystalline iodine has become a lot
clearer.
Iofina Chemical continues to be recognised as a world-renowned halogen
specialty chemical producer. Vertical integration of the Group's iodine into
iodine derivatives gives Iofina's customers stability of supply in addition to
the long-standing quality and technical support to Iofina's global customers
for the goods sold to them. Additionally, the non-iodine-based halogen
derivatives produced by Iofina Chemical give the Group further diversity.
Iofina Chemical invested in multiple projects in 2025, including commercial
production of an iodine-based animal feed additive and will continue to invest
in areas to expand current products and develop new products for Iofina using
the Company's core expertise. Lastly, Iofina Chemical's sales team continues
to expand the number of customers who are purchasing Iofina's iodine and
planning for sales of larger volumes of iodine as our iodine production growth
plans are realised.
Key Performance Indicators
The Directors review a range of financial indicators to assess and manage the
Group's performance, including the following relating to revenue and iodine
production:
Year ended Year ended
31 December 31 December
2025 2024
$'000 $'000
Revenue from sales of iodine and iodine derivatives $59,342 $46,664
Revenue from non-iodine products $7,173 $7,801
Total revenue $66,515 $54,465
Total pounds of product shipped (LBS '000) 2,602 2,052
Crystallised iodine produced (Metric Tonnes) 743 634
IOsorb® plants in operation (year-end) 8 7
Commentary on some of the above indicators is in the Chairman's Statement on
pages 3 to 9.
Further commentary on the results for the year and the financial position at
the year-end is in the Financial Review on pages 10 to 12.
Objectives
At the end of 2025, the Group had eight operating IOsorb® iodine production
facilities in the two core areas of Oklahoma and a ninth under construction in
the Permian Basin. While the theoretical capacity of these plants is very
high, the practical capacity of the plants is somewhat lower. Practical
capacity considers multiple causes of downtime, including weather, repairs and
maintenance, inadequate brine (low parts per million of iodine, heavily
contaminated brine or little to no supply), power outages and other
conditions. As we have proven our technology and continue to improve
operations at current facilities, more accurate practical capacity operating
targets have been realised, as well as improvements for maximising practical
capacity.
Iofina Resources' unique business model allows the Group to determine sites
for new iodine production plants utilising existing brine produced from oil
and gas production and quickly bring these sites into production. While
technology and efficiency improvements at current facilities remain an ongoing
priority, the Company continues to explore new iodine production
opportunities. This objective of strategic expansion is focused on sites that
will continue to improve Iofina's output with low production costs. The Group
expects to continue its iodine production expansion at an even faster rate and
expects to reach a run rate of over 1000 MT of crystalline iodine per year
likely by the end of 2026. In late 2025, the Group began construction of our
first facility in the Permian Basin. It is a larger facility which can process
50,000 barrels of brine per day and is expected to produce between 170-220 MT
of crystalline iodine annually. The Group is in active discussion with
multiple brine partners, with access to total brine flows substantially higher
than at existing plants. Iofina is confident that a proportion of these
discussions will convert into further production plants, underpinning our
growth targets. This includes a number of larger-scale sites, with attractive
economics. With a pipeline of projects, a strong balance sheet, and a robust
iodine market, the Group expects to further increase its iodine production and
is on a path to reach 2000 MT over the coming years.
Brine supply to our IOsorb® plants can be affected by regulatory changes and
adjustments to our partners' saltwater disposal systems and oil production
programs. Iofina continues to work with its partners to implement plans to
maximise brine input and iodine output at each of our existing sites. The
mutually beneficial relationship between Iofina and its brine supply partners,
which allows Iofina to create iodine and for the brine suppliers to realise
value from a waste stream, is a key component for existing projects and
potentially for future sites. Continued efforts by our business development
and geological teams have identified numerous further expansion opportunities.
The Company will continue to evaluate and potentially execute these with
current and new potential brine supply partners when management determines the
proper timing for new sites.
The timing of future iodine production growth will be dependent on a series of
factors. These include the stability or increase of iodine prices, global
demand, Company cash flow, availability and cost of production at new sites,
partnership agreements, oil prices, production in areas with high iodide
content brines, and the regulatory landscape concerning brine injection. Lower
oil prices can lead to lower oil production if certain wells become
uneconomical, which in turn can affect brine supplies from our partners.
Therefore, the Group is also evaluating alternative brine sourcing
opportunities to have better control of brine supply at future sites. Whilst
the Directors are focused on expanding production capacity in the right
manner, it is also important to maintain the Company's strong balance sheet
and cash flow. Expansion in 2026 will occur with the completion of our new,
larger plant in the Permian Basin, the Group's fourth plant in four years.
The pace of additional plants is likely to be even more rapid, and the sizing
of future plants is generally expected to process larger volumes of brine.
The Directors will evaluate market conditions and detailed information on
potential future plant sites before spending capital on new IOsorb® plants.
Iofina Chemical has continued its progress to improve current processes,
ensure capacity meets demand, and continue R&D efforts to bring new
product lines in line with our core chemistries. Beginning in late 2024,
Iofina Chemical commercialised production of an iodine-based animal feed
compound. The production of this compound ramped up in 2025 and resulted in
significant North American sales of this feed additive. Significant capital
investment projects in 2025 at Iofina Chemical included the installation of a
new reaction vessel to improve the process to produce a specialised
pesticide. Also, additional storage tanks for iodide compounds were
installed. PLC (Programmable Logic Controller) improvements have been made
to enhance current process controls, improve safety, and provide a framework
for controls of future projects. The sales and marketing team continues to
improve the Company's website and other marketing efforts which have resulted
in many new sales leads for the organisation. As noted last year, the
expansion plans at Iofina Resources over the coming years will result in the
need for expansion of our customer base. We expanded our customer base in
2025 for Iofina's IOflo® crystalline iodine, IOprill® iodine, and the
Company's iodine derivative products and will continue to expand the number of
customers we serve to meet our growth expectations.
Safety is the highest priority for the Group. Iofina handles and manufactures
specialty chemicals, some of which are hazardous. We are proud of our safety
record and make a concerted effort to continually improve our safety systems
and culture. The Group had one minor lost time incident in 2025.
Lastly, the Directors are committed to employee retention whilst controlling
costs. Employee safety and training are also key objectives for the Group. A
key component for the Group is the high operational gearing whereby the
Group's business model allows for the control of administrative and fixed
expenses whilst expanding operations.
Principal risks and uncertainties
Iofina plc is subject to many risks and uncertainties, which could have a
material effect on its business, operations or future performance, including
but not limited to:
Raw Materials: Brine water produced from oil and gas operations is the raw
material source for Iofina's iodine production. The Group continues to
evaluate opportunities to integrate its IOsorb® process into produced brine
water streams associated with hydrocarbon operations in the USA and
occasionally other brine stream sources throughout the world. However, there
is significant risk and no guarantee as to the volume of commercial quantities
of iodide-rich brine available to our current and future IOsorb® plants. Oil
and gas prices and demand for these hydrocarbons generally will dictate
whether our partners continue to expand their production or possibly reduce
hydrocarbon output. Changes in hydrocarbon production by our partners will
change the total brine availability to isolate iodine and thus the iodine
output of our IOsorb® plants. The saltwater disposal wells that our partners
operate may have temporary or permanent issues, which would likely affect the
brine supply to IOsorb® plants. In the past, reduction of capital spent by
our partners for new drilling and completion of wells in our core area
resulted in a decline in the total amounts of brine co-produced with oil and
gas in our key areas. Current brine volume availability to existing plants is
relatively steady to slightly declining and could reduce further. Contract
terms regarding brine supply are a risk to our iodine source. Iofina strives
to maintain good relationships with our partners who provide the brine water
to our existing IOsorb® plants. Maintaining a positive, mutually beneficial
relationship with our brine suppliers is a top priority for the Group. By
continuing an aggressive water-testing programme, active exploration utilising
geology and data analytics, and incorporating reservoir and production
engineering, we are constantly evaluating new potential locations for iodine
extraction in our core area and other locations.
Iofina Chemical sources raw materials throughout the globe. Understanding the
supply chain of these materials is important to minimise supply disruptions.
Global supply chain disruptions, tariffs, and logistic bottlenecks can
adversely affect the ability to obtain key raw materials and may result in
increased costs for these materials. Iofina Chemical has long-term
relationships with many of its suppliers. Additionally, when possible, Iofina
Chemical sources materials from multiple suppliers to reduce risk. Increased
regulations can adversely affect the availability and cost of materials.
Prices of raw materials and energy can change, and if increases in these
prices are not able to be passed on to our customers, it would negatively
affect margins for our products.
Global Crises: Global crises, while rare, can impact businesses significantly.
The COVID-19 pandemic was an example of such an event. Similar events in the
future could have a negative effect on the markets we operate in and on the
Group's profits. For instance, COVID-19 resulted in a global economic slowdown
and a reduced demand for many of Iofina's products. These types of events can
also result in delays in shipping, worker limitations, business closures and
other challenges which may negatively affect the Group. The diversity of
Iofina's products, along with the uses of products in areas like human health
applications makes Iofina less susceptible than many other businesses. During
the COVID-19 pandemic, Iofina quickly implemented many protocols to minimise
any adverse impact on the business, but these protocols only reduce risk and
cannot eliminate it. COVID-19 or other events such as political unrest, acts
of aggression (wars), other health crises, major weather events or others
would likely have an impactful effect on the Group.
Currently, Russia's invasion of Ukraine and the current Middle East conflict
have not directly affected Iofina's operations. Additional political sanctions
or negative impacts on global economies because of these conflicts may
adversely impact our business. Iofina does not have any current sales exposure
with Russia, Ukraine, or in or around the Middle East. Other geopolitical
events could negatively affect the Group. Issues such as the current USA
government's unpredictable implementation of tariffs may influence Iofina's
ability to source materials at current pricing levels and may impact the
ability of Iofina to sell its goods competitively in certain countries.
Environmental: The Group's operations are subject to the environmental risks
inherent in the exploration and chemical industries. The Group is subject to
environmental laws and regulations in connection with all its operations.
Although the Group intends to comply in respect of all applicable
environmental laws and regulations, there are certain risks inherent to its
activities, such as accidental spills, leakages or other circumstances that
could expose the Group to extensive liability. Accordingly, the Group
promotes, wherever possible, environmental sustainability in its working
practices and seeks to minimise, mitigate, or remedy any harmful effects from
the Group's operations on the environment at each of its operational sites.
Regulations on brine injections in the state of Oklahoma into the Arbuckle
geological formation in the Group's core area due to seismic activity were
implemented mainly in late 2015 to early 2016 and have affected Iofina's
partners' brine disposal into this formation near some of our sites. This
reduced some brine availability to Iofina at some sites. The Group and its
partners have implemented and continue to implement strategies to minimise the
effect on the availability of iodine-rich brine to Iofina due to these
regulations. Moving forward, the Group and its partners will continue to
monitor these risks and act accordingly. While the frequency and intensity of
earthquakes have significantly reduced in Oklahoma, and this reduction is
likely a result of regulated changes in brine disposal into the Arbuckle
formation, there is still a risk of additional earthquakes and regulation
moving forward. Changes in laws or regulations of brine streams could affect
brine availability or the cost of producing iodine.
As a specialty chemical manufacturer, new regulations based on chemical uses,
adverse human health, or environmental impact are a risk and may lead to
higher costs or controlled production. Greenhouse Gas ('GHG') regulations in
the USA have not impacted Iofina's ability to produce products it currently
manufactures; however, if production allocations are reduced in the future,
this would likely negatively affect Iofina's production output. Other
environmental regulations that restrict the manufacturing of chemicals that
Iofina produces would also cause a similar effect. The Group has a robust
Environmental, Health and Safety program and strives for continual improvement
in this area. Additionally, Iofina Chemical is a certified Chemstewards®
facility and has obtained ISO 9001:2015 certification.
Changes in Markets and Competition: Iofina is diversified in the markets we
serve. As a result, small changes to these markets generally will not
materially affect our business. However, major disruptions in key markets that
use iodine or the other specialty compounds we manufacture could have a
material negative effect on the Group. High interest rates and inflation can
negatively affect global growth and costs for Iofina. Whilst both interest
rates and inflation have generally ebbed in the USA, higher interest rates or
higher inflation may slow down product demand and increase our costs.
Additionally, the current tariff changes may cause both risk and reward for
Iofina depending on the policies of the US government and the markets we sell
into and source from. Also, higher tariffs may result in an economic slowdown
and supply chain disruptions. A significant contraction in global economies
may cause less demand for and pricing of the Group's goods.
Additionally, increased competition in the markets we serve could negatively
impact prices or the ability to sell our goods. In particular, large increases
in iodine production from competitors could negatively affect iodine prices
and the Group's market share. Expansions of iodine production capacity in
Chile may change the market's supply and demand dynamics. However, the exact
change is subject to several factors, including the scale of expansion, the
timing of increased supply and the global iodine demand growth rate at the
time of new supplies coming onstream.
Iodine Price volatility: Iodine's price and demand are highly dependent on a
variety of factors, including international supply and demand, the level of
consumer product demand, the price and availability of alternatives, actions
taken by governments and global economic and political developments. Increases
in current iodine producers' production capacities or new iodine producers
entering the market could impact prices. Fluctuations in iodine prices and a
material decline in the price of iodine would have a material adverse effect
on the Group's business, financial condition and operations. After a lull in
demand during the COVID-19 pandemic, demand for iodine rose significantly in
H1 2021. Continued substantial demand for iodine and iodine-incorporated
products has continued through today. As a result, iodine prices rose
significantly between H1 2021 and mid-2022. During H2 2022, iodine prices rose
above $70/kg and have fluctuated between the mid-sixties and upper seventies
per kilogram. Current spot iodine prices are in the seventies per kilogram.
The costs to produce iodine have also significantly increased since the
pandemic.
Key customers: There are a limited number of potential customers who purchase
many of the products of the Group's chemical business, which makes
relationships with these customers, as well as the success of those customers'
businesses, critical to the Group's success. These customers are in many
different countries, and the loss of one or more major customers could harm
the business, operating results and financial condition of the Group. Iofina
is continuing to diversify its customer base in its Chemical subsidiary as we
continue to grow our volumes of sales. In addition, Iofina works closely with
all its customers to develop strong relationships, with a significant focus on
ensuring that its products and services meet the needs of its customers and
are of the highest quality. In 2025 Iofina had seven customers each of which
contributed over 5% of sales (see note 3), with ongoing positive relations
with these customers.
Key Partners: Iofina partners with third-party oil and gas producers and
saltwater disposal operators to process iodine-rich brine which is co-produced
with oil and gas production. Fluctuations of oil and gas prices in the US can
affect the financial stability of oil and gas producers. Any changes in
operator status or the financial strength of our partners are a risk to brine
production and availability. The Group has agreements with our partners to
reduce any risk of change in status. Material changes in these brine supply
contracts with our partners may affect the Group. In 2025, Iofina executed a
new brine supply agreement with a new brine supply partner, Western Midstream,
and is currently constructing a new IOsorb® plant in the Permian Basin.
Regulation and Trade: Iofina's businesses are subject to various significant
international, federal, state, and local regulations currently in effect,
including but not limited to environmental, health and safety, and
import/export regulations. These regulations are complex, change frequently,
can vary from country to country, state to state and have generally increased
over time. Iofina may incur significant expenses to comply with these
regulations or to remedy violations of them. The current federal
administration in the USA is likely to reduce regulatory burdens in our
industries versus the previous administration; however, there have not been
any significant changes to the regulatory burden for our business. Any new
regulation in the USA or elsewhere that would increase the cost of raw
materials the Group uses, reduce the availability of these raw materials or
cap production of products the Group produces would likely reduce margins.
Any failure by Iofina to comply with applicable government regulations could
result in non-compliant portions of our operations being shut down, product
recalls or impositions of civil and criminal penalties and, in some cases,
prohibition from distributing our products or performing our services until
the products and services are brought into compliance, which could
significantly affect our operations.
The Group closely monitors regulations across its businesses to ensure that it
complies with the relevant laws and regulations. While Iofina believes that it
is compliant with all laws and regulations, any instances of non-compliance
would be brought to the attention of the appropriate authorities as soon as
possible. Iofina Chemical has been a long-time member of SOCMA (Society of
Chemical Manufacturers and Affiliates). This trade association helps Iofina
ensure compliance with regulations and promotes regulatory advocacy for the
specialty chemical industry in the USA.
