Chemical producer Itaconix PLC (LON: ITX) posted a narrower loss on-year, in its latest round of results.
The Company attributed the narrowed loss to a restructuring programme undertaken in 2018 – the result of which was a cut to costs by £2 million a year.
Pre-tax losses narrowed from £10.17 million to £7.26 million on-year, and revenues grew from £0.55 million to £0.66 million, with product revenues up 12.9% from £0.54 million to £0.61 million.
Despite losses persisting, the group remain positive and place confidence in revenue growth in their polymer technology platform in 2019.
In response to the results, Company CEO John R. Shaw commented:
“We are positioned for revenue growth and a focus on profitability with a reduced cost base and global partners in place for our current major products. While the ramp up in 2019 sales was initially delayed, revenue growth is accelerating, with
underlying pre-tax losses for the full year decreasing and remaining in line with expectations.”
In his report, the Company CEO added:
“In June 2018, we announced the downsizing of our research, development, marketing, and administrative operations in Deeside, Wales, to focus on revenue growth and profitability in our three core product areas. As of February 2019, the Group had no employees at the facility.”
“After raising new funds and significantly reducing our cost base in 2018, the pace of revenue growth from the uptake of our existing polymers into customer formulations remains our primary focus and the key dynamic to monitor for managing our costs and our cash to reach profitability. The Board firmly believes that the
products, active customer projects, and global partnerships are in place to increase overall use of our polymers, gain larger accounts, and generate significant new revenue growth going forward.”
It is worth noting, however, that uncertainty persists:
“Ultimately, it is uncertain whether our range of Itaconix products will be purchased in sufficient quantity for the Group to be successful in the commercial market. Progress in 2018 has been made to address costs whilst looking to fill unused capacity through developing existing and new commercial partnerships.”
The Company’s shares dipped in morning trading on Thursday, down 5.43% or 0.12p a share to 2.18p per share 27/06/19 12:47 GMT.