viewItaconix PLC

Itaconix says orders pick up after pandemic shock


  • Manufacturer of bio-based speciality polymers
  • Supply deals with large conglomerates

Quick facts: Itaconix PLC

Price: 2.15 GBX

Market: LSE
Market Cap: £9.3 m

What Itaconix does

Itaconix PLC (LON:ITX) makes speciality polymers that are used in a wide variety of products, ranging from paints through washing liquids to mascara.

Its core technology was developed by a US company, called Itaconix Corporation, that it acquired in June 2016.

At the time of that purchase, the AIM-listed firm was known as Revolymer PLC, a company that had polymer technologies of its own as well as a nicotine gum business that it sold off to Danish firm Alkalon.

On March 1, 2017, the company changed its name to Itaconix.


Most of its products are bio-based, being derived from itaconic acid, which in turn is taken from corn starch, so the products are sustainably sourced, helping its customers improve the sustainability of their own consumer products.

Some of the brands under Itaconix’s banner include Itaconix CHT, a water conditioner for binding calcium that replaces banned phosphates; RevCare NE, a bio-based hair-styling polymer; and Eureco RP103, a product for the removal of stubborn stains.

Other products include Itaconix Velasoft, a natural skin conditioner for handwash; Itaconix Zinadore, a water-soluble odour neutraliser; deodorant ingredient Velafresh ZP30 and Itaconix DSP, a phosphate-free water conditioner used in detergents for consumer, industrial and agricultural applications.

How it's doing

In a trading update for the half-year to June 30, 2020, Itaconix said unaudited revenues for the first six months of the year were US$1.1mln, representing around 80% growth over the equivalent period in 2019 and about 62% over the second half of 2019.

As a result of the increase in revenues, the group added, its unaudited underlying loss (LBITDA) has decreased in line with management's expectations.

Volumes and revenues increased from new and recurring orders in detergent, odour control, and personal care applications.

The company noted that significant revenue growth has come from customers successfully launching new dishwashing products using Itaconix formulas based on the company's new TSI 322 detergent polymer.

In addition, the group said, several existing customers have increased the size of their recurring orders during the year partly to satisfy increased consumer buying related to stay-at-home practices in response to coronavirus (COVID-19). 

Cash was US$0.5mln with a US$2.2mln fundraise not reflected in this total. 

What the boss says: John Shaw, chief executive

"Our proprietary polymers are validated as essential ingredients in a growing range of consumer products based on performance and sustainability. With demand increasing for all of our products and a $2.2 million fundraise completed, we are entering the second half of 2020 on a new revenue trajectory with a strong balance sheet.

“I am particularly encouraged by our progress at converting our detergent project pipeline with aggregate annual revenue potential of $20 million into new customer product launches."



What the analyst says

Proactive's head of research Ed Stacey in his most recent update (May 6), said: 'Given Itaconix’ strong revenue growth, and exposure to the consumer staples segment, we argue that the company has a strong investment case to secure further financing."


Inflexion points

  • Orders are coming in despite crisis, especially for dishwasher detergent
  • Production line still active
  • Finances have stabilised 



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Capital Network's Ed Stacey on Itaconix PLC

Capital Network's support services analyst Lionel Therond talks through Itaconix PLC (LON:ITX) and looks at the company's valuation and outlook.

on 25/9/17

3 min read