I-Tech AB (publ) Year-end report 2019

Summary of the period

”Best year ever for I-Tech”

• Net turnover for the period amounted to kSEK 14 584 (10 870), which corresponds to an increase in turnover of 34% (52%). Operating profit/loss amounted to kSEK -915 (-2 882).
• Net turnover for the full year 2019 amounted to kSEK 45 574 (28 947), which corresponds to an increase in turnover of 57% (62%). Operating profit/loss amounted to kSEK -7 019 (-13 625).

January to December 2019

• I-Tech received its largest supply order to date from Chugoku Marine Paints worth SEK 57 million.
• Cambrex sold its holding (approximately 16%) in I-Tech. Länsförsäkringar, Handelsbanken and The Fourth Swedish National Pension Fund are new, large institutional investors on the list of shareholders.
• I-Tech strengthened its organisation by recruiting Dr. Markus Hoffmann as Technical Director.
• Chugoku Marine Paints launched its eighth Selektope®-powered antifouling paint product.
• 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.

Important events after the period

• No important events have occurred after the period.

Financial Summary

All amounts in TSEK	2019 Oct-Dec	2018 Oct-Dec	2019 Jan-Dec	2018 Jan-Dec
Net sales	14 584	10 870	45 574	28 947
Operating result	-915	-2 882	-7 019	-13 625
EBITDA	1 145	-824	1 220	-6 392
Net result	14 353	-2 994	8 427	-13 737
Operating cash flow	-663	-764	-4 763	-11 945
Equity at end of period	111 408	102 981	111 408	102 981
Cash and cash equivalents at end of period	38 940	46 538	38 940	46 538

 

CEO comments

I’m proud to highlight that during 2019 we generated a positive EBITDA during the last three quarters and, as such, also for the full year. We are also reporting an increase in sales for the fifth quarter in a row. Consequently, we are on track with, and even slightly ahead of, the profitability and growth commitments we made in connection with our IPO.

The main reasons for the positive development are increased sales of kSEK 14,584 compared to kSEK 10,870 in the corresponding quarter of last year, and an improved 48% (44%). gross margin during the quarter. The increase in sales is related to increased sales to Chugoku Marine Paints (CMP) and customers in the verification phase.

During 2019, we have taken great strides towards becoming an established and trusted innovator in the marine coating industry. We can deliver something to the industry that no one else can and, at the same time, provide very significant environmental and cost benefits. The shipping sector accounts for 2.6% of global CO2 emissions. If the whole industry used the best available technology to prevent hull fouling, its total emissions could be reduced by 100 million tonnes of CO2 per year,  while contributing  to savings of approximately $ 20 billion. In this light, us delivering growth of 57% (62%), in line with our communicated targets for 2019, is not surprising.

There is a strong driving force in the industry to ensure a higher and more reliable performance during the new construction phase. This force is driving the development of new products and, thereby, new customers for I-Tech. At the end of 2019, we noted that three major global coating manufacturers, not  previously  announced,   were in the verification phase of Selektope®-based products with ongoing test programs on ships. At the same time, CMP has come so far that there is also significant business in the maintenance market. For example, CMP can offer a Selektope® product with more than 90% lower biocide leakage with reference vessels showing lower resistance through the water than sister vessels using other premium technologies. According to the shipowner, the observed improvement in performance results in  an annual saving of more than 1,100 tonnes of C02 at a value of $ 200,000. Interest in the product has increased significantly and CMP  announced  back in September that more than 200 vessels had been treated with that particular product, SeaFloNeo CF Premium. Even though it corresponds to a modest proportion of the more than 15,000 dockings done annually in the industry, it is nevertheless very good proof of the confidence the product has with the end users and the potential that exists for our product. 

Now another exciting year awaits us. A year when fuel prices for a large part of the fleet will increase significantly, as new global limits on sulphur emissions are introduced. With new and higher fuel prices in place, customers will see an even greater potential in our product regarding the environmental impact and cost savings. The large order we received for delivery in 2020, and which we have already communicated, is clear evidence of this. I am also convinced that further regulations regarding, for example, the spread of invasive and alien species will help to significantly increase the market share for premium products such as Selektope-based coatings. Our ingredient technology is very advanced in development and has attracted interest from all major players. It is no exaggeration to summarize the conditions for continued positive development in 2020 as good.

Philip Chaabane, CEO

 

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

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 Growth Market in Stockholm with Erik Penser Bank as Certified Adviser, phone: +46 (0)8 463 83 00, email: [email protected]. For further information, see: 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 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 19 of February 2020.