REG - Itaconix PLC - Preliminary Results
31/03/2025 07:15
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RNS Number : 7996C Itaconix PLC 31 March 2025
Embargoed: 31 March 2025
ITACONIX PLC
("Itaconix" or the "Company")
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2024
Itaconix (AIM: ITX) (OTCQB: ITXXF), a leading innovator in sustainable
plant-based polymers used to decarbonise everyday consumer products, announces
its Preliminary Results for the year ended 31 December 2024.
Commenting on the results, John R. Shaw, CEO of Itaconix said:
"2024 was a pivotal year in strengthening the foundation of our business,
following our decision to rebuild our customer base around the true value of
our ingredients. The results are already evident - improved gross margins, a
more diverse and resilient customer base, and momentum in Europe and
non-cleaning segments.
"We are entering 2025 with a stronger platform for growth, enhanced by the
launch of our SPARX™ innovation program, which is already producing
promising new products like Itaconix® TSI™ 422. With consumer demand rising
for safer, sustainable, and high-performing products, we believe Itaconix is
uniquely positioned to scale as a specialty ingredients leader."
Financial and Operational Highlights
2024 2023 2022 2021 2020
$'000 $'000 $'000 $'000 $'000
Revenue 6,503 7,866 5,600 2,596 3,292
Gross profit 2,260 2,437 1,487 700 1,154
Gross profit margin 34.7% 31.0% 26.6% 27.0% 35.1%
Adjusted EBITDA (#_ftn1) (1) (1,778) (925) (1,395) (1,640) (993)
Cash used from operating activities (2,753) (1,923) (219) (2,023) (1,157)
Net cash and investments at year-end 6,734 10,023 597 683 1,448
(( 1 )) Adjusted for interest, tax, depreciation, amortization, share based
payment charge, and exceptional items.
· Revenue of $6.5 million (2023: $7.9 million), reflecting the strategic
decision to exit lower-margin business with a major North American customer.
53.5% growth in remaining revenue base, excluding the discontinued North
American merchandiser contract.
· Gross profit margin improved to 34.7% (2023: 31.0%), driven by better
pricing, lower input costs and operating efficiencies.
· Adjusted EBITDA loss of $1.8 million (2023: loss of $0.9 million)
as the Company continued to invest in growth.
· Cash and investments at year end of $6.7 million, providing a
strong foundation for 2025.
· European revenues doubled year-on-year, with regional sales now
accounting for nearly 30% of total revenue.
· Strong progress in hygiene and beauty, with hygiene revenue up
49.7% and beauty revenue up 24.0%.
· New detergent polymer, Itaconix® TSI™ 422, launched with early
commercial adoption and cost advantages.
· Product pipeline strengthened with innovation across scale inhibition,
odour neutralisation, and new process developments.
· Regulatory footprint expanded with approvals in Australia, New
Zealand, South Korea, and increased volumes in Europe and China.
· SPARX™ collaboration program launched to accelerate adoption of
plant-based performance ingredients in new product formats.
· Jonathan Brooks, a distinguished corporate lawyer with extensive
capital markets and growth company experience, appointed as independent
Non-Executive Director and Chair of the Nomination Committee.
Commenting on the outlook, John R. Shaw, CEO, added:
"With the improvement in our revenue base and continued key operating and
capital spending on future growth, we are turning our proprietary technology
platform into a broad foundation for a large, high-gross margin, specialty
ingredients business. Importantly, we are structuring and building our
revenues for long-term success with products that are valued and purchased for
their performance, that are used across a broad range of customers and
applications, and that enable new generations of safer and more sustainable
consumer products. With our new SPARX™ program, we work closely with other
innovators to speed the introduction of new consumer products that address
valuable unmet needs.
"With H2 2024 revenues of $3.7 million verses H2 2023 revenues of $3.9
million, we entered 2025 with a more profitable customer base and revenue
momentum across our major applications and geographies. With a strong start
to 2025, current trading is in line with the Board's expectations and the
Board remains confident in Itaconix's mid-term path to profitability and
long-term revenue potential."
- Ends -
Enquiries:
Itaconix
plc
+1 603 775 4400
John R. Shaw / Laura Denner
Rosewood
+44 (0) 207 653 8704
Financial PR
John West / Llew Angus
Canaccord Genuity
+44 (0) 7523 8000
Nominated Adviser and Broker
Adam James / Harry Pardoe
About Itaconix
Itaconix uses its proprietary plant-based polymer technology platform to
produce and sell specialty ingredients that improve the safety, performance,
and sustainability of consumer products. The Company's current ingredients are
enabling and leading new generations of products in detergents, hygiene, and
hair care. Itaconix's products contribute to the global low carbon economy.
www.itaconix.com (http://www.itaconix.com)
CHAIR'S STATEMENT
For Nature with Nature
Innovative uses of biology and chemistry can make the world better.
We believe that itaconic acid offers extensive opportunities for capturing
this potential without placing costly burdens on consumers and society.
Itaconic acid is a natural biological material generated in the human and
plant world. It is produced at industrial scale by fermentation using
plant-based feedstock and is readily available. We use the unique
functionality of itaconic acid to produce proprietary ingredients that enable
plant-based solutions for new generations of cutting-edge consumer products.
We believe our ingredients can create consumer products that are better and
safer by how they are produced, how they are used, how they interact with
animals, and how they do not persist in the environment.
Our Business Plan
Our goal is to build a large, highly profitable company with recurring
revenues from a diverse base of customers that purchase Itaconix products as
key enabling ingredients in new generations of consumer products.
To achieve our goal, Itaconix has built a broad technology platform around the
versatility and safety of itaconic acid as a building block for ingredients,
mainly as potential replacements for acrylic acid polymers. With 16 patent
families, we have by far the broadest technology platform for harnessing the
functional value of itaconic acid in polymers.
We use our technology platform to create new itaconic acid-based ingredients
that meet specific customer needs or opportunities in leading consumer product
categories such as cleaning, beauty and hygiene. We produce these ingredients
by purchasing itaconic acid and polymerising it through our proprietary
processes.
Our ingredients compete primarily on safety, performance, and cost. We work
with brand managers and end-product formulators directly and through
intermediaries, such as contract manufacturers, distributors, and
merchandisers, to develop new consumer products that utilise our ingredients
to succeed in highly competitive consumer segments. Our primary focus is
selling ingredients directly to the manufacturers of consumer product brands
in North America and Europe. We also collaborate with distributors and
category leaders such Croda and Nouryon on broader geographic and application
opportunities.
Increasing usage in everyday products, particularly in the 360 million North
American and European households, is expected to form a robust base of
recurring revenues from consumer brands that rely on our ingredients for
safety, performance, affordability, and sustainability.
