REG - Iofina PLC - Interim Results
20/09/2024 07:00
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RNS Number : 9505E Iofina PLC 20 September 2024
D
20 September
2024
Iofina plc
("Iofina", the "Company" or the "Group")
(AIM: IOF)
Interim Results for the six months ended 30 June 2024
Record H1 revenue and executing growth plans
Iofina plc, specialists in the exploration and production of iodine and
manufacturers of specialty chemical products, is pleased to announce its
unaudited Interim Results for the six months ended 30 June 2024 (the
"Period").
H1 2024 Key financials:
· Record H1 revenue of $26.0m
· Cost of Sales of $20.8m
· Gross Profit of $5.2m
· Adjusted EBITDA(1) of $2.3m
· Operating Profit of $1.1m
· Profit Before Tax of $1.1m
· Net Cash of $1.1m
( )
(1) see Note 8 for definition
Business Highlights:
Revenue growth and improved net cash position
· Strong product demand and higher iodine production led to H1 2024
revenue growth of 7% compared to H1 2023
· Secured new brine water agreements for two existing IOsorb(®) plants
that provide stability of supply
· Net cash was $1.1m (H1 2023: $0.2m, FY 2023: $1.2m), excluding lease
liabilities and after capex of $4.7m (H1 2023: $3.7m), mainly on IO#10 and
investment of $0.9m in Iofina Chemical
· Sustained a strong cash position of $5.7m (H1 2023: $6.3m, FY 2023:
$6.5m) after higher investment expenditure in the Period
· Well-placed to finance our ongoing operational investment program
through a strong cash position and a renewed loan facility, which was
increased to $10m
Iodine production and sales
· Produced 276.1 metric tonnes ("MT") of crystalline iodine during H1
2024, a 14.3% increase and within the Company's target range
· Crystalline iodine sales grew by 13% to 191MT, reflecting an ongoing
strong market demand
· The average prices realised (100% iodine equivalent) for sales of
crystalline iodine fell by 7% to $66.84 against the comparable period (H1
2023: $71.53) but were similar to the prices experienced in H2 2023
· Iodine derivative sales were up 5% to $7.9m (H1 2023: $7.5m), whilst
non-iodine derivatives rose 4% to $4.7m (H1 2023: $4.5m)
Outlook
· With IO#10 fully commissioned, the Group expects to produce 355-380
MT of crystalline iodine in H2 2024, with total production for 2024 being
dependent on the rate of ramp-up of IO#10
· Current crystalline iodine spot price has marginally strengthened in
the range of the upper sixties USD per kg and above
· The Board believes the Group remains on track to meet market
expectations for the full year
Commenting on today's results, Dr. Tom Becker, President and CEO stated:
"The Group has delivered a robust first half performance, with sustained
demand for our products and increased production leading to a 7% increase in
revenue, despite the average realised selling price of iodine being 7% lower
than reported for H1 2023. The Group has continued to generate strong cash
flows, with its net cash position improving to $1.1m.
"Looking ahead, the completion of IO#10 is anticipated to add a further
100-150 MT of annual iodine production capacity. The new plant will contribute
to production in the remaining months of 2024, with the total crystalline
iodine production range expected to be 355-380 MT in H2 2024. Negotiations for
IO#11 are continuing to advance well, and we hope to update on an agreement
very soon.
"As well as our commitment to securing sites for new plants and ongoing
product R&D, new investment has been made in our marketing and sales team,
including targeted hires and upgrades to our website and other digital
marketing channels, to help facilitate and drive sales directly to Iofina
Chemical. We have built a stronger platform for accelerated growth, and we
look forward to reporting on further progress in due course."
