TIDMIOF
RNS Number : 8235M
Iofina PLC
24 September 2021
D
24 September 2021
Iofina plc
("Iofina", the "Company" or the "Group")
(LSE AIM: IOF)
INTERIM 2021 RESULTS
Record revenue and profitability
Customer markets recovering
Iofina plc, specialists in the exploration and production of
iodine and manufacturers of specialty chemical products, is pleased
to announce its Interim Results for the six months ended 30 June
2021 (the "Period").
Record revenue and profitability
-- Revenue increased by 27% to $19.9m (H1 2020: $15.74m)
-- Gross profit increased by 10% to $5.4m (H1 2020: $4.90m)
-- EBITDA increased by 18% to $3.5m (H1 2020: $2.9m)
-- Operating profit increased by 22% to $2.6m (H1 2020: $2.2m)
-- Paycheck Protection Program loans of $1.1m were forgiven
-- Profit before and after tax increased by 164% to $3.5m (H1 2020: $1.3m)
-- Basic and diluted profit per share was $0.018 (H1 2020: $0.007)
Net debt further reduced
-- Net debt reduced by 27% from $9.9m (H1 2020) to $7.2m
-- Interest charges fell by 70% from $0.7m (H1 2020) to $0.2m
-- Well placed to finance our ongoing operational investment program
Iodine production
-- Met revised production target of 249.4 MT during H1 after
impact of extreme weather and reduced brine supply at two Iofina
plants
-- H2 production on track to meet 260-275MT target
-- In negotiations with targeted partners for Iofina to build
and operate IO#9, with additional expansion efforts beyond IO#9
also being evaluated
Commenting on today's results, Dr. Tom Becker, President and CEO
stated: " The Group has delivered an excellent performance in the
first half. 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 H1 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. Our chemicals division continues to excel with
its product range and capabilities, and is a vital driver of Group
sales and earnings. On the current trajectory, we are confident of
producing 260-275MT 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. The US Government small business loans of $1.1m were also
forgiven in the period, further strengthening the Company's balance
sheet. As Iofina executes its growth plans and iodine prices
continue to increase, Iofina will be well positioned for success in
the future and to deliver shareholder value.
"I would once again like to thank our staff for their continued
efforts and dedication in a challenging environment, and our
shareholders for their continued support. Iofina has never been
stronger both operationally and financially and we remain confident
of achieving our goals for the rest of the year."
Enquiries:
Dr. Tom Becker
CEO & President
Iofina plc
Tel: +1 859 356 8000
Christopher Raggett/Tim Harper (Corporate Finance)
Tim Redfern (ECM)
finnCap Ltd
Tel: +44 (0)20 7220 0500
Media Contact:
Charles Goodwin/Joe Burgess
Yellow Jersey PR Limited
Tel: +44 (0)7747 788 221
Business Overview
Iofina plc ("Iofina" or the "Company") is the holding company of
a group of companies (the "Group") 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 as an environmentally
friendly way as 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
effects on the environment. 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.
Expertise in core halogen technologies, the vertical integration
of iodine into specialty products, and the diversity of iodine
production plants and specialty halogen-based products are key
business tenets for Iofina. The Directors are focused on continued
prudent growth of the Group, and the development and implementation
of business strategies for the continued improvement of Iofina in
our core areas.
Financial Review
Summary
The Group achieved record half year turnover and profits in H1
2021. Sales increased by 27% ($4.2m) versus H1 2020, generating a
gross profit increase of $0.5m. This led to an 18% increase in
EBITDA to $3.5m, with administrative costs almost unchanged.
Paycheck Protection Program loans of $1.1m received in 2020 were
forgiven and have been included in non-EBITDA income. Interest
payable reduced by $0.5m, reflecting the debt refinancing finalised
in September 2020. The overall upshot was a $2.2m improvement in
profit before tax, which was $3.5m compared to $1.3m in H1 2020.
Net debt reduced by $2.7m from $9.9m in H1 2020 to $7.2m, after
capital expenditure of $0.8m on the Iofina Chemical plant.
Sales
Sales increased by $4.2m (27%) to $19.9m. Sales of iodine
products increased by 52% from $10.3m to $15.6m, while non-iodine
sales decreased by 24% from $5.5m to $4.2m. The average price per
kilogram achieved for sales of raw iodine was $33.45 up to 30 June
2021, compared to $35.49 for H1 2020. Since the period end, the
average price for July and August sales has exceeded $36 per
kilogram. Gross profit increased from $4.9m to $5.4m, with a
decrease from 31% to 27% of sales as a result of changes in product
mix.