2024
Following our decision in April 2024 to redirect part of our business, I am
pleased to report that we have increased our gross profit margins to 34.7% in
2024 from 31.0% in 2023 and substantially broadened our revenue base across
more customers, more applications and more geographies. Our top three accounts
represented 40% of our 2024 revenues, compared to 74% for our top three
accounts in 2023. Demand for our ingredients in Europe grew to account for 30%
of 2024 revenues versus 12% in 2023. In fact, excluding the business
relinquished we grew our adjusted revenue base by more than 53.5% during the
year.
We also judiciously used our cash resources to invest in our customer pipeline
through new marketing capabilities, new products, additional product studies,
global regulatory approvals, better production, and organisation development
to support our growth.
Summary
2024 marked our second year into a new stage of development and growth. We
have a proprietary technology platform that is generating valuable products, a
broad base of recurring revenues, and attractive applications for far higher
revenue potential. We believe our strategic efforts in 2024 place our
Performance Ingredients and Formulated Solutions businesses on a better path
for more profitable long-term growth. We remain focussed on achieving revenue
growth and profitability from increasing the adoption of our current
ingredients and creating new and better solutions in high-volume applications.
Our progress is occurring in a global environment with significant
uncertainties. Views and regulations on the relative safety of chemicals are
fragmenting between consumer market segments and across geographies. Our
purchases of key raw materials and the sales of our ingredients face risks
from political acts that disrupt trade flows and consumer purchasing. As we
monitor and manage these forces to meet the strong underlying needs for our
ingredients, we are confident in the value of our proprietary technology and
in the opportunities for near-term and long-term revenue growth.
Dr. Peter Nieuwenhuizen
Chair
CHIEF EXECUITVE OFFICER'S STATEMENT
Introduction
Our commercial progress in 2024 continued to validate our technology platform,
the value of our polymers, our growth potential, and our path to
profitability. We added new customers and applications in Europe and North
America, grew substantially in Europe, and gained use for our newly launched
detergent polymer. We completed more studies on the safety of our ingredients
and expanded our global regulatory footprint. We exited 2024 with new revenue
momentum, higher gross profit margins, and a better base of customers and
applications.
But 2024 started with a major challenge to our belief about the value of our
ingredients. The inflationary squeeze starting in 2023 between retailers and
consumers exposed the potential for price pressure on our ingredients from a
concentrated revenue base. We know the cost-efficacy of our ingredients in
competitive consumer detergents. We know how our ingredients enable success
for customers. As announced in April 2024, however, we reached an impasse
between our ingredient value and desired pricing with a North American
detergent merchandiser, losing revenues as a result. We set about pursuing
growth with existing and new customers on commercial terms that better capture
and protect the value of our Performance Ingredients.
Revenues in 2024 grew in every part of the Company except for cleaning
ingredients in North America. Europe revenues doubled. Hygiene revenues grew
by 49.7%. Beauty revenues grew by 24.0%. Formulated Solutions revenues grew
by 7.0%. The drop in revenues to $6.5 million in 2024 from $7.9 million in
2023 was offset by gross profit margins increasing to 34.7% in 2024 from 31.0%
in 2023. Gross profit remained at $2.3 million in 2024 versus $2.4 million in
2023.
With the improvement in our revenue base and continued key operating and
capital spending on future growth, we are turning our proprietary technology
platform into a broad foundation for a large, high-gross margin, specialty
ingredients business. Our key areas of focus through 2026 for achieving
mid-term profitability, while also maintaining our long-term revenue
potential, are to:
· Regain lost North American cleaning revenues for scale inhibition
at attractive pricing;
· Expand European cleaning revenues with broader adoption for scale
inhibition;
· Land and expand North American odour neutralisation revenues in
broader home and industrial applications;
· Gain initial traction for BIO*Asterix specialty monomers and
binders.
Details on our potential and progress as outlined below.
Addressable Markets
Itaconix has a broad technology platform built around the versatility and
safety of itaconic acid as a building block for ingredients that can replace
acrylic acid or styrene polymers. We purchase itaconic acid on the open market
and process it into proprietary ingredients that contribute key functional
value and product claims to end-user products, with a current focus on
everyday consumer products.
The addressable markets for the Itaconix technology platform are broadly
defined by the $20 billion market in current uses for acrylic acid and styrene
polymers in consumer care, hygiene, water solutions, agriculture, composites,
and coatings. We currently have a portfolio of 14 ingredients for
formulators to use in a new generation of consumer products, and we
continuously develop new ingredients. Our products are protected by 16
patent families covering proprietary processes, compositions, and
applications.
Mineral dispersion and scale inhibition
Preventing the detrimental effects of scale buildup is often a major need when
high levels of calcium or other minerals are found in water. Ingredients to
keep minerals dispersed or inhibit scale are used in cleaning, industrial
water treatment, desalination, agriculture, mining, oilfield, and many other
applications. Itaconix polymers have multi-functional benefits at dispersing
minerals and inhibiting crystal formation, especially when the use of
phosphate-based chemistries is banned or not desired. Current Itaconix
ingredients have performance and cost advantages in some applications due to
the ability to replace two or more ingredients in a formulation, usually
including an acrylate polymer. The majority of Itaconix current revenues are
from scale inhibition in home dish and laundry detergents. Broader potential
may exist in industrial scale inhibition and mineral dispersion.
Odour neutralisation
Zinc metal ions are effective at binding with and neutralising malodour
compounds, such as sulphur or ammonia. Zinc-based chemistries, such as zinc
ricinoleate, are broadly used as delivery methods in consumer and industrial
applications. Itaconix complexes zinc into an Itaconix polymer to hold the
zinc and have it available in water to act as an odour neutraliser. These
Itaconix ingredients have valuable formulation, cost, efficacy, and post-use
benefits over other zinc-based chemistries in certain applications, including
detergents and deodorants.
Hair and collagen fixation
Itaconix polymers have functional groups that allow them to interface with
hair and collagen. This property allows them to have value for curl retention
in hair styling, temporary surface effects in skin products, and filling in
the collagen at the end of the leather tanning process. When used as a hair
fixative, Itaconix polymers will hold a curl in place without a film to leave
the hair feeling softer and less weighted. Itaconix polymers are currently in
the early stages of use in both hair styling and leather tanning.
Specialty monomers and binders
Latex binders made from esters of acrylic acid, such as butyl acrylate, are
used broadly for water-based paints, adhesives, and coatings. Similar binders
are possible from esters of itaconic acid. Itaconix has a broad range of
proprietary and non-proprietary esters of itaconic acid that it can make into
binders that have potential value for functional purposes in certain
applications, their plant-based content, and their safety profile.
