(Alliance News) - Itaconix PLC on Tuesday said revenue in the first four months of the year was higher and that it has implemented cost saving measures including a reduction in discretionary spending.
Shares in Itaconix were up 39% at 1.15 pence in London in late morning trading.
The company develops bio-based functional functional ingredients for use in industrial, home care, and personal care products. Its revenue in the four months ended April 30 was up 42% year-on-year at GBP600,000.
Itaconix attributed the revenue rise primarily to: "The continued commercial progress and success of the company's detergent polymers". This included its first purchase order for Itaconix TSI322 for use in a new dishwashing detergent and increased order volumes from existing customers as dishwashing detergent demand rose in response to lockdown measures around Covid-19.
In addition, total volumes in Itaconix's supply agreement with New Wave were "ahead of plan", a further revenue contributor. Going forward, Itaconix sees a continuation in revenue growth for its detergent polymers.
In terms of cash preservation, Itaconix said it has curtailed "all non-essential discretionary spending" and agreed a voluntary deferral of 65% of Chief Executive John Shaw's cash compensation until the end of August at the earliest. Other executives have also agreed to defer 50% of their cash compensation to at least August end.
Non-executive directors, meanwhile, have agreed to deferring 75% of their cash compensation "until at least the end of the September".
The firm has also applied for Covid-19 government relief programs for its US operations and has thus far received a USD10,000 government grant while seeking further funds from this source. Its cash on Thursday last week totalled USD300,000.
"The board believes that, with these actions and without any further funding (including any further funding received from Covid-19 US government relief programs being applied for), the company now has sufficient working capital to operate until at least the end of August 2020. The company is continuing to develop and evaluate additional equity and debt funding proposals," said Itaconix.
By Anna Farley; annafarley@alliancenews.com
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Itaconix Plc (ITX)