Production and administrative costs
Iodine production was 249 metric tonnes, compared to 287 metric
tonnes for H1 2020. Average production costs per kilogram were
similar to H1 2020. Chemical plant manufacturing and fulfilment
costs were 9% higher than for H1 2020, in line with the budget for
the period. SGA administrative expense of $1.9m was slightly below
the 2020 level.
Finance expense
Interest payable was reduced by $0.5m from $0.7m for H1 2020 to
$0.2m, as a result of the reductions in debt and interest rates
that came out of the 2020 debt restructuring.
Cash flow
Inventories decreased by $1.5m and receivables increased by
$3.2m as the build-up of inventory at the end of 2020 turned into
sales. Cash balances reduced from $5.5m to $1.7m, mainly reflecting
$3m payments to reduce the revolving credit facility to mitigate
interest charges. Net debt decreased by $2.7m from $9.9m to $7.2m.
Capital expenditures were $0.8m, principally relating to
maintenance and development projects at the Iofina Chemical
plant.
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, and 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. Currently,
Iofina operates five iodine plants in western Oklahoma.
A production total of 249.4MT of crystalline iodine in the
Period was lower than expected due to two adverse factors. First,
an extreme polar vortex weather event in February, which struck our
production area, causing many oil & gas wells to be offline for
approximately two weeks, suspending the brine supplies IR needs.
The second factor was lower brine supply particularly at two of our
plants. Due to the pandemic's impact on oil and gas prices, oil and
gas partners have not reinvested in their fields (new drilling,
workovers, maintenance) at historical rates. More recently, Iofina
has become aware that oil and gas operators in our area are
beginning to reinvest now that hydrocarbon prices have recovered
and stabilised. New drilling has occurred near IO#8 and has
positively impacted brine flow to this site. While brine supplies
are still lower than expected at two sites, we are optimistic they
may improve in the second half. The Company expects to produce
260-275MT of crystalline iodine and IR is currently on track to
meet this target.
The Company continues to explore opportunities to sustainably
expand its iodine production and diversify its lines of brine
supply. It has identified several potential sites to build and
operate IO#9 which meet its requirements and is currently in
negotiations with the operators of these sites. The Company expects
to commence the construction of IO#9 by the end of 2021 and it is
likely to utilize equipment from decommissioned plants IO#1 and/or
IO#5. Additional expansion efforts beyond IO#9 are also being
evaluated.
IR continues to invest in its existing plants and its workforce.
Initiatives to improve crystalline iodine consistency and quality
have been successful. IR has also hired a new VP of Operations and
has appointed a new Environmental, Health and Safety manager.
Iofina Chemical
Iofina Chemical ("IC") is the specialty chemical subsidiary of
the Group and has been in business for 38 years producing a diverse
array of high-quality halogen-based chemicals for various
industries. IC is a globally recognised leader for 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, and the value-add for iodine
derivative products is not as well recognised as a significant
contributor to the Group.
In the Period, IC exhibited record sales and profits. Demand for
both crystalline iodine and iodine derivatives led sales gains as
global manufacturing increased and economic expansion was evident
following the COVID-19 decreases in demand in H2 2020. Inventory
reductions from year-end levels contributed to increased sales in
the Period, as well as strong demand for a variety of products.
Some iodine-based products which saw increased demand include
crystalline iodine, methyl iodide and IPBC. Methyl iodide
applications include pharmaceutical applications and use as a
catalyst for acetic acid production. IPBC is used as a biocide in
paints, coatings and machine fluids as well as a preservative in
cosmetics and personal care products.
IC continues to invest it its current processes as well as new
R&D projects. Current products where upgrades were started or
completed in the Period include: trichloromelamine (a
disinfectant/sanitizer for hard surfaces and glassware), hydriodic
acid (teat dip and acetic acid applications), and methyl fluoride
(semiconductor etchant gas). New product R&D is ongoing which
includes specialty iodides for battery, oil/gas, and other
applications.
The diversity of the Group's halogenated products (iodo-,
chloro-, fluoro-) is key to both growth and stability for the
organization.