Trade relationships between the USA and other areas of the world have
deteriorated significantly since early 2025. Increased tariffs implemented by
the USA and retaliatory tariffs imposed by other governments against the USA
have the potential to adversely affect both raw material cost and supply, and
final product sales for Iofina in certain areas of the world. Currently,
additional tariffs imposed by China on USA imports into China have caused
sales into China to become essentially unattainable for Iofina. The Group has
been proactive in attempting to reduce the impact of tariffs, including
diversifying our supply chain and developing a larger number of customers. The
unpredictability and ever-changing USA tariff policy is a business risk for
Iofina and may directly impact the Company's supply and sales lines, reduce
sales margins, and may also cause a global economic downturn, which could
negatively affect the iodine market.
Inventory Fluctuations: Inventory level changes can cause financial
instability. High inventories negatively affect cash flow, while low
inventories can negatively affect sales volumes and customer relationships. In
2021, the Group started the year with larger-than-normal iodine inventories
and ended the year with lower-than-normal iodine inventories. In 2022, the
Group ended the year with more normalised iodine inventories and slightly
higher than ideal specialty chemical derivative end products and in-process
goods. By the end of 2023, the total inventory levels had declined slightly
from 31 December 2022 year-end levels. Inventories at the end of 2024 were
flat relative to the end of 2023. Inventories at the end of 2025 were lower
than ideal total inventories for the Group. This year-on-year inventory
decrease positively affected 2025 sales, whilst the lower inventories to start
2026 will negatively affect the amount of materials available for sale in
2026. The Group actively works to maintain a proper inventory of goods to
achieve its business goals. Inventories are cyclical within our business, and
management closely tracks these inventories along with known and anticipated
demand for products to maintain appropriate inventories. As the Group's iodine
production grows, it is anticipated that the inventory levels of iodine will
also increase.
Insurance may not cover all material losses: The Group strives to carry
standard insurance for our industry that would minimise loss when events
occur. However, certain scenarios or events may not be fully covered by
insurance and could have a negative material impact on the Group. For example,
cyber-attacks have increased globally, and while the Group has increased
measures to thwart potential cyber-attacks, we cannot guarantee these measures
will prevent a cyber-attack.
Taxes: The Group has tax obligations, which have become more significant as
tax losses utilised against US Federal tax liabilities have now been spent.
Any increases in federal or local taxes could have a negative effect on the
cash flows of the organisation.
Personnel: As a small technical organisation, the loss of key technical or
senior management employees could negatively affect the business.
Additionally, the USA labour market remains fairly tight. This could result in
increased labour costs and a risk of delays or inability to produce products
due to labour shortages.
Significant Shareholders: Significant shareholders may have the ability to
effect changes that result in a material adverse effect on the organisation,
including a change in senior management or control of the Group or its Board
of Directors.
Interest Rates and Inflation: As a result of the 2020 debt changes that served
to significantly reduce both overall debt and interest rates for the Group, a
significant portion of the debt carries variable interest rates. While overall
debt continues to decline, interest rates remain relatively high and have
negatively impacted Iofina's debt costs. Any interest rate increases from
current levels would negatively impact debt costs for the Group. In 2025, the
Group drew down $4.0m of a loan facility repayable over seven years and is
finalising a further $10.0 million term loan on similar terms to be used for
capital expenditures for forthcoming plants. In addition, the Group has a
working capital facility of $6.0m available but not drawn as yet. These lines
carry variable interest rates.
Inflation in the USA lowered slightly in 2025 but was above the USA Federal
Reserve Bank's target of 2%. The costs of goods, energy, and labour for Iofina
have increased substantially since 2021, and while the inflation rate is
declining, cost increases are still a risk for the Group moving forward,
especially during a period where new tariffs are increasingly prevalent. The
ability to maintain margins in an increasingly inflationary environment is
uncertain. Additionally, as prices rise, there is a risk that some products
the Group sells may be replaced by cheaper alternatives, which could result in
an adverse effect on the business.
Litigation: While the Group has no pending litigation matters, there is a
possibility that future judgements or settlements could result in an adverse
effect on our business.
Going concern
The Group has performed well in 2025 and is performing as anticipated in 2026.
In 2025, the Group achieved a profit before taxation of $10.5m and a net cash
inflow from operating activities of $8.9m. Net cash of $2.9m at the end of
2024 improved to net cash of $5.2m as of 31 December 2025. The markets into
which the Group sells its products continue to experience good demand. Iofina
has appropriate credit facilities to fund current business growth objectives.
The Group has prepared forecasts and projections that indicate there are
adequate resources to continue in operational existence for the foreseeable
future. The Directors consider it appropriate to continue to adopt the going
concern basis in preparing the financial statements.
On behalf of the Board
Dr. Thomas M. Becker
Chief Executive Officer and President
29 April 2026
STATEMENT IN ACCORDANCE WITH SECTION 172 OF THE COMPANIES ACT 2006
As required by section 172 of the Companies Act 2006, a director of a company
must act in a way they consider, in good faith, would most likely promote the
success of the company for the benefit of its shareholders. In doing this, the
Director must have regard, amongst other matters, to the:
(a) likely consequences of any decision in the long-term;
(b) interests of the company's employees;
(c) need to foster the company's business relationships with
suppliers, customers, and others;
(d) impact of the company's operations on the community and the
environment;
(e) company's reputation for high standards of business conduct;
and
(f) need to act fairly as between members of the company.
As a Board our aim is always to uphold the highest standards of governance and
business conduct, taking decisions in the interests of the long-term
sustainable success of the Group, generating value for our shareholders and
contributing to wider society. We recognise that our business can only grow
and prosper over the long term by understanding the views and needs of our
stakeholders. Engaging with stakeholders is key to ensuring the Board has
informed discussions and factors stakeholder interests into decision-making.
The Directors insist on high operating standards and fiscal discipline and
routinely engage with management and employees of the Group to understand the
underlying issues within the organization. Additionally, the Board looks
outside the organization at macro factors affecting the business. The
Directors consider all known facts when developing strategic decisions and
long-term plans, taking into account their likely consequences for the Group.
The Directors and management are committed to the interests and well-being of
Iofina's employees. Iofina is committed to the highest levels of integrity and
transparency possible with employees and other stakeholders. Safety
initiatives, consistent training, strong benefits packages and open dialogue
between all employees are just some of the ways the Group ensures its
employees improve skill sets and work hand-in-hand with management to improve
all aspects of the Group's performance.
Other stakeholders include customers, suppliers, lenders, industry
associations, government and regulatory agencies, media, local communities and
shareholders. The Board, both individually and together, consider that they
have acted in the way they consider would be most likely to promote the
success of the Group as a whole. To do this, there is a process of dialogue
with stakeholders to understand the issues that they might have. Iofina
believes that any supplier/customer relationship must be mutually beneficial,
and the Group is known for its commitment to details to its customers.
Communications with the Group's lenders and shareholders occur on an ongoing
basis and as questions arise. The Group also communicates through media
interviews and social media platforms.
The Directors are committed to positive involvement in the local communities
where we operate. Part of this commitment is our program 'Iofina Gives Back',
where Iofina supports local charities by donating time and goods.
Additionally, Iofina adheres to environmental regulations at its sites and
supports sustainability practices where possible.
Integrity is a key tenet for the Directors and the Company's employees. The
Company believes that any partnership must benefit both parties. We strive to
provide our stakeholders with timely and informative responses and are always
striving to meet or exceed customers' needs.
The Board recognises its responsibilities under section 172 as outlined above
and has acted at all times in a way consistent with promoting the success of
the Company with regard to all stakeholders.
CORPORATE GOVERNANCE
The Board considers that good corporate governance is a key driver for the
success of the business. Accountability to the Company's stakeholders,
including shareholders, customers, suppliers and employees is a vital element
in that governance. The Board's commitment to robust governance practices
remains key, ensuring that Iofina operates in a manner that is consistent with
the highest corporate governance standards.
The Board is committed to effective corporate governance as the basis for
delivering long-term value growth and for meeting shareholder expectations for
proper leadership and oversight of the business.
To help ensure that the Company has an effective corporate governance model,
the Board has adopted the Quoted Companies Alliance Corporate Governance Code
the latest version being the 2023 Quoted Companies Alliance Corporate
Governance Code (the "QCA Code"), with the application of such principles
evidenced in this report. Iofina applies the principles of the QCA Code as the
Board believes that adherence to the QCA Code provides a strong foundation for
delivering shareholder value and serves to mitigate and minimise risks.
Our Corporate Governance Statement on pages 31 to 38 of this report, in
conjunction with the corporate governance statement published on our website
(see: https://iofina.com/investors/aim-rule-26/corporate-governance/
(https://iofina.com/investors/aim-rule-26/corporate-governance/) ), follows
the 10 principles of the QCA Code and how it is applied by the Company.
DIRECTORS' REPORT
The Directors present their report and financial statements for the Group for
the year ended 31 December 2025.
Strategic report
Included in the Strategic Report on pages 15 to 25 is the review of the
business and principal risks and uncertainties.
Post balance sheet events
There were no significant post balance sheet events.
Directors' responsibilities for the preparation of the financial statements
The Directors are responsible for preparing the Strategic Report and the
Directors' Report and the financial statements in accordance with applicable
law and regulations.
Company law requires the Directors to prepare Group and Company financial
statements for each financial year. The Directors are required by the AIM
Rules for Companies (as published by the London Stock Exchange) to prepare
Group financial statements in accordance with UK adopted International
Accounting Standards, and have elected under company law to prepare the
Company financial statements in accordance with International Accounting
Standards.
The financial statements are required by law and UK adopted International
Accounting Standards to present fairly the financial position of the Group and
the Company and the financial performance of the Group. The Companies Act 2006
provides, in relation to such financial statements, that references in the
relevant part of that Act to financial statements giving a true and fair view
are references to their achieving a fair presentation.
Under company law the directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of
affairs of the Group and the Company and of the profit or loss of the Group
for that period.
In preparing the Group and Company financial statements, the directors are
required to:
a. select suitable accounting policies and then apply them
consistently;
b. make judgements and accounting estimates that are reasonable
and prudent;
c. state whether they have been prepared in accordance with UK
adopted International Accounting Standards; and
d. prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Group and the Company will
continue in business.
The directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Group's and the Company's transactions and
disclose with reasonable accuracy at any time the financial position of the
Group and the Company and enable them to ensure that the financial statements
comply with the Companies Act 2006. They are also responsible for safeguarding
the assets of the Group and the Company and hence for taking reasonable steps
for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Iofina plc website.
Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.
Results and dividends
The results for the year are set out in the consolidated statement of
comprehensive income and detailed in the Financial Review.
The directors do not recommend payment of a dividend.
Financial instruments and risk management
Note 15 details the risk factors for the Group and how these risks are
managed, including the degree to which it is appropriate to use financial
instruments to mitigate risks.
Directors
The directors who served during the year and subsequently were as follows:
Lance J. Baller, Non-Executive Chairman
J. Frank Mermoud, Non-Executive Director
Mary Fallin Christensen, Non-Executive Director
Dr. Thomas M. Becker, Chief Executive Officer and President
Malcolm T. Lewin, Chief Financial Officer
T. J. Hughes, Non-Executive Director (appointed 1 January 2026)
Statement as to disclosure of information to the auditor
The directors who were in office on the date of approval of these financial
statements have confirmed that, as far as they are aware, there is no relevant
audit information of which the auditor is unaware. Each of the directors has
confirmed that they have taken all the steps that they ought to have taken as
directors in order to make themselves aware of any relevant audit information
and to establish that it has been communicated to the auditor.
Auditor
UHY Hacker Young were appointed as auditors to the Company and in accordance
with Section 485 of the Companies Act 2006 a resolution proposing that they be
reappointed will be put to the next Annual General Meeting.
On behalf of the Board
Dr. Thomas M. Becker
Chief Executive Officer and President
29 April 2026
CORPORATE GOVERNANCE STATEMENT
The Board is committed to effective corporate governance as the basis for
delivering long-term value growth and for meeting shareholder expectations for
proper leadership and oversight of the business. The Board is responsible for
the overall leadership, strategy, development and control of the Group in
order to achieve its strategic objectives. We are committed to high standards
of governance, ensuring our procedures are robust, kept up to date and
appropriate for a Company of our size. The Board reviews its procedures
periodically to ensure that they evolve as the business grows.
The Company applies the QCA Code, which was last revised in 2023. Further
details of our application of the QCA Code is set out in this report and on
the Company's website at:
https://iofina.com/investors/aim-rule-26/corporate-governance/
(https://iofina.com/investors/aim-rule-26/corporate-governance/) .
The Company applies the principles of the QCA Code as the Board believes that
adherence to the QCA Code provides a strong foundation for delivering
shareholder value and serves to mitigate and minimise risks. The Directors are
also required to comply with certain duties that are contained in the
Companies Act 2006, and the Directors comply with those duties.
The Group is led by the Board which currently consists of two Executive
Directors and four Non-Executive Directors. The Board typically holds monthly
meetings, and no significant decision is made other than by the Directors. All
Directors participate in the key areas of decision making.
Business model, strategy and approach to risk
The Group focuses on the exploration and production of iodine and
halogen-based specialty chemical derivatives. We identify, develop, build, own
and operate iodine extraction plants, currently focused in North America,
based on Iofina's Wellhead Extraction Technology® (WET®) IOsorb®
technology. The Group has complete vertical integration from the production of
iodine in the field to the manufacture of the chemical end-products derived
from iodine to the consumer, and the recycling of iodine using iodinated
side-streams from waste chemical processes. We use patented or proprietary
processes throughout all business lines. Together these allow us to be the
Technology Leaders in Iodine®. The Group's strategy is to continue to focus
on the exploration and production of iodine and iodine specialty chemical
derivatives, delivering growth throughout our operations. Growth is intended
to be achieved with the continued upgrading and expanding of our plants, which
in turn will boost the level of iodine production.
All the Group's activities involve an ongoing assessment of risks, and the
Group seeks to mitigate such risks where possible. The Board has undertaken an
assessment of the principal risks and uncertainties facing the Group,
including those that would threaten its business model, future performance,
solvency and liquidity. Further, the Board has considered the longer-term
viability of the Group, including factors such as the prospects of the Group
and its ability to continue in operation for the foreseeable future. The Board
considers that the disclosures outlined in the Strategic Report on pages 15 to
25 are appropriate. The Board considers that these disclosures provide the
information necessary for shareholders and other stakeholders to assess the
Group's future viability and potential requirements for further capital to
fund its operations.
Having carried out a review of the level of risks that the Group is taking in
pursuit of its strategy, the Board is satisfied that the level of retained
risk is appropriate and commensurate with the financial rewards that should
result from achievement of its strategy.
Board of Directors
As of the date of this report, the Board comprises six Directors in total: the
Non-Executive Chairman, two Executive Directors (being the Chief Executive
Officer ("CEO") and the Chief Financial Officer ("CFO")) and three
Non-Executive Directors (each of whom are considered by the Board to be
independent), reflecting a blend of different experiences and backgrounds. The
skills and experience of the Board are set out in their biographical details
on pages 13 and 14. The experience and knowledge of each of the Directors give
them the ability to challenge strategy constructively and to scrutinize
performance.
The Board is responsible to the shareholders for the proper management of the
Group. The Board and the Group's management team are responsible for reviewing
and evaluating risk and the Executive Directors meet at least monthly to
review ongoing trading performance, discuss budgets and forecasts and new
risks associated with ongoing trading. The Board typically meets monthly to
set the overall direction and strategy of the Group, review operational and
financial performance and advise on management appointments (if necessary).
All key operational and investment decisions are subject to Board approval.
The Company Secretary is responsible for ensuring that Board procedures are
followed and applicable rules and regulations are complied with. The number of
meetings attended by each Director can be found on page 34.
There is a clear separation of the roles of CEO and Chairman. The Chairman is
responsible for overseeing the running of the Board, ensuring that no
individual or group dominates the Board's decision making and ensuring the
Non-Executive Directors are properly briefed on matters. The CEO has the
responsibility for implementing the strategy of the Board and managing the
day-to-day business activities of the Group.
By following the QCA Code, the Company can apply its flexible set of
governance principles, which are designed to help companies run better for
staff, investors, partners and the wider stakeholder community.
Time commitment
On joining the Board, Non-Executive Directors enter a formal appointment
letter with the Company, which identifies the terms and conditions of their
appointment and, in particular, the time commitment expected of them. A
potential Director candidate (whether an Executive Director or Non-Executive
Director) is required to disclose all significant outside commitments prior to
their appointment. The Board is satisfied that both the Chairman and the other
Non-Executive Directors can devote sufficient time to the Group's business.
Independence of Directors
The Directors acknowledge the importance of the principles of the QCA Code
which recommends that a company should have at least two independent
non-executive directors. The Board considers it has sufficient independence on
the Board and that all the Non-Executive Directors are of sufficient
competence and calibre to add strength and objectivity to the Board, and bring
considerable experience in industry, operational and financial development of
chemical products and companies. Specifically, the Board has considered and
determined that since the date of their respective appointments J. Frank
Mermoud, Mary Fallin Christensen and Tim Hughes are independent in character
and judgement, specifically that they:
· have not been employees of the Company within the last five years;
· do not have a material business relationship with the Group;
· have no close family ties with any of the Group's advisers, Directors
or senior employees;
· do not hold cross-directorships or have significant links with other
Directors through involvement in other companies or bodies; and
· do not represent any shareholder.
