I-Tech AB (publ) Interim report Q3 2018

Mölndal, October 24, 2018 - I-Tech AB (publ) (ticker ITECH) publish the interim report for the third quarter 2018.

Summary of the period

”Sustained high demand along with planned implementation of a new production process”

• Net turnover for the period amounted to 4 993 (5 569) kSEK, which corresponds to a decrease in turnover of -10 (111) %. Operating profit/loss amounted to –4 899 (-1 674) kSEK. 
• Net turnover for the first nine months of the year amounted to 18 077 (10 693) kSEK, which corresponds to an increase in turnover of 69 (14) %. Operating profit/loss amounted to -10 743 (-5 387) kSEK

July to September 2018

•  The first nine months of the year show that the growth trend is in line with expectations for the full year.
•  Third quarter sales were limited partly due to the start of a major production transition to a more integrated, efficient and robust manufacturing process.
•  From an operational perspective, I-Tech has completed the integration of acquired assets from Cambrex and is now managing the entire supply chain itself.
•  The company has initiated a collaboration with a European manufacturer of active subtances as part of a strategy to create a broader supplier base.
•  The company’s previous largest shareholder, Vicore Pharma Holding, resolved at an extraordinary general meeting on 13 August to distribute the majority of its shares in I-Tech to its shareholders. These shares are subject to a lock-up and can not be sold before 28 May 2019. This has resulted in I-Tech gaining more than 1 500 new shareholders.

Important events after the period

•  No important events have taken place after the period.

Financial summary

CEO comments

The third quarter has been characterized by the continued strong demand for our Selektope® product, whilst a change in production was initiated to achieve the company’s long-term goals. The purpose of the development work is to implement a new, patented (patent pending) and more efficient production process, primarily to enable a lower production cost. Implementation is taking place at the same time as deliveries from the previously announced production order start in the fourth quarter. For the first nine months of the year, development of our business is in line with expectations and with a confirmed growth in relation to the previous year. Net turnover amounted to 5.0 (5.6) million Swedish crowns during the quarter and 18.1 (10.7) million Swedish crowns for the first nine months, which corresponds to a change of -10% and 69% respectively.

There is still a high pressure in the Korean market which is the second largest market in the world for newbuilding of ships. Korea has about 30% of the newbuilding market and focuses on larger and more advanced ship types. In 2018, the shipyard industry witnessed increasing problems with marine growth and it has been difficult to keep the hull clean during construction time (outfitting) before they are delivered. In the light of this, it is gratifying that Selektope and related paint products are increasingly requested in a market that now is showing positive momentum after many years of challenges with declining order books.

During the period, I-Tech has also fully integrated the assets acquired from Cambrex Karlskoga AB from an operational perspective and deliveries from the previously announced production order start in the fourth quarter. This more direct communication channel creates operative and strategic advantages. Through I-Tech’s ownership of processes, methods and expertise, the speed of development work can increase. For example, implementation of a new generation production process started during the second quarter and dialogue with more potential suppliers and sub-contractors has been established. The implementation of a new packaging model is included in a wide range of improvement projects. As such, we look forward to improved leverage when it comes to profitability and delivery capability when the groundwork in the ongoing transformation work have been complete.

We are now starting the fourth quarter with a significant focus on production and deliveries, as well as on sustaining the positive development from the first half of the year.

Philip Chaabane, CEO

For more information, please contact

Philip Chaabane, CEO
M: +46 73 910 37 08
E: philip.chaabane@i-tech.se

This information is information that I-Tech AB 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 08:30 CET on October 24, 2018 

About I-Tech

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 (eg 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 in Stockholm with Erik Penser Bank as Certified Adviser. For further information, see: www.i-tech.se

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