Crop production
Metal ions, such as zinc, have value as micronutrients absorbed through roots
or foliage to increase crop production. Polymers, such as polyaspartic acid,
are used at the interface between soils and roots to improve crop
production. Like the zinc complex for odour neutralisation, Itaconix can
complex micronutrients into its polymers that may have dual potential for
improving crop production.
Absorption
Crosslinked acrylate polymers have a large market for use as superabsorbents
that improve the efficacy of infant and adult diapers. Itaconix has developed
crosslinked polymers that can compete with the absorption performance of
current acrylate polymers and offer high plant-based content. Itaconix
polymers may offer a low-cost approach to plant-based superabsorbents but
would be more expensive than fossil-based acrylate superabsorbents.
Rheology modification
Acrylate polymers are also used to maintain a desired viscosity in water-based
solutions and slurries. Itaconix is using its technology platform to research
and develop plant-based polymers that deliver comparable performance.
Revenues
Within broad addressable markets, we find sizeable market opportunities where
we believe an Itaconix polymer enables a new cost-effective solution that
creates near-term traction and can progress to become a standard ingredient
within certain product formulations. We believe that consumer product
applications currently offer better potential for faster revenue growth.
Revenue paths
The decision to use an Itaconix ingredient is made directly or indirectly by a
consumer brand, usually based on how effective an entire formulation is at
meeting a brand's performance and cost objectives. While our marketing and
sales efforts focus heavily on influencing the brands on valuable product
claims available through the use of our ingredients, about 80% of our 2024
revenues were to contract manufacturers that purchase our ingredients to blend
and package into end-products for brands. These volumes were for use in
formulations that either a brand developed and brought to a contract
manufacturer or a contract manufacturer brought to a brand. A contract
manufacturer may use our ingredients across 20 or more brands.
Another 17% of 2024 revenues were for products sold to Croda and Nouryon to
sell under their own label or to distributors, such as Brenntag, to resell
under our label. Only 3% of 2024 revenues were directly from brands.
Cleaning applications
The leading current use and near-term growth for our ingredients is in
cleaning applications. Our Itaconix® TSI® 322, Itaconix® DSP 2K®, and new
Itaconix® TSI® 422 polymers are multi-functionality scale inhibitors with
high value from replacing two or more materials in formulations, allowing more
compact dosage, and increasing the plant-based content of detergents.
We generate most of our cleaning revenues through direct selling efforts with
technical assistance and support to determine or influence the best formula
for a brand to achieve its desired performance and cost targets. Although the
loss of our largest detergent customer led to a decline in 2024 cleaning
revenues to $5.6 million from $7.2 million in 2023, European cleaning revenues
grew by 100% and rebuilding the North American revenue pipeline began with new
accounts won directly and through contract manufacturers.
When contract manufacturers and consumer brands know that our ingredient
enables significant competitive advantages in a product category, such as
dishwashing detergent, they may seek our formulation support to assure better
and faster success. Brands also seek our technical knowledge and solutions to
rapidly reformulate or create products in new formats, such as tablets or
sachets. We have responded by selectively selling full or partially formulated
solutions to contract manufacturers and brands in North America to accelerate
adoption, assure quality, and build value for our technical capabilities.
Formulated Solutions revenues grew to $2.0 million in 2024 from $1.9 million
in 2023 as more customers succeed in the market with our offerings. We are
also attracting more requests from brands, contract manufacturers, and other
value-added ingredient suppliers to collaborate on new innovative solutions
and formats. We are formalising these collaborations under our new SPARX™
program to focus our collective efforts and innovations on new generations of
consumer products in certain categories, with a target of ten new products in
2025. Our first announced collaboration is with Bonals, a leading European
unit dose tablet equipment company, to work on innovations in unique detergent
tablets for North America.
We believe our expanded line of detergent polymers, increased adoption in
Europe, the rebuild of our North American detergent revenue pipeline, and
collaborative innovations from our SPARX™ program will generate the core
foundation for Itaconix's near-term key performance indicators.
Hygiene applications
Itaconix produces polymers for odour neutralisation that are sold through
Croda as ZINADOR® 22L/35L and by Itaconix as VELAFRESH® ZP20/ZP30 and
ITACONIX® ONZ™ 100/105/400/405. These ingredients have comparable odour
control performance to incumbent zinc-based ingredients, such as zinc
ricinoleate, while offering the advantages in certain applications from ease
of use, not leaving residues, and high plant-based content.
Hygiene revenues increased to $0.5 million in 2024 from $0.4 million in 2023
from increased adoption. We believe that high consumer interest in effective
odour control, work on new applications, and collaborative efforts within our
SPARX™ program will add new accounts and profitable growth.
Beauty applications
Itaconix produces polymers for hairstyling that are sold through Nouryon as
Amaze® SP and by Itaconix as VELASOFT® NE 100. These ingredients are gaining
use in hair care products as alternatives to fossil-based fixatives based on
excellent curl retention, novel soft feel for "weightless" hairstyling, and
high plant-based content. Beauty revenues remained at $0.3 million in 2024
from $0.3 million in 2023.
Product Stewardship
We expanded our base of product safety data and global regulatory approvals in
2024 to support our near-term growth. To further substantiate the safety of
our ingredients and differentiate them from the growing public concerns about
micro-plastics and "forever" chemicals, we completed additional biodegradation
studies to broaden and enhance our data on how our current water-soluble
polymers do not persist in the environment. We presented the technical results
from these studies at leading cleaning conferences in Europe and North
America. To meet customer needs, we completed global regulatory approvals in
key countries. We gained new regulatory approvals in Australia, New Zealand,
and South Korea, and expanded volume allowances in Europe and China.
Innovation
Our major new product launch in 2024 was the introduction of Itaconix® TSI™
422. This ingredient further extends the competitive advantages of Itaconix®
TSI™ 322 for scale inhibition with cost savings from 10-20% less volume
needed per dose. Itaconix® TSI™ 422 has already gained usage in North
America and has growing revenue potential from customer projects outside of
North America.
We progressed our development of our Asterix® itaconate esters with
prototypes of itaconate binders in a specialty paint application, safety
studies for US regulatory approval filings, advancement of a patent for a
specific itaconate ester application, and work on the sale of research
quantities in North America.
We are researching modifications to our current production processes to
achieve the desired competitive performance for our superabsorbent polymer and
extend our line of water-soluble polymers into new application areas. Although
we have achieved desired laboratory results, we are focussing our efforts on
the commercial progress of our current ingredients before advancing further
development of these new polymers.
Production and Fulfilment
We continue to have sufficient capacity at our US production operations to
meet our needs and have no current plans to invest in an additional production
facility. In 2024, we invested selectively in improvements to our
manufacturing capabilities to increase production efficiencies, assure
reliability, and meet new packaging needs.
