TIDMIOF
RNS Number : 9327L
Iofina PLC
11 September 2023
D
11 September 2023
Iofina plc
("Iofina", the "Company" or the "Group")
(AIM: IOF)
Interim Results for the six months ended 30 June 2023
Growth year on year in revenue and profit
Iofina plc, specialists in the exploration and production of
iodine and manufacturers of specialty chemical products, is pleased
to announce its unaudited Interim Results for the six months ended
30 June 2023 (the "Period").
Revenue and profitability
H1 2023 H1 2022
$m $m % change
-------- -------- ---------
Adjusted EBITDA(1) 5.9 3.7 60%
-------- -------- ---------
Revenue 24.3 19.2 27%
-------- -------- ---------
Cost of Sales 16.0 13.5 19%
-------- -------- ---------
Gross profit 8.3 5.7 46%
-------- -------- ---------
Operating profit 4.9 2.8 77%
-------- -------- ---------
Profit Before Tax 4.7 2.6 80%
-------- -------- ---------
(1) see Note 9 for definition
Net cash/debt
-- Net cash was $0.2m (H1 2022: net debt $2.8m), excluding lease
liabilities and after capex of $3.7m, mainly on IO#9 (capex H1 2022
$0.7m)
-- Cash up 33% to $6.3m (H2 2022: $4.7m)
-- Well-placed to finance our ongoing operational investment
program through a strong cash position and availability of bank
finance, including $4.0m of currently undrawn loans.
Iodine production and sales
-- Produced 242 metric tonnes ("MT") of crystalline iodine
during H1, in line with 235-250MT range
-- With the addition of IO#9 output, H2'23 production is on track to meet the 325-350MT target
-- Crystalline iodine sales up 122% to 169MT reflecting a return
to strong demand after impact of Covid restocking by customers at
the end of 2021
-- The average prices realised (100% iodine equivalent) for
sales of crystalline iodine increased by 13% from $63.27 for H1
2022 to $71.53 for H1 2023.
Commenting on today's results, Dr. Tom Becker, President and CEO
stated: " The Group delivered its best commercial performance for a
first half period, supported by the ongoing robust iodine prices
and meeting our production targets. In the process we have further
improved our cash position even as we constructed a new iodine
plant, which provides us with additional capability to fund growth
projects.
"The completion of IO#9 in June 2023 is set to deliver a jump in
iodine production during the second half and we are on track to
meet our H2 target range of 325-350MT.
"We continue to successfully advance our growth plans and expect
to finalise an agreement for IO#10 soon. Additionally, the planning
process of IO#11 is already underway and we look forward to
updating the market in due course on this project, along with all
business updates throughout the rest of 2023."
This announcement contains inside information for the purposes
of article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of domestic law by virtue of the European Union
(Withdrawal) Act 2018.
Enquiries:
Dr. Tom Becker
CEO & President
Iofina plc
Tel: +44 (0)20 3006 3135
Nomad & Broker:
Henry Fitzgerald-O'Connor/Harry Rees
Canaccord Genuity Limited
Tel: +44 (0)20 7523 8000
Media Contact:
Charles Goodwin/Shivantha Thambirajah/Jazmine Clemens
Yellow Jersey PR Limited
Tel: +44 (0)7747 788 221/+44 (0)7983 521 488
INTERIM RESULT
Business Overview
Iofina plc ("Iofina" the "Company" or the "Group") is the
holding company of a group of companies (the "Group") in the
specialty chemical industry with unique, proven technologies and
competencies for producing iodine and halogen-based chemical
derivatives. The Group's business model involves producing a key
raw material, iodine, at a low cost and in the most environmentally
friendly way possible, providing the Company's customers vertical
integration into high-quality iodine and other halogen based
chemical products.
The Company is committed to producing its products with minimal
environmental impact. The Group's iodine is produced from brine
water waste streams co-produced with oil & gas production in
the United States. By utilizing a produced waste stream to isolate
iodine, Iofina is extracting a valuable resource from a stream that
would otherwise provide no use or value. Also, by isolating iodine
from these streams, Iofina avoids the additional drilling and
mining environmental impacts of many other iodine producers.
Iofina operates two active business units in the United States.
Iofina Chemical ("IC") develops and produces halogen-based
specialty chemicals and sells these products, along with the
Group's crystalline iodine, globally in a variety of applications.