Hemp Seed Update
The Hemp and CBD market continues to recover from the impact of
COVID-19. Only 107,702 acres were registered for outdoor hemp
production for 2021 in the United States which is down 55% compared
to 236,732 acres documented in June 2020; down 75% from the 429,300
acres ultimately documented for 2020. Our sales partner continues
to field numerous inquiries and execute sales but these sales were
for smaller orders in the United States, with growers taking a more
"craft" approach, as opposed to large-scale farming of biomass. We
continue to look outside the USA for the sale of the Group's
certified organic hemp seeds. We have sold small quantities and
qualified two products lines of seeds in South Africa. One seed
variety performed excellent while the auto flower seed was not a
top performer in that geographic region. The plants react
differently in each region and therefore the seeds will be marketed
elsewhere. Having certified organic seeds is still very rare and
has an emerging following. The Group remains confident that the
seed investment will provide a positive return, but the timeframe
for realization is taking longer than anticipated in this new and
emerging market.
Iodine Market Outlook
Iodine prices and demand have increased from 2017 through H1
2020. Pandemic driven slowdowns in numerous markets did reduce
demand and prices during H2 2020. Spot prices of $32.5-36/kg at the
beginning of 2021 were approximately equivalent to prices at the
beginning of 2020, and slightly lower than mid-year 2020 prices.
However, through 2021 the iodine market has recovered faster than
the Company anticipated. By mid-year 2021, spot iodine prices had
moved higher and into the $35-37/kg range, and have continued to
rise, ranging now at $37-39/kg. Demand for end-use products seem to
be the main driver of prices higher, however, logistic delays and
increased shipping costs may also have contributed to some of the
pricing increases.
As markets continue to return to normal activity, Iofina
anticipates demand for iodine and its end-use products to remain
strong, whilst global logistic delays will also likely impact the
industry into 2022. The Group believes these factors will likely
lead to continued higher iodine prices for the rest of 2021 and
into 2022.
Business Outlook
Recoveries are underway in our end markets are we are seeing
demand for our products return towards pre-pandemic levels. Noting
that COVID-19 continues to linger, we are also conscious that
shipping, labour and input costs are rising across global markets,
but with iodine prices also significantly lifting we expect to
continue to make positive progress supported by our highly
efficient production and operations.
In terms of investing for growth, the 2020 debt restructuring
and stronger balance sheet means the Group has more capacity to
invest in initiatives to increase production and product
innovation. As noted, the Group expects to commence the
construction of IO#9 by the end of the year and will provide
further updates on this in due course. The Group will continue to
explore opportunities for growth both organically and outside of
the current organisation.
Iofina has never been stronger both operationally and
financially and the Board believes the Group is well placed to meet
its commercial expectations for the full year.
IOFINA PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
FOR THE PERIODED 30 JUNE 2021
Unaudited Audited
Six months ended Year ended
30 June 30 June 31 December
2021 2020 2020
Note $ $ $
Continuing operations
Revenue 19,926,412 15,737,537 29,687,550
Cost of sales (14,555,537) (10,862,887) (21,282,945)
-------------
Gross profit 5,370,875 4,874,650 8,404,605
Administrative expenses (1,891,048) (1,927,503) (3,685,682)
----------------- ----------------- -------------
EBITDA - Earnings before
interest, tax, depreciation
and amortisation 3,479,827 2,947,147 4,718,923
Depreciation and amortisation (849,489) (793,295) (1,793,249)
Operating profit 2,630,338 2,153,852 2,925,674
Paycheck Protection Program
loans forgiven 1,089,900 - -
----------------- ----------------- -------------
Profit before finance expense 3,720,238 2,153,852 2,925,674
Finance income 457 14,478 15,145
Interest payable (210,689) (689,782) (1,114,108)
Interest swap valuation (10,162) - (69,314)
Loan arrangement fees - (154,004) (479,605)
Profit/(Loss) before taxation 3,499,844 1,324,544 1,277,792
Taxation 7 - - -
Profit/(Loss) for the period