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/Zara McKinlay
Tel: +44 (0)7747 788 221/+44 (0)7983 521 488
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 currently operates seven
commissioning IOsorb® plants in Oklahoma and is consistently using 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/)
INTERIM RESULTS
Business Overview
Iofina plc ("Iofina" the "Company" or the "Group") is the holding company of a
group of companies (the "Group") whose focus is the exploration and isolation
of iodine and the production of halogen-based specialty chemicals. The Group's
business model involves producing a key raw material, iodine, at a low cost
and in the most environmentally friendly way possible, providing the Company's
customers vertical integration into high-quality iodine and other
halogen-based chemical products.
The Company is committed to producing its products with minimal environmental
impact. The Group's iodine is isolated from produced water brine streams from
oil & gas production in the United States. By utilizing these produced
waste streams to isolate iodine, Iofina is extracting a valuable resource from
streams that would otherwise provide no use or value. Also, by isolating
iodine from these streams, Iofina avoids the additional drilling and mining
environmental impacts of many other iodine producers.
Iofina operates two active business units in the United States. Iofina
Chemical ("IC") develops and produces halogen-based specialty chemicals and
sells these products, along with the Group's crystalline iodine, globally in a
variety of applications. Iofina Resources ("IR") currently operates seven
IOsorb® iodine production plants and is planning to expand by building
additional plants. Iofina's most recent plant, IO#10 was under construction
during the Period and was recently commissioned in September 2024. IR
continues to explore new iodine sources and further develop its proprietary
models relating to iodine and other mineral sources in North America.
Expertise in core halogen technologies, the vertical integration of iodine
into specialty products, diversification with multiple iodine production
plants and numerous specialty halogen-based products, and operating our
businesses with integrity with a focus on safety and customer satisfaction are
key business tenets for Iofina. The Directors are focused on the continued
growth of the Group in our core areas, and the development and implementation
of business strategies for the ongoing improvement of Iofina.
Financial Review
Trading results
Turnover H1 2024 H1 2023
Crystalline Crystalline
Iodine 85% Sales Iodine 85% Sales
MT $m MT $m
Crystalline iodine 191 10.9 169 10.3
Derivatives 94 7.9 105 7.5
Prilled iodine 2.5 2.0
Total iodine sales 285 21.3 274 19.8
Non-iodine 4.7 4.5
Total sales $26.0 $24.3
Sales
Total sales increased by 7% from $24.3m to $26.0m, with total iodine sales up
by 8% from $19.8m to $21.3m, while non-iodine sales increased by 4% from $4.5m
to $4.7m. Volumes of crystalline iodine sales were up by 13% from 169MT to
191MT. The average prices realised (100% iodine equivalent) for crystalline
iodine during the period fell by 7% to $66.84 (H1 2023: $71.53 per kg).
Crystalline iodine revenue increased by 6% from $10.3m to $10.9m. Sales of
iodine derivatives were up by 5% from $7.5m to $7.9m, with mostly similar
products and pricing to H1 2023.
Production
Production of crystalline iodine from the Company's six Oklahoma plants was
14% up at 276.1 MT for H1 2024 compared to 242 MT for H1 2023. The H1 2024
number includes production from the IO#9 plant, which commenced production in
July 2023. Average production costs per kilogram included in trading costs of
sales were significantly higher than for H1 2023, the principal factors being
a $0.7m increase in fees to oil and gas partners, mainly due to the revision
of terms reported in the Group's Q1 update in April 2024, and a $0.7m increase
in maintenance costs, some of which are attributable to work brought forward
from later periods.
Gross profit
Gross profit was negatively impacted, primarily by the increase in average
production costs described above, but also by the $0.8m effect of the 7%
reduction in crystalline iodine sales prices compared to H1 2023.
Additionally, in H1 2023, there was a $0.7m credit for an increase in labour
and overheads allocated to work-in-progress, which did not recur in H1 2024.
Consequently, gross profit declined from $8.3m (34% of sales) for H1 2023 to
$5.2m (20% of sales) for H1 2024.
Administrative expenses
Administrative expenses (excluding depreciation and amortisation) increased by
19% year on year from $2.4m to $2.8m, which mainly reflected new hires in
sales, geology and project management to support business development.