Iofina Resources ("IR") currently operates six IOsorb(R) iodine
production plants with the sixth plant starting in June 2023 and is
planning for additional plant expansions. IR continues to explore
for new iodine sources and further develop its proprietary models
relating to iodine and other mineral sources in North America.
Expertise in core halogen technologies, the vertical integration of
iodine into specialty products, the diversity of iodine production
plants and specialty halogen-based products, and operating our
businesses within the pillars of responsible ESG practices are key
business tenets for Iofina. The Directors are focused on the
continued prudent growth of the Group, and the development and
implementation of business strategies for the ongoing improvement
of Iofina.
Financial Review
Trading results
Turnover Crystalline H1 2023 Crystalline H1 2022
Iodine Sales Iodine Sales
85% 85%
MT $m MT $m
Crystalline
iodine 169 10.3 76 4.1
Derivatives 105 7.5 117 8.5
Prilled iodine 2.0 0.9
------------ -------- ------------ --------
Total iodine
sales 274 19.8 193 13.5
------------ ------------
Non-iodine 4.5 5.7
-------- --------
Total sales $24.3 $19.2
-------- --------
Sales
Total sales increased by 27% from $19.2m to $24.3m, with total
iodine sales up by 47% from $13.5m to $19.8m, while non-iodine
sales decreased by 21% from $5.7m to $4.5m. Volumes of crystalline
iodine sales were up significantly by 122% from 76MT to 169MT,
reflecting a return to strong demand after a subdued H1 2022
following pandemic-driven restocking by customers at the end of
2021. The average prices realised (100% iodine equivalent) for
crystalline iodine rose by 13% from $63.27 for H1 2022 to $71.53
for H1 2023. The 21% fall-off in non-iodine sales reflected higher
inventories held by a key customer at the beginning of 2023.
Production
Production from the Company's five existing Oklahoma plants was
slightly up at 242MT for H1 2023 compared to 234MT for H1 2022. The
new sixth plant IO#9 has contributed to production since July.
Average production costs per kilogram included in trading costs of
sales were 15% higher than for H1 2022, a major factor being
substantial inflationary increases in the prices of chemicals used
for processing.
Gross profit
Gross margin percentages were mainly consistent by product
grouping year on year, with iodine price increases offset by
inflationary increases in costs of production. The 42% increase in
the total volume of crystalline iodine sold, from 193MT to 274MT,
was the main driver in the 46% increase in gross profit from $5.7m
to $8.3m.
Administrative expenses
Administrative expenses (excluding depreciation and
amortisation) increased by 20% year on year from $2.0m to $2.4m,
due to inflation effects and a greater level of activity.
Taxation
The deferred tax expense of $1.1m (approximately 25% of profit
before tax - H1 2022: $0.7m) is the continuing amortisation of the
asset set up in 2021 to recognise the value of US Federal tax
losses accumulated over previous years. The Company does not expect
any US Federal tax to be payable in respect of 2023, but the losses
will likely be used up in the early part of 2024 and tax will be
payable in full thereafter.
Capital expenditure
Capex for H1 2023 totalled $3.7m compared to $0.7m for H1 2022.
Analysing the capex for H1 2023, $3.2m was related to the
construction of the new IO#9 plant, and after including H2 2022
capex brought the total cost of the plant to $5.2m. This is
significantly more than the original budget of $4.0m, and reflects
a number of factors, including additional requirements of the new
oil and gas partner, higher costs than expected to incorporate
material from IO#5 plant and implementation of the specific
configuration, and additional inflation between the time of quote
and ordering.
Cash flow and financing
Adjusted EBITDA was 60% higher at $5.9m (H1 2022: $3.7m). After
additional net working capital requirements of $1m, capex of $3.7m
(mainly re IO#9 as above), and loan repayments and interest of
$0.9m, net H1 2023 cash flow was $0.4m positive. At 30 June 2023
cash was $6.3m, and cash net of the $6.1m outstanding on the bank
term loan was $0.2m, which compares to net debt of $2.8m at 30 June
2022. The debt to EBITDA ratio was 0.44 compared to 1.05 for H1
2022. The Company's bank debt facilities are set out in Note 5, and
include $4.0m undrawn loans for capital projects.