We increased our finished goods inventories in Europe to assure sufficient
fulfilment capabilities to meet growing demand for Itaconix ingredients in
European cleaning products.
Profitability and Funding
As outlined above, we are progressing in key areas toward a broad foundation
of customers and profitable revenues to achieve both our mid-term
profitability goal and our long-term revenue potential.
Our adjusted EBITDA 1 (#_ftn2) loss of $1.8 million and net loss of $1.9
million in 2024 reflect the measured use of our cash resources on key
operating and capital expenditures to speed and assure progress toward our
desired revenue base despite the decline in 2024 revenues. We ended 2024 in a
strong financial position with $6.7 million in cash and investments.
Full details on our financial results are available in the Financial Review.
Outlook
We are continuing our progress toward building a large, high gross margin,
capital efficient, specialty ingredients business. We are structuring and
building our revenues for long-term success with products that are valued and
purchased for their performance, that are used across a broad range of
customers and applications, and that enable new generations of safer and more
sustainable consumer products. With our new SPARX™ program, we work closely
with other innovators to speed the introduction of new consumer products that
address valuable unmet needs.
We have made key investments in regulatory approvals, product studies, sales,
and marketing to build our customer revenue pipeline. We have the balance
sheet and production capabilities to support our near-term growth and expected
path to profitability. In addition, we are using our technology platform to
invest in new products to expand our revenue potential and in new processes to
extend our intellectual property.
Global economic and political forces continue to present challenges in our
customer fulfilment operations and our raw material supply chain that have
become new norms since the start of the pandemic. We believe that enabling
safer, better performing, and more affordable solutions for everyday consumer
needs both mitigates the risks of global uncertainties and provides a clear
path to profitability with our current resources.
With H2 2024 revenues of $3.7 million verses H2 2023 revenues of $3.9 million,
we entered 2025 with a more profitable customer base and revenue momentum
across our major applications and geographies. With a strong start to 2025,
current trading is in line with the Board's expectations and the Board remains
confident in Itaconix's mid-term path to profitability and long-term revenue
potential.
John R. Shaw
Chief Executive Officer
OUR STRATEGY
Principal Activities
Itaconix is a leading innovator in plant-based ingredients for improving the
safety and performance of consumer and industrial products. The material at
the core of our platform, itaconic acid, is a natural metabolite found in the
human and plant world. Itaconic acid has been recognised for decades as a
valuable plant-based material due to its versatile functionality and its
safety profile. It is produced for commercial purposes by fermentation using
plant-based feedstock and is readily available.
We purchase and process it into key ingredients used in a wide range of
consumer products. The long-term potential for our business is based on our
proprietary technology platform for turning itaconic acid into functional
polymers that have high performance, safety, and sustainability value in
consumer products.
The Group's principal activities are the development of plant-based polymers
and the production and sale of these materials globally, both directly and
through partners as ingredients in product formulations.
Most of the Group's efforts are focused on cleaning, beauty, and hygiene
applications, which are where consumer interests and desires for safer and
more sustainable products are particularly high.
Progress in 2024
The Group focused on diversifying our customer base, increasing cleaning
volumes in Europe, increasing non-cleaning sales and improving gross profit
margins. Our concerted effort in growing Europe cleaning volumes were
successful and we were able to nearly double such revenues. After the
stalled negotiations with a North American merchandiser to reach mutually
acceptable terms on pricing, we moved our focus towards diversifying our
customer base and improving gross profit margins on our Performance
Ingredients and Formulated Solutions for cleaning. We successfully worked
with our partners to continue to develop beauty and hygiene revenues.
The Group advanced its development and commercial activities in its core
cleaning, beauty, and hygiene applications, as detailed in the Chief Executive
Officer's Statement.
Key Performance Indicators (KPIs)
The Directors believe there are financial and non-financial key performance
indicators for the Group. These KPIs are critical for management's aim to
monetise its technology platform through revenues generated by a growing
number of commercial products. Non-financial KPIs are detailed above in the
Chief Executive Officer's Statement.
Financial:
· Revenue
· Adjusted EBITDA, the earnings before interest, tax, depreciation,
amortization, share based payments, and exceptional items
· Cash
Non-Financial:
· Diverse revenues across products, customers, applications, and
geographies
· Value of intellectual property
Revenues for the year decreased by 17.3% while gross profits decreased by only
7.3% when compared to 2023. Gross profit margins improved from 31.0% in 2023
to 34.7% in 2024. Adjusted EBITDA increased from a loss of $0.9m in 2023 to
a loss of $1.8m in 2024. Cash used in operations increased from $1.9m used in
2023 to $2.8m used in 2024. Cash use in operations consisted of
approximately $1.9m of operating loss and an increase in working capital of
$0.9m. These cash outflows were used to support the commercial efforts of the
business in sales and marketing as well as inventory readiness. Below is a
table showing the Group's key performance metrics and financial highlights:
2024 2023 2022 2021 2020
$'000 $'000 $'000 $'000 $'000
Revenue 6,503 7,866 5,600 2,596 3,292
Gross profit 2,260 2,437 1,487 700 1,154
Gross profit margin 34.7% 31.0% 26.6% 27.0% 35.1%
Adjusted EBITDA(1) 2 (#_ftn3) (1,778) (925) (1,395) (1,640) (993)
Cash used from operating activities (2,753) (1,923) (219) (2,023) (1,157)
Net cash and investments at year-end 6,734 10,023 597 683 1,448
Financial Performance
Revenue
Total revenues for the year ended 31 December 2024 were $6.5m, representing a
17.3% decrease from 2023 revenues of $7.9m. Revenues since 2020 have a
compound annual growth rate of 18.6%. Revenues for the period comprised 86.3%
cleaning sales and 13.7% from beauty, hygiene, and other sales.
Europe represented 29.8% of the Group's revenues in 2024 and increased by
100.2% year on year. North America represented 70.9% of the Group's revenue
in 2024 and decreased by 33.9% year on year. Revenue in North America largely
consists of revenue generated in cleaning applications.
Revenues in H1 2024 lagged due to the strategic decision to reject the
proposed pricing with a large North American merchandiser but revenues
recovered in H2 2024 with significant volumes in the European cleaning market
and growth with other North American customers. Cleaning revenues in Europe
doubled as Itaconix® TSI 322 and Itaconix® TSI 422 are now available in this
region offering the performance, price and sustainability the market is
desiring. Revenues in beauty and hygiene increased with more brands and more
uses. Revenue growth from non-merchandiser revenues grew by 53.5% from 2023 to
2024.
Hygiene revenues improved by 49.7% from 2023, with the increase in sales
attributable to more applications and brands using our odour neutralisation
technology through our partnership with Croda.
Beauty revenues improved by 24.0% from 2023, with sales in North America
driving the growth in the year.
