Correction - missing MAR label in earlier press release - I-Tech AB (publ) Interim report Q2 2022
I-Tech AB (publ) (ticker: ITECH) publish the interim report for the second quarter 2022
Click here on the 26 August 2022 at 10:30 to follow the webcast
Click here to go to I-Tech's Financial Reports
I-Tech AB (publ) issues a correction to the press release that was published earlier today. The correction refers to the fact that the press release lacked a MAR label with reference to the EU's Market Abuse Regulation (MAR). The following text should have been included in the press release: 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 26-08-2022 08:00 CET.
Summary of the period
” Record strong sales with increased profitability ”
• Net turnover for the first quarter amounted to 17 654 (12 819) kSEK, corresponding to an increase in turnover of 38% (-21%). Operating profit/loss amounted to 1 469 (-3 192) kSEK.
April to June 2022
• I-Tech held its Annual General Meeting in May. At the meeting, it was decided to approve a long-term incentive program with warrants for management and other employees. The program has been implemented with 100% subscription rate.
• Dr Raouf Kattan was elected as a regular member of the board of directors alongside existing representatives, who all were re-elected.
Important events after the period
• No important events occurred after the period.
Financial Summary
| All amounts in TSEK | 2022Apr-Jun | 2021Apr-Jun | 2022Jan-Jun | 2021Jan-Jun | 2021Jan-Dec |
| Net sales | 17 654 | 12 819 | 32 132 | 27 277 | 52 901 |
| Operating result | 1 469 | -3 192 | 1 802 | -3 134 | -4 683 |
| EBITDA | 3 388 | -1 213 | 5 638 | 821 | 3 234 |
| Net result | 1 531 | -2 381 | 2 042 | -1 966 | -2 648 |
| Operating cash flow | 3 172 | -7 611 | 6 357 | -7 913 | -1 698 |
| Equity at end of period | 107 459 | 105 620 | 107 459 | 105 620 | 104 938 |
| Cash and cash equivalents at end of period | 40 844 | 33 460 | 40 844 | 33 460 | 35 009 |
CEO Comments
The second quarter marked record strong numbers with increased turnover, improved profitability and strong positive cash flow compared to previous year. Overall, I am satisfied that we are back on a growth curve and at the same time continuing to improve profitability. This demonstrates the strength of the business model already at low market shares. Also, the performance of the second quarter gives further confidence that our product, Selektope adds value to a wider customer base.
The turnover of the period amounted to SEK 17.7 (12.8) million, representing a top line growth of 38% (-21%) and the operating profit after tax amounted to SEK 1.5 (-2.4) million. Cash flow amounted to SEK 3.2 (-7.6) million. From these perspectives, the results of the quarter are the best the company has shown so far and the 12-month rolling EBITDA results show a shift in trends towards growth.
The results are supported by an increase in turnover on all accounts, where the largest change compared to last year relates to our smaller accounts. They show an increase in turnover of 89%, which means that the accounts excluding Chugoku Marine Paints (CMP) increased from approx. 20% to approx. 30% of the total turnover. The increased demand in combination with the customer mix largely explains the increase in turnover. However, it is to be noted that the favourable valuation of the US dollar has a clear contribution to the figures. The currency adjusted turnover increase amounted to 15% relative to the same period last year.
The revenue for the quarter comes both from newbuilding activities in Southeast Asia but also a continuous stream of activity within the dry docking segment in which Korea and Japan have played important roles. Considering the comparable quarters, we take note of an increase in revenue towards the newbuilding market.
During the quarter, the company was also enriched with a new board member, Dr Raouf Kattan, who has spent most of his professional life within the coating industry. Raouf has founded one of the industry’s most recognised coating engineering companies, the Safinah Group and holds strong academic merits. Earlier during the quarter, the company decided to move to nearby premises within the framework of GoCo Health Innovation City in Mölndal, where we can continue to increase our lab-intensive development work. The move takes place during the first quarter of 2023.
Looking at the development from the first half of the year, a turnover of SEK 32.1 (27.3) million is noted, corresponding to a net turnover of 18% (-8%). The profit after tax amounted to SEK 2.0 (-2.0) million and the EBITDA trend continued to show black figures since middle of 2019 and grew to SEK 5.6 (0.8) million for the quarter.
Knowing that there are many external factors that can and will influence our business in the future and hence create volatility, the quarter indicates a strong growing contribution from a broader customer base. Furthermore, there are signs of a shift in trends in the mindset around antifouling coatings which benefits reliable high-performance coatings contributing to increased fuel efficiency and reduced emissions. I am further convinced that our product is part of this important transition to a more efficient shipping industry.
Philip Chaabane, CEO
M: +46 73 910 37 08
E: [email protected]
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: [email protected]. 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 26-08-2022 08:00 CET.