Iofina Chemical
Iofina Chemical ("IC") is the specialty chemical subsidiary of
the Group and has been in business for 40 years producing a diverse
array of high-quality halogen-based chemicals for various growing
industries including pharma, biocides, human and animal health, and
many others. IC is a globally recognised leader in halogen
chemicals. The Group continues to invest in IC to increase its
development capabilities to supply customers with existing and new
products. In addition to the halogen-based chemicals produced
on-site at IC's facility in Covington, Kentucky, IC is the Group's
main sales and commercial arm, selling iodine directly to the
market and processing all external sales for the Group. While the
iodine production component of the business is generally well known
to investors, the Directors believe the importance of Iofina
Chemical, its diversity of products including non-iodine offerings,
and the value-add for iodine derivative products is not as well
recognised as a significant contributor to the Group.
IC achieved record first half sales, which were boosted by
robust iodine prices. Examples of product offerings that realised
increased sales in the Period versus H1'22 included methyl iodide,
chloramine-T, and the Group's produced crystalline iodine. Methyl
iodide is used in acetic acid manufacturing, synthesis of
pharmaceuticals, and other specialty applications. Chloramine-T is
a broad-based biocide used as a disinfectant and sanitizer and is
also effective for odour-control. The Group's produced crystalline
iodide is sold to numerous iodine derivative manufacturers around
the world.
In the Period, IC invested in its facilities and is now
utilising a Hastelloy reactor for a non-iodine product and has
installed a larger capacity chiller to support multiple iodine
derivative manufacturing processes. IC will continue to invest in
its manufacturing facilities to improve current processes and
develop new halogen-based commercial processes. R&D efforts in
our newly remodelled laboratory included new product development,
research on iodide recycling opportunities, and improvements to our
IPBC manufacturing process and formulations. Post period, IC has
hired an experienced sales and marketing manager to support the
growth and development of IC.
The diversity of IC's halogenated products (iodo-, chloro-,
fluoro-) is key to both the growth and the stability of the
organization. Additionally, the vertical integration of iodine into
iodine derivatives provides, the Group and its customers with
stability of supply for the iodine-based compounds produced.
Iofina Resources
Iofina Resources ("IR") identifies, develops, builds, owns, and
operates iodine extraction plants, based on Iofina's WET(R)
IOsorb(R) technology. Iodide is isolated from a brine waste stream
produced from existing oil and gas operations. Without Iofina, this
resource would not be realised. The isolation of iodine from this
waste stream adds value to Iofina, its shareholders, and our oil
and gas partners and minimises environmental impact.
During the Period, IR produced 242MT of crystalline iodine from
its five plants in operation in Oklahoma. This was a 7.5MT increase
when compared to the same period in 2022. The significant news item
from the Company in H1 2023 was the start-up of IR's new iodine
plant, IO#9, in June 2023. The completion of IO#9 was a substantial
achievement for the Company which is now operating six iodine
production facilities in Oklahoma. This new plant, with a new oil
& gas partner, begins a new growth phase for Iofina in a new
core area in Oklahoma. Whilst the plant did not contribute to the
production total in the Period, it continues to ramp up its
production and is expected to be in full production in early Q4
2023. The ramp-up of IO#9 has proven to be more difficult than
anticipated as we work with our new partner and their
water-gathering system to optimise iodine production. With the new
production of IO#9 adding to the other five iodine plants, the
Company expects to produce between 325-350MT of crystalline iodine
in H2 2023. Currently, all six iodine plants operate in Western
Oklahoma.
IR is committed to growing its iodine production and expects to
double its iodine production from 2021 levels in the next 2-4
years. IR's management is confident that negotiations for our next
IOsorb(R) plant, IO#10 are close to conclusion, and once complete
will progress the Company's strategic growth plan of additional
iodine production in our new core area. Iofina is committed to
continuing investments in business development for future plants,
and has recently added another geologist to the team and plans to
continue to invest in additional personnel to support current
operations and fast-track business development. Negotiations and
exploration efforts for plants IO#11 and beyond are
progressing.
Iodine Market Outlook
Iodine is utilized in various applications, the largest of which
is injectable iodinated contrast agents used in medical procedures
to enhance the visibility of numerous medical diagnostic
procedures. The iodine demand for contrast agents continues to grow
especially in countries that are advancing their healthcare systems
and it is anticipated that this particular end market will be the
core driver of iodine demand for the foreseeable future. Iodine is
also used in many other applications including LCD screens,
pharmaceutical synthesis, biocides, and many others.