Gross profit and adjusted EBITDA(1) 3 (#_ftn4)
The gross profit margin was 34.7% in 2024 compared to 31.0% in 2023.
Improvements in gross profit margins were due to an effective pricing
strategy, a reduction in raw materials costs and improved operating
efficiencies. We have been working with a diverse group of customers to
bring our technologies to brands that desire the key claims our products
offer. We have also worked with suppliers to secure adequate raw materials at
competitive prices. Our operations team continues to improve production
efficiency and through put. These efforts contributed to improvements in
gross profit margins across our Performance Ingredients.
Adjusted EBITDA is a non-IFRS measure but is widely recognised in financial
markets and it is used within the Group as a key performance indicator.
Adjusted EBITDA was a loss of $1.8m in 2024 (2023: loss $0.9m) which increased
by 92.2%. The Group actively monitor administrative expenses and makes prudent
spending decisions to support the Group's strategic objectives.
Below is a reconciliation of Loss for the Year to Adjusted EBITDA:
2024 2023 2022 2021 2020
$'000 $'000 $'000 $'000 $'000
Loss after tax (1,865) (1,536) (2,463) (455) (1,646)
Taxation - 27 8 7 7
Depreciation 120 194 161 167 200
Amortisation 213 202 202 201 198
Share based payments 72 229 559 - -
Interest income (330) (141) - - -
Interest expense 12 79 - - -
Exceptional revaluation of lease liability - 21 - - -
Exceptional revaluation of contingent consideration - - 138 (1,560) 339
Exceptional organisational restructuring - - - - (91)
Adjusted EBITDA (1,778) (925) (1,395) (1,640) (993)
Administrative expenses
Administrative expenses consist of sales, marketing, operations, research and
development, and public company costs such as legal, finance and the Group
Board. These expenses were $4.4m in 2024 up from $3.9m in 2023. The increase
in administrative expenses was largely due to increased staffing to support
the Group's growth plans.
Costs and investments
As at 31 December 2024, the Group held cash of $5.5m and investments in term
deposits of $1.3m, compared to $2.6m and $7.5m, respectively as at 31 December
2023. Net cash outflows from operating activities of $2.8m in 2024 were used
to support the Group's growth plan while managing working capital needs,
compared to $1.9m in 2023.
Working capital
At the year end, working capital had increased as inventory readiness to
support global volumes grew. Inventories increased to $2.3m in 2024 from $1.1m
in 2023. The Group increased inventories in Europe to support revenue growth
and mitigate the risk of geopolitical and social events such as the US
election and US port strike in 2024. Trade and other receivables decreased to
$1.3m in 2024 from $1.4m in 2023. Trade and other payables increased to $1.9m
in 2024 from $1.7m in 2023. Working capital as a percentage of revenues
increased to 110.7% in 2024 from 43.5% in 2023.
Financial Reporting
The Group and the Company financial statements have been prepared in
accordance with UK adopted International Accounting Standards ("IFRS") and the
provisions of the Companies Act 2006. There were no new reporting standards
adopted for the year ended 31 December 2024 that have a material impact on the
financial statements.
Going Concern
The financial statements have been prepared on a going concern basis. The
Directors have reviewed the Company's and the Group's going concern position
taking account its current business activities, budgeted performance and the
factors likely to affect its future development, set out in the Annual Report,
and including the Group's objectives, policies and processes for managing its
working capital, its financial risk management objectives and its exposure to
credit and liquidity risks.
The Directors have also taken into consideration the current inflationary
environment and geopolitical uncertainties on the Group's revenues and supply
chain. While there has not been a significant negative impact during the
period on the Group revenues or supply chain, the Directors have applied
sensitivities to the timing, quantum, and growth of new customer projects in
revenue models and have assessed alternate supply chains that have been
developed by the Group to mitigate any issues in deliveries to our customers.
As further detailed in the Directors' Report on page 28 and note 2 to the
Annual Report, the Directors have reviewed the Group's cash flow forecasts
covering a period of at least 12 months from the date of approval of the
financial statements, which foresee that the Group will be able to meet its
liabilities as they fall due. However, the success of the business is
dependent on customers continuing to purchase our products in order to
increase revenues and to reduce losses and the Directors continuing to control
the Group's and the Company's cost base.
Shareholdings and Earnings per Share
Itaconix had 13,486,122 shares in issue as at 31 December 2024. The
undiluted weighted average number of shares for the period to 31 December 2024
was 13,486,122. The undiluted weighted average number of shares was used to
calculate the loss per share presented in note 4.
PRINCIPAL RISKS AND UNCERTAINTIES
The Group is exposed to several risks in its markets and business. The
Directors have overall responsibility for the Group's risk management process
but have delegated responsibility for its implementation, for the system of
controls which reduce risk and for reviewing their effectiveness to the
management team. As the uncertainties that the Group face evolve over time,
the management team reviews emerging risks and updates mitigation measures.
The results are reported to the Board.
Commercialisation Activities
The commercial activity in North America and Europe continues to progress.
Meeting customer demand both domestically and globally has remained a key
focus of the Group. Forecasting volumes is important for managing customer
demand and balancing working capital needs to the business. Ultimately the
success of the business relies upon Itaconix products reaching sufficient
sales volumes for the Group to generate an overall profit.
Management of risk: The Group has sought to manage this commercialisation risk
by partnering with market leaders for the worldwide promotion of our leading
products, continued development of end-user formulas to provide customers with
packaged solutions, and continuous review of the market needs for Itaconix
products.
Recruitment and Retention of Key Staff
The Group depends on its ability to recruit and retain highly qualified
managerial and scientific personnel. There are a limited number of candidates
with the experience and skills to replace these key personnel. Attracting the
best candidates can be highly competitive. Considerable focus has been given
to recruitment, development and retention. While the Group has employment
agreements with key personnel, their retention cannot be guaranteed.
Management of risk: The Group expanded its management team in 2024 to support
operations and offers competitive market rates and benefits to recruit and
retain top talent. Management continues to provide competitive compensation
packages including benefits for employees to be an attractive employer to work
for. In addition, the Group seeks to retain key personnel in the US using the
Company's 2019 Equity Incentive Plan for share option grants.
Key Persons Risk
For senior corporate management, the Group relies on two people, the Chief
Executive Officer and the Chief Financial Officer. The Group has not updated
the employment agreements with these officers since 2019. Both officers play a
pivotal role in shaping the Company's vision, strategy, and operations. The
Board recognises the importance of mitigating key person risk to ensure the
long-term stability of the Company.
Management of risk: The Group is negotiating new executive employment
agreements and uses the 2019 Equity Incentive Plan for share option grants,
not only for incentivisation but also to encourage retention. The Board is
developing contingency plans to address unforeseen circumstances, as well as
succession planning, to ensure that the Company remains resilient and
well-positioned for sustainable growth.