attributable to owners of
the parent $3,499,844 $1,324,544 $1,277,792
----------------- ----------------- -------------
Profit/(loss) per share:
* Basic 4 $0.018 $0.007 $0.007
* Diluted 4 $0.018 $0.007 $0.007
----------------- ----------------- -------------
IOFINA PLC
CONSOLIDATED BALANCE SHEET
30 JUNE 2021
Unaudited Unaudited Audited
30 June 30 June 31 December
2021 2020 2020
Note $ $ $
Intangible assets 552,594 732,594 642,596
Goodwill 3,087,251 3,087,251 3,087,251
Property, plant & equipment 18,785,675 19,205,075 18,781,803
-------------
Total non-current assets 22,425,520 23,024,920 22,511,650
------------- ------------- -------------
Inventories 8,178,240 8,599,239 9,656,019
Trade and other receivables 6,452,072 5,418,775 3,285,004
Investments 900,000 900,000 900,000
Cash and cash equivalents 1,679,358 5,509,820 3,481,332
Total current assets 17,209,670 20,427,834 17,322,355
------------- ------------- -------------
Total assets $39,635,190 $43,452,754 $39,834,005
------------- ------------- -------------
Trade and other payables 6,266,281 6,004,491 5,473,365
Term loan - due within one
year 5 1,428,571 - 1,428,571
Term loan notes 5 - 15,450,626 -
Paycheck Protection Program
Loans - - 1,089,900
Lease liabilities 126,847 131,385 140,650
Total current liabilities 7,821,699 21,586,502 8,132,486
------------- ------------- -------------
Term loan - due after one
year 5 7,500,000 - 8,214,286
Revolving credit facility - - 2,717,581
Term loan - interest swap
liability 5 79,476 - 69,314
Paycheck Protection Program
subsidies - 1,089,900 -
Lease liabilities - 111,413 45,501
Total non-current liabilities 7,579,476 1,201,313 11,046,682
------------- ------------- -------------
Total liabilities $15,401,175 $22,787,815 $19,179,168
------------- ------------- -------------
Issued share capital 6 3,106,795 3,106,795 3,106,795
Share premium 60,686,595 60,686,595 60,686,595
Share-based payment reserve 2,215,883 2,099,889 2,136,539
Retained losses (35,830,936) (39,284,018) (39,330,770)
Foreign currency reserve (5,944,322) (5,944,322) (5,944,322)
-------------
Total equity $24,234,015 $20,664,939 $20,654,837
------------- ------------- -------------
Total equity and liabilities $39,635,190 $43,452,754 $39,834,005
------------- ------------- -------------
IOFINA PLC
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS'
EQUITY
Share Share Share-based Retained Foreign Total
capital Premium payment losses currency equity
reserve reserve
$ $ $ $ $ $
Balance at 31 December
2019 (Audited) $3,106,795 $60,686,595 $1,988,361 $(40,608,562) $(5,944,322) $19,228,867
Share-based expense - - 148,178 - - 148,178
----------- ------------ ------------ -------------- ------------- ------------
Total transactions
with owners - - 148,178 - - 148,178
Profit for the
year attributable
to owners of the
parent - - - 1,277,792 - 1,277,792
----------- ------------ ------------ -------------- ------------- ------------
Total comprehensive
income attributable
to owners of the
parent - - - 1,277,792 - 1,277,792
----------- ------------ ------------ -------------- ------------- ------------
Balance at 31 December
2020 (Audited) $3,106,795 $60,686,595 $2,136,539 $(39,330,770) $(5,944,322) $20,654,837
Share-based expense - - 79,344 - - 79,344
----------- ------------ ------------ -------------- ------------- ------------
Total transactions
with owners - - 79,344 - - 79,344
Profit for the
period attributable
to owners of the
parent - - - 3,499,834 - 3,499,834
-------------- ------------- ------------
Total comprehensive
income attributable
to owners of the
parent - - - 3,499,834 - 3,499,834
----------- ------------ ------------
Balance at 30 June
2021 (Unaudited) $3,106,795 $60,686,595 $2,215,883 $(35,830,936) $(5,944,322) $24,234,015
----------- ------------ ------------ -------------- ------------- ------------
IOFINA PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIODED 30 JUNE
2021
Unaudited Audited
Six months ended Year ended
30 June 30 June 31 December
2021 2020 2020
$ $ $
Cash flows from operating activities
EBITDA - Earnings before interest,
tax, depreciation and amortisation 3,479,827 2,947,147 4,718,924
Share options expense 79,344 111,528 148,178
3,559,171 3,058,675 4,867,101
Changes in working capital
Trade receivables (increase)/decrease (3,167,068) 707,675 2,841,446
Inventories decrease/(increase) 1,477,779 (2,521,969) (3,578,752)
Trade and other payables increase/(decrease) 805,382 218,422 (353,762)