Iodine spot prices have remained high when compared to
historical iodine prices. Iodine pricing increased from c.$50/kg at
the beginning of 2022 to c.$70/kg by mid-2022. Spot prices have
fluctuated near $70/kg over the course of the last 12 months and
spot prices are currently between the upper sixties to low
seventies per kilogram.
Future iodine prices are difficult to predict. Demand for iodine
and its products remains strong. Barring any major changes in the
iodine market or a significant global economic downturn, we expect
prices to remain at or near current levels for the remainder of
2023 and into H1 of 2024. SQM has indicated that they expect to add
800MT of production in 2023. With no other noteworthy iodine
production expected in the near term, it is unlikely that this
additional volume will affect prices significantly.
Operations Outlook
The Group continues to execute its growth plans and is committed
to the ongoing improvement of all aspects of our operations. We
have invested in safety initiatives and management systems and the
Group has had no lost-time incidents in over two years. IC is now
both a Chemstewards(R) certified facility and an ISO 9001:2015
certified facility. We are currently implementing a new groupwide
EHS software system.
Business Outlook
The financial position of the Group has never been better. H1'23
revenues and adjusted EBITDA were 27% and 60% higher than H1'22
levels respectively. Additionally, the Group recently announced in
July it had improved the terms of its loan facilities. The first
phase of our multi-year growth plan is being executed with the
completion of IO#9 and we are confident that an IO#10 agreement
will be completed soon signalling Iofina's commitment to this
growth strategy to increase iodine production is steadfast. These
additional plants will significantly increase our crystalline
iodine production in the coming years. Looking slightly ahead, the
expectations are that external costs will continue to rise,
especially chemical raw material costs, and Iofina continues to
work with our suppliers and investigate measures to control costs
throughout the organisation.
Exploration and negotiations for future plants beyond IO#10 are
progressing. IC is exploring the production of new compounds to use
more iodine by producing more value-added iodine derivatives.
Iodine market prices are expected to continue at or near current
levels in the near term. Our prime focus is the organic growth of
our business, and we will continue to re-invest in growth projects
within our core businesses whilst prudently exploring additional
external business opportunities. The Directors are pleased with the
continual improvement of the Group as the Directors looks forward
to the implementation of additional organic growth within the
organisation.
IOFINA PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
FOR THE SIX MONTH PERIODED 30
JUNE 2023
Unaudited Audited
Six months ended Year ended
30 June 30 June 31 December
2023 2022 2022
Note $'000 $'000 $'000
Continuing operations
Revenue 24,300 19,178 42,198
Cost of sales (16,036) (13,519) (26,369)
----------------
Gross profit 8,264 5,659 15,829
Administrative expenses (2,399) (1,997) (4,361)
Depreciation and amortisation (986) (904) (1,824)
Operating profit 4,879 2,758 9,644
Other income:
Release of plant acquisition
accrual - - 450
----------------
Profit before finance expense 4,879 2,758 10,094
Finance income 44 1 13
Interest payable (166) (159) (326)
Interest swap derivative
liability (73) - 249
Profit before taxation 4,684 2,600 10,030
Taxation - current tax (19) - (31)
Taxation - deferred tax 8 (1,103) (675) (2,134)
----------------
Profit for the period attributable
to owners of the parent $3,562 $1,925 $7,865
----------------- ---------- ----------------
Earnings per share:
* Basic 4 $0.019 $0.010 $0.041
* Diluted 4 $0.018 $0.010 $0.040
----------------- ---------- ----------------
30 June 30 June 31 December
2023 2022 2022
Adjusted EBITDA: 9 $'000 $,000 $'000
Profit before finance expense 4,879 2,758 10,094
Depreciation and amortisation 986 904 1,824
-------- -------- ------------
EBITDA 5,865 3,662 11,918
Other income - - (450)
-------- -------- ------------
Adjusted EBITDA $5,865 $3,662 $11,468
------------------------------- -------- -------- ------------
IOFINA PLC
CONSOLIDATED BALANCE SHEET
30 JUNE 2023
Unaudited Unaudited Audited
30 June 30 June 31 December
2023 2022 2022
Note $'000 $'000 $'000
Intangible assets 193 373 283
Goodwill 3,087 3,087 3,087
Property, plant & equipment 23,326 18,975 20,557