Customer Concentration and Retention
The ability to retain key customers at attractive gross profit margins is
critical to maintaining revenue streams. The loss of key customers or
excessive dependence on a limited number of customers could impact business
results adversely.
Management of risk: We engage with the product managers and formulators either
directly or through contract manufacturers to create consumer products that
achieve desired performance claims and overall costs. During the process, we
monitor the estimated value of our ingredients in the end-product formulations
and price our ingredients relative to competitive alternatives. The revenues
for a particular ingredient are often concentrated in a few customers in the
early commercial stages. As we introduce more products and these products
enter new phases of growth, we are seeking to diversify our customer base and
to more consistently achieve pricing that reflects the value of our
ingredients in the end-product formulations.
Regulatory, Legislation and Environmental Impact
Consumer and regulatory focus on the in-use and post-use safety of chemicals
has transformed the global consumer products market, particularly in Europe
and North America over the last ten years. Consumers, brands, retailers,
regulators, and other industry stakeholders are seeking ingredients that are
less toxic, do not persist in the environment, and have a smaller carbon
footprint. These desires are increasingly reflected in regulations, product
certifications, and consumer purchasing decisions. Itaconix polymers are
effective replacements for phosphates in detergents and are used in numerous
detergent products in North America and Europe for this purpose. In addition,
there is growing scrutiny from customers, retailers, and industry stakeholders
on the carbon footprint of raw materials and finished products. Companies are
increasingly reducing their environmental impact to align with consumer demand
for sustainable products. This shift is influencing purchasing decisions and
product formulations across industries, including home and personal care, and
also requires the suppliers of plant-based alternatives like Itaconix polymers
to monitor their carbon footprint.
Management of risk: The value of Itaconix products starts with their safety
and environmental profile. The Group closely monitors the evolving
requirements for substantiating these profiles and regularly conducts
technical studies to reinforce and extend the safety and environmental claims
of Itaconix ingredients.
Competition and Technology
The production and use of Itaconix polymers are subject to technological
change over time. There can be no assurance that developments by others will
not render the Group's product offerings and research activities obsolete or
otherwise uncompetitive.
Management of risk: The Group employs experienced and highly-trained polymer
chemists to develop and protect the Group's intellectual property. These
efforts include continuous work on the performance and cost advantages of
Itaconix polymers. In addition, the staff monitors technologies and patents
through publications, scientific conferences, and collaborations with other
organisations to identify new risks and opportunities.
Manufacturing Risk
Itaconix has one production facility in North America, that supports the
Group's revenues. Key raw materials are sourced globally which can result in
an extended supply chain.
Management of risk: The Group holds additional finished goods and raw material
inventories off site at a warehouse in North America and another in Europe.
Suppliers also hold additional raw materials in North America.
Liquidity Risk
Itaconix seeks to manage financial risk by ensuring adequate liquidity is
available to meet foreseeable needs and to invest cash assets safely and
profitably. In addition, short-term flexibility is achieved by holding
significant cash balances in Itaconix's functional currencies, notably UK
Sterling and US Dollars.
Management of risk: The Group monitors bank balances held in established
financial institutions and maintains adequate cash balances in its functional
currencies.
Credit Risk
The principal credit risk for Itaconix arises from its trade receivables. To
manage credit risk, new customers are subject to credit review and all
customer accounts are regularly reviewed for debt aging and collection
history. As at 31 December 2024, there were no significant credit risk
balances.
Management of risk: The Group's control environment requires new customers to
establish credit terms through providing credit references and a credit
review. Trade receivables are actively monitored for collection history.
Inflation and Foreign Currency Risk
Inflation in global economies continues to increase but to a lesser extent
than in prior years. The Company experienced, for example, stabilisation in
most raw materials costs and in international shipping costs in the financial
year.
Selling price to international customers in foreign currencies has increased
in 2024. This is offset by the ability to increase pricing to these
customers and the Group has the ability to receive various foreign currencies
in bank accounts and convert them as market conditions are favourable.
Management of risk: The Group actively monitors raw material costs and works
with vendors to manage these costs. Costs increases are periodically passed
onto customers through pricing increases.
Foreign Exchange Risk
Itaconix is a holding company publicly traded on the London Stock Exchange.
The Group's primary operations are in the US. These US based operations
transact trades with customers in North America and internationally. Revenue
and costs are exposed to variations in exchange rates and therefore reported
losses. In 2019, the Group elected to convert the reporting currency from UK
Sterling to US Dollars. The US Dollar transactions represent a significant
portion of the functional currency transactions and therefore reduce the
Group's overall exposure to translation exchange risk.
Management of risk: The Group manages foreign exchange risk by maintaining
bank balances in major functional currencies to control the impact on
transaction costs for operational expenses. The Group will continue to monitor
the appropriateness of reporting in US Dollars.
Government and Geopolitical Risk
The Group has potential exposure to government activities related to US-Europe
and US-China trade relations and geopolitical risk, such as through the
procurement and import of itaconic acid from China, and the sale of products
to Europe and Canada. Trade tensions have led to fluctuating tariff regimes
that impact the costs of raw materials, production, distribution, and sales.
The imposition of tariffs on chemicals and specialty ingredients can increase
costs for both manufacturers and end customers, potentially affecting demand
and competitive positioning. This can have a negative impact but in certain
cases can also improve our competitive position relative to other products.
Tariffs or sudden policy shifts may also create supply chain disruptions,
forcing companies to adjust sourcing strategies or seek alternative suppliers,
often at higher costs. Limited availability and extended delivery times may
also trigger increases of raw material or product costs and may continue to
cause volatility.
Management of risk: The Group actively monitors global trade policies and
tariff developments to assess potential cost impacts and mitigate supply chain
risks. The Group also actively monitors raw material sourcing, particularly of
itaconic acid and the impact it could have on the Group's products. It works
with current suppliers on raw materials pricing and mitigating the impact of
tariffs on the pricing of the Group's products. Additionally, the Group
stays informed on potential trade developments and advocates for policies that
support fair and predictable market conditions. By proactively managing these
risks, the Group aims to maintain cost efficiency and supply chain stability
while continuing to serve its customers competitively.
Cyber and Information Risk
There is a growing risk of fraudulent attacks on the business, such attack
could have the potential to significantly disrupt the Group's operations and
result in loss to the business.
Management of risk: The Group monitor IT systems in place to ensure they are
up to date and regularly updated with the latest security protection.