Taxation
The Company continues to benefit from the utilisation of prior years' tax
losses and other credits which reduce the amount of current tax payable.
Capital expenditure
Capex for H1 2024 totalled $4.7m compared to $3.7m for H1 2023. As regards the
capex for H1 2024, $3.0m was related to the construction of the new IO#10
plant and $0.5m to the acquisition of landowner leases for IO#10. The total
cost of construction of IO#10 is expected to be approximately $5.2m in line
with budget expectations. There was also a $0.5m expenditure at the Chemical
plant on equipment and installation to provide for a new process along with
improvements to existing derivatives processes.
Cash flow and financing
Adjusted EBITDA for H1 2024 was $2.3m (H1 2023: $5.9m). After working capital
changes, the net cash inflow from operations was $4.9m (H1 2023: $5.0m). After
deducting capex of $4.7m (H1 2023: $3.7m) and bank loan repayments and
interest of $0.8m (H1 2023: $0.9m), there was a cash outflow for the six
months of $0.8m (H1 2023 inflow: $0.4m). At 30 June 2024, cash was $5.7m (H1
2023: $6.3m) and cash net of bank debt amounted to $1.1m, which was an
improvement over the $0.2m cash net of bank debt at 30 June 2023. Details of
the Group's bank debt facilities are set out in Note 5 and include a recently
arranged $10.0m loan facility for capital expenditure on new iodine plants
which at the date of this report remains undrawn.
Review and Outlook
The financial position of the Group continues to be strong. H1 2024 had record
revenues which were 7% higher than H1 2023, while adjusted EBITDA fell YoY. As
was announced in April 2024, the Group successfully negotiated new contracts
with a brine supplier that gives two plants longer-term supply but at a higher
cost. Also, realised iodine prices in H1 2024 were lower than in H1 2023
($66.84 v $71.53) and some large maintenance projects were moved into the
first half of 2024 which negatively affected margins. These maintenance costs
are expected to be lower in H2 2024.
However, H1 2024 results were in line with the Board's expectations. Iofina
expects both margins and production volumes to significantly improve in H2
2024 given that our plant efficiencies improve in warmer months. We remain on
track to reach full-year 2024 adjusted EBITDA between $8.5m - $9m as
communicated in the Q1 2024 Corporate Update in April, assuming IO#10 ramps up
as expected, and sales at year-end are recognised in 2024 and don't slide into
2025 due to timing or logistical issues.
During the Period and to date in 2024, there continue to be very positive
developments for Iofina. Our newest plant IO#10 was commissioned in early
September, and we expect to soon sign an agreement for IO#11 and start
construction before year-end as we continue a more aggressive growth phase for
Iofina. Future plants have already been identified and Iofina is investigating
opportunities that would likely provide a further step-change in growth of
iodine production in a new core area in the coming years. We look forward to
sharing these plans once fully developed and internally vetted. Additionally,
we detail in this report in note 5 a larger project loan facility of up to
$10m in order to have the proper funding available to build IOsorb® plants at
an increased rate. With a healthy balance sheet, a strong iodine market, and
an accelerating growth strategy, Iofina is poised to continue its positive
momentum.
Iofina Chemical
Iofina Chemical ("IC") is the specialty chemical subsidiary of the Group and
has been in business for over 40 years producing a diverse array of
high-quality halogen-based chemicals for various growing industries including
pharma, biocides, human and animal health, and many others. IC is a globally
recognised leader in the production of these halogen-based chemicals. The
Group continues to invest in IC to increase its capabilities to supply
customers with existing products and to develop new product offerings. In
addition to the halogen-based chemicals produced on-site at IC's facility in
Covington, Kentucky, IC is the Group's sole sales and commercial arm, selling
iodine directly to the market and processing all external sales for the Group.
While the iodine production component of the business is generally well known
to investors, the Directors believe the importance of Iofina Chemical, and the
diversity it brings to the Group, is not as well recognised.