Deferred tax 829 3,391 1,932
Term loan - interest swap
asset 176 - 249
Total non-current assets 27,611 25,826 26,108
---------- ---------- ------------
Inventories 11,580 8,399 10,184
Trade and other receivables 11,633 6,901 10,487
Cash and cash equivalents 6,316 4,737 5,927
------------
Total current assets 29,529 20,037 26,598
---------- ---------- ------------
Total assets $57,140 $45,863 $52,706
---------- ---------- ------------
Trade and other payables 9,094 5,952 7,538
Term loan - due within one
year 5 1,429 1,429 1,429
Lease liabilities 106 98 101
Total current liabilities 10,629 7,479 9,068
---------- ---------- ------------
Term loan - due after one
year 5 4,642 6,071 5,357
Lease liabilities 246 366 309
Total non-current liabilities 4,888 6,437 5,666
---------- ---------- ------------
Total liabilities $15,517 $13,916 $14,734
---------- ---------- ------------
Issued share capital 6 3,107 3,107 3,107
Share premium 60,687 60,687 60,687
Share-based payment reserve 2,240 2,067 2,153
Retained losses (18,467) (27,970) (22,031)
Foreign currency reserve (5,944) (5,944) (5,944)
------------
Total equity $41,623 $31,947 $37,972
---------- ---------- ------------
Total equity and liabilities $57,140 $45,863 $52,706
---------- ---------- ------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS'
EQUITY
Share Share Share-based Retained Foreign Total
capital Premium payment losses currency equity
reserve reserve
$'000 $'000 $'000 $'000 $'000 $'000
Balance at 31
December 2021 (Audited) $3,107 $60,687 $2,007 $(29,896) $(5,944) $29,961
Share-based expense - - 146 - - 146
Total transactions
with owners - - 146 - - 146
Profit for the
year attributable
to owners of the
parent - - - 7,865 - 7,865
-------- -------- ------------ ---------- --------- --------
Total comprehensive
income attributable
to owners of the
parent - - - 7,865 - 7,865
-------- -------- ------------ ---------- --------- --------
Balance at 31
December 2022 (Audited) $3,107 $60,687 $2,153 $(22,031) $(5,944) $37,972
Share-based expense - - 87 - - 87
-------- -------- ------------ ---------- --------- --------
Total transactions
with owners - - 87 - - 87
Profit for the
period attributable
to owners of the
parent - - - 3,562 - 3,562
---------- --------- --------
Total comprehensive
income attributable
to owners of the
parent - - - 3,562 - 3,562
-------- -------- ------------
Balance at 30
June 2023 (Unaudited) $3,107 $60,687 $2,240 $(18,467) $(5,944) $41,623
IOFINA PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTH PERIODED
30 JUNE 2023
Unaudited Audited
Six months ended Year ended
30 June 30 June 31 December
2023 2022 2022
$'000 $'000 $'000
Cash flows from operating activities
Adjusted EBITDA 5,865 3,662 11,468
Share options expense 87 60 146
Release of plant acquisition
accrual - - 450
5,952 3,722 12,064
Changes in working capital
Trade receivables (increase) (1,444) (977) (4,329)
Inventories (increase) (1,396) (2,103) (3,888)
Trade and other payables increase 1,856 388 1,737
--------- -------- ------------
Net cash inflow from operating
activities 4,968 1,029 5,584
--------- -------- ------------
Cash flows from investing activities
Interest received 44 1 13
Acquisition of property, plant
& equipment (3,665) (675) (3,087)
Net cash outflow from investing
activities (3,621) (674) (3,074)
--------- -------- ------------
Cash flows from financing activities
Term loan repayments (714) (714) (1,429)
Interest paid (161) (154) (311)
Lease payments (65) (12) (74)
Net cash outflow from financing
activities (940) (880) (1,814)
--------- -------- ------------
Tax paid/accrued (19) - (31)
Net increase/(decrease) in cash 388 (525) 665
Cash and equivalents at beginning
of period 5,927 5,262 5,262
Cash and equivalents at end
of period 6,315 4,737 $5,927
--------- -------- ------------
1. Nature of operations and general information
Iofina plc is the holding company of a group of companies (the
"Group") involved primarily in the exploration and production of
iodine and the manufacturing of halogen-based specialty chemical
derivatives. Iofina's principal business strategy is to identify,
develop, build, own and operate iodine extraction plants, with a
current focus in North America, based on Iofina's WET(R) IOsorb(R)
technology. Iofina has current production operations in the United
States, specifically in Kentucky and Oklahoma. The Group has
complete vertical integration, from the production of iodine from
produced brine waters to the manufacture of the chemical
end-products derived from iodine and sold to global customers.