The Board notes that two of the Non-Executive Directors, J. Frank Mermoud and
Mary Fallin Christensen, together with the Non-Executive Chairman, Lance
Baller, have to date received share options in the Company. The Board does not
believe the issue of options affects their independence as they are of a
modest amount and not deemed material to the relevant individual.
The Company Secretary maintains a register of outside interests and any
potential conflicts of interest are reported to the Board.
If they so wish, the Non-Executive Directors have opportunities to meet
without Executive Directors being present (including after Board and Committee
meetings). Because the Board is spread out geographically, the majority of
communications between Directors is conducted by video. However, the Board
does convene in person at least once a year, and this presents an opportunity
(before, after and between management and operational meetings) for the
Non-Executive Directors to meet in person without the Executive Directors
being present.
Professional development
Throughout their period in office, the Directors are continually updated on
the Group's business, the competitive and regulatory environments in which it
operates, corporate social responsibility matters and other changes affecting
the Group and the industry it operates in as whole. The updates are usually
provided by way of written briefings and meetings with senior management.
Directors are also advised on appointment of their legal and other duties and
obligations as a director of an AIM quoted company both in writing and in
communications (being face-to-face meetings whenever possible) with the
Company's Nominated Adviser. The Directors also have recourse to the Company
Secretary, a qualified and practising solicitor, who is a recognised
practitioner within the AIM community.
All the Directors are subject to election by shareholders at the first Annual
General Meeting of the Company ("AGM") after their appointment to the Board.
Having been appointed on 1 January 2026, Tim Hughes will be required to seek
re-election at the forthcoming AGM. Each Director is required, under the
Company's articles of association, to seek re-election at least once every
three years.
Board Committees
The Board has delegated authority to its committees to carry out the tasks
defined in their respective terms of reference. The committees are the Audit
Committee and the Remuneration Committee. The role of each committee is set
out in their respective terms of reference document.
Audit Committee
During the financial period under review, the members of the Audit Committee
were Lance Baller, J. Frank Mermoud and Mary Fallin Christensen. Mr Baller is
the Chair of the Audit Committee. The responsibilities of the committee
include the following:
· ensuring that the financial performance of the Group is properly
monitored, controlled and reported on;
· reviewing accounting policies, accounting treatment and disclosures
in the financial reports;
· meeting the auditors and reviewing reports from the auditors relating
to accounts and internal control systems; and
· overseeing the Group's relationship with external auditors, including
making recommendations to the Board as to the appointment or re-appointment of
the external auditors, reviewing their terms of engagement, and monitoring the
external auditors' independence, objectivity and effectiveness.
During the year, the committee met to review audit planning and findings. In
addition, it reviewed the appointment of auditors, and agreed unanimously to
re-elect UHY Hacker Young LLP.
Remuneration Committee
During the financial period under review, the members of the Remuneration
Committee were Lance Baller, Mary Fallin Christensen and J. Frank Mermoud. Ms
Christensen is the Chair of the Remuneration Committee. The responsibilities
of the committee include the following:
· reviewing the performance of the Executive Directors and setting the
scale and structure of their remuneration with due regard to the interest of
shareholders;
· overseeing the evaluation of the Executive Directors; and
· determining the vesting of awards, including the setting of any
performance criteria in relation to the exercise of share options, granted
under the Company's share option plan.
During the year, the committee met to discuss remuneration and bonuses for the
Executive Directors, and share option awards for the Directors and senior
management.
The Directors' remuneration information is presented on page 37.
Attendance at meetings
The Board meets regularly, typically on a monthly basis, together with further
meetings as required. The Audit and Remuneration Committees meet as required,
and try to hold a minimum of two meetings each year.
The Directors attended the following meetings during the year:
Board Audit Remuneration
Lance Baller 12/12 1/1 2/2
Dr Thomas Becker 12/12 - -
Malcolm Lewin 12/12 - -
J. Frank Mermoud 12/12 1/1 2/2
Mary Fallin Christensen 12/12 1/1 2/2
Risk management and internal control
The Board is responsible for the systems of internal controls and for
reviewing their effectiveness. The internal controls are designed to manage
rather than eliminate risk and provide reasonable but not absolute assurance
against material misstatement or loss. The Board reviews the effectiveness of
these systems annually by considering the risks potentially affecting the
Group.
Iofina employs strong financial and management controls within the business.
Examples of control procedures include:
· an annual budget set by the Board with regular review of progress;
· regular meetings of Executive Directors and senior management to
review management information and follow up on operational issues or
investigate any exceptional circumstances;
· clear levels of authority, delegation and management structure; and
· Board review and approval of significant contracts and overall
project spend.
The Company's system of internal control is designed to safeguard the
Company's assets and to ensure the reliability of information used within the
business. The system of controls manages appropriately, rather than
eliminates, the risk of failure to achieve business objectives and provides
reasonable, but not absolute, assurance against material misstatement or loss.
The Group does not consider it necessary to have an internal audit function
due to the small size of the administrative function. Instead, there is a
detailed monthly review and authorisation of transactions by the CFO and the
CEO.
The independent auditors do not perform a comprehensive review of internal
control procedures, but do report to the Audit Committee on the outcomes of
its annual audit process. The Board confirms that the effectiveness of the
system of internal control, covering all material controls including
financial, operational and compliance controls and risk management systems,
has been reviewed during the year under review and up to the date of approval
of the Annual Report.
The Group maintains appropriate insurance cover in respect of actions taken
against the Directors because of their roles, as well as against material loss
or claims against the Group. The insured values and type of cover are
comprehensively reviewed on a periodic basis.
Board effectiveness and performance evaluation
The Board is mindful that it needs to continually monitor and identify ways in
which it might improve its performance and recognises that board evaluation is
useful for enhancing a board's effectiveness.
The individual contributions of each of the members of the Board are regularly
assessed to ensure that: (i) their contribution is relevant and effective;
(ii) that they are committed; and (iii) where relevant, they have maintained
their independence. The Board intends to review the performance of the team as
a unit to ensure that the members of the Board collectively function in an
efficient and productive manner. As required pursuant to the Company's
articles of association, each Director is required to seek re-election at
least once every three years.
The Company considers that the Board and its individual members continue to
perform effectively, that the Chairman performs his role appropriately and
that the process for evaluation of his performance has been conducted in a
professional and rigorous manner.
Corporate Social Responsibility
The Board recognises the growing awareness of social, environmental and
ethical matters and it endeavours to take into account the interest of the
Group's stakeholders, including its investors, employees, suppliers and
business partners, when operating the business. Iofina's statement addressing
the steps taken by the Group to mitigate the risk of modern slavery and human
trafficking within its operation and supply chain can be found on the Iofina
website.
Employment
The Group endeavours to appoint employees with appropriate skills, knowledge
and experience for the roles they undertake and thereafter to develop and
incentivise staff. The Board recognises its legal responsibility to ensure the
wellbeing, safety and welfare of its employees and maintain a safe and healthy
working environment for them and for its visitors.
Investor Relations
The Board recognises the importance of communication with the Company's
shareholders to ensure that its strategy and performance is understood and
that it remains accountable to shareholders. Our website has a section
dedicated to investor matters and provides useful information for the
Company's shareholders (see: http://iofina.com/investors/
(http://iofina.com/investors/) ). The Board as a whole is responsible for
ensuring that a satisfactory dialogue with shareholders takes place, while the
Chairman and the CEO ensure that the views of the shareholders are
communicated to the Board as a whole. The Board ensures that the Group's
strategic plans have been carefully reviewed in terms of their ability to
deliver long-term shareholder value. Fully audited Annual Reports are
published, and Interim Results notified via Regulatory News Service
announcements. All financial reports and statements are available on the
Company's website (see: http://iofina.com/investors/financial-results
(http://iofina.com/investors/financial-results) ).
There is an opportunity at the Annual General Meeting for individual
shareholders to question the Directors that are in attendance. The Chairman
and the Executive Directors customarily attend each Annual General Meeting in
person. Notice of the meeting is sent to shareholders at least 21 clear days
before the meeting. Shareholders are given the opportunity to vote on each
separate issue. The Company counts all proxy votes and indicates the level of
proxies lodged on each resolution, after it has been dealt with by a show of
hands.
Directors' remuneration
Remuneration provided to each Director was as follows:
2025 2024
Salary Bonus Total $ Salary Bonus Total $
Lance Baller 134,620 - 134,620 122,120 - 122,120
Dr. Thomas Becker 315,600 55,000 370,600 303,400 - 303,400
Malcolm Lewin 221,542 50,000 271,542 196,425 - 196,425
Frank Mermoud 55,000 - 55,000 42,500 - 42,500
Mary Fallin Christensen 55,000 - 55,000 42,500 - 42,500
William Bellamy - - - 21,250 - 21,250
Total $781,762 $105,000 $886,762 $728,195 - $728,195
No pension contributions were paid on behalf of the directors in 2025 or 2024.
Directors' and officers' insurance is in place on a Group-wide basis.
The interests of the Directors in office as at 31 December 2025 in the shares
of the Company at the end of the financial year and the beginning of the
financial year or date of appointment, if later, were as
follows:
31 December
2025
1 January 2025
L J
Baller
5,500,000
5,500,000
Dr. T M
Becker
139,430
139,430
M T
Lewin
93,750
93,750
J F
Mermoud
23,750
23,750
All outstanding options over shares granted to Directors up to 31 December
2025 are set out in the table below. No further options have been granted
between 31 December 2025 and the date of signing these financial statements.
No Directors exercised options in 2025.
Name 2018 Options granted 2019 Options granted 2020 Options granted 2022 Options granted 2023 Options granted
Dr T Becker 660,000 242,000 266,200 266,200 266,200
M Lewin 330,000 165,000 181,500 181,500 181,500
L Baller 220,000 165,000 165,000 165,000 165,000
JF Mermoud - 82,500 82,500 82,500 82,500
M Fallin Christensen - - 82,500 82,500 82,500
1,210,000 654,500 777,700 777,700 777,700
Exercise price 16.2p 21.3p 12.5p 17.6p 31.8p
Lapse date 13/06/28 24/07/29 15/12/30 8/3/32 27/4/33
On behalf of the Board
Dr. Thomas M. Becker
Chief Executive Officer and President
29 April 2026
Sustainability and Governance
Responsible Approach and Core Values
The Group has continually maintained a philosophy and commitment to perform
its operations in a safe, responsible manner regarding all stakeholders
including, but not limited to, staff, shareholders, customers and our
communities.
The Group has long applied tenets to conduct our business with low
environmental impact, a focus on our employees and communities, and operate
with the highest ethical standards. Iofina chose to produce our iodine from a
brine water source that is a by-product of the oil and gas industry. By
partnering with oil & gas operators, Iofina produces iodine from this
brine water, and this iodine would not be realised if Iofina was not operating
its iodine manufacturing plants. Iofina does not drill brine wells or brine
disposal wells but instead relies on sourcing brines which are already being
lifted. Most of the world's iodine is manufactured from iodate deposits in
ores in Chile through processes we believe are much more negatively intensive
to the environment than our WET® IOsorb® technology. The Group also
manufactures specialty chemicals through the Iofina Chemical division. IC has
held a long-established business philosophy to develop its processes in
aqueous-based chemistries, whenever possible, to reduce the use of organic
solvents, with the vast majority of IC's processes being performed in aqueous
media.
The iodine compounds the Group produces have a positive impact on society,
with iodine being essential for human and animal health. Whether it is
directly through the ingestion of foods containing iodides or fortified salt
as a micro-nutrient to ensure proper thyroid function and to stimulate proper
human and animal development; or by using iodine-containing compounds in
medical uses, such as iodinated X-ray contrast agents, production of
pharmaceuticals or the use of PVP-I in antiseptic applications, iodine plays
many important roles in a healthy society.
Environmental
The Group is committed to minimising its energy consumption and waste
generation. Energy use and environmental impacts are key criteria when
ordering and replacing equipment at our manufacturing sites. In 2025, Iofina
Chemical improved its air handling system in the production areas, increased
recycling efforts of plant packaging and scrap metals, and replaced a product
component with a more environmentally friendly surfactant. Projects to
significantly reduce water consumption are currently ongoing. Iofina Resources
executed projects which reduced chemical consumption, enhanced air scrubbing
capacities, sourced equipment for new facilities that are more energy
efficient, and improved erosion control practices during and after
construction to protect nearby waterways and maintain soil stability. Iofina
continues to implement strategies to reduce the environmental impacts of
current operations, as well as continually evaluating the minimisation of
emissions from new plants and processes. Upgrades and new processes undergo a
review which comprises evaluations to minimise energy use and environmental
impact.
The Group's total energy consumption at our manufacturing facilities in 2025
was:
Electricity (kWh) 15,060,123; Natural gas (CCF) 82,693; for the 1396 MT of
goods produced in 2025 by the Group. In 2024, consumption was: Electricity
(kWh) 13,612,900; Natural gas (CCF) 73,721; for the 1272 MT of goods produced
in 2024 by the Group.
Company and Group information
Iofina plc is a company incorporated in England and Wales; company number
05393357, with a registered office at 48 Chancery Lane, London WC2A 1JF (c/o
Keystone Law, Attn: Simon Holden). SECR is prepared for the Group's UK
activities and reported below.
Streamlined energy and carbon reporting (SECR)
Group's greenhouse gas emission data
Year Ended 31 December 2025 Year Ended 31 December 2024 Base Year
Scope 3
Emissions in MT CO2e from business travel involving trips where the journey 30.76 40.79 28.67
started or ended in the UK including emissions from air, taxi, hotel stays,
etc.
Intensity ratio MT CO2e per $m of income 0.463 0.749 0.573
Reporting Period
The reporting period for SECR data is 1 January 2025 through 31 December
2025.
Methodology and Discussion
We have followed the 2019 UK Government Environmental Reporting Guidelines and
have calculated emissions based on 2025 UK Government Conversion Factors. The
SECR data lists 2025 levels and 2023 will be considered the 'base year' for
future reporting as 2023 is the first year that Iofina was required to
communicate this SECR information. Scope 3 emissions are listed as required in
the reporting guidelines. We have chosen to report the ratio of CO2e per $m of
income, as this is a reasonable reflection of the business activities. The
Scope 3 emissions reported only reflect the impact on UK travel activities.
The company is committed to reducing environmental impacts, as discussed in
the previous section of this report, as well as minimising the impact of UK
travel. Some initiatives to reduce impacts due to UK travel include taking
direct flights when available and affordable, holding virtual meetings with
stakeholders to minimise frequency of trips to the UK from Iofina's USA-based
employees, and using public transportation in the UK whenever possible.
Targets
Iofina continues to prioritise the minimisation of environmental impacts of
our UK operations by minimising any trips to and from the UK and holding
virtual meetings when appropriate. We will continue to utilise public
transportation in the UK on trips whenever practical. We feel that our current
travel actions in the UK are appropriate and will continue to maintain these
policies. Total emissions are very small for the Group and the increase in
emissions year-on-year is attributable to an increase in trips by the UK-based
CFO to the USA. We expect the Group's total Scope 3 emissions per $m of income
to reduce by 10% from the base year by 2028, although this reduction may be
dependent on CFO travel as the base year was abnormally low.
Social
Health and Safety
The safety and health of Iofina's employees is the top priority for the Group.
This also extends to our contractors, visitors, and communities. Processing
and creating specialty chemicals have inherent risks. Through engineering
designs, extensive training and procedures, and PPE to name a few, our culture
insists that as a group we work together to ensure everyone's safety. We are
proud of our safety record but recognise that continual improvement is always
necessary as we evolve. In 2025 there was one minor Lost Time Incident ('LTI')
for the Group. The Group has not experienced one LTI in the last five years.
Iofina Lost Time Incidents
2024 2025
Lost Time Incidents 0 1
Incident Rate 0 0.74
Lost Time Incidents ('LTIs') are incidents where the person is unable to work
the next day of the incident. Incident rate is the number of LTIs per 200,000
hrs. worked.
Many other health and safety metrics are evaluated, and corrective actions are
taken to continually improve our systems in order to reduce incident
occurrences and severity. These health and safety metrics are routinely
reviewed and discussed with upper management.
Community
Iofina is committed to being a socially responsible organisation. Our
programme, 'Iofina Gives Back', is an employee-driven programme designed to
support our local communities. Some of the programme's initiatives include the
donation of items and funds for disaster relief, toy drives, and food drives.
