Iofina turns in record first-half results

Iodine and specialty chemicals specialist Iofina reported “record” first half results on Friday, with revenue ahead 27% at $19.9m.

The AIM-traded firm said gross profit was up 10% year-on-year for the six months ended 30 June, to $5.4m, while EBITDA grew 18% to $3.5m and operating profit increased 22% to $2.6m.

Its United States Paycheck Protection Program (PPP) loans, totalling $1.1m, were forgiven in the period, as profit both before and after tax improved by 164% to $3.5m.

Basic and diluted profits per share came in at 1.8 cents, rising from 0.7 cents at the interim point of 2020.

Net debt was further reduced, narrowing by 27% to $7.2m, while interest charges fell by 70% to $0.2m.

Iofina said it was “well-placed” to finance its ongoing operational investment programme.

On the production front, the company met its revised production target of 249.4 MT during the first half, after an extreme weather impact and reduced brine supply at two of its plants.

Second half production was on track to meet the 260 to 275 MT target, as the form remained in negotiations with “targeted partners” to build and operate IO#9, with additional expansion efforts beyond that project also being evaluated.

“The group has delivered an excellent performance in the first half,” said company president and chief executive officer Tom Becker.

“Recoveries are underway in our customer markets and with this we expect the demand for iodine and its end-use products to continue to improve.

“Despite the first half iodine production being impacted by extreme winter weather and lower brine supply from our oil and gas partners, importantly we have had sufficient production and reserves to take advantage of demand.”

Becker said the company’s chemicals division continued to “excel” with its product range and capabilities, describing it as a “vital driver” of group sales and earnings.

“On the current trajectory, we are confident of producing 260 to 275 MT of crystalline iodine in the second half, and anticipate IO#9 construction to begin before year-end.

“With debt further reduced we are in an excellent position to invest in our operations and continue to implement our growth strategy,” Tom Becker explained.

“The US government’s small business loans of $1.1m were also forgiven in the period, further strengthening the company's balance sheet.”

As Iofina executeed its growth plans and iodine prices increased further, Becker said Iofina would be “well-positioned” for success in the future, and to deliver shareholder value.

At 1059 BST, shares in Iofina were up 2.43% at 16.39p.