The address of Iofina plc's registered office is 48 Chancery
Lane, London WC2A 1JF.
Iofina plc's shares are listed on the London Stock Exchange's
AIM market.
Iofina's consolidated financial statements are presented in US
Dollars, which is the functional currency of the operating
subsidiaries.
The figures for the six months ended 30 June 2023 and 30 June
2022 are unaudited and do not constitute full statutory accounts.
The comparative figures for the year ended 31 December 2022 are
extracts from the 2022 audited accounts (which are available on the
Company's website and have been delivered to the Registrar of
Companies) and do not constitute full statutory accounts. The
independent auditor's report on the 2022 accounts was unqualified
and did not contain statements under sections 498(2) or (3)
(accounting records or returns inadequate, accounts not agreeing
with records and returns or failure to obtain necessary information
and explanations) of the Companies Act 2006.
2. Accounting policies
The basis of preparation and accounting policies set out in the
Annual Report and Accounts for the year ended 31 December 2022 have
been applied in the preparation of these condensed consolidated
interim financial statements. These interim financial statements
have been prepared in accordance with the recognition and
measurement principles of the International Financial Reporting
Standards (UK adopted IFRS) that are expected to be applicable to
the consolidated financial statements for the year ending 31
December 2023 and on the basis of the accounting policies expected
to be used in those financial statements.
3. Segment reporting
(a) Business segments
The Group's operations comprise the exploration and production
of iodine with complete vertical integration into its specialty
chemical halogen derivatives business and are therefore considered
to fall within one business segment.
3. Segment reporting (continued)
Unaudited Audited
Six months ended 30 June 31 December
2023 2022 2022
Assets $'000 $'000 $'000
Halogen Derivatives
and iodine 57,140 45,863 52,706
Total $57,140 $45,863 $52,706
------------- ------------ ------------
Liabilities
Halogen Derivatives
and iodine $15,518 $13,916 $14,734
Total $15,518 $13,916 $14,734
------------- ------------ ------------
(b) Geographical segments
The Group reports by geographical segment. All the Group's
activities during the period were related to exploration for, and
development of, iodine in certain areas of the USA and the
manufacturing of specialty chemicals in the USA with support
provided by the UK office. In presenting information on the basis
of geographical segments, segment assets and the cost of acquiring
them are based on the geographical location of the assets.
Unaudited Audited
Six months ended 30 June 31 December
2023 2022 2022
Total assets $'000 $'000 $'000
UK 281 179 96
USA 56,859 45,684 52,610
------------- ------------ ------------
Total $57,140 $45,863 $52,706
------------- ------------ ------------
Total liabilities
UK 145 116 153
USA 15,372 13,800 14,581
------------- ------------ ------------
Total $15,517 $13,916 $14,734
------------- ------------ ------------
Capital expenditures
UK - - -
USA 3,665 675 3,087
------------- ------------ ------------
Total $3,665 $675 $3,087
4. Earnings per share
The calculation of earnings per ordinary share is based on
profits of $3,562,521 (H1 2022: $1,925,372) and the weighted
average number of ordinary shares outstanding of 191,858,408 (H1
2022: 191,858,408). After including the weighted average effect of
share options of 5,393,650 (H1 2022: 3,966,173) the diluted
weighted average number of ordinary shares outstanding was
197,252,058 (H1 2022: 195,824,581).
5. Bank loan facilities
Term loan
$'000
At 31 December 2021 $8,214
Term loan instalment repayments (1,429)
At 31 December 2022 $6,785
Term loan instalment repayments (714)
----------
At 30 June 2023 $6,071
----------
Due within one year 1,429
Due after one year 4,642
----------
$6,071
----------
Bank facilities are with First Financial Bank of Ohio, are fully
secured by fixed and floating charges, and the principal terms
are:
Term loan
a) The term loan balance of $6.8m (2021 $8.2m) relates to a
$10.0m loan drawn down in September 2020 and repayable in full by
equal monthly instalments over the seven years to 30 September
2027. The interest rate on $7 million of the loan has been fixed to
maturity by a swap contract at 3.99%, and the interest rate on the
balance is variable monthly at 2.50% above the one month Secured
Overnight Financing Rate ("SOFR"), subject to a minimum SOFR rate
of 1.00%. Repayment of all or part of the loan may be made at any
time without penalty.
