Itaconix looking to 're-balance', cut costs

The AIM-traded company said resources would be more focused on successfully executing the group's strategy to launch and grow the sales of its products, primarily in the global personal care and homecare markets, including the development of application data that would provide clear evidence of the material benefits of using Itaconix's products and how they could be best formulated into end consumer products.

Given the group's established product portfolio and evolving sales and marketing focus, the board said its need for new product development was becoming more defined and targeted to customer requirements.

As a result, it said it was now appropriate to resize the research and development team, which would result in operational efficiencies.

While the full financial effect of these changes would not be achieved immediately, with the net cash impact being broadly neutral in 2017, the board said the positive net cash impact was expected to be approximately £1m per annum from 2018.

“The re-balancing of our business is an important step in establishing and growing our product sales and increasing operational efficiencies,” said CEO Kevin Matthews.

“In the short to medium term we are highly focused on our sales and marketing efforts to drive our existing product portfolio into market, and the new structure does mean that some of our team are leaving us.”

Dr Matthews said he wanted to thank Dr David Pears - Itaconix’s CTO since January 2008 - for his “unrelenting efforts,”, confirming Pears would be retiring from the business at the end of May 2018 after more than 10 years of service.

“The board firmly believes that an increased effort and focus on product commercialisation is the right direction of travel for the business and that the reduction in our cost base will help accelerate Itaconix's path to profitability.”