I-Tech AB (publ) Interim report Q2 2019
Summary of the period – Q2 2019
”Highest sales so far in a single quarter”
Net sales for the period amounted to kSEK 12 582 (9 270), which corresponds to an increase in sales of 36% (86%). Operating result amounted to kSEK -906 (-2 544).
Net sales for the first half of the year amounted to kSEK 18 752 (13 083), corresponding to an increase in sales of 43% (155%). Operating result amounted to kSEK -5 341 (-5 844).
April to June 2019
- The Swedbank Robur Teknik and Microcap funds have increased their shareholdings in I-Tech after buying the main part of the 850,000 shares that I-Tech’s second largest owner, Almi Invest, sold during April.
- After an extensive trial, Team Tankers International signed up more ships to use Selektope®-powered hull coatings.
- I-Tech strengthened its organisation by recruiting Dr. Markus Hoffmann as Technical Director.
- Chugoku Marine Paints launched its eighth Selektope®-powered product.
Important events after the period
I-Tech received its largest supply order to date from Chugoku Marine Paints worth SEK 57 million.
Financial Summary
| All amounts in TSEK | 2019 apr-jun | 2018 apr-jun | 2019 jan-jun | 2018 jan-jun | 2018 jan-dec |
| Net sales | 12 582 | 9 270 | 18 752 | 13 083 | 28 947 |
| Operating result | -906 | -2 544 | -5 341 | -5 844 | -13 625 |
| Net result | -1 046 | -2 273 | -5 515 | -5 635 | -13 737 |
| Operating cash flow | -3 847 | -2 218 | -4 420 | -9 114 | -11 945 |
| Equity at end of period | 97 466 | 111 083 | 97 466 | 111 083 | 102 981 |
| Cash and cash equivalents at end of period | 41 195 | 50 657 | 41 195 | 50 657 | 46 538 |
CEO comments
The second quarter demonstrated continued good development for I-Tech and all-time-high sales for a single quarter. Our operating result also improved significantly during the second quarter and amounted to SEK -0.9 million (SEK -2.5 million). We increased net sales by 36% to SEK 12.6 million (SEK 9.3 million). The growth was mainly due to increased deliveries to Chugoku Marine Paints (CMP), and I am particularly pleased to see continued strong growth in a historically strong quarter.
The improvement in operating result is attributed to the previously announced improvement measures in manufacturing and, above all, to the high level of sales. We are pleased to be able to combine sales growth with a maintained gross margin, which also resulted in a positive operating result (EBITDA) for the period, kSEK 1,155 (kSEK -486). This gives us increased confidence towards our goal of achieving a sustained positive operating result from the start of 2020. A goal which is promising with the new order announced after the end of the second quarter.
Taking into account the first half of the year, net sales amounted to SEK 18.8 million (SEK 13.1 million) and operating profit amounted to SEK -5.3 million (SEK -5.8 million). Sales growth is in line with our target and the development of our operating result is in accordance with our plans as it includes strategic initiatives supporting our long-term growth that were not included during the corresponding period last year.
Expanding business with Chugoku Marine Paints
I-Tech’s largest customer, Chugoko Marine Paints, which is one of the three largest suppliers in the industry, launched a new antifouling coating. SEA PREMIER 3000 PLUS is the eighth product developed by CMP that contains Selektope® as a differentiating technological ingredient. The product, which is aimed at several different segments, is also being introduced as a candidate to manage niche areas with the aim to counteract the spread of invasive species. Niche areas include areas on the ship that are more susceptible to fouling for various reasons, for example sea chests, which are an increasingly discussed problem and for which there is currently no well-functioning solution. During August, I-Tech also received an SEK 57 million order for delivery in 2020, which in itself is an increase of more than 50% given the framework order from 2018.
I am delighted with our record quarter where we have expanded our product portfolio and, at the same time, gained increased confidence for the future from our Japanese customer, CMP. Even though our development is going well, we have full focus on attracting more customers and increasing our business further with existing customers.
Philip Chaabane, CEO
M: +46 73 910 37 08
E:
ph*************@i-****.se
This information is information that I-Tech AB 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 August 28, 2019
About I-Tech AB
I-Tech is a biotechnology company that has developed the product Selektope®, an active agent that prevents barnacle attachment on submerged surfaces such as ships and boat hulls, but also other marine installations. By increasing the resistance to barnacle 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 antifouling coatings 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**************@pe****.se
. For more information visit our website www.i-tech.se.
About Selektope®
Selektope® introduces, for the first time, a pharmacological mode of action to combat barnacle settlement. By temporarily stimulating the octopamine receptor, the barnacle larvae’s swimming behavior is activated and the organisms are deterred from the hull. These ground-breaking discoveries enable unrivalled power at very low concentrations, yet within the limits of rigorous risk assessments. Selektope® is an organic, non-metal compound with efficacy proven at 0.1% w/w. For more information visit our website www.selektope.com.