IC achieved record first half sales for the Group, which were led by sales of
the Group's crystalline iodine. Other product offerings that realised
increased sales in the Period versus H1 2023 included hydriodic acid and IPBC.
Hydriodic acid is used in various applications including acetic acid
manufacturing and animal health applications. IPBC is a specialty fungicide
and preservative used in various industries including paints, coatings, and
cosmetics. The crystalline iodide produced by the Group is sold to numerous
iodine derivative manufacturers around the world.
Iofina is committed to increasing product offerings and capacities at IC as
well as improving current processes where appropriate. An example in the
Period was a production process improvement for IPBC which improved quality
and reduced production times. Additionally, during the Period, IC installed
equipment to produce a new iodine-based animal feed additive, which is now in
operation. R&D efforts on other iodine-based compounds, particularly some
organic iodides, continue to progress. Iodine recycling efforts continue at IC
on various iodide streams. Since the end of the Period, IC has hired a new
R&D chemist to support our R&D growth objectives.
IC is the sales division for Iofina. We continue to expand our sales and
marketing efforts to bolster current product sales and reach new customers, as
well as identify new product targets within our core chemistries. In May, we
launched an updated website to increase the visibility of our products and
improve investor communications. Outreach through other platforms such as
trade shows, social media and direct customer interactions has increased and
resulted in sales to new customers.
The diversity of IC's halogenated products (iodo-, chloro-, fluoro-) is key to
both the growth and the stability of the division. Additionally, the vertical
integration of iodine into iodine derivatives provides the Group and its
customers with stability of supply for the iodine-based compounds produced.
Iofina Resources
Iofina Resources ("IR") identifies, develops, builds, owns, and operates
iodine extraction plants, based on Iofina's WET® IOsorb® technology. Iodide
is isolated from brine water streams coproduced from oil and gas operations.
Without Iofina, this production of iodine would be wasted and not be realised.
The isolation of iodine from this waste stream adds value to Iofina, its
shareholders, and our oil and gas partners, while also producing iodine with
minimal environmental impact.
During the Period, IR produced 276.1 MT of crystalline iodine from its six
plants in operation in Oklahoma. This was a 14.3% increase when compared to
the same period in 2023. In April, Iofina signed new multi-year agreements for
the supply of brine water to two of Iofina Resources' current IOsorb® plants.
The new agreed terms were an important milestone in maintaining consistent
iodine production at both plants, whilst enabling our partners to maximise the
supply of brine to these plants.
The Company's newest plant, IO#10, was under construction during the Period
and was recently commissioned in early September. This new plant is expected
to produce between 100-150 MT of crystalline iodine annually. The development
of IO#10 is the latest example of IR's commitment to significantly increase
its iodine production moving forward. In June 2023, IR opened IO#9 and the
Company expects to continue to expand its iodine production at greater rates.
Iofina intends to continue to build its IOsorb® plants and in the next 18-30
months our crystalline iodine production rates are expected to be more than
double our 2021 iodine production rates. Future plant sites are close to
finalisation and the Company expects to update the market in Q4 2024 on the
details of our next plant, IO#11, and begin construction on this plant in
2024. Designs and land suitability studies for IO#11 are already well
underway.
Iodine Market Outlook
Iodine is utilised in various applications, the largest of which is injectable
iodinated contrast agents used in medical procedures to enhance the visibility
of numerous medical diagnostic procedures. The iodine demand for contrast
agents continues to grow especially in countries that are advancing their
healthcare systems, and it is anticipated that this particular end market will
be the core driver of iodine demand for the foreseeable future. Iodine is also
used in many other applications including LCD screens, pharmaceutical
synthesis, biocides, and many others.
During the Period, Iodine spot prices have remained high when compared to
historical levels. The average prices realised (100% iodine equivalent) by
Iofina for its crystalline iodine during the Period fell by 7% to $66.84 (H1
2023: $71.53 per kg). These lower prices negatively affected margins in H1
2024 for the Group versus the same period in 2023.