Additionally, for many years, Iofina Resources has partnered with Northwestern
Oklahoma State University and the OCAST Intern Partnership Program, which is
designed to advance science and technology opportunities and provide
experience and educational opportunities for undergraduate students. Multiple
students involved in these internships with Iofina have gone on to achieve
advanced level science degrees.
Diversity
Iofina is an Equal Opportunity Employer and all employment decisions at Iofina
are based on individual qualifications, particular job responsibilities, and
business needs without regard to race, color, religion, national origin, age,
gender, disability, or any other status protected by laws where we operate. A
culture of respect at Iofina is our commitment to all our employees and we
demand that our team treats our fellow workers and business partners in a
professional and non-discriminatory manner. Historically, the job applicants
that Iofina receives tend to underrepresent females when compared to the
general population. Iofina continues to investigate ways to find a more
diverse pool of job applicants.
Governance
The following are summaries of some of Iofina's Governance data and practices
and Board composition as at 31 December 2025. Corporate policies are reviewed
by the Board.
Total Board Members %Male %Female %Non-executive % Executive CEO/Chairman separate roles
Board of Directors 5 80% 20% 60% 40% Yes
· Post-period the Group added Tim Hughes to the Board of Directors
effective 1 January 2026.
· The Group has adopted the QCA Corporate Governance Code
· The Group has adopted several policies including but not limited to:
o Whistleblowing Policy
o Anti-Fraud Policy
o Anti-Corruption and Bribery Policy
o Share Dealing Code
o AIM Rules Compliance Policy
o Modern Slavery Statement
Further detail regarding Corporate Governance practices can be found on pages
28 and 31 of this report.
Independent auditor's report to the members of Iofina PLC
Opinion
We have audited the financial statements of Iofina PLC (the 'Parent Company')
and its subsidiaries (the 'Group') for the year ended 31 December 2025 which
comprise the Consolidated Statement of Comprehensive Income, the Consolidated
Balance Sheet, the Consolidated Statement of Changes in Shareholders' Equity,
the Consolidated Cash Flow Statement, the Company Balance Sheet, the Company
Statement of Changes in Shareholders' Equity and notes to the financial
statements, including the significant accounting policies. The financial
reporting framework that has been applied in the preparation of the Group's
financial statements is applicable law and UK adopted International Accounting
Standards. The financial reporting framework that has been applied in the
preparation of the Parent Company's financial statements is FRS 101 'Reduced
Disclosure Framework applicable in the UK and Republic of Ireland' ('FRS 101'
or 'UK GAAP') and in accordance with the provisions of the Companies Act 2006.
In our opinion:
· the financial statements give a true and fair view of the state of
the Group's and of the Parent Company's affairs as at 31 December 2025 and of
the Group's profit for the year then ended;
· the Group financial statements have been properly prepared in
accordance with UK adopted International Accounting Standards;
· the Parent Company financial statements have been properly prepared
in accordance with FRS 101 and as applied in accordance with the provisions of
the Companies Act 2006; and
· the Group financial statements have been prepared in accordance with
the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing
(UK) (ISAs (UK)) and applicable law. Our responsibilities under those
standards are further described in the Auditor's responsibilities for the
audit of the financial statements section of our report. We are independent of
the Group and Parent Company in accordance with the ethical requirements that
are relevant to our audit of the financial statements in the UK, including the
FRC's Ethical Standard as applied to listed entities, and we have fulfilled
our other ethical responsibilities in accordance with these requirements. We
believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's
use of the going concern basis of accounting in the preparation of the
financial statement is appropriate.
Our evaluation of the director's assessment of the entity's ability to
continue to adopt the going concern basis of accounting included:
Evaluation of management assessment Key observations
Management have prepared detailed consolidated cash flow forecasts The cash flow forecasts demonstrates that the Group will have a cash flow
incorporating all entities within the Group covering the period to 31 December surplus throughout the forecast period. These incorporated all budgeted and
2027. These are based on their expectation of future costs, including budgeted committed expenditure, the
operating and capital expenditure on all the group's operating plants licence
areas and expectations of future iodine production levels and commodity price.
Our review included: schedule of repayment for the term loan and movements in working capital.
· Assessing the transparency, completeness and accuracy of the matters
covered in the going concern disclosure and management's cash flow
projections; We challenged management on assumptions used including iodine prices, iodine
production and sales, inflation and various other costs. In reviewing the cash
· Reviewing the cash flow forecasts, the methodology behind these, flow forecasts, we separately sensitised the commodity price to determine the
challenging the assumptions with management and corroborating them with our maximum the price of iodine could fall by, assuming a constant volume, in
historical knowledge of the Group; order for the cash to be depleted to Nil by the end of the forecast period.
Overall, the price of iodine would need to decrease by 59% in 2026 and 69% in
· Performing a sensitivity analysis on the budgets provided to assess 2027 in order for EBITDA to be Nil for both years of the forecasts. Given the
the change in revenue and iodine prices that would need to occur to push the price of iodine has been increasing since 2018, this is not considered likely.
Group into a cash negative position;
· Ensuring arithmetic accuracy of the model;
We have further sensitised the demand for crystallised iodine, reducing it to
· Obtaining post year end management information and comparing these to Nil. The results of this still showed a positive EBITDA for the group as a
forecasts to assess whether budgeting is reasonable and the results are in result of the flex in variable costs.
line with expectations; and
· Comparing the prior year budgeted cash flow with actual results to
assess management's ability to budget. We compared managements forecast to actual results post year end and noted
timing differences and no other material variances.
We have compared the prior year cash flow projection with the current year
actual results and noted some differences noted in demand of lower gross
margin products and the remaining differences for cash flow due to timing
only.
Finally, we have recalculated loan covenant ratios for 31 December 2026 and
2027 showing no breaches based on budgeted figures.
Based on the work we have performed, we have not identified any material
uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the entity's ability to continue
as a going concern for a period of at least twelve months from when the
financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to
going concern are described in the relevant sections of this report.
Our approach to the audit
As part of designing our audit, we determined materiality and assessed the
risks of material misstatement in the financial statements. In particular, we
looked at where the directors made subjective judgements, for example in
respect of significant accounting estimates that involved making assumptions
and considering future events that are inherently uncertain.
We tailored the scope of our audit to ensure that we performed enough work to
be able to give an opinion on the financial statements as a whole, taking into
account an understanding of the structure of the Company and the Group, their
activities, the accounting processes and controls, and the industry in which
they operate. Our planned audit testing was directed accordingly and was
focused on areas where we assessed there to be the highest risk of material
misstatement.
Our Group audit scope includes all of the group companies. At the Parent
Company level, we also tested the consolidation procedures. The audit team
communicated regularly throughout the audit with the Chief Financial Officer
(CFO) in order to ensure we had a good knowledge of the business of the Group.
During the audit we reassessed and re-evaluated audit risks and tailored our
approach accordingly.
The audit testing included substantive testing on significant transactions,
balances and disclosures, the extent of which was based on various factors
such as our overall assessment of the control environment, the effectiveness
of controls and the management of specific risk.
We communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and significant findings,
including any significant deficiencies in internal control that we identify
during the audit.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were
of most significance in our audit of the financial statements of the current
period and include the most significant assessed risks of material
misstatement (whether or not due to fraud) we identified, including those
which had the greatest effect on: the overall audit strategy, the allocation
of resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. This is not a complete list of
all risks identified during our audit. Going concern is a significant key
audit matter and is described above. In arriving at our audit opinion above,
the other key audit matters were as follows:
Key audit matters How our audit addressed the key audit matters
Revenue Recognition Our audit work included, but was not restricted to:
(applicable to the Group financial statements only) · Documenting our understanding of management's process for evaluating
revenue recognition and assessing the design effectiveness and implementation
of related key controls;
Under IFRS 15, the entity shall recognise revenue to depict the transfer of · Testing a sample of transactions throughout the year to ensure the
goods or services to customers in an amount that reflects the consideration to recognition is in line with IFRS 15, the Group accounting policy and to ensure
which the entity expects to be entitled in exchange for those goods or the accuracy and occurrence of revenue;
services.
· Tested a sample of transactions pre and post year end to assess
whether sales are accounted for in the correct period;
The revenue stream for the group is derived from sale of iodine derivatives, · Tested a sample of post year end credit notes to ensure no large
iodine chemicals and ancillary products, all of which are fundamental to the credit notes were issued post year end relating to 2025 sales; and
financial statements and a systematic error in the calculation could lead to a
material error. · Using our data analytics software to assess the correlations between
revenue entries, trade receivables and subsequent cash receipt. This would
identify whether any subsequent reversal of trade receivables should have
impacted the recognition of the revenue.
In this regards, we therefore consider that there is a significant risk over
the cut off, occurrence and accuracy of revenue recognition.
The Group's accounting policy on revenue recognition is shown in the
Accounting Policies for the consolidated financial statements and related
disclosures are included in note 1d.
Key observations
As a result of the audit procedures we performed and, after considering
management's disclosures of the judgements applied by them, we have concluded
that revenue recognition is materially complete, accurate, has occurred and
recognised on an appropriate basis.
Valuation and Impairment review of property plant and equipment Our audit work included, but was not restricted to:
(applicable to the Group financial statements only) · Reviewing Management's assessment of forecasted cash flows and
challenged significant movements in forecasted cash flows compared to historic
performance;
Under International Accounting Standard 36 'Impairment of Assets' (IAS 36), · Reviewing Management's forecasted cash flows that feed into the
companies are required to assess whether there is any indication that an asset discounted cash flow model and challenged significant assumptions with
may be impaired at each reporting date. reference to historic results, market trends, appropriateness of discount
rates and future expectations of commodity prices and sales growth;
· Critically analysing whether or not the IOSorb plants should be
Property, plant and equipment represent a significant balance in the financial viewed as one Cash Generating Unit ("CGU") or multiple CGU's;
statements with a combined net book value of $37.0m (2024 - $31.8m). The
balance is primarily comprised of the IOSorb plants, equipment and machinery · Challenging management and gained an understanding of what is
and construction in progress. considered a cash generating unit; and
· Performing a downside sensitivity analysis and held discussions with
Management to assess the likelihood of certain circumstances crystallising.
The estimated recoverable amount of these balances is subjective due to the
inherent uncertainty involved in forecasting and probability of the related
future cash flows which is based on expected future cash flows of the IOSorb
plants. The Group's accounting policy on Impairment is shown in the Accounting
Policies for the consolidated financial statements and related disclosures are
included in note 1m.
Significant management judgement and estimation uncertainty is involved in
this area, where the primary inputs are:
Key observations
• Estimating cash flow forecasts; and
As a result of the audit procedures we performed and, after considering
• Selecting appropriate assumptions such as growth rate, Iodine prices and management's disclosures of the judgements applied by them, we have concluded
discount rate. that no impairments are required.
We therefore identified the risk over the valuation of property plant and We have confirmed the estimates and judgements utilised within the models
equipment as a significant risk. applied in relation to the impairment of property, plant and equipment are
within acceptable ranges.
We are also satisfied that the plants should be considered one CGU.
Valuation of Inventory Our audit work included, but was not restricted to:
(applicable to the Group financial statements only) · Reviewed the inventory valuation on a sample basis to assess whether
it is held at the lower of cost and net realisable value;
· Considered the inputs used and accuracy of the billable of materials
Inventory primarily consists of iodine and iodine derivatives. Inventory calculation to value the initial cost per unit of the inventory; and
should be held at the lower of cost and net realisable value.
· Considered the inputs used and accuracy of calculations of the value
The net realisable value is the estimated selling price in the ordinary course of overheads absorbed into inventory. We challenged these assumptions with
of business less any applicable selling expenses. As at 31 December 2025, the management to ensure they are appropriate.
inventory is valued at $8.4m (2024 - $10.1m). There is a risk that the
carrying value in the Group accounts is higher than the recoverable amount and
therefore materially misstated. Further, there is the added risk of the
complexity of the measurement of the costs of conversion of the inventory and The Group's accounting policy on Inventories is shown in the Accounting
the estimates and judgements around this. Policies for the consolidated financial statements and related disclosures are
included in note 1o.
We therefore identified the valuation of inventory as a key audit matter,
which was one of the most significant assessed risks of material misstatement. Key observations
As a result of the audit procedures we performed and, after considering
Management's disclosures of the judgements applied by them, we have concluded
that the valuation of inventory is materially accurate and recognised on an
appropriate basis.
We have confirmed the estimates and judgements utilised within the models
applied in relation to the valuation of inventory are within acceptable
ranges.
Valuation and Impairment review of investments in subsidiaries and Our audit work included, but was not restricted to:
intercompany balances
· Obtaining and reviewing the director's assessment of impairment with
(applicable to the Parent Company financial statements only) regards to investment and loans due from its subsidiaries to assess whether
the treatment of the balances was in line with IAS 36;
Due to the material size of the investments in, and loans to, the subsidiaries
the directors should critically consider if any indicators of impairment exist · Reviewing the results of the impairment reviews undertaken by the
in relation to the balances. directors and critically assess and challenge management for the assumptions
used within the impairment review to ensure they are appropriate;
The estimated recoverable amount of these balances is subjective due to the
inherent uncertainty involved in forecasting the profitability of the · Reviewing the 2025 forecasts against actual results to determine the
subsidiaries. Directors' historic forecasting accuracy;
Where indicators of impairment have been identified a robust review of the · Performing a sensitivity analysis on the key inputs mentioned above
investments held by the Parent Company and any amounts due from subsidiaries with the key being the decline in Iodine prices and sales growth; and
to the Parent Company should be undertaken by the directors to confirm the
value in use of these amounts and that there are no indications, or · Calculating the enterprise value of the company and compared to net
requirements for, impairments of the amounts. book value ("NBV") of the investment and loans due to subsidiaries.
Significant management judgement and estimation uncertainty is involved in The Group's accounting policy on impairment is shown in the Accounting
this area, where the primary inputs are: Policies for the consolidated financial statements and related disclosures are
included in note 1m.
• Estimating cash flow forecasts;
• Selecting an appropriate assumption such as growth rate and discount rate.
Key observations
As a result of the audit procedures we performed and, after considering
We therefore identified the valuation of investments in subsidiaries and management's disclosures of the judgements applied by them, we have concluded
intercompany balances as a key audit matter, which was one of the most that no impairments are required.
significant assessed risks of material misstatement.
We have confirmed the estimates and judgements utilised within the models
applied in relation to the valuation and impairment of investments in
subsidiaries and intercompany balances are within acceptable ranges.
Valuation and impairment review of Goodwill Our audit work included, but was not restricted to:
(applicable to the Group financial statements only) · Assessing whether goodwill arising from the acquisition of H&S
Chemical was allocated to an appropriate CGU in accordance with the
requirements of IAS 36.
Goodwill recognised on the acquisition of H&S Chemical has been allocated · Evaluating management's value‑in‑use model, including reviewing
to the Iofina Chemical ("IC") cash‑generating unit (CGU). At the reporting the methodology applied and checking the mathematical accuracy of the
date, goodwill and other related tangible and intangible assets allocated to calculations.
this CGU represented a material balance in the
Assessing the reasonableness of the key assumptions used in the cash flow
forecasts, including:
Group's consolidated statement of financial position.
· evaluating assumptions relating to iodine price increases by
comparison to historical trends, contractual pricing where applicable, and
In accordance with IAS 36 Impairment of Assets, goodwill is tested annually available external market information;
for impairment at the CGU level. Management has determined the recoverable
amount of the IC CGU based on a value‑in‑use model, which incorporates a
discounted cash flow forecast over a five‑year period and a terminal value,
using an estimate of the weighted average cost of capital (WACC). · assessing assumptions relating to iodine purity by comparing forecast
purity levels to historical production data and considering the consistency of
assumed purity levels with the Group's operational capabilities;
The determination of the recoverable amount involves a high degree of
judgement, including assumptions relating to:
· assessing inflation rate assumptions applied to operating costs with
reference to recent cost trends and published economic data; and
· future revenue growth, including projected iodine price increases;
· expected iodine purity levels, which directly impact achievable · assessing the discount rate (WACC) by benchmarking key components
pricing and margins; against market‑based data and, where appropriate, using independent
valuation expertise.
· operating costs and inflation rates; and
· the discount rate (WACC) applied to future cash flows.
· Comparing forecast cash flows to historical performance and to
budgets approved by the Board, and assessing whether the forecasts
appropriately reflected current operating and economic conditions.
We therefore identified the impairment assessment and valuation of goodwill to
be a key audit matter given the materiality of goodwill, the level of
estimation uncertainty, the sensitivity of the valuation to changes in key
assumptions, and the risk that impairment may not be recognised where · Performing sensitivity analyses on key assumptions, including iodine
required. pricing, iodine purity, inflation rates and the discount rate, to assess the
impact of reasonably possible changes on the recoverable amount of the IC CGU.