SECTION 172 STATEMENT
Statement of Compliance with Section 172 of the Companies Act 2006
The Directors are required to include a separate statement in the Annual
Report that explains how they have considered broader stakeholder needs when
performing their duty under Section 172(1) of the Companies Act 2006. This
duty requires that a director of a company must act in the way he or she
considers, in good faith, would be most likely to promote the success of the
company for the benefit of its members as a whole, and in doing so have regard
(amongst other matters) to:
· The likely consequences of any decision in the long term;
· The interests of the company's employees;
· The need to foster the company's business relationships with
suppliers, customers, and others;
· The impact of the company's operations on the community and the
environment;
· The desirability of the company to maintain a reputation for high
standards of business conduct; and
· The need to act fairly between members of the company.
In connection with its statement, the Board describes in general terms how key
stakeholders, as well as issues relevant to key decisions are identified, and
also the processes for engaging with key stakeholders including customers,
employees and suppliers, and understanding those issues. It is the Board's
view that these requirements are predominantly addressed in the corporate
governance disclosures made in the Directors' Report, which are themselves
discussed more extensively on the Group's website.
A more detailed description is limited to matters that are of strategic
importance in order to remain meaningful and informative for shareholders. The
Board believes that five decisions taken during the year fall into this
category, and engaged with appropriate internal and external stakeholders on
these decisions, where applicable:
· Impasse on negotiations with a North American detergent merchandiser -
The Directors continually assessed management's negotiations with this
merchandiser supported the decision to pursue growth of cleaning revenues with
other customers;
· Appointment of new Non-Executive Directors - The Directors
continually assess the evolving needs of the Group and appoint individuals
that will support the Group's strategic needs;
· Appointment of a new nominated advisor ("NOMAD") and broker - The
Directors continually assess the evolving needs of the Group. The Group
interviewed several NOMADs and brokers to determine the best fit for the Group
and made the ultimate decision to change to a new NOMAD and broker in January
2024;
· ESG Report - The Directors believe that sustainability and
environmental, social and governance ("ESG") matters are increasingly
important. The Group issued a stand alone report to capture, measure and
report on these important matters;
· Audit tender process - The Audit Committee completed an audit tender
process for the 2024 audit engagement. During the process the Committee
engaged with several firms of various sizes to determine the best fit for the
Group's needs. The Committee reported its findings and proposed the best fit
for the business to the Board for approval.
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2024
2024 2023
$'000 $'000
Revenue 6,503 7,866
Cost of sales (4,243) (5,429)
Gross profit 2,260 2,437
Administrative expenses (4,443) (3,987)
Group operating loss before exceptional items (2,183) (1,550)
Loss on modification of lease - (21)
Operating loss before tax from operations (2,183) (1,650)
Finance income 330 141
Interest expense (12) (79)
Loss before tax (1,865) (1,509)
Taxation - (27)
Loss after tax (1,865) (1,536)
Basic and diluted loss per share (0.14¢) (0.12¢)
Diluted loss per share (0.14¢) (0.12¢)
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
For the year ended 31 December 2024
2023 2023
$'000 $'000
Loss for the year (1,865) (1,536)
Items that will be reclassified subsequently to profit or loss
Exchange gains in translation of foreign operations (98) 530
Total comprehensive loss for the year, net of tax (1,963) (1,006)
Attributable to:
Equity holders of parent (1,963) (1,006)
CONSOLIDATED BALANCE SHEET
At 31 December 2024
31 Dec 31 Dec
2024 2023
$'000 $'000
Non-current assets
Intangible assets 244 24
Property, plant and equipment 584 337
Right-of-use assets 2,023 2,236
Investments - 1,273
Investment in subsidiary undertakings - -
2,851 3,870
Current assets
Inventories 2,312 1,096
Trade and other receivables 1,281 1,421
Investments 1,252 6,183
Cash and cash equivalents 5,482 2,567
10,327 11,267
Total assets 13,178 15,137
Financed by
Equity shareholders' funds
Equity share capital 8,665 8,665
Equity share premium 58,012 58,012
Own shares reserve (5) (5)
Merger reserve 31,343 31,343
Share based payment reserve 944 872
Foreign translation reserve 331 429
Retained deficit (89,957) (88,092)
Total equity 9,333 11,224
Non-current liabilities
Lease liabilities 1,698 1,957
1,698 1,957
Current liabilities
Trade and other payables 1,876 1,677
Lease liabilities 271 279
2,147 1,956
Total liabilities 3,845 3,913
Total equity and liabilities 13,178 15,137
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
At 31 December 2024
Equity share capital Equity share premium Own shares reserve Merger reserve Share based payment reserve Foreign translation reserve Retained deficit Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
At 1 January 2023 5,959 47,942 (5) 31,343 643 (101) (86,556) (775)
Loss for the year - - - - - - (1,536) (1,536)
Share issuance proceeds 2,488 10,195 - - - - - 12,683
Share issuance expenses - (1,014) - - - - - (1,014)
Contingent consideration 218 915 - - - - - 1,133
Share consolidation - (26) - - - - - (26)
Exchange differences on translation of foreign operations - - - - - 530 - 530
Share based payments - - - - 229 - - 229
At 31 December 2023 8,665 58,012 (5) 31,343 872 429 (88,092) 11,224
Loss for the year - - - - - - (1,865) (1,865)
Exchange differences on translation of foreign operations - - - - - (98) - (98)
Share based payments - - - - 72 - - 72
At 31 December 2024 8,665 58,012 (5) 31,343 944 331 (89,957) 9,333
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2024
2024 2023
$'000 $'000
Net cash outflow from operating activities (2,753) (1,923)
- -
------ ------
Interest received 330 141
Purchase of securities - (7,456)
Deposits of securities 6,204
Purchase of property, plant and equipment (363) (226)
Development of website (27) (29)
Capitalisation of development costs (197) -
Cash loaned to subsidiary undertakings - -
Net cash inflow /(outflow) from investing activities 5,947 (7,570)
Cash received from issue of shares - 12,683
Transactions costs paid on the issue of shares - (1,014)
Transactions costs paid on the share consolidation - (26)
Repayment of lease liability (279) (108)
Interest paid - leases - (72)
Net cash (outflow) / inflow from financing activities (279) 11,463
Net inflow / (outflow) in cash and cash equivalents 2,915 1,970
Cash and cash equivalents at beginning of year 2,567 597
Cash and cash equivalents at end of year 5,482 2,567
NOTES TO THE FINANCIAL INFORMATION
2. Accounting policies
Basis of presentation
The financial information set out in this document does not constitute the
Group's statutory accounts for the years ended 31 December 2023 or 2024.