Future iodine prices are difficult to predict but demand for iodine and its
products remains strong. The largest iodine producer in the world recently
predicted an iodine demand growth of 7% in 2024 versus the previous year.
Iofina has experienced substantial demand for its crystalline iodine in H2
2024 thus far. Currently, prices in Q3 2024 have risen slightly from the first
half of this year due to increased demand and stagnant supply. Barring any
major changes in the iodine market or a significant global economic downturn,
we expect prices for H2 2024 to be higher than H1 2024 and these elevated
prices are likely to continue into 2025.
IOFINA PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2024
Unaudited Audited
Six months ended Year ended
30 June 30 June 31 December
2024 2023 2023
Note $'000 $'000 $'000
Continuing operations
Revenue 25,977 24,300 50,036
Cost of sales (20,780) (16,036) (34,382)
Gross profit 5,198 8,264 15,654
Administrative expenses (2,849) (2,399) (4,873)
Depreciation and amortisation (1,208) (986) (2,187)
Operating profit 1,140 4,879 8,594
Finance income 87 44 135
Interest payable (143) (166) (327)
Interest swap derivative liability (23) (73) (88)
Profit before taxation 1,061 4,684 8,314
Taxation - current tax (111) (19) (60)
Taxation - deferred tax (343) (1,103) (1,690)
Profit for the period attributable to owners of the parent $607 $3,562 $6,564
Earnings per share:
- Basic 4 $0.003 $0.019 $0.034
- Diluted 4 $0.003 $0.018 $0.033
30 June 30 June 31 December
2024 2023 2023
Adjusted EBITDA: 8 $'000 $'000 $'000
Operating profit 1,140 4,879 8,594
Depreciation and amortisation 1,208 986 2,187
Adjusted EBITDA $2,348 $5,865 $10,781
IOFINA PLC
CONSOLIDATED BALANCE SHEET
30 JUNE 2024
Unaudited Unaudited Audited
30 June 30 June 31 December
2024 2023 2023
Note $'000 $'000 $'000
Intangible assets 13 193 103
Goodwill 3,087 3,087 3,087
Property, plant & equipment 28,393 23,326 24,784
Deferred tax - 829 240
Term loan - interest swap asset 138 176 161
Total non-current assets 31,631 27,611 28,375
Inventories 9,408 11,580 10,138
Trade and other receivables 13,169 11,633 15,491
Cash and cash equivalents 5,695 6,316 6,518
Total current assets 28,272 29,529 32,147
Total assets $59,903 $57,140 $60,522
Trade and other payables 9,299 9,094 9,933
Term loan - due within one year 5 1,429 1,429 1,429
Lease liabilities 152 106 141
Total current liabilities 10,880 10,629 11,503
Term loan - due after one year 5 3,214 4,642 3,928
Lease liabilities 255 246 341
Deferred tax 102 - -
Total non-current liabilities 3,571 4,888 4,269
Total liabilities $14,451 $15,517 $15,772
Issued share capital 6 3,107 3,107 3,107
Share premium 60,687 60,687 60,687
Share-based payment reserve 2,461 2,240 2,367
Retained losses (14,859) (18,467) (15,467)
Foreign currency reserve (5,944) (5,944) (5,944)
Total equity $45,452 $41,623 $44,750
Total equity and liabilities $59,903 $57,140 $60,522
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Share Share Share-based Retained Foreign Total
capital Premium payment losses currency equity
reserve reserve
$'000 $'000 $'000 $'000 $'000 $'000
Balance at 31 December 2022 (Audited) $3,107 $60,687 $2,153 $(22,031) $(5,944) $37,972
Share-based expense 214 214
Total transactions with owners 214 214
Profit for the year attributable to owners of the parent
6,564 6,564
Total comprehensive income attributable to owners of the parent
6,564 6,564
Balance at 31 December 2023 (Audited)
3,107 60,687 2,367 (15,467) (5,944) 44,750
Share-based expense 94 94
Total transactions with owners 94 94
Profit for the period attributable to owners of the parent
607 607
Total comprehensive income attributable to owners of the parent
607 607
Balance at 30 June 2024 (Unaudited)
3,107 60,687 2,461 (14,860) (5,944) 45,451
IOFINA PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2024
Unaudited Audited
Six months ended Year ended
30 June 30 June 31 December
2024 2023 2023