· Reviewing the disclosures in the financial statements to ensure that
the key assumptions and significant judgements applied in the impairment
assessment were appropriately described.
The Group's accounting policy on impairment is shown in the Accounting
Policies for the consolidated financial statements and related disclosures are
included in note 1h.
Key observations
As a result of the audit procedures we performed and, after considering
management's disclosures of the judgements applied by them, we have concluded
that no impairments are required.
Our application of materiality
The scope and focus of our audit was influenced by our assessment and
application of materiality. We apply the concept of materiality both in
planning and performing our audit, and in evaluating the effect of
misstatements on our audit and on the financial statements.
We define financial statement materiality as the magnitude by which
misstatements, including omissions, could reasonably be expected to influence
the economic decisions taken on the basis of the financial statements by
reasonable users.
In order to reduce to an appropriately low level the probability that any
misstatements exceed materiality, we use a lower materiality level,
performance materiality, to determine the extent of testing needed.
Importantly, misstatements below these levels will not necessarily be
evaluated as immaterial as we also take account of the nature of identified
misstatements, and the particular circumstances of their occurrence, when
evaluating their effect on the financial statements as a whole.
Materiality Measure Group Parent
Overall materiality We determined materiality for the financial statements as a whole to be We determined materiality for the financial statements as a whole to be
$391,000 (2024: $385,700). $312,000 (2024: $358,300).
How we determine it For 2025 materiality is based 5% of the last 3 years average Profit Before Tax As the Parent is a holding company, materiality was based on 1% of gross
("PBT") for the Group. No change from the prior year. assets.
Rationale for benchmarks applied As a trading group, materiality based on average PBT is an appropriate factor As a holding company, materiality is based on 1% of the total assets of the
given the group's profitability in the past few years has been inconsistent group. This is appropriate as the company is a holding company.
and profitability being one of the key drivers of the business and is a key
KPI for stakeholders.
Performance materiality On the basis of our risk assessment, together with our assessment of the Group
and Company's control environment, our judgement is that performance
materiality for the financial statements should be 75% of materiality for the
Group and 60% for the Company:
$293,250 (2024: $289,300) $234,000 (2024: $268,700)
Specific materiality We also determine a lower level of specific materiality for certain areas such
as directors' remuneration and related party transactions of $2,500.
Reporting threshold We agreed with the Audit Committee that we would report to them all
misstatements over 5% of Group and Company materiality identified during the
audit, as well as differences below that threshold that, in our view, warrant
reporting on qualitative grounds.
We also report to the Audit Committee on disclosure matters that we identified
when assessing the overall presentation of the financial statements.
$19,550 (2024: $19,300) $15,600 (2024: $18,400)
Other information
The other information comprises the information included in the annual report
other than the financial statements and our auditor's report thereon. The
directors are responsible for the other information contained within the
annual report. Our opinion on the financial statements does not cover the
other information and, except to the extent otherwise explicitly stated in our
report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the course of the audit, or otherwise
appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required to
determine whether this gives rise to a material misstatement in the financial
statements themselves.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
· the information given in the strategic report and the directors'
report for the financial year for which the financial statements are prepared
is consistent with the financial statements; and
· the strategic report and the directors' report have been prepared in
accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and Parent
Company and its environment obtained in the course of the audit, we have not
identified material misstatements in the strategic report or the directors'
report.
We have nothing to report in respect of the following matters in relation to
which the Companies Act 2006 requires us to report to you if, in our opinion:
· adequate accounting records have not been kept by the Parent Company,
or returns adequate for our audit have not been received from branches not
visited by us; or
· the Parent Company financial statements are not in agreement with the
accounting records and returns; or
· certain disclosures of directors' remuneration specified by law are
not made; or
· we have not received all the information and explanations we require
for our audit.
Responsibilities of directors
As explained more fully in the statement of directors' responsibilities set
out on page 26, the directors are responsible for the preparation of the
financial statements and for being satisfied that they give a true and fair
view, and for such internal control as the directors determine is necessary to
enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for
assessing the Group's and the Parent Company's ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to
liquidate the group or Parent Company or to cease operations, or have no
realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities,
including fraud is detailed below:
Based on our understanding of the Group and the industry in which it operates,
we identified that the principal risks of non-compliance with laws and
regulations related to the use of regulated chemicals, tax legislation,
employment and health and safety regulations, anti-bribery, corruption and
fraud and we considered the extent to which non-compliance might have a
material effect on the financial statements.
We also considered those laws and regulations that have a direct impact on the
preparation of the financial statements such as the Companies Act 2006, UK
adopted International Accounting Standards and United Kingdom Generally
Accepted Accounting Practice. We evaluated management's incentives and
opportunities for fraudulent manipulation of the financial statements
(including the risk of override of controls), and determined that the
principal risks were related to posting manual journal entries to manipulate
financial performance, management bias through judgements and assumptions in
significant accounting estimates, in particular in relation to revenue
recognition, and significant one-off or unusual transactions.
Our audit procedures were designed to respond to those identified risks,
including non-compliance with laws and regulations (irregularities) and the
QCA's Code on Corporate Governance and fraud that are material to the
financial statements. Our audit procedures included but were not limited to:
• Review of the financial statement disclosures to underlying
supporting documentation;
• Review of reports from the regulators, including correspondence
with SOCMA (Society of Chemical Manufacturers and Affiliates), DEA (Drug
Enforcement Administration), US tax authorities and OSHA (Occupational Safety
& Health Administration);
• Discussing with management their policies and procedures regarding
compliance with laws and regulations;
• Enquiries of management and review of internal audit committee
reports in so far as they related to the financial statements;
• Enquiring of management as to actual and potential litigation and
claims;
• Review of relevant legal or professional costs within the
accounting records for any evidence of previously un-detected or un-reported
instances of non-compliance;
• Communicating identified laws and regulations throughout our
engagement team and remaining alert to any indications of non-compliance
throughout our audit; and
• Considering the risk of acts by the Group which were contrary to
the applicable laws and regulations, including fraud.
Our audit procedures in relation to fraud included but were not limited to:
• Making enquiries of the management on whether they had knowledge
of any actual, suspected or alleged fraud;
• Gaining an understanding of the internal controls established to
mitigate risks related to fraud;
• Substantively testing of revenue and testing of journals to
identify unusual transactions and evaluating whether there was evidence of
bias by the Directors that represented a risk of material misstatement due to
fraud;
• Performed analytical procedures to identify any unusual or
unexpected relationships;
• Assessed whether judgements and assumptions made in determining
the accounting estimates were indicative of potential bias;
• Investigated the rationale behind any significant or unusual
transactions;
• Discussing amongst the engagement team the risks of fraud; and
• Addressing the risks of fraud through management override of
controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the
further removed non-compliance with laws and regulations is from the events
and transactions reflected in the financial statements, the less likely we
would become aware of it. Also, the risk of not detecting a material
misstatement due to fraud is higher than the risk of not detecting one
resulting from error, as fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial
statements is located on the Financial Reporting Council's website at
www.frc.org.uk/auditorsresponsibilities
(http://www.frc.org.uk/auditorsresponsibilities) . This description forms part
of our auditor's report.
Use of our report
This report is made solely to the Parent Company's members, as a body, in
accordance with part 3 of Chapter 16 of the Companies Act 2006. Our audit work
has been undertaken so that we might state to the Parent Company's members
those matters we are required to state to them in an auditor's report and for
no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Parent Company and the Parent
Company's members as a body, for our audit work, for this report, or for the
opinions we have formed.
Colin Wright
(Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
Statutory Auditors
UHY Hacker Young
4 Thomas More Square
London E1W 1YW
29 April 2026
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended Year ended
31 December 31 December
2025 2024
Note $'000 $'000
Revenue 3 66,515 54,465
Cost of sales 4 (48,482) (41,228)
Gross profit 18,033 13,237
Administrative expenses 4 (6,218) (5,670)
Depreciation and amortisation 4 (3,130) (2,610)
Operating profit 8,685 4,957
Other income
Government subsidies 6 2,076 -
Profit before finance expense 10,761 4,957
Finance income 8 141 176
Finance expense 7 (311) (266)
Interest swap derivative asset 20 (65) (68)
Profit before taxation 4 10,526 4,799
Taxation 9 (2,658) (1,881)
Profit for the year attributable to owners of the parent $7,868 $2,918
Earnings per share attributable to owners of the parent:
- Basic 10 $0.041 $0.015
- Diluted 10 $0.040 $0.015
2025 2024
Adjusted EBITDA: $'000 $,000
Profit before finance expense 10,761 4,957
Depreciation and amortisation 3,130 2,610
EBITDA 13,891 7,567
Other income 6 (2,076) -
Adjusted EBITDA $11,815 $7,567
All activities are classed as continuing.
The accompanying notes form part of these financial statements.
CONSOLIDATED BALANCE SHEET
31 December 31 December
2025 2024
Note $'000 $'000
Assets
Non-current assets
Goodwill 12 3,087 3,087
Property, plant and equipment 13 37,042 31,790
Term loan - interest swap asset 20 28 92
Total non-current assets 40,157 34,969
Current assets
Inventories 14 8,398 10,060
Trade and other receivables 16 18,916 11,896
Cash and cash equivalents 17 11,731 6,857
Total current assets 39,045 28,813
Total assets $79,202 $63,782
Equity and liabilities
Current liabilities
Trade and other payables 18 12,936 10,800
Loan repayments due within one year 20 1,793 1,429
Lease liabilities 19 75 160
Total current liabilities 14,804 12,389
Non-current liabilities
Loan repayments due after one year 20 4,709 2,500
Lease liabilities 19 81 170
Deferred tax liability 25 3,925 932
Total non-current liabilities 8,715 3,602
Total liabilities $23,519 $15,991
Equity attributable to owners of the parent
Issued share capital 22 3,107 3,107
Share premium 23 - 60,687
Share-based payment reserve 24 2,435 2,411
Distributable reserves/(retained losses) 23 56,085 (12,470)
Foreign currency reserve (5,944) (5,944)
Total equity $55,683 $47,791
Total equity and liabilities $79,202 $63,782
The financial statements on pages 56 to 89 were approved and authorised for
issue by the Board and were signed on its behalf on 29 April 2026.
Dr. Thomas M. Becker - Chief Executive Officer and President
The accompanying notes form part of these financial
statements. Company number 05393357
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Attributable to owners of the parent
Share Share Share-based Distributable reserves Foreign Total
capital premium payment (Retained currency equity
reserve losses) reserve
$'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 January 2024 $3,107 $60,687 $2,367 $(15,467) $(5,944) $44,750
Transactions with owners
Share-based expense - - 123 - - 123
Share options forfeited - - (79) 79 - -
Total transactions with owners - - 44 79 - 123
Profit for the year attributable to owners of the parent - - - 2,918 - 2,918
Total comprehensive income attributable to owners of the parent - - - 2,918 - 2,918
Balance at 31 December 2024 $3,107 $60,687 $2,411 $(12,470) $(5,944) $47,791
Transactions with owners
Capital reduction scheme - (60,687) - 60,687 - -
(Note 23)
Share-based expense - - 24 - - 24
Total transactions with owners - (60,687) 24 60,687 - 24
Profit for the year attributable to owners of the parent - - - 7,868 - 7,868
Total comprehensive income attributable to owners of the parent - - - 7,868 - 7,868
Balance at 31 December 2025 $3,107 - $2,435 $56,085 $(5,944) $55,683
CONSOLIDATED CASH FLOW STATEMENT
Year ended Year ended
31 December 31 December
2025 2024
Note $'000 $'000
Cash flows from operating activities
Profit before taxation 10,526 4,799
Adjustments for:
Depreciation 13 3,130 2,484
Loss on disposal of fixed asset - 23
Amortisation of intangible assets - 103
Share-based payments 24 24 123
Revaluation of derivative asset 20 64 68
Finance expense 7 311 265
Finance income 8 (141) (177)
Government subsidies 6 (2,076) -
Operating cash inflow before changes 11,838 7,688
in working capital, tax paid and subsidies
Changes in working capital
(Increase)/decrease in trade and other receivables (6,685) 3,825
Decrease in inventories 1,662 78
Increase in trade and other payables 2,136 838
Net cash inflow from operating activities before 8,951 12,429
tax paid and subsidies
Net tax paid (1) (901)
Government subsidies 2,076 -
Net cash inflow from operating activities after 11,026 11,528
tax paid and subsidies
Cash flows from investing activities
Interest received 8 141 177
Additions to property, plant and equipment 13 (8,382) (9,513)
Net cash outflow from investing activities (8,241) (9,336)
Cash flows from financing activities
Bank loan drawdowns 4,003 -
Bank loan repayments 20 (1,429) (1,429)
Interest paid (293) (246)
Lease payments 19 (192) (178)
Net cash inflow/(outflow) from financing activities 2,089 (1,853)
Net increase in cash and cash equivalents 4,874 339
Cash and cash equivalents at beginning of year 6,857 6,518
Cash and cash equivalents at end of year $11,731 $6,857
COMPANY BALANCE SHEET
31 December 31 December
2025 2024
Note $'000 $'000
Assets
Non-current assets
Investment in subsidiary undertakings 28 17,199 17,199
Total non-current assets 17,199 17,199
Current assets
Due from subsidiaries 28 17,475 18,395
Trade and other receivables 16 8 8
Cash and cash equivalents 17 176 224
Total current assets 17,659 18,627
Total assets $34,858 $35,826
Equity and liabilities
Current liabilities
Trade and other payables 18 332 258
Total current liabilities 332 258
Equity attributable to the owners of the parent
Issued share capital 22 3,107 3,107
Share premium 23 - 60,687
Share-based payment reserve 24 2,435 2,411
Distributable reserves/(retained losses) 34,743 (24,878)
Foreign currency reserve (5,759) (5,759)
Total equity 34,526 35,568
Total equity and liabilities $34,858 $35,826
The directors have taken advantage of the exemption offered by section 408 of
the Companies Act 2006 not to present a separate statement of comprehensive
income for the parent company.
The parent company has also taken advantage of certain disclosure exemptions
conferred by FRS 101 and has not provided a Cash Flow Statement.
The loss for the financial year dealt with in the financial statements of the
parent company was $1,065k (2024 loss $1,022k).
The financial statements on pages 56 to 89 were approved and authorised for
issue by the Board and were signed on its behalf on 29 April 2026.
Dr. Thomas M Becker
Chief Executive Officer and President
Company number: 05393357
COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Attributable to equity holders of the parent
Share Share Share based Retained Foreign Total
capital premium payment losses currency equity
reserve reserve
$'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 January 2024 $3,107 $60,687 $2,367 $(23,935) $(5,759) $36,467
Transactions with owners
Share-based expense - - 123 - - 123
Share options forfeited - - (79) 79 - -
Total transactions with owners - - 44 79 - 123
Loss attributable to owners of the parent - - - (1,022) - (1,022)
Total comprehensive income for the year - - - (1,022) - (1,022)
Balance at 31 December 2024 $3,107 $60,687 $2,411 $(24,878) $(5,759) $35,568
Transactions with owners
Capital reduction scheme - (60,687) - 60,687 - -
(Note 23)
Share-based expense - - 24 - - 24
Total transactions with owners - (60,687) 24 60,687 - 24
Loss attributable to owners of the parent - - - (1,065) - (1,065)
Total comprehensive income for the year - - - (1,065) - (1,065)
Balance at 31 December 2025 $3,107 - $2,435 $34,744 $(5,759) $34,527
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Accounting policies
The Company is a public limited company incorporated and domiciled in the
United Kingdom. The Company is listed on the AIM Market of the London Stock
Exchange.
The registered office is located at 48 Chancery Lane, London, WC2A 1JF. The
principal activities of the Company have been and continue to be investment in
subsidiaries engaged in the production of iodine and iodine derivatives,
including the arrangement of finance for and the provision of management
services to subsidiaries.
a) Statement of compliance
These consolidated financial statements have been prepared in accordance with
UK adopted International Accounting Standards ('IFRS') and IFRS
Interpretations Committee ('IFRIC') and the Companies Act 2006 applicable to
companies reporting under IFRS. The accounts of the parent company, Iofina
plc, have been prepared in accordance with FRS101 'Reduced Disclosure
Framework applicable in the UK and Republic of Ireland' (FRS 101). The company
has taken advantage of certain disclosure exemptions conferred by FRS101,
including not presenting a Company Cash Flow Statement.
