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Next phase

Itaconix has a development pipeline of products over and above the three current focus areas. A key element of the Itaconix investment thesis is that the company’s proprietary polymerisation process is not just a recipe book for a particular set of products, but a chemistry platform that is capable of producing a wide range of polymers.

The three current focus product groups support our revenue forecasts out to 2021, with £6.5mln of revenue in the full year (FY) to the end of Dec 2020e. Looking beyond this timeframe, we expect further revenue opportunities arising from additional products in further market segments.

Given the large addressable market for its products, we expect Itaconix to extend into additional applications for its current polymers and to expand its product portfolio with new products in key market opportunities. Three areas that we highlight are:

Hygiene: Itaconix is recognised in the industry as the leading potential producer of bio-based, biodegradable super-absorbents.

Agriculture: Environmental pressures to improve the application and use of chemicals for crop production are expected to create opportunities for the unique functionality and bio-based content of Itaconix products.

Plastics and coatings: Similar to the above areas, we see emerging opportunities for Itaconix products based on consumer trends across plastics, packaging, and paints.

Wouldn't be surprised if they are taken over further down the line.

In January 2017 Itaconix announced a commercial collaboration with Croda Inc for the supply and marketing of Itaconix’s odour removal additive ZINADOR. Croda is number 2 globally in this market.

In August 2017 the company announced a collaboration with Nouryon to develop chelates for the non-phosphate detergent market. Nouryon is the world's number 1 in chelates.

The reformulation of end-market homecare and personal care products with new ingredients can take two to three years to bring to market due to the product development cycles of the major consumer products companies. The processes that began with the Croda and Nouryon deals are expected to begin affecting revenues in 2019, with a full effect in 2020. We believe that these deals support strong revenue growth in the 2020-2021 timeframe.

Year end Dec 31 2018 Current 2020 2021

Revenue £M 0.7 1.5 3.5 6.5
EBITDA (£M) (3.9) (1.5) (0.3) 1.0
EPS (p) (4.6) (0.7) (0.2) 0.2
Net cash/ (debt) £M 2.1 0.7 0.3 0.8

The market opportunity

Itaconix designs and manufactures polymers for use as functional ingredients within products for home care, personal care, and industrial use. The polymers that Itaconix has developed offer advantages in terms of functionality, sustainability, and cost.

Itaconix’s proprietary processes, which are protected by multiple layers of patents, build polymers using Itaconic acid. This is an organic acid with similar potential use and functionality as acrylic acid. Rather than being derived from petroleum feedstocks, as is the case with acrylic acid, itaconic acid is produced by large-scale fermentation using corn as a source of sugar. The company has a very flexible tool kit that allows it to produce multiple different polymers that address similar market areas to the ones addressed by acrylic acid. Each new product that is developed can give rise to additional patents, so the lifespan of the intellectual property portfolio can be continuously extended.

The potential addressable market for Itaconix is vast, as illustrated by the following charts and table. As an initial proxy for the addressable market, we consider the current market for acrylic-acid based polymers covering water-soluble polymers, super-absorbents, and emulsion polymers for paints and coatings. Based on the comparative and unique properties of Itaconix polymers versus the acrylic acid market, we estimate a total addressable market for Itaconix products of US$7.6 billion.

Take a look at their revenue potential going forward.

https://www.proactiveinvestors.co.uk/companies/news/430675/itaconix-plc--transformation-bearing-results-430675.html/long

nice 24k buy from yesterday

Amers you are going to be in deep doo doo if this rns doesn't materialise.

Chumba with the volume traded I don't think there is as much left as some think.

Demand for the Company's proprietary detergent, odour control and hair styling polymers continued to grow from steady penetration of their use as key functional ingredients in an increasing range of everyday consumer product formulations for home and personal care.

As a result, unaudited revenues for the first half of 2019 grew to £0.5 million, which reflects a 59% increase over the same period in 2018 and a 33% increase compared to the second half of 2018. First half revenues also represent 72% of revenues for the previous full year.

Unaudited EBITDA was a loss of £1.0 million, compared to a loss of £2.4 million for the same period in 2018 and a loss of £1.4 million for the second half of 2018. These reduced losses reflect the success of the Company's efforts to reduce the overall cost base while growing revenues.

Net cash as at 30 June 2019 was £1.5 million. Net cash as at 31 December 2018 was £2.1 million.

In addition to increased revenues and reduced EBITDA losses, the Company achieved important commercial milestones to support continued growth:

· Completed two global supply agreements with Nouryon for Itaconix detergent and hair styling polymers;

· Delivered the first purchase order of Itaconix® CHT� 122 for use in a European non-phosphate automatic dish detergent; and

· Completed the divestment of its legacy nicotine gum business with the sale of its interest in Alkalon A/S for £0.2 million.

With this first half financial performance and commercial progress, the Board believes the Company is currently on track to meet market expectations for the full year.

John R. Shaw, CEO of Itaconix, stated: "Revenues for the first half of 2019 show a growing base of end-product formulations where our polymers are delivering key functional advantages. Use of our polymers in increasingly broader categories of consumer products has established the foundation for many years of revenue growth, especially when combined with the global reach of our partners."

Chumba those shares are being churned now we wouldn't be down here if the overhang had cleared.

Someone is buying in 500k clips

https://twitter.com/Shareresearcher/status/1162288186992861184

Nice hammer on the chart https://invst.ly/brrf7

ifonlyiknew think you will find he is still in a lot of the market is down today

think the company needs to update the share holders register now

https://invst.ly/brgnf

Just look at the volume