$'000 $'000 $'000
Cash flows from operating activities
Adjusted EBITDA 2,348 5,865 10,781
Share options expense 94 87 214
Lease finance - - 199
2,442 5,952 11,194
Changes in working capital
Trade receivables decrease/(increase) 2,322 (1,444) (5,004)
Inventories decrease/(increase) 730 (1,396) 46
Trade and other payables (decrease)/increase (635) 1,856 2,376
Net cash inflow from operating activities 4,859 4,968 8,612
Cash flows from investing activities
Interest received 87 44 135
Acquisition of property, plant & equipment (4,727) (3,665) (6,234)
Net cash outflow from investing activities (4,640) (3,621) (6,099)
Cash flows from financing activities
Term loan repayments (714) (714) (1,429)
Interest paid (129) (161) (309)
Lease payments (89) (65) (144)
Net cash outflow from financing activities (932) (940) (1,882)
Tax paid/accrued (110) (19) (40)
Net (decrease)/increase in cash (823) 388 591
Cash and equivalents at beginning of period 6,518 5,927 5,927
Cash and equivalents at end of period 5,695 6,315 6,518
1. Nature of operations and general information
Iofina plc is the holding company of a group of companies (the "Group")
involved primarily in the exploration and production of iodine and the
manufacturing of halogen-based specialty chemical derivatives. Iofina's
principal business strategy is to identify, develop, build, own and operate
iodine extraction plants, with a current focus in North America, based on
Iofina's WET® IOsorb® technology. Iofina has current production operations
in the United States, specifically in Kentucky and Oklahoma. The Group has
complete vertical integration, from the production of iodine from produced
brine waters to the manufacture of the chemical end-products derived from
iodine and sold to global customers.
The address of Iofina plc's registered office is 48 Chancery Lane, London WC2A
1JF.
Iofina plc's shares are listed on the London Stock Exchange's AIM market.
Iofina's consolidated financial statements are presented in US Dollars, which
is the functional currency of the operating subsidiaries.
The figures for the six months ended 30 June 2024 and 30 June 2023 are
unaudited and do not constitute full statutory accounts. The comparative
figures for the year ended 31 December 2023 are extracts from the 2023 audited
accounts (which are available on the Company's website and have been delivered
to the Registrar of Companies) and do not constitute full statutory accounts.
The independent auditor's report on the 2023 accounts was unqualified and did
not contain statements under sections 498(2) or (3) (accounting records or
returns inadequate, accounts not agreeing with records and returns or failure
to obtain necessary information and explanations) of the Companies Act 2006.
2. Accounting policies
The basis of preparation and accounting policies set out in the Annual Report
and Accounts for the year ended 31 December 2023 have been applied in the
preparation of these condensed consolidated interim financial statements.
These interim financial statements have been prepared in accordance with the
recognition and measurement principles of the International Financial
Reporting Standards (UK adopted IFRS) that are expected to be applicable to
the consolidated financial statements for the year ending 31 December 2024 and
on the basis of the accounting policies expected to be used in those financial
statements.
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.
3. Segment reporting (continued)
Unaudited Audited
Six months ended 30 June 31 December
2024 2023 2023
Assets $'000 $'000 $'000
Halogen Derivatives and iodine 59,903 57,140 60,522
Total $59,903 $57,140 $60,522
Liabilities
Halogen Derivatives and iodine 14,451 15,518 15,772
Total $14,451 $15,518 $15,772
(b) Geographical segments
The Group reports by geographical segment. All the Group's activities during
the period were 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.