The accounting policies set out below have been applied consistently to all
periods presented in these consolidated financial statements.
b) New standards, interpretations and amendments
Management continues to evaluate standards, amendments and interpretations
which are applicable and effective for reporting periods beginning after the
date of these financial statements and have not been adopted early, including:
- Lack of Exchangeability (Amendments to IAS 21)
- Classification and Measurement of Financial Instruments
(Amendments to IFRS9 and IFRS7)
- Annual Improvements to IFRS Accounting Standards - Volume 11
(IFRS1, IFRS7, IFRS9 and IFRS10)
- IFRS 18 Presentation and Disclosure in Financial Statements
- IFRS19 Subsidiaries without Public Accountability: Disclosures
Implementation of the above is not expected to have a material effect on the
Group's financial statements in the future.
c) Basis of preparation of financial statements
The financial statements have been prepared on the historical cost convention
as modified by the revaluation of financial liabilities at fair value through
profit and loss.
The financial statements are presented in US Dollars, which is also the
Group's functional currency.
Amounts are stated in thousands of US Dollars, unless otherwise stated.
As permitted by Section 408 of the Companies Act 2006, the parent company's
income statement has not been included in these financial statements.
d) Revenue recognition
Revenue is measured as the amount of consideration we expect to receive in
exchange for transferring goods or providing services, and is recognized when
performance obligations are satisfied under the terms of contracts with our
customers. A performance obligation is deemed to be satisfied when transfer of
control of the product or service is transferred to our customer. The
transaction price of a contract, or the amount we expect to receive upon
satisfaction of all performance obligations, is determined by reference to the
contract's terms and includes adjustments, if applicable, for any variable
consideration, such as customer rebates or commissions, although these
adjustments are generally not material. Costs incurred to obtain contracts
with customers are expensed immediately.
Revenue consists of sales of iodine derivatives, iodine, chemicals and
ancillary products. All of our revenue is derived from contracts with
customers, and almost all of our contracts with customers contain one
performance obligation for the transfer of goods where such performance
obligation is satisfied at a point in time. Transfer of control of a product
is deemed to be transferred to the customer upon shipment or delivery.
Significant portions of our sales are sold free on board shipping point or on
an equivalent basis, while delivery terms of other transactions are based upon
specific contractual arrangements. Our standard terms of delivery are
generally included in our contracts of sale, order confirmation documents and
invoices, while the timing between shipment and delivery generally ranges
between 1 and 45 days. Costs for shipping and handling activities, whether
performed before or after the customer obtains control of the goods, are
accounted for as fulfilment costs.
e) Research and development expenditures
Expenditure on research (or the research phase of an internal project) is
recognised as an expense in the period in which it is incurred. Costs that are
directly attributable to the development phase of a new customised chemical
manufacturing process or development of a new iodine project are recognised as
intangible assets provided they meet the following recognition requirements:
§ completion of the intangible asset is technically feasible so it will be
available for use or sale;
§ the Group intends to complete the intangible asset and use or sell it;
§ the Group has the ability to use or sell the intangible asset;
§ the intangible asset will generate probable future economic benefits;
§ there are adequate technical, financial and other resources to complete the
development and to use or sell the intangible asset; and
§ the expenditure attributable to the intangible asset during its development
can be measured reliably.
Among other things, this requires that there is a market for the output from
the intangible asset or for the intangible asset itself, or, if it is to be
used internally, the asset will be used in generating such benefits.
Development costs not meeting these criteria for capitalisation are expensed
as incurred. In 2024, all research and development expenditures were expensed
as incurred.
f) Going concern
The Group considers that it is now well placed financially with low overall
debt, proper debt facilities, generation of profits and free cash flows, and
sustained upwards trends in iodine pricing. On that basis the Group has
prepared forecasts and projections that indicate there are adequate resources
to continue in operational existence for the foreseeable future. However, the
Group recognises that there can be no certainty where these predictions are
concerned. After due consideration of the foregoing, the Directors consider it
appropriate to continue to adopt the going concern basis in preparing the
financial statements.
g) Basis of consolidation and investments in subsidiary undertakings
The consolidated financial statements incorporate the financial statements of
the Company and its subsidiaries made up to 31 December 2025. Subsidiaries are
entities over which the Group has the power to control the financial and
operating policies so as to obtain benefits from their activities. The Group
obtains and exercises control through voting rights. The acquisition method of
accounting is used to account for the purchase of subsidiaries by the Group.
On acquisition, the subsidiary's assets and liabilities are recorded at fair
value, reflecting their condition at the date of acquisition.
The financial statements of subsidiaries are included in the consolidated
financial statements from the date control commences until the date control
ceases.
Intra-Group balances and any unrealised gains and losses or income and
expenses arising from intra-Group transactions are eliminated in preparing the
consolidated financial statements, unless the losses provide an indication of
impairment of the assets transferred.
Amounts reported in the financial statements of the subsidiaries are adjusted
where necessary to ensure consistency with the accounting policies adopted by
the Group.
Investments in subsidiary undertakings are stated in the parent company
balance sheet at cost less provision for any impairment losses.
h) Business combinations and goodwill
Business combinations are accounted for using the acquisition method. The
acquisition method involves the recognition of the acquiree's identifiable
assets and liabilities, including contingent liabilities, regardless of
whether they were recorded in the financial statements prior to acquisition.
On initial recognition, the assets and liabilities of the acquired subsidiary
are included in the consolidated balance sheet at their fair values, which are
also used as the basis for subsequent measurement in accordance with the
Group's accounting policies. Acquisition costs are expensed as incurred.
Goodwill represents the excess of the fair value of consideration payable in a
business combination over the fair value of the Group's share of the
identifiable net assets of the acquiree at the date of acquisition. Any excess
of identifiable net assets over the fair value of consideration is recognised
in profit or loss immediately after acquisition.
As described in Note 1m) below, goodwill is tested for impairment at least
annually.
i) Foreign currency
The vast majority of the Group's business is denominated in U.S. Dollars,
which is the functional currency of the main operating subsidiaries. U.S.
Dollars is the presentational currency for the Group financial statements.
Transactions denominated in foreign currencies are translated at the rates of
exchange ruling at the date of the transaction. Monetary assets and
liabilities in foreign currencies are translated at the rates of exchange
ruling at the balance sheet date. Non-monetary items that are measured at
historical cost in a foreign currency are translated at the exchange rate at
the date of transaction. Non-monetary items that are measured at fair value in
a foreign currency are translated using the exchange rates at the date the
fair value was determined.
Any exchange differences arising on the settlement of monetary items or on
translating monetary items at rates different from those at which they were
initially recorded are recognised in profit and loss in the period in which
they arise. Exchange differences on non-monetary items are recognised in other
comprehensive income to the extent that they relate to a gain or loss on that
non-monetary item taken to the statement of changes in equity, otherwise such
gains and losses are recognised in profit and loss.
The results and financial position of foreign operations (none of which has
the currency of a hyperinflationary economy) that have a functional currency
different from the presentation currency are translated into the presentation
currency as follows:
• assets and liabilities for each balance sheet presented are translated at
the closing rate at the date of that balance sheet;
• income and expenses for each statement of profit or loss and statement of
comprehensive income are translated at average exchange rates (unless this is
not a reasonable approximation of the cumulative effect of the rates
prevailing on the transaction dates, in which case income and expenses are
translated at the dates of the transactions); and
• all resulting exchange differences are recognised in other comprehensive
income.
On disposal of a foreign operation for which the presentational and functional
currencies were different in previous periods, the cumulative translation
differences are transferred to profit and loss as part of the gain or loss on
disposal. The US Dollar/Pounds Sterling exchange rate averaged 1.315 in 2025
(2024: 1.278), and at 31 December 2025 was 1.346 (2024: 1.253).
j) Intangible assets
Undeveloped leasehold costs
Undeveloped leasehold costs relate to the costs of acquiring brine leases in
respect of the surface and mineral rights of landowners in areas of interest
outside of those currently connected to the Group's operating plants.
These costs are capitalised as exploration and evaluation assets and are
carried at historical cost less any impairment losses recognised. If areas
leased provide brine to operating plants, the related costs are transferred to
the relevant plants and amortized over the lives of those plants.
Other intangible assets
Other identifiable intangible assets arose from the acquisition of H&S
Chemical in 2009. These assets were valued by an external, independent
valuation firm. Based on the type of asset, the useful life of each asset was
estimated. The value of each identifiable intangible asset is amortised evenly
over its useful life. The following useful lives are applied:
§ WET® patent: 15 years
§ Customer relationships: 10 years
§ Patent portfolio: 8 years
§ EPA registrations: 2 years
Goodwill
Goodwill represents the excess of the fair value of consideration in a
business combination over the fair value of the Group's share of the
identifiable net assets acquired. Goodwill is carried at cost less accumulated
impairment losses.
k) Property, plant and equipment
Property, plant and equipment are stated at historical cost, net of
depreciation and any provision for impairment. Cost includes purchase price
and costs directly attributable to bringing the asset to the location and
condition necessary for it to be capable of operating in the manner intended
by management, such as costs relating to construction, site preparation,
installation and testing.
Costs relating to assets put into service at a later date are accumulated as
construction in progress, and depreciation only commences once such assets are
put into use.
Depreciation is provided at rates calculated to write off the depreciable
amount of each asset on a straight line basis over its expected useful life,
as follows:
§ Buildings: 2.5 percent per annum
§ Office lease: term of the lease (28 months)
§ Vehicle finance leases: term of the leases (57 months)
§ Equipment and machinery:
o IOsorb® plants - 5 percent per annum
o Other plant and equipment - 5 to 7 years
o Vehicles and office equipment - 20 percent per annum
o Computer equipment - 33 percent per
annum
Reviews of the estimated remaining lives and residual values of individual
assets are made at least semi-annually, and adjustments are made where
appropriate. Construction in progress is also reviewed for impairment.
Freehold land and construction in progress are not depreciated.
l) Financial instruments
1) Financial liabilities
Trade and other payables
Trade and other payables are initially recognised at fair value and
subsequently measured at amortised cost using the effective interest rate
method.
Loan notes
Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. An equity instrument
is any contract that evidences a residual interest in the assets of the Group
after deducting all of its liabilities.
Interest-bearing loans are recorded initially at their fair value, net of
direct transaction costs. Such instruments are subsequently carried at their
amortised cost and finance charges, including premiums payable on settlement,
redemption or conversion, are recognised in profit or loss over the term of
the instrument using the effective rate of interest.
2) Financial assets
Cash and cash equivalents represent short term, highly liquid investments with
an original maturity of fewer than three months that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of
changes in value. At the end of 2025 and 2024, all cash amounts were in 100
percent liquid accounts.
The Group uses the 'simplified method of expected credit losses'. Trade
receivables are recognised initially at fair value and subsequently measured
at amortised cost using the effective interest rate method, less provision for
expected credit losses. Expected credit losses are based on the Group's
historical credit losses experienced, then adjusted for current and forward
looking information on factors affecting the Group's customers.
m) Impairment
Whenever events or changes in circumstances indicate that the carrying value
of an asset may not be recoverable, that asset is reviewed for impairment. An
asset's carrying value is written down to its estimated recoverable amount
(being the higher of the fair value less costs to sell and value in use) if
that is less than the asset's carrying amount.
Goodwill is allocated to those cash-generating units that are expected to
benefit from synergies of the related business combinations and represent the
lowest level within the Group at which management monitors goodwill.
Cash-generating units to which goodwill has been allocated are tested for
impairment at least annually. An impairment loss is recognised for the amount
by which the asset's or cash generating unit's carrying amount exceeds its
recoverable amount, which is the higher of fair value less costs to sell and
value in use. To determine the value in use, management estimates expected
future cash flows from each cash-generating unit and determines a suitable
discount rate in order to calculate the present value of those cash flows. The
data used for impairment testing procedures are directly linked to the Group's
latest approved budget, adjusted as necessary to exclude the effects of future
reorganisations and asset enhancements. Discount factors are determined
individually for each cash-generating unit and reflect their respective risk
profiles as assessed by management.
Impairment losses for cash-generating units reduce first the carrying amount
of any goodwill allocated to that cash-generating unit. Any remaining
impairment loss is charged pro rata to the other assets in the cash-generating
unit. With the exception of goodwill, all assets are subsequently reassessed
for indications that an impairment loss previously recognised may no longer
exist. An impairment charge is reversed if the cash-generating unit's
recoverable amount exceeds its carrying amount.
The Group assesses on a forward-looking basis the expected credit losses
associated with its debt instruments carried at amortised cost. The impairment
methodology applied depends on whether there has been a significant increase
in credit risk.
For trade receivables, the Group applies the simplified approach permitted by
IFRS 9, which requires expected lifetime losses to be recognised from initial
recognition of the receivables. Intercompany loans due to the parent company
from its subsidiaries are tested for impairment as part of the overall
investment in those subsidiaries, by reference to the present values of
estimated future cash flows of the subsidiaries, as further described in Note
2d.
n) Equity
Equity comprises the following:
§ "Share capital" represents the nominal value of equity shares.
§ "Share premium" represents the excess over nominal value of the fair value
of consideration received for equity shares, net of expenses for the share
issue.
§ "Share-based payment reserve" represents the cumulative fair value of
options and warrants issued by the Company and recognised in profit and loss.
§ "Retained losses" represents accumulated losses.
§ "Foreign currency reserve" represents the cumulative differences arising
from translation of foreign operations.
o) Inventories
Inventories are stated at the lower of cost and net realisable value. Cost
includes all expenses directly attributable to the manufacturing process as
well as suitable portions of related production overheads, based on normal
operating capacity. Costs of ordinarily interchangeable items are assigned
using the first in, first out cost formula. Cost excludes unrealised gains
arising from intra-Group transactions. Net realisable value is the estimated
selling price in the ordinary course of business less any applicable selling
expenses. When inventory is sold the cost is included in Cost of Sales on the
Statement of Comprehensive Income.
p) Taxation
Tax expense recognised in profit or loss is the tax currently payable based on
taxable profit for the year and deferred tax not recognised directly in
equity.
Deferred income taxes are calculated using the balance sheet liability method.
Deferred tax is generally provided on the difference between the carrying
amounts of assets and liabilities and their tax bases. However, deferred tax
is not provided on the initial recognition of goodwill, nor on the initial
recognition of an asset or liability unless the related transaction is a
business combination or affects tax or accounting profit. Deferred tax on
temporary differences associated with shares in subsidiaries is not provided
if reversal of these temporary differences can be controlled by the Group and
it is probable that reversal will not occur in the foreseeable future. In
addition, tax losses available to be carried forward, as well as other income
tax credits to the Group, are assessed for recognition as deferred tax assets
according to the likelihood of their recoverability in the foreseeable future.
Deferred tax liabilities are provided in full, with no discounting. Deferred
tax assets are recognised to the extent that it is probable that the
underlying deductible temporary differences will be able to be offset against
future taxable income. Current and deferred tax assets and liabilities are
calculated at tax rates that are expected to apply to their respective period
of realisation, provided they are enacted or substantively enacted at the
balance sheet date.
Changes in deferred tax assets or liabilities are recognised as a component of
tax expense in profit or loss, except where they relate to items that are
charged or credited directly to equity in which case the related deferred tax
is also charged or credited directly to equity.
q) Government subsidies
Government subsidies are recognised when there is reasonable assurance that
the conditions attaching to them will be complied with and the subsidies will
be received. Subsidies related to income are recognised as part of profit or
loss under the heading 'Other income' or they are deducted from the related
expense. Subsidies are allocated to the periods in which related costs appear,
or in the event that they are compensation for costs already incurred they are
recognised in the period in which they become receivable.
Government subsidies relating to assets are presented in the balance sheet
either as deferred income or as a deduction from the carrying amount of the
asset. In both cases they are recognised in profit or loss over the useful
life of the assets to which they relate.
r) Leases
The Group assesses whether a contract is, or contains, a lease, at inception
of the contract. The Group recognises a right-of-use asset and a lease
liability on the balance sheet at the lease commencement date. The
right-of-use asset is initially measured at cost. This comprises the initial
amount of the lease liability adjusted for any lease payments made at or
before the commencement date and an estimate of any costs to restore the
underlying asset to the site on which it is located, less any lease incentives
received.
The right-of-use asset is subsequently depreciated using the straight-line
method from the commencement date to the earlier of the end of the useful life
of the right-of-use-asset or the end of the lease term. Amounts relating to
such assets are disclosed separately in note 13. In addition, the Group
assesses the right-of-use asset for impairment when such indicators exist.
At the commencement date, the lease liability is initially measured at the
present value of the lease payments discounted using the Group's incremental
borrowing rate at the date of transition as the interest rate implicit in the
lease could not be readily determined. Interest is charged at the same
discount rate used to calculate the present value of the lease.
The lease liability is re-measured if the Group changes its assessment of
whether it will exercise a purchase, extension or termination option. When the
lease liability is re-measured in this way, a corresponding adjustment is made
to the carrying amount for the right-of-use asset, or is recorded in profit or
loss if the carrying amount of the right-of-use asset has been reduced to
zero.