Revolving loan facility
b) The revolving loan facility is for $6.0m over the period to
16 September 2025, and may be drawn and repaid in variable amounts
at the Group's discretion. Amounts that may be drawn are subject to
a borrowing base of sufficient eligible discounted monthly values
of receivables and inventory, and compliance on a quarterly basis
with trailing 12 months financial covenant ratios of 1) a maximum
multiple of 2.5 total debt to EBITDA, and 2) a minimum multiple of
1.2 EBITDA net of capital expenditure to the total of principal and
interest payments on the total debt. The interest rate is variable
monthly at 2.11% above SOFR, subject to a minimum SOFR rate of
1.00%. Iofina is currently not drawing on this line of credit.
Project loan facilities
c) There is a $4 million term loan with a drawdown period
through to July 1, 2024 to be used for IO#10 plant expenditures and
other Capex projects as appropriate. A seven-year term begins from
July 1, 2024 with interest payable during the drawdown period. The
interest rate is 2.11% plus SOFR (1 month Secured Overnight
Financing Rate) subject to a minimum of 1%. No drawings have as yet
been made on this loan.
6. Share capital
Unaudited Unaudited Audited
30 June 30 June 31 December
2023 2022 2022
Authorised:
Ordinary shares of
GBP0.01 each
-number of
shares 1,000,000,000 1,000,000,000 1,000,000,000
-nominal value GBP10,000,000 GBP10,000,000 GBP10,000,000
Allotted, called up and
fully paid:
Ordinary shares of
GBP0.01 each
-number of shares 191,858,408 191,858,408 191,858,408
-nominal value GBP1,918,584 GBP1,918,584 GBP1,918,584
7. Share based payments
On 27 April 2023 options over 1,196,700 ordinary shares of the
Company, representing 0.62% of the Company's issued share capital
at that date, were granted to directors and key management
personnel. The options are exercisable at the closing share price
on 27 April 2023 of 31.75p per share, with 50% vesting after one
year on 27 April 2024 and 50% vesting after two years on 27 April
2025. The options expire ten years from the date of grant. The
above options were valued using the Black Scholes model and the
exercise price of 31.75p, an expected term of 5.75 years,
historical volatility of 69.07% and a risk-free rate of 3.59%. The
resulting valuation of $300,355 is being amortised over the vesting
periods, and $39,409 has been charged as an expense in respect of
the period from 27 April 2023 to 30 June 2023. No options lapsed or
were forfeited or exercised during the six months to 30 June 2023.
There were 6,197,100 total options outstanding at 30 June 2023,
representing 3.23% of shares in issue.
8. Taxation - deferred tax
The deferred tax charge of $1,103k (H1 2022 $675k) relates to
amortisation of the $4.07m deferred tax asset set up in the balance
sheet at 31 December 2021 to recognise $19.4 million of accumulated
US Federal tax losses expected to be available for offset against
future profits.
9. Adjusted EBITDA
Management uses certain non-IFRS performance measures to assess
performance of the Group, and considers them to provide useful
supplementary information to the IFRS results. EBITDA is profit
before finance expense adjusted to exclude depreciation and
amortisation, and Adjusted EBITDA additionally excludes exceptional
items of non-recurring income and expense. Management considers
that this latter measure provides a fair representation of the
period's operating results excluding non-cash items. A
reconciliation to Profit before finance expense is set out below
the Consolidated Statement of Comprehensive Income.
10. Cautionary Statement
This report contains certain forward-looking statements with
respect to the financial condition, results of operations and
businesses of Iofina plc. These statements are made by the
directors in good faith based on the information available to them
up to the time of their approval of this report. However, such
statements should be treated with caution as they involve risk and
uncertainty because they relate to events and depend upon
circumstances that will occur in the future. There are a number of
factors that could cause actual results or developments to differ
materially from those expressed or implied by these forward-looking
statements. Nothing in this announcement should be construed as a
profit forecast.
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END
IR XBLFFXKLZBBF
(END) Dow Jones Newswires
September 11, 2023 02:00 ET (06:00 GMT)
Iofina (AQSE:IOF.GB)
過去 株価チャート
から 11 2024 まで 12 2024
Iofina (AQSE:IOF.GB)
過去 株価チャート
から 12 2023 まで 12 2024