Statutory accounts for the years ended 31 December 2023 and 31 December 2024,
which were approved by the directors on 28 March 2025, have been reported on
by the Independent Auditors. The Independent Auditor's Reports on the Annual
Report and Financial Statements for 2023 or 2024 was unqualified and
unmodified and neither year did not contain a statement under 498(2) or 498(3)
of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2023 have been filed with
the Registrar of Companies. The statutory accounts for the year ended 31
December 2024 will be delivered to the Registrar of Companies in due
course and will be posted to shareholders on 31 March 2025, and thereafter
will be available from the Group's registered office at Fieldfisher Riverbank
House, 2 Swan Lane, London, United Kingdom, EC4R 3TT and from the Group's
website https://itaconix.com/investor/reports-documents/
(https://itaconix.com/investor/reports-documents/)
The financial information set out in these results has been prepared using the
recognition and measurement principles of International Accounting Standards,
International Financial Reporting Standards and Interpretations in accordance
of UK adopted International Accounting Standards ('IFRS'). The accounting
policies adopted in these results have been consistently applied to all the
years presented and are consistent with the policies used in the preparation
of the financial statements for the year ended 31 December 2023, except for
those that relate to new standards and interpretations effective for the first
time for periods beginning on (or after) 1 January 2024. There are deemed to
be no new standards, amendments and interpretations to existing standards,
which have been adopted by the Group, that have had a material impact on the
financial statements.
The Group's financial information has been presented in US Dollars (USD).
Going concern
The financial statements have been prepared on a going concern basis. The
Directors have reviewed the Parent Company's and the Group's going concern
position taking account its current business activities, budgeted performance
and the factors likely to affect its future development, set out in the Annual
Report, and including the Group's objectives, policies and processes for
managing its working capital, its financial risk management objectives and its
exposure to credit and liquidity risks.
The Group made a loss for the year of $1.9m, had Net Operating Assets at the
period end of $9.3m and a Net Cash Outflow from Operating Activities of $2.8m.
Primarily, the Group meets its day to day working capital requirements through
existing cash resources and had on hand cash, cash equivalents and investments
at the balance sheet date of $6.7m.
The Directors have reviewed the Group's cash flow forecasts covering a period
of at least 12 months from the date of approval of the financial statements,
which foresee that the Group will be able to meet its liabilities as they fall
due. However, the success of the business is dependent on customers continuing
to purchase the Group's products in order to increase revenue and profit
growth and continuing to control the Group and Parent Company's cost base.
The Directors believe that, taken as a whole, the factors described above
enable the Parent Company and Group to be and continue as a going concern for
the foreseeable future. The financial statements do not include the
adjustments that would be required if the Parent Company and the Group were
unable to continue as a going concern.
3. Revenue
Revenue recognised in the Group income statement is analysed as follows:
Geographical information
Revenues Net assets
2024 2023 2024 2023
$'000 $'000 $'000 $'000
North America 4,555 6,898 2,990 1,504
Europe 1,938 968 6,343 9,720
Rest of World 10 - - -
6,503 7,866 9,333 11,224
The revenue information is based on the location of the customer. Net assets
of the Group (being total assets less total liabilities) are attributable to
geographical locations.
End Market information
Revenue for the Group is comprised of three primary end market segments, as
identified below:
2024 2023
$'000 $'000
Cleaning 5,610 7,207
Hygiene 527 351
Beauty 315 254
Other 51 54
6,503 7,866
Segment information
The Group has three business segments. Performance Ingredients develops,
produces and sells proprietary specialty polymers that are used as functional
ingredients to meet customers' needs in cleaning, beauty and hygiene products.
Formulated Solutions provides technical services and ingredient supplies for
formulated products developed for customers based on Performance Ingredients.
These segments make up the continuing operations. Core Operations include
development expense, general and administrative expense, professional fees,
and governance costs to progress and grow the Group's operations.
Performance Ingredients Formulated Solutions Core Operations 2024
$'000 $'000 $'000 $'000
Revenue
Sale of goods 4,463 2,040 - 6,503
Results:
Depreciation and amortisation (203) - - (203)
Cost of sales (2,316) (1,724) - (4,040)
Gross profit 1,944 316 - 2,260
Administrative expense - - (4,443) (4,443)
Other income - - 330 330
Interest expense - - (12) (12)
Taxation charge - - - -
Segment performance 1,944 316 (4,125) (1,865)
Operating assets 5,493 276 5,913 11,682
Operating liabilities (2,420) (237) (1,188) (3,845)
Other disclosure:
Capital expenditure* 57 - 305 362
Performance Ingredients Formulated Solutions Core Operations 2023
$'000 $'000 $'000 $'000
Revenue
Sale of goods 5,958 1,908 - 7,866
Results:
Depreciation and amortisation (294) - - (294)
Cost of sales (3,406) (1,729) - (5,135)
Gross profit 2,258 179 - 2,437
Administrative expense - - (4,066) (4,066)
Other income - - 120 120
Taxation charge - - (27) (27)
Segment performance 2,258 179 (3,973) (1,536)
Operating assets 4,381 284 2,992 7,657
Operating liabilities (2,381) (308) (1,224) (3,913)
Other disclosure:
Capital expenditure* 48 - 178 226
*Capital expenditure consists of additions of property, plant and equipment.
4. Loss per share
Basic loss per share is calculated by dividing the loss attributable to
ordinary shareholders by the weighted average number of ordinary shares in
issue during the year.
2024 2023
Loss $'000 $'000
Loss for the purposes of basic and diluted loss per share (1,865) (1,536)
Weighted average number of ordinary shares for the purposes of basic and 13,486 12,863
diluted loss per share ('000)
Basic and diluted loss per share (13.8)¢ (11.9)¢
Basic and diluted loss per share (post consolidation comparison) (13.8)¢ (11.9)¢
The loss for the period and the weighted average number of ordinary shares for
calculating the diluted earnings per share for the period to 31 December 2024
are identical to those used for the basic earnings per share. This is because
the outstanding share options would have the effect of reducing the loss per
ordinary share and would therefore not be dilutive.
5. Cautionary Statement
This document contains certain forward-looking statements relating to Itaconix
plc (the "Group"). The Group considers any statements that are not historical
facts as "forward-looking statements". They relate to events and trends that
are subject to risk and uncertainty that may cause actual results and the
financial performance of the Company to differ materially from those contained
in any forward-looking statement. These statements are made by the Directors
in good faith based on information available to them and such statements
should be treated with caution due to the inherent uncertainties, including
both economic and business risk factors, underlying any such forward-looking
information.
(#_ftnref1)
1 Adjusted for interest, tax, depreciation, amortisation, share based
payment charge, and exceptional items.
(#_ftnref3) (1) Adjusted for interest, tax, depreciation, amortisation, share
based payment charge, and exceptional items.
(2) Unaudited revenues by reporting period.
(#_ftnref4) 1 Adjusted for interest, tax, depreciation, amortisation, share
based payment charge, and exceptional items.
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