The Group has elected not to recognise right-of-use assets and lease
liabilities for short-term leases that have a lease term of 12 months or less
and leases of low value operating value. These are charged to profit and loss
on a straight-line basis over the period of the lease. At 31 December 2025 the
Group had four leases, one for office space and three for vehicles.
s) Share-based payments
The cost of equity settled transactions is measured at fair value at the grant
date as measured by use of the Black Scholes model. If vesting periods or
other vesting conditions apply, the expense is allocated over the vesting
period, based on the best available estimate of the number of share options
expected to vest. Non-market vesting conditions are included in assumptions
about the number of options that are expected to become exercisable. Estimates
are subsequently revised if there is any indication that the number of share
options expected to vest differs from previous estimates. Any cumulative
adjustment prior to vesting is recognised in the current period. No adjustment
is made to any expense recognised in prior periods if share options ultimately
exercised are different to those estimated on vesting.
Charges made to profit or loss, in respect to share-based payments, are
credited to the share-based payment reserve.
t) Segment reporting (Note 3)
In identifying its operating segments, management follows the Group's service
lines, which represent the main products provided by the Group and are based
on the information presented to the chief operating decision maker, which is
the Board.
2. Significant judgements and estimates
Judgements and estimates are regularly evaluated based on historical
experience, current circumstances and expectations of future events.
The critical estimates made in the preparation of the financial statements are
set out below. The resulting accounting estimate may not equal the related
actual result, and management must also make judgements about current
circumstances and expectations of future events. Significant judgements made
by management include:
a. Intangible and tangible assets are tested for impairment where there
is an indication that they may be impaired. In accordance with IAS 36 -
Impairment of Assets, an intangible or tangible asset is considered impaired
when its carrying amount exceeds its recoverable amount on an individual cash
generating unit basis. The recoverable amounts of relevant cash generating
units are based on value in use calculations using management's best estimate
of future business performance. For this purpose management regards all the
iodine production plants as a single cash generating unit given their mutual
dependence on centralised management, financial, maintenance and sales and
marketing functions. In carrying out impairment testing, management makes a
number of significant estimates in relation to the assumptions incorporated
into their calculations. These will include factors such as growth rates and
discount rates. Cash flow projections over the next five years were used and a
discount rate of 5.73% was applied. Details and carrying values of intangible
assets, goodwill and property, plant and equipment are provided in notes 11,
12 and 13.
b. Management reviews the useful lives of depreciable and amortisable
assets at each reporting date. The carrying amounts are analysed in notes 11
and 13. Management's estimate of the useful lives of plant and equipment as
detailed in note 1k are common life expectancies for the industry. In
particular, the expected useful life attributed to each IOsorb® plant is 20
years. Changes in the expected level of usage or other technological
developments could impact the life and residual value of these assets.
c. Management applies the accounting polices set out in Note 1o)
Inventories to determine the carrying value of raw materials, work in progress
and finished goods (Note 14). Based on historical experience and current
market intelligence, judgements are made as regards net realisable value,
which may include but are not limited to obsolescence, usage in alternative
formulations, production needs, market demand, costs to complete production,
condition, regulatory requirements and limitations, and allocations of
production overheads to the cost of work in progress and finished goods. Based
on these assessments no requirement for provisions against the carrying value
of inventories was identified.
d. The carrying amount of the parent company's investment in its
subsidiaries of $34.7m (2024: $35.6m) has been evaluated for impairment. The
investment amounts include debts due from subsidiaries of $17.5m (2024
$18.4m). For this purpose the two operating subsidiaries have been treated as
one unit, given the vertical integration of the Group's operating activities.
The carrying amount of the parent company's investment of $34.7m (2024:
$35.6m) compares to carrying amounts of the subsidiaries' net assets,
excluding loans from the parent company, of $55.7m (2024: $47.8m). An
assessment has been made of the present values of the future cash flows
related to the operating activities of the subsidiaries to determine whether
any impairment losses should be recognised. The assessment took into account
cash flow projections of the subsidiaries over the next five years, and
applied a discount rate of 5.73%. The Group has concluded that no impairment
provision is required.
3. Segment reporting
a. Business segments - The Group's operations comprise the exploration
and production of iodine with complete vertical integration into its specialty
chemical halogen derivatives business, and are therefore considered to fall
within one business segment.
31 December 31 December
2025 2024
$'000 $'000
Assets
Halogen Derivatives and Iodine 79,202 63,782
Total $79,202 $63,782
Liabilities
Halogen Derivatives and Iodine 23,519 15,991
Total $23,519 $15,991
3. Segment reporting (continued)
b. Geographical segments - The Group reports by geographical segment.
The Group's activities are related to exploration for, and development of,
iodine in certain areas of the USA and the manufacturing of specialty
chemicals in the USA with support provided by the UK office. In presenting
information on the basis of geographical segments, segment assets and the cost
of acquiring them are based on the geographical location of the assets.
31 December 31 December
2025 2024
$'000 $'000
Assets
UK 184 232
USA 79,018 63,550
Total $79,202 $63,782
Liabilities
UK 332 258
USA 23,187 15,733
Total $23,519 $15,991
Revenue
North America 33,629 27,100
Asia 21,675 19,578
South America 7,522 4,057
Europe 2,978 3,677
Other 711 53
Total $66,515 $54,465
c. Significant customers - in 2025 Iofina Chemical had six customers in excess
of 5% of sales (2024 five customers). 2025 percentages were 17%, 11%, 7%, 7%,
5%,5% (2024 percentages were 9%, 8%, 7%, 6%, 6%). The amounts in excess of 10%
of sales for individual customers were: 2025 $11,268,832 (17%) and 2024 $Nil.
4. Profit before taxation
Profit before taxation is stated after charging:
Year ended Year ended
31 December 31 December
2025 2024
$'000 $'000
Depreciation expense 3,130 2,484
Deficit on disposal of fixed asset - 23
Amortisation expense - 103
Other:
Annual audit fees for audit of parent company and consolidated financial 153 134
statements (excluding expenses)
4. Profit before taxation (continued)
Cost of sales - analysis by nature
Year ended Year ended
31 December 31 December
2025 2024
$'000 $'000
Raw materials 22,756 18,753
Freight 600 567
Sales commission 566 454
Labour, manufacturing overhead and royalties 24,560 21,454
$48,482 $41,228
Administrative expenses - analysis by nature
Year ended Year ended
31 December 31 December
2025 2024
$'000 $'000
Remuneration and benefits 4,304 3,762
Share-based payments 24 123
Office expenses 252 243
Professional services 1,080 971
Travel 259 267
Rent (19) (44)
Other 318 348
$6,218 $5,670
Research and development expenses recognised during the period were $189k
(2024: $208k), and are included in administrative expenses above.
5. Staff numbers and costs
The average number of Group employees, including executive directors, and
their costs were:
Year ended Year ended
31 December 31 December
2025 2024
Number Number
Production 106 96
Administrative 18 18
Sales 2 2
Total staff 126 116
Year ended Year ended
31 December 31 December
2025 2024
$'000 $'000
Wages and salaries 10,354 9,364
Social security costs 1,712 1,551
$12,066 $10,915
5.Staff numbers and costs (continued)
Of the total staff costs above, $8,021k (2024: $7,375k) is included within
cost of sales and $4,045k (2024: $3,540k) is included within administrative
expenses.
Payments to executive directors and senior officers of subsidiaries
(considered to be key management personnel) for their services during the year
were as follows:
Year ended Year ended
31 December 31 December
2025 2024
$'000 $'000
Wages and salaries 1,076 1,013
Social security costs 133 118
Total key management cost $1,209 $1,131
Included within wages and salaries above is $371k (2024: $303k) in respect of
the highest paid director. No options were exercised by a director in 2025
(2024 Nil).
6. Government subsidies
The Group's two operating subsidiaries Iofina Chemical, Inc. and Iofina
Resources, Inc. have received a net total of $2,075,622 in respect of the US
Government's Employee Retention Tax Credit scheme ('ERTC'). The scheme was set
up under the CARES Act to provide financial relief to eligible employers
impacted by COVID-19, and takes the form of a refundable tax credit applied to
certain payroll costs incurred in 2020 and 2021. $1,851k of the total
receivable was received in 2025 and the balance of $224k was received early in
2026 and has been accrued as a receivable as at 31 December 2025. It is
possible that the IRS could carry out a review as to the validity of the
claims; however the directors are satisfied that the amounts are valid claims.
The full amount has been recorded as Other income in the Consolidated
Statement of Comprehensive Income in these financials in accordance with the
Group's accounting policy set out in Note 1q, and is made up as follows:
$'000
ERTC Credits 1,899
Credit interest 320
Claim preparation fees (143)
Total $2,076
7. Finance expense
Year ended Year ended
31 December 31 December
2025 2024
$'000 $'000
Term loan interest 293 239
IFRS16 lease interest 18 27
Total finance expense $311 $266
8. Finance income
Year ended Year ended
31 December 31 December
2025 2024
$'000 $'000
Interest income 141 176
$141 $176
9. Taxation
Year ended Year ended
31 December 31 December
2025 2024
$'000 $'000
Current tax (335) 708
Deferred tax (Note 23) 2,993 1,173
$2,658 $1,881
Tax reconciliation:
Profit on ordinary activities before tax 10,526 4,799
Tax at UK income tax rate of 25% (2024: 25%) 2,632 1,200
Effects of:
UK losses not recognised 266 230
Differences in tax rates (154) (229)
State tax deductions benefit 159 (97)
Prior year adjustments (187) 588
Other (58) 189
Total tax charge $2,658 $1,881
10. Earnings per share
The calculation of earnings per ordinary share is based on the profit after
tax attributable to shareholders of $7,868k (2024: profit $2,918k) and the
weighted average number of ordinary shares outstanding of 191,858,408 (2024:
191,858,408). After including the weighted average effect of dilutive share
options of 4,592,000 (2024: 3,773,400) the diluted weighted average number of
ordinary shares outstanding was 196,451,308 (2024: 195,631,808).
11. Intangible assets (Group)
Details of intangible assets are set out below:
Intangible assets WET® patent Customer relationships Patent portfolio EPA registrations Total
$'000 $'000 $'000 $'000 $'000
Cost
At 1 January 2024 2,700 661 187 271 3,819
At 31 December 2024 & 2025 $2,700 $661 $187 $271 $3,819
Accumulated amortization
At 1 January 2024 2,597 661 187 271 3,716
Charge for the year 103 - - - 103
At 31 December 2024 & 2025 $2,700 $661 $187 $271 $3,819
Carrying amounts
At 31 December 2023 $103 - - - $103
At 31 December 2024 & 2025 - - - - -
Intangible assets were acquired in the acquisition of H&S Chemical in
2009, and are now fully amortized.
WET® Patent
The WET® Patent technology employs two different iodine extraction methods
depending on brine chemistry for optimal efficiency. We utilised a with and
without analysis, a variation of the discounted cash-flow method, to estimate
the fair value of a WET® Patent at date of acquisition. The methodology
compared the cash flow generating capacity of Iofina Chemical assuming it was
operating without the benefit of the WET® Patent to the projected cash flow
with the benefit of the patent. The contractual life of the patent is in
excess of 20 years; however, the useful life of the patent was estimated at 15
years based on the following:
§ Management's expectation for the expected viability of the technology
§ Management's expectations regarding the timing of significant substitute
technology
§ The lack of comparable substitute technologies as of the valuation date.
12. Goodwill (Group)
Carrying amounts $'000
At 31 December 2023, 31 December 2024 and 31 December 2025 $3,087
Goodwill arose on the acquisition of H&S Chemical in 2009 and is wholly
allocated to Iofina Chemical. Goodwill impairment testing is conducted
annually, based on projected cash flow to be generated.
The Chemical business has been in operation for 40 years, and much of its
products and customer base are long established. For impairment testing, a
long term growth rate of 1.00% per annum was applied to budgeted and projected
cash flows over the next five years and a discount rate of 5.73% per annum was
used. On this basis the net present value of cash flow exceeded the goodwill
amount of $3,087k.
12. Goodwill (Group) (continued)
Sensitivity analysis
Projections based on the above assumptions show headroom of $26.7m between the
value in use of the business of $36.1m and the carrying value of $9.4m,
comprising goodwill of $3.1m and fixed assets of $6.3m. In order for the value
in use to equal the carrying value it would be necessary for the discount rate
to rise to 20.7% or the long term growth rate to be 45.0% negative or
projected EBITDA to be lower by 52.5%. Based on the results of this impairment
testing management are satisfied that a reasonably possible change in
assumptions would not lead to an impairment.
13. Property, plant and equipment (Group)
Freehold Land Buildings Equipment and Machinery Construction in Progress Total
Right of use
$'000 $'000 $'000 $'000 $'000 $'000
Cost
At 1 January 2024 $209 $2,770 $752 $33,568 $1,785 $39,084
Additions - (30) - 1,484 8,080 9,534
Transfers - 469 - 7,976 (8,445) -
Disposals - - - (257) (43) (300)
At 31 December 2024 $209 $3,209 $752 $42,771 $1,377 $48,318
Additions - (52) - 1,297 7,138 8,382
Transfers - 138 - 7,173 (7,311) -
At 31 December 2025 $209 $3,295 $752 $51,241 $1,204 $56,700
Accumulated depreciation
At 1 January 2024 - $717 $509 $13,074 - $14,300
Charges for the year - 131 104 2,250 - 2,485
Disposals (257) (257)
At 31 December 2024 - $848 $613 $15,067 - $16,528
Charges for the year - 212 104 2,814 - 3,130
At 31 December 2025 - $1,060 $717 $17,881 - $19,658
Carrying amounts
At 31 December 2023 $209 $2,054 $242 $20,495 $1,785 $24,784
At 31 December 2024 $209 $2,361 $139 $27,704 $1,377 $31,790
At 31 December 2025 $209 $2,235 $35 $33,360 $1,204 $37,042
Right-of-use assets
Right-of-use assets relate to the Group's lease on office premises in Denver,
Colorado, which expires in April 2026. Liabilities for future payments are
shown in Note 19.
14. Inventories
Group 31 December 31 December
2025 2024
$'000 $'000
Raw materials 6,553 6,546
Work in progress 1,751 3,449
Finished goods 94 65
$8,398 $10,060
At year end, there were no provisions against the carrying value of
inventories (2024: nil). During the year, the cost of inventories recognised
as expense and included in 'cost of sales' amounted to $47,316k (2024:
$40,207k).
15. Financial instruments
The Board of directors determines, as required, the degree to which it is
appropriate to use financial instruments to mitigate risks. The main risks for
which such instruments may be appropriate are interest rate risk, foreign
currency risk, credit risk, investment risk, liquidity risk and commodity
risk. The Group's principal financial asset is cash, which is invested with
major banks. The Group has two loans from First Financial Bank and no other
borrowings currently drawn (see Note 20).
Financial assets and liabilities
Group Loans and receivables at amortised cost Financial liabilities at amortised cost Total
Swap asset at fair value
2025 $'000 $'000 $'000 $'000
Cash and cash equivalents 11,731 11,731
Trade receivables 17,044 17,044
Interest rate swap asset 28 28
$28,803
Trade payables 4,042 4,042
Accrued liabilities 8,893 8,893
Lease liabilities 156 156
Bank loans 6,501 6,501
$19,592
2024
Cash and cash equivalents 6,857 6,857
Trade receivables 10,640 10,640
Interest rate swap asset 92 92
$17,589
Trade payables 2,962 2,962
Accrued liabilities 7,837 7,837
Lease liabilities 330 330
Bank loans 3,928 3,928
$15,057
15. Financial instruments (continued)
Company Loans and receivables at amortised cost Financial liabilities at amortised cost Total
2025 $'000 $'000 $'000
Cash and cash equivalents 176 176
Other receivables 8 8
Due from subsidiaries 17,475 17,475
$17,659
Accruals 332 332
$332
2024
Cash and cash equivalents 224 224
Other receivables 8 8
Due from subsidiaries 18,395 18,395
$18,627
Accruals 258 258
$258
The interest rate swap liability at fair value is valued on the basis of Level
2 inputs as defined in IFRS 13.
Interest rate risk
Surplus funds are held within the Group's checking and savings accounts. The
benefit of fixing rates for the longer term is kept under review, having
regard to forecast cash requirements and the levels of return available. Given
the short-term nature of Iofina's surplus funds, the Group has limited
interest rate risk. As of 31 December 2025, all surplus funds were invested in
checking and savings accounts that had no terms and were 100% liquid. Bank
facilities have variable interest rate terms and therefore there is an
exposure to increases in interest rates. This is mitigated by the use of an
interest rate swap to fix the rate on the majority of the term loan. Also, the
interest on the revolving credit facility (if drawn) is reduced by
arrangements to sweep surplus funds into that account.