Unaudited Audited
Six months ended 30 June 31 December
2024 2023 2023
Total assets $'000 $'000 $'000
UK 99 281 185
USA 59,804 56,859 60,337
Total $59,903 $57,140 $60,522
Total liabilities
UK 187 145 204
USA 14,264 15,372 15,568
Total $14,451 $15,517 $15,772
Capital expenditures
UK - - -
USA 4,727 3,665 6,234
Total $4,727 $3,665 $6,234
4. Earnings per share
The calculation of earnings per ordinary share is based on profits of $607,003
(H1 2023: $3,562,521) and the weighted average number of ordinary shares
outstanding of 191,858,408 (H1 2023: 191,858,408). After including the
weighted average effect of share options of 5,000,400 (H1 2023: 5,393,650) the
diluted weighted average number of ordinary shares outstanding was 196,858,808
(H1 2023: 197,252,058).
5. Bank loan facilities
Term loan
$'000
At 31 December 2022 6,785
Term loan instalment repayments (1,429)
At 31 December 2023 5,356
Term loan instalment repayments (714)
At 30 June 2024 4,642
Due within one year 1,429
Due after one year 3,213
4,642
Bank facilities are 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 $4.6m (H1 2023 $6.1m) 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 of $6.0m has been extended 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%. Iofina is currently not drawing on this line of credit.
Project loan facilities
c) As of September 13, 2024 the Group has finalised a term loan facility of up
to $10 million on the basis of phased drawdowns to fund construction and other
capital expenditure on plants IO#10, IO#11 and IO#12. The drawdown period runs
from September 13, 2024 through to March 13, 2026, and a seven-year term with
even monthly repayments begins from March 13, 2026. The interest rate is 2.25%
above SOFR (1 month Secured Overnight Financing Rate) subject to a minimum
SOFR rate of 1%. Repayment of all or part of the loan may be made at any time
without penalty. No drawings have as yet been made on this loan facility. This
facility replaces another undrawn $4m project loan facility that expired in
the Period.
Bank covenants
d) Compliance in respect of all amounts outstanding in respect of the above
facilities is required on a quarterly basis for 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.
6. Share capital
Unaudited Unaudited Audited
30 June 30 June 31 December
2024 2023 2023
Authorised:
Ordinary shares of £0.01 each
-number of shares 1,000,000,000 1,000,000,000 1,000,000,000
-nominal value £10,000,000 £10,000,000 £10,000,000
Allotted, called up and fully paid:
Ordinary shares of £0.01 each
-number of shares 191,858,408 191,858,408 191,858,408
-nominal value £1,918,584 £1,918,584 £1,918,584
7. Share based payments
No share options were granted or lapsed or were forfeited or exercised during
the six months to 30 June 2024. There were 6,197,100 total options outstanding
at 30 June 2024 representing 3.23% of shares in issue.
8. Adjusted EBITDA
Management uses certain non-IFRS performance measures to assess performance of
the Group, and considers them to provide useful supplementary information to
the IFRS results. EBITDA is operating profit adjusted to exclude depreciation
and amortisation, and Adjusted EBITDA additionally excludes exceptional items
of non-recurring income and expense. Management considers that this latter
measure provides a fair representation of the period's operating results
excluding non-cash items. A reconciliation to Profit before finance expense is
set out below the Consolidated Statement of Comprehensive Income.
9. Cautionary Statement
This report contains certain forward-looking statements with respect to the
financial condition, results of operations and businesses of Iofina plc. These
statements are made by the directors in good faith based on the information
available to them up to the time of their approval of this report. However,
such statements should be treated with caution as they involve risk and
uncertainty because they relate to events and depend upon circumstances that
will occur in the future. There are a number of factors that could cause
actual results or developments to differ materially from those expressed or
implied by these forward-looking statements. Nothing in this announcement
should be construed as a profit forecast.
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