26 September 2022
(“Iofina”, the “Company” or the “Group”)
(LSE AIM: IOF)
INTERIM 2022 RESULTS
Higher profitability and
Customer markets recovering
Iofina plc, specialists in the exploration and production of iodine and manufacturers of specialty chemical products, is pleased to announce its Interim Results for the six months ended 30 June 2022 (the “Period”).
Revenue and profitability
- EBITDA increased by 6% to $3.7m (H1 2021: $3.5m)
- Gross profit increased by 5% to $5.7m (H1 2021: $5.4m)
- Revenue decreased by 4% to $19.2m vs. exceptional comparable period (H1 2021: $19.9m) when excess inventory built up during Covid was sold
- Cost of Sales decreased by 7.2% to $13.5m (H1 2021: $14.6m)
- Operating profit increased by 8% to $2.8 (H1 2021 $2.6m)
- Profit before tax of $2.6m decreased by 34% (H1 2021 $3.5m)*
- Net debt was in line with December 2021 balances
- Cash of $4.7m (H1 2021: $1.7m) with net debt of $2.8m (H1 2021: $7.2m)
- Interest charges remained stable at $0.2m from (H1 2021 $0.2m)
- Well placed to finance our ongoing operational investment program
Iodine production and sales
- Produced 234MT of crystalline iodine during H1, in line with revised 225 – 240MT range
- H2 production on track to meet 255 – 275MT target
- Raw Iodine sales returned to more normalized levels (down 71%) compared to H1 2021 when large, excess inventory built up during Covid was sold off
*H1 2021 profit before tax included the one-off forgiven US government Paycheck Protection Program loan of $1.1m
The new IOsorb® plant, IO#9, is in the final stages of contract negotiations and we will commence construction of the plant once finalised. The iodine-rich brine partner and the site location are awaiting final approvals.
Commenting on today’s results, Dr. Tom Becker, President and CEO stated: “The Group has delivered a strong first half performance, particularly when compared to the exceptional H1 2021 period, which was heavily weighted to the sale of the excess raw iodine inventory that built up during Covid. With iodine prices increasing by 40% during the period, the Group has achieved higher profitability, which has also been supplemented by improved cost controls.
“The combination of our growing cash position and available facilities means that the Group is now in a position to look at further strategic growth opportunities that complement our specialty chemicals offering, particularly where we can cross-sell to our existing customer base.
“Looking to the second half, on current output, we are confident of producing 255-275MT of crystalline iodine, with brine supplies now stabilised following the saltwater disposal maintenance work undertaken by one of our oil and gas partners. Market demand for raw iodine and our speciality products remains strong despite wider macroeconomic concerns. As such, the board anticipates meeting full year expectations.
“With the agreement of IO#9 close to finalisation, we will commence construction work shortly and expect to have the new plant operating during Q2 2023 and making a significant contribution to the latter half of next year. The negotiation of sites for the construction of IO#10 is also ongoing and we will update the market in due course on this project.”
Dr. Tom Becker
CEO & President
Tel: +44 (0)20 3006 3135
Christopher Raggett/Tim Harper (Corporate Finance)
Tim Redfern/Barney Hayward (ECM)
Tel: +44 (0)20 7220 0500
Chrystal Capital Partners LLP
Tel: +44 (0)20 7850 4761
Charles Goodwin/Laurie Gellhorn
Yellow Jersey PR Limited
Tel: +44 (0)7747 788 221