Foreign currency risk
The Group has potential transactional currency exposure in respect of items
denominated in foreign currencies relating to the Group's administration in
the UK. The balance of cash held in foreign currency was $176k (GBP £130k) as
of year-end, and provides a hedge against GBP denominated UK expenses.
Sales transactions are denominated in US Dollars, which is the operating
currency. Other impacts of foreign currency risk are not deemed material to
these financial statements.
15. Financial instruments (continued)
Credit risk
The maximum exposure is reflected by the carrying amount of financial assets.
Because the counterparties to Iofina's holdings of cash and cash equivalents
are prime financial institutions, Iofina does not expect any counterparty to
fail to meet its obligations. Additionally, the Group is exposed to marginal
credit risk in the form of receivables for product sales. Credit risk in this
regard is mitigated through long-term customer payment history, extensive
credit analysis of large purchasers, use of letters of credit, and the
requirement for partial or total payment prior to shipment for some customers.
Liquidity risk
The Group raises funds as required on the basis of forecast expenditure and
cash inflows over the next 12 months. When necessary, the scope and rate of
activity are adjusted to take account of the funds available. There is a risk
that the Group may not be able to raise sufficient funds to repay loans at
their maturity.
The following table sets out the contractual maturities (representing
undiscounted contractual cash flows) of financial liabilities:
Group Up to 3 months Between 3 and 12 months Between 1 and 2 years Between 2 and 6 years
At 31 December 2025: $'000 $'000 $'000 $'000
Trade payables 4,042 - - -
Accrued liabilities 3,254 4,409 1,230
Lease liabilities 19 57 76 5
Bank loans 357 1,500 1,643 3,002
$7,672 $5,966 $2,949 $3,007
Group Up to 3 months Between 3 and 12 months Between 1 and 2 years Between 2 and 6 years
At 31 December 2024: $'000 $'000 $'000 $'000
Trade payables 2,962 - - -
Accrued liabilities 2,788 3,947 1,101 -
Lease liabilities 40 120 160 10
Bank loans 357 1,071 1,429 1,071
$6,147 $5,138 $2,690 $1,081
Commodity risk
The Group is exposed to movements in the price of raw iodine. Sales of iodine
based products were
$59,342k (2024: $46,663k). The effects of changes in the price of iodine on
2025 revenue and profits are set out in the Financial Review on pages 8 to 9.
Iodine is produced internally and is the most significant cost component for
iodine based products.
16. Trade and other receivables
Group
31 December 31 December
2025 2024
$'000 $'000
Trade receivables 17,044 10,640
Prepayments and other receivables 1,871 1,256
$18,915 $11,896
Company
31 December 31 December
2025 2024
$'000 $'000
Prepayments and other receivables 8 8
$8 $8
All receivables and prepayments are short term in nature. The carrying values
are considered a reasonable approximation of fair value. There are no expected
material credit losses.
The Group and the Company have not received a pledge of any assets as
collateral for any receivable or asset.
17. Cash and cash equivalents
Group
31 December 31 December
2025 2024
$'000 $'000
Cash in US Dollar accounts 11,555 6,633
Cash in GB Pound Sterling accounts 176 224
11,731 $6,857
Company
31 December 31 December
2025 2024
$'000 $'000
Cash in GB Pound Sterling accounts 176 224
$176 $224
18. Trade and other payables
Group 31 December 31 December
2025 2024
$'000 $'000
Trade payables 4,042 2,962
Accrued expenses and deferred income 8,893 7,838
$12,935 $10,800
Company
31 December 31 December
2025 2024
$'000 $'000
Accrued expenses 332 258
$332 $258
All trade and other payables are considered short term. The carrying values
are considered to be a reasonable approximation of fair value.
Except as regards the bank facilities described in Note 20, the Group and
Company have not pledged any assets as collateral for any liabilities or
contingent liabilities.
19. Lease liabilities
Group 31 December 31 December
2025 2024
$'000 $'000 $'000 $'000 $'000 $'000
Total Office Lease Vehicles Total Office Lease Vehicles
Lease liabilities - current 75 35 40 160 124 36
Lease liabilities - non-current (due in 2-5 years)
81 - 81 170 49 121
$156 $35 $121 $330 $173 $157
Movements: 2025 2024
$'000 $'000 $'000 $'000 $'000 $'000
Total Office Lease Vehicles Total Office Lease Vehicles
Opening balance 330 173 157 482 291 191
Payments (192) (141) (51) (178) (127) (51)
Interest accrued 18 4 14 26 9 17
$156 $36 $120 $330 $173 $157
Lease liabilities relate to:
1) The Group's lease on office premises in Denver, Colorado, which runs
until 30 April 2026;
2) The acquisition of vehicles on credit terms over the five years to 15
September 2028 for use at the Group's Oklahoma plants.
20. Bank loans and facilities
Group Term loan Project loan
TOTAL
$'000 $'000 $'000
At 1 January 2024 $5,357 - $5,357
Term loan instalment repayments (1,429) - (1,429)
At 31 December 2024 $3,928 - $3,928
Drawn during year - 4,002 4,002
Term loan instalment repayments (1,429) - (1,429)
At 31 December 2025 $2,499 $4,002 $6,501
Due within one year $1,428 $365 $1,793
Due after one year $1,071 $3,638 $4,709
The above bank facilities, with First Financial Bank of Ohio, are fully
secured by fixed and floating charges and the principal terms are:
Term loan
a) The term loan balance of $2.5m (2024: $3.9m) relates to a $10.0m loan drawn
down in September 2020 and repayable in full by equal monthly instalments over
the seven years to 30 September 2027. The interest rate on $7 million of the
loan has been fixed to maturity by a swap contract at 3.99%, and the interest
rate on the balance is variable monthly at 2.50% above the one month Secured
Overnight Financing Rate ("SOFR"), subject to a minimum SOFR rate of 1.00%.
Repayment of all or part of the loan may be made at any time without penalty.
Revolving loan facility
b) The revolving loan facility is for $6.0m over the period to 31 December
2026, and may be drawn and repaid in variable amounts at the Group's
discretion. Amounts that may be drawn are subject to a borrowing base of
sufficient eligible discounted monthly values of receivables and inventory.
The interest rate is variable monthly at 2.11% above SOFR, subject to a
minimum SOFR rate of 1.00%. No amounts were drawn and outstanding at 31
December 2025. Documentation is in progress to extend the period of the
facility from 31 December 2026 to 31 December 2027.
Project loan facilities
c) Drawings of $4.0m were made in 2025 against a project loan facility of
$10m. The drawdown period for that facility expired in March 2026, and the
$4.0m drawn is repayable in even monthly instalments of principal and interest
over the seven years to March 2033. Documentation is in progress to finalise a
further $10m project loan facility with a drawdown period of 18 months and
subsequent repayment in even monthly instalments over seven years. The
interest rate applicable to the $4.0m drawn is 2.25% above SOFR (1 month
Secured Overnight Financing Rate) subject to a minimum SOFR rate of 1%., and a
similar rate is expected to apply to the further $10.0m project loan facility.
Repayment of all or part of these loans may be made at any time without
penalty.
20. Bank loans and facilities (continued)
Bank covenants
d) Compliance in respect of all amounts outstanding in respect of the above
facilities is required on a quarterly basis in respect of trailing 12 months
financial covenant ratios of 1) a maximum multiple of 2.5 total debt to
EBITDA, and 2) a minimum multiple of 1.2 EBITDA net of unfinanced capital
expenditure, dividends and cash taxes to the total of principal and interest
payments on the total debt.
Swap contract
e) The derivative asset resulting from the swap contract described above has
been revalued at $28k as at 31 December 2025 (2024: $92k) by reference to
market expectations for future SOFR rates, and included in the balance sheet.
An amount of $65k has been charged to comprehensive income (2024 $68k). During
the year the swap contract generated a net reduction of interest otherwise
payable of $65k (2024: $125k).
21. Net cash
Net cash excludes lease liabilities totalling $156k (2024: $330k) and is made
up as follows:
Group 2025 2024
$'000 $'000
Bank loans (6,501) (3,928)
Cash and cash equivalents 11,731 6,857
Net cash at 31 December $5,230 $2,929
22. Share capital
31 December 31 December
2025 2024
Authorised:
Ordinary shares of £0.01 each - number of shares 1,000,000,000 1,000,000,000
- nominal value £10,000,000 £10,000,000
Allotted, called up and fully paid:
Ordinary shares of £0.01 each - number of shares 191,858,408 191,858,408
- nominal value £1,918,584 £1,918,584
There was no change in share capital in 2025.
23. Share premium
The balance of $60,686,895 on the Company's Share premium account was
cancelled as of 10 July 2025 in accordance with section 648 of the Companies
Act 2006. The amount of the balance has been used to offset the parent
company's retained losses, and has created distributable reserves in that
company totalling $34.7m as at 31 December 2025. The effect is shown in the
Company Statement of Changes in Shareholders' Equity on page 61.
24. Share based payments
No options were granted in 2025 nor have been to date in 2026. There are
5,677,100 options outstanding in total, representing 2.96% of shares in issue.
The total options expense for 2025 was $24,037 (2024: $122,676).
Options granted to directors and key employees and outstanding at 31 December
2025 are as follows:
Date of Grant Number of Options Vesting Share Price Exercise Price Exercise Price 2025 Exercise Price 2024
Date
£ £ $ $
13 June 2018 825,000 13 June 2019 0.162 0.162 0.22 0.20
13 June 2018 825,000 13 June 2020 0.162 0.162 0.22 0.20
25 July 2019 409,750 25 July 2020 0.213 0.213 0.29 0.27
25 July 2019 409,750 25 July 2021 0.213 0.213 0.29 0.27
16 December 2020 519,600 16 December 21 0.125 0.125 0.17 0.16
16 December 2020 519,600 16 December 22 0.125 0.125 0.17 0.16
9 March 2022 542,100 9 March 2023 0.176 0.176 0.24 0.22
9 March 2022 542,100 9 March 2024 0.176 0.176 0.24 0.22
27 April 2023 542,100 27 April 2024 0.318 0.318 0.43 0.40
27 April 2023 542,100 27 April 2025 0.318 0.318 0.43 0.40
5,677,100 £0.19 £0.19 $0.26 $0.24
The weighted average contractual life of options outstanding at 31 December
2025 was 4.7 years (2024 5.7 years).
Exercise prices for 2025 shown in USD are based on the US Dollar/Pounds
Sterling exchange rate at 31 December 2025 of 1.35 (2024 1.25). Options
outstanding at 31 December 2025 expire the earlier of ten years from grant
date or 90 days after the termination of service to the Company.
2025 Weighted average exercise price 2024 Number of Options Weighted average exercise price
Number of Options
£ $ £ $
Options outstanding
At 1 January 5,677,100 £0.19 $0.24 6,197,100 £0.20 $0.25
Granted - - - - - -
Forfeited - - - (520,000) £0.20 $0.25
At 31 December 5,677,100 £0.19 $0.26 5,677,100 £0.19 $0.24
Options exercisable
At 1 January 5,135,000 £0.18 $0.23 4,402,050 £0.16 $0.20
Vested 542,100 £0.32 $0.43 1,197,700 £0.25 $0.31
Forfeited - - - (463,750) £0.20 $0.25
At 31 December 5,677,100 £0.19 $0.26 5,135,000 £0.18 $0.23
24. Share based payments (continued)
Movements in the Share-based payment reserve were as follows:
31 December 31 December
2025 2024
$'000 $'000
Balance 1 January 2,411 2,367
Share-based payment charge 24 123
Forfeited options transferred to retained losses - (79)
Balance 31 December $2,435 $2,411
25. Deferred tax
Group 2025 2024
$'000 $'000
At 1 January (liability)/asset (932) 240
Fixed asset timing differences (4,360) 1,108
Tax losses available against US Federal tax liabilities 918 (552)
R&D business credits recognized/(utilized) 430 (856)
Other timing differences 19 (595)
State loss adjustments - (277)
At 31 December (liability) $(3,925) $(932)
26. Related party transactions
Transactions between group companies were as follows:
2025 2024
$'000 $'000
Iofina Resources to/(from) Iofina Chemical:
Crystallised iodine sales 42,175 30,460
Expenses recharged (1,600) (1,271)
Iofina Plc to/(from) Iofina Resources:
Management fee 50 50
Funding payments (1,000) (1,000)
Expenses recharged - (4)
Share based payments contribution - 14
Iofina Plc to/(from) Iofina Chemical:
Management fee 50 50
Expenses recharged (20) (25)
Share based payments contribution - 23
In both 2024 and 2025 all iodine produced by Iofina Resources was sold to
Iofina Chemical.
26. Related party transactions (continued)
Related party transactions with directors, who are considered to be key
management personnel, are set out in the Corporate Governance Statement on
page 28. Option grants as described in note 24 are to employees and Directors.
The Company has entered into a number of unsecured related party transactions
with its subsidiary undertakings. The most significant transactions carried
out between the Company and its subsidiary undertakings are financing.
27. Capital management
The Group's objectives when managing capital are to safeguard the Group's
ability to continue as a going concern, to provide returns for shareholders
and to maintain an optimal capital structure to reduce the cost of capital.
The Group defines capital as being share capital plus reserves as shown in the
balance sheet. The Directors continue to monitor the level of capital as
compared to the Group's commitments and adjust the level of capital as is
determined to be necessary by issuing new shares. Iofina plc is not subject to
any externally imposed capital requirements. The Directors consider the
capital of the Group to be the total equity attributable to the equity holders
of the parent of $55.7 million as at 31 December 2025 (2024: $47.8
million).
28. Subsidiary undertakings
Investment in subsidiaries
Investment in
subsidiaries
$'000
Company
Balance at 31 December 2023, 2024 and 2025 $17,199
Due from subsidiaries
2025 2024
$'000 $'000
Company
At 1 January 18,395 19,286
Management fees 100 100
Funding from subsidiaries (1,000) (1,000)
Expenses recharged to Plc (20) (28)
Share based payments contributions - 37
At 31 December $17,475 $18,395
The Group's debt arrangements are on a joint and several basis with all Group
companies excluding dormant subsidiaries. The principal beneficiary of these
arrangements is Iofina Resources, Inc., and therefore the debt is accounted
for in that company and in the consolidated balance sheet, and does not appear
in the balance sheet of Iofina Plc.
28. Subsidiary undertakings (continued)
Company Country of incorporation and operation Principal activity Interest in ordinary shares and voting rights
Iofina, Inc. United States/CO Holding company 100%
Iofina Resources, Inc. United States/CO Iodine production 100%
Iofina Chemical, Inc. United States/DE Specialty chemical 100%
IofinaEX, Inc. United States/KY Dormant 100%
Iofina Resources, LLC United States/CO Dormant 100%
Iofina Resources, LLC United States/TX Dormant 100%
Iofina, Inc. was established in February 2006 and is a wholly owned subsidiary
of Iofina plc. Iofina, Inc. owns the whole of the issued share capital of
Iofina Resources, Inc., Iofina Chemical, Inc. and IofinaEX, Inc. Other
entities are subsidiaries of Iofina Resources, Inc., the iodine production
company.
The registered offices of the above companies are as follows:
Company Registered office
Iofina, Inc. 8480 East Orchard Road, Greenwood Village CO 80111, USA
Iofina Resources, Inc. 8480 East Orchard Road, Greenwood Village CO 80111, USA
Iofina Chemical, Inc. 306 W. Main Street, Frankfort, KY 40601, USA
IofinaEX, Inc. 212 N 2nd St., Suite 100, Richmond, KY 40475
Iofina Resources, LLC (CO) 8480 East Orchard Road, Greenwood Village CO 80111, USA
Iofina Resources, LLC (TX) 815 Brazos Street, Austin TX 78701, USA
29. Capital commitments
At 31 December 2025 the Group had capital commitments amounting to
approximately $8m in respect of the construction of IO#12 plant.
30. Post balance sheet events
There were no significant post balance sheet events.
31. Contingent liabilities
The Group considers that a contingent liability exists in respect of overdue
interest on amounts that may be due in relation to certain iodine related
property rights. The theoretical exposure is estimated at approximately $600k,
but in light of considerable past experience the Company believes that amounts
actually paid will be a very small proportion of that amount.
32. Ultimate controlling party
There is no ultimate controlling party of the Group.
Iofina and the environment
Iofina promotes, wherever possible, environmental sustainability in its
working practices and seeks to minimise, mitigate, or remedy any harmful
effects from the Group's operations on the environment at each of its
operational sites. To continue that effort through all aspects of business,
this report has been produced to minimise its effect on the environment by
using thinner paper, fewer pages, smaller type set, and non‐colour printing
as much as possible. As part of this effort Iofina is trying to move attention
to its online annual reports available at www.iofina.com. By being a better
steward of the environment, Iofina saves valuable shareholder funds instead of
producing glossy magazine pages throughout the whole document.
This page does not form part of the statutory financial statements.
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