Itaconix Plc (LON: ITX) have said this morning that they are set to miss annual revenue targets. This has caused their stock price to fall across Friday trading.
Delays in certain customer projects across the last few months have caused supply issues meant that figures will be below the comparative figure one year prior.
The New Hampshire, based polymer ingredients maker’s revenue for the nine months to September 30 reached £700,000, up 78% year-on-year. Second half revenue is predicted to exceed the first half.
Itaconix Chief Executive John Shaw said “The use of our novel products in an increasing range of end-products is establishing a broad customer base for long-term revenue growth and ultimate profitability. While project delays can be rather frustrating, our commercial momentum continues to build, we remain confident about our outlook, and our future remains equally bright,”
As a result of lower expected annual revenues, and one off costs for new product development, Itaconix expects to report loss before interest, taxes, depreciation and amortisation for second half of 2019 broadly in line with the GBP1.0 million loss recorded in the first half, meaning 2019 Ebitda loss will be roughly GBP2.0 million
These delays have caused weighting on performance, and shareholders will not be pleased with the sudden changes that have arised from this morning’s statement.
Itaconix added that “It was “undertaking efforts to accelerate key revenue opportunities, particularly in water treatment and detergents”.
In terms of future forecasts, Itaconix have stated the loss in the final six months of 2019 will be broadly in line with the £1 milllon shortfall seen in the opening six months. The deficit last year was £3.9 million.
Whether shareholders will decide to cut their losses is unknown, and certainly Itaconix have not given shareholders much positive outlook.
However, if delays in customer projects can be fixed then this might allow short term recovery in the stock price.
Itaconix’s share price has been trading at 1.50 per share, seeing a 15.21% fall. 18/11/2019 11:49BST.