logo-loader
viewItaconix PLC

Itaconix focuses on fulfilling orders throughout pandemic

Snapshot

  • Manufacturer of bio-based speciality polymers
  • Supply deals with large conglomerates
Itaconix

Quick facts: Itaconix PLC

Price: 1.375 GBX

LSE:ITX
Market: LSE
Market Cap: £3.7 m
Follow

What Itaconix does

Itaconix PLC (LON:ITX) makes speciality polymers that are used in a wide variety of products, ranging from paints through washing liquids to mascara.

Its core technology was developed by a US company, called Itaconix Corporation, that it acquired in June 2016.

At the time of that purchase, the AIM-listed firm was known as Revolymer PLC, a company that had polymer technologies of its own as well as a nicotine gum business that it sold off to Danish firm Alkalon.

On March 1, 2017, the company changed its name to Itaconix.

Brands

Most of its products are bio-based, being derived from itaconic acid, which in turn is taken from corn starch, so the products are sustainably sourced, helping its customers improve the sustainability of their own consumer products.

Some of the brands under Itaconix’s banner include Itaconix CHT, a water conditioner for binding calcium that replaces banned phosphates; RevCare NE, a bio-based hair-styling polymer; and Eureco RP103, a product for the removal of stubborn stains.

Other products include Itaconix Velasoft, a natural skin conditioner for handwash; Itaconix Zinadore, a water-soluble odour neutraliser; deodorant ingredient Velafresh ZP30 and Itaconix DSP, a phosphate-free water conditioner used in detergents for consumer, industrial and agricultural applications.

How it is doing

During the coronavirus crisis, Itaconix is maintaining production, while reducing costs and negotiating payment terms to conserve its £300,000 cash reserves.

It is also assessing asset sales and considering whether to maintain its AIM listing.

Before the coronavirus outbreak, the firm was on a wave of contracts and clients, the last one for a joint development agreement for a biodegradable packaging venture in March.

The year to December saw revenue rising 60% to £1.1mln compared to 2018.

What the boss says: John Shaw, chief executive

"We have a plan to make it through to August... Our number one objective is to make sure we meet customers' orders."

"We have a very strong order book and some new products being launched shortly."

Video 

What the analyst says

Proactive's head of research Ed Stacey in his most recent update (May 6), said: 'Given Itaconix’ strong revenue growth, and exposure to the consumer staples segment, we argue that the company has a strong investment case to secure further financing."

FOR THE FULL NOTE CLICK HERE

Inflection points

  • Orders are coming in despite crisis, especially for dishwasher detergent
  • Production line still active

 

 

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Itaconix PLC named herein, including the promotion by the Company of Itaconix PLC in any Content on the Site, the Company receives from said...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Itaconix PLC's John Shaw reports strong growth in revenues as it further...

Itaconix PLC's (LON:ITX) John Shaw tells Proactive's Andrew Scott all of the work they've put in over the last five years to get its automatic dishwashing detergent polymer out in use has gone extremely well. ''We're going to have a new major national brand out on the market and in the stores...

4 weeks ago

2 min read