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Hi
From last month
Not sure if this has been posted previously, but totally worth the watch. (full presentation and Q&A)
https://www.youtube.com/watch?v=LW02eSCJ2Bw
ATB
AJP
Impressive
Thanks AJP08 - some interesting added info. in here for me:
1. Only $2m needed if they wanted to build a new plant - v. low capital intensity and minimal electric used in process
2. So many parallel new product avenues are here beyond detergents and hygiene - many significant - new ones for me were crop protection and industrial water treatment
3. IP moat - 16 families blocks competition and locks us in to brands
4. Retail channels (now ubiquitous ITX in most key channels)- very diverse with >170brands. Amazon - large mail order access channel
5. We have Reckitt as a client also which I did not know - another massive cleaning/hygiene global player
6. Big bonus focus onto much higher new vol markets for 24/25+
7. Now we have an artistic painting and shoe/ leather items to physically demonstrate and showcase to ITX clients - impressive.
8. John 's words - "very bright future & very exciting" so my take is that we are really on the cusp of major diversification opportunities
Forgot to mention:
9. Slick new ITX web site in c. 8 weeks time so early May should be launched - will bring further client adoption/conversion benefits due to greater external impact - we are now here to stay as a major ECO functional ingredients business with some compelling new marketing strap lines like we are seeing recently being trademarked.
Hi Elsol
Thank you for the breakdown of the presentation, as you allude to there are some very interesting development that are happening right now and even more to come as we move forward.
2 million to replicate a plant in Europe, now that would be a huge step forward? and relatively cheap to double our capacity from where we are at the moment, and all the benefits that would bring.
ITX SP is just in its infancy, how do you value the potential here(huge)? personally I do not think we will get the chance to achieve this and will get taken out?
ATB
AJP
AJ - I wasn't joking when I said Itaconix would be a division of Unilever. It may not be them specifically but it's only a matter of time before ITX is taken over by one of the majors product manufacturers.
The products being developed by ITX are transformational for the likes of Unilever et all, and they'll take us in-house to stop the competition doing so as much as for their own ends.
Terrific presentation, John is really stepping up to the mark. Thx to Elsol for the summary too.
I just love the huge recurring revenues and the vast range of opportunities here - plus the large cash pile and the minimal need for cap.ex.
Sat here watching the presentation..
"...once you get formulated in, its very hard to get formulated out...".
It struck me this is a very nice way to understand why they can almost guarantee repeat business.
Well done to those discovering that ITX are now in global mega business products. I would bet that its the foot in the door with these behemoths that's the toughest bit to crack, so it really is very exciting confirmation in my view,
Yep, that's a great phrase and sums it all up for me.
It's taken time to get this far, but now we've got here the next few years will be phenomenal.
Not many company's manage to marry the science with the market, but there's no doubt that ITX have achieved it, and one of the best parts as far as I'm concerned is that the longer it takes a major to move in on us the more it will cost them. It's a one way street from here.
The reason that the MC of ITX isn't 10x its current level is simply because the UK market hasn't understood the science or the vast potential here.
In that way US investors are certainly more savvy.
Market Cap currently of £33m. Really. Add a 0 and it's still under valued.
"Not many company's manage to marry the science with the market"
Its something they have only really cracked in the last few months I think. It was a message that came over more strongly in the most recent RNS.
And, still sat watching that presentation its all ' performance...cost..performance...cost..performance...cost....and sustainability.
It seems very muck like they are now absolutely dialled in and focussed on the way to take the formulations to market and drive their growth hard.
I totally agree that John and team have managed to marry the science with the market, however I don't think that this is a recent development. It's been fundamental to the growth and success of the company to date.
For example Yvon first created a superabsorbant polymer in 2008 and I'd bet that they've engineered many others in all sorts of different sectors. John has said you can make so many things from itaconic acid, it all comes down to margins and profitability and we're not quite there with superabsorbants.
My point is that they made a conscious decision to focus first on the dish tab market (they have a functional advantage in dish tabs due to having 2 carboxylic acid groups). It's clear that John et al did the maths and they realised they could not only provide a green alternative, but also one that produced better results and was cheaper. John sums this up in the most recent RNS "...the Company's key competitive advantage is in delivering both performance and affordability."
A win, win, win for customers which can be seen in the N. American sales to date. As John says, ITX ingredients are in products in every price range: the premium shelf dish tab products, the budget, and also the ECO ranges.
But, the most interesting part of the ShareSoc presentation for me was John talking about the expected dish tab market growth in Europe.
FY23 Cleaning (mainly dish tab) revenues anfd growth
AMER = $6.9 million
AMER = 35.6%
EMEA = $1.0 million
EMEA = 89.3%
Two points
1. The European dish tab market is bigger than the US. John says this is now the focus.
2. Rossman (Germany) picked up a top award for their dish tab using ITX ingredients. Where one brand gets the ITX advantage, others soon follow.
It's clear we should anticipate huge revenue growth in Europe in the coming years.
P.S. Leather, superabsorbants, and paints are much bigger opportunities than what ITX have done so far in detergents.
Hi Elsol
Looks like another large purchase posted a day later than transaction?
27-Mar-24 14:48:08 260.00 8,600 Unknown* 254.00 270.00 22.36k
Markets closed tomorrow and Monday for Easter, so would think news will be out early next week on date for the finals
ATB
AJP
Thanks for flag AJP! Yes some big transactions going through that we have not seen until fairly recently - that one again looks a buy so could be same purchaser.