I-Tech AB (publ) Year-end report 2021
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Summary of the period
” Strong development of customer base contributes to improved operating result ”
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Net turnover for the fourth quarter amounted to 11 813 (11 188) kSEK, corresponding to an increase in turnover of 6% (-23%). Operating profit/loss amounted to -2 386 (-3 507) kSEK.
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Net turnover for the full year 2021 amounted to 52 901 (52 819) kSEK, corresponding to an increase in turnover of 0% (16%). Operating profit/loss amounted to -4 683 (-5 167) kSEK.
January to December 2021
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Chugoku Marine Paints expanded its portfolio with three new antifouling paints containing Selektope® in Japan: Sea Premier 3000 PLUS 1, 2000 PLUS and 033 Seajet Premium.
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Chugoku Marine Paints launched another global antifouling paint containing Selektope®: SEAFLO NEO M1 PLUS.
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I-Tech received an order from Chugoku Marine Paints for SEK 53 million.
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I-Tech presented its communiqué from the Annual General Meeting. The meeting resolved to approve a warrant program for management and other employees. The program has been implemented and was subscribed to 93%.
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I-Tech entered into a product development collaboration with IFF Microbial Control.
Important events after the period
- No important events have occurred after the period.
Financial Summary
| All amounts in TSEK | 2021Oct-Dec | 2020Oct-Dec | 2021Jan-Dec | 2020Jan-Dec |
| Net sales | 11 813 | 11 188 | 52 901 | 52 819 |
| Operating result | -2 386 | -3 507 | -4 683 | -5 167 |
| EBITDA | -402 | -718 | 3 234 | 3 600 |
| Net result | -1 607 | -3 119 | -2 648 | -4 806 |
| Operating cash flow | 5 259 | -1 785 | -1 698 | 5 388 |
| Equity at end of period | 104 938 | 106 602 | 104 938 | 106 602 |
| Cash and cash equivalents at end of period | 35 009 | 40 981 | 35 009 | 40 981 |
CEO comments
During 2021, I-Tech strengthened its position and broadened the foundations for more significant sales growth. We further grew the customer base and our operational result improved, despite a year with relatively high costs and marginal sales growth.
During the fourth quarter, net turnover increased by 6% (-23%) amounting to 11 813 (11 188) kSEK, which contributes to a positive development during the second half of 2021. Net turnover amounted to 52 901 (52 819) kSEK on a full-year basis, which, by a small margin, is the highest level so far in the company’s history. Happily, the operating result continues to improve on a full-year basis, despite marginal sales growth, amounting to -4 683 (-5 167) kSEK. For the closing quarter, an operating loss of -2 386 (-3 507) kSEK is noted.
The EBITDA result showed a sustained trend with black figures on a full-year basis, 3 234 (3 600) kSEK, while cash flow is weighed down by loan repayments and increased working capital, even though the fourth quarter shows a strong positive impact, primarily through the utilisation of previous advance payments. Thanks to a stable cash balance, we have been able to secure delivery capacity during the pandemic and invest according to plan for future opportunities.
2021 matches and surpasses the previous year in several areas. We grew our customer base. We improved our operating result and gross margin. We strengthened the company with new recruits early in the year. In addition to our continued main customer, Chugoku Marine Paints (CMP), we doubled our share of other customers to just over 26% (13%). Moreover, we also improved our gross margin, which rose 4% to 52% in a year when transport and raw materials both increased.
As previously mentioned, the incentives to invest in efficiency-enhancing measures for shipowners and operators will increase sharply from 2023 and onwards. The introduction of various indices makes the situation visible and transparent on a ship-by- ship basis. This creates pressure at several levels, including charter companies, financial institutions and not least from freight service customers. A lower CO2 emission also means lower operating costs, which should create excellent driving forces in an environment with high energy prices.
Most of the leading paint companies in the world now use Selektope® as part of a long-term rollout plan or within the framework of established launches. The vast majority are focusing on the new construction market, which in recent years has experienced major negative impact in connection with the pandemic, but which now indicates a strong market from 2023 and onwards. A clear signal is, for example, that contracts for new vessels worldwide in 2021 increased by 77% (deadweight tonnage) relative to the previous year.
I-Tech’s product, Selektope®, continues to have a very strong strategic relevance at CMP, which offers paint including Selektope® in both the maintenance and new construction markets. CMP, which still accounts for a dominant share of our turnover, launched new products earlier this year, both regionally in Japan, and globally, which gives us confidence in increasing volumes in all application areas over time.
High material prices are a challenge for almost everyone in the industry. Intensive work is ongoing to find a balance. Antifouling products are caught up in this challenge, which risks impacting the business in the short term in the new construction market. On the other hand, new reference cases show impressive performance over a five-year period. These act as a counterweight, not least in the maintenance market. The long-term picture – with higher contract levels at new construction yards, a wider product offering, more customers and strong incentives to reduce sea and air emissions – remains firm and inspires optimism.
Philip Chaabane, CEO
M: +46 73 910 37 08
E: philip.chaabane@i-tech.se
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 Growth Market in Stockholm with Erik Penser Bank as Certified Adviser, phone: +46 (0)8 463 83 00, email: certifiedadviser@penser.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
This disclosure contains information that I-Tech is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 23-02-2022 08:00 CET.
