I-Tech AB (publ) Year-end report 2018

Summary of the period

” Strong finish to an exciting year”

• Net turnover for the period amounted to kSEK 10 870 (7 156), which corresponds to an increase in turnover of 52% (-7%). Operating profit/loss amounted to kSEK -2 882 (-2 061).
• Net turnover for the full year 2018 amounted to kSEK 28 947 (17 849), which corresponds to an increase in turnover of 62% (5%). Operating profit/loss amounted to kSEK -13 625 (-7 448).

October to December 2018

• I-Tech received an order worth SEK 36 million from Chugoku Marine Paints. The order is a minimum commitment for supplies during 2019.
• 3-year data from the Calypso study was presented. The vessel demonstrated an unusually low increase in fouling resistance compared to a reference vessel. A physical hull inspection also verified the results by establishing that Calypso’s hull was very clean, with divers finding no soft or hard fouling.
• The next generation production process is fully implemented and is contributing to an increased gross margin.

January to September 2018

• From an operational perspective, I-Tech has completed the integration of acquired assets from Cambrex and is now managing the entire supply chain itself.
• The company has initiated a collaboration with a European manufacturer of active substances as part of a strategy to create a broader supplier base.
• The company’s previously largest shareholder, Vicore Pharma Holding, resolved at an extraordinary general meeting on 13 August to distribute the majority of its shares in I-Tech to its shareholders. These shares are subject to a lock-up and cannot be sold before 28 May 2019. This has resulted in I-Tech gaining more than 1 500 new shareholders.
• On 28 May, I-Tech was listed on the Nasdaq First North (Stockholm) stock exchange. The company’s share issue in conjunction with the listing was oversubscribed at 138%. The company received approximately SEK 40 million after issue costs.
• I-Tech’s board of directors was strengthened at the annual general meeting on 17 April with the appointment of Bjarne Sandberg, Managing Director of Cambrex Karlskoga AB. Bjarne adds extensive commercial and industrial experience.

Important events after the period

• No important events after the period.

Financial summary

CEO comments

I-Tech ended the year by demonstrating a strong delivery capacity, which confirmed that the production system is now in full flow. The investments in the production system that were made during the year have begun to show a return. The gross margin increased for the period to 44% (32%) and for the full year to 36% (32%). Sales amounted to SEK10.9 million (SEK 7.2 million) for the fourth quarter and for the full year sales were SEK 29.0 million (SEK 17.8 million).

This growth shows that the company is progressing in line with our stated sales targets. The fourth quarter also indicates we are proceeding along the path towards significant gross margin improvements. The production rate is now in phase with demand. No stock was built up during the quarter as, in principle, everything that was manufactured was delivered to the customer. To manage varying customer demand, the company is set to increase storage capacity as soon as possible. This is considered necessary to maintain the right service level to customers.

The customer side is essentially the same during the fourth quarter. Chugoku Marine Paints is taking full advantage of Selektope and is working on new business based on fine results from various case studies, of which M/T Calypso’s 3-year operational data was communicated publicly in December. Being able to demonstrate a hull with high performance both visually and in measured data for three years is proof that there are clear economic and environmental benefits to using the Selektope technology.

We’re noticing widespread increased activity among other potential customers. Future changes in legislation related to emissions are driving demand for premium products in the coming years, and CMP’s progress also gives a clear signal that puts pressure on other manufacturers to keep up with the development.

In an industry where few embark on abrupt changes, endurance and a long-term perspective are key. The more vessels that sail with Selektope products, showing good results over a number of years, the easier it will be for the technology to gain broader acceptance. I-Tech’s growth aligns well with the implementation of legislation that will significantly increase fuel costs. The expected increase in fuel costs incentivises shipping companies to invest in energy efficient measures. We therefore look forward with confidence to 2019, with a continued positive development with existing customers and with the belief that we can secure Selektope-based products on the market from additional manufacturers.

Philip Chaabane, CEO

For additional information, please contact:
Philip Chaabane, CEO
M: +46 073-910 37 08
E: 

ph*************@i-****.se

About I-Tech AB (publ)

I-Tech is a biotech company that has developed and sold the product Selektope®, an active substance that counteracts marine growth on surfaces such as ships and boat hulls, but also other marine installations. By increasing the resistance to growth in marine paint systems (e.g Antifouling coatings), fuel and maintenance costs are reduced. I-Tech has obtained the necessary regulatory approvals for Selektope and has several of the world's largest manufacturers of marine color as customers. The company's share is listed for trading on Nasdaq First North in Stockholm with Erik Penser Bank as Certified Adviser, phone: +46 (0)8 463 83 00, email: 

ce**************@er********.se











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This is information that I-Tech AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on 20 of February 2019.

I-Tech AB January-December 2018 Year-end report