------------ ------------ -------------
Net cash inflow from operating
activities 2,675,264 1,462,803 3,776,034
------------ ------------ -------------
Cash flows from investing activities
Interest received 457 14,478 15,144
Asset disposal proceeds - - 4,468
Acquisition of property, plant
& equipment (763,362) (1,957,495) (2,448,642)
Net cash outflow from investing
activities (762,905) (1,943,017) (2,429,030)
------------ ------------ -------------
Cash flows from financing activities
Paycheck Protection Program subsidies
received - 1,089,900 1,089,900
Term loan notes repaid - (2,726,580) (18,177,209)
Term loan drawn - - 10,000,000
Term loan repayments (714,286) - (357,143)
Revolving loan facility drawn - - 3,000,000
Revolving loan facility net payments (2,717,581) - (282,419)
Refinancing and arrangement fees
paid - (350,100) (675,701)
Interest paid (217,527) (679,778) (1,055,134)
Lease payments (64,939) (61,298) (125,856)
Net cash outflow from financing
activities (3,714,333) (2,727,856) (6,583,562)
------------ ------------ -------------
Net decrease in cash (1,801,974) (3,208,071) (5,236,558)
Cash and equivalents at beginning
of period 3,481,332 8,717,890 8,717,890
Cash and equivalents at end of
period $1,679,358 $5,509,820 $3,481,332
------------ ------------ -------------
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 2021 and 30 June
2020 are unaudited and do not constitute full statutory accounts.
The comparative figures for the year ended 31 December 2020 are
extracts from the 2020 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 2020 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 2020 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 2021 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. In addition, the Group holds
an investment in Organic Vines OP LLC, which has produced and is
marketing hemp seeds. To date there has been no hemp trading
activity to record from the Group's perspective, and therefore
segment reporting below is limited to the separate recognition of
hemp assets.
3. Segment reporting (continued)
Unaudited Audited
Six months ended 30 June 31 December
2021 2020 2020
Assets $ $ $
Halogen Derivatives
and iodine 38,735,189 42,438,788 38,934,005
Hemp seeds 900,000 900,000 900,000
Hemp biomass - 113,965 -
------------- ------------ ------------
Total $39,635,189 $43,452,753 $39,834,005
------------- ------------ ------------
Liabilities
Halogen Derivatives
and iodine 15,401,167 22,787,815 19,179,168
Total $15,401,167 $22,787,815 $19,179,168
------------- ------------ ------------
(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
2021 2020 2020
Total assets $ $ $
UK 127,700 266,876 63,121
USA 39,507,489 43,185,877 39,809,474
------------- ------------ ------------
Total $39,635,189 $43,452,753 $39,834,005
------------- ------------ ------------
Total liabilities
UK 188,900 15,503,142 201,800
USA 15,212,267 7,284,673 18,977,368
------------- ------------ ------------
Total $15,401,167 $22,787,815 $19,179,168
------------- ------------ ------------
Capital expenditures
UK - - -
USA 763,362 1,957,495 2,448,642
------------- ------------ ------------
Total $763,362 $1,957,495 $2,448,642
4. Profit/(loss) per share
The calculation of profit per ordinary share is based on profits
of $3,499,844 (H1 2020: $1,324,544) and the weighted average number
of ordinary shares outstanding of 191,858,408 (H1 2020:
191,858,408). After including the weighted average effect of share
options of 1,232,450 (H1 2020: 3,949,500) the diluted weighted
average number of ordinary shares outstanding was 193,090,858 (H1
2020: 195,807,908).
5. Term loan and revolving credit facility
2020 Revolving
2019 Term 2020 Term credit
loans loan facility
$ $ $
At 31 December 2019 $18,177,209 - -
Repaid 30 June 2020 (2,762,581) - -
-------------- ----------- ---------------
At 30 June 2020 15,450,628 - -
Repaid 16 September 2020 (15,450,628) - -
First Financial Bank facilities:
Term loan drawn 16 September
2020 - 10,000,000 -
Revolving credit facility drawn
16 September 2020 - - 3,000,000
Term loan instalment repayments - (357,143) -
Revolving credit facility net
payments - (282,419)
----------- ---------------
At 31 December 2020 - $9,642,857 $2,717,581
Term loan instalment repayments - (714,286) -
Revolving credit facility net
payments (2,717,581)
At 30 June 2021 - $8,928,571 -
Due within one year - 1,428,571 -
Due after one year - 7,500,000 -
--------------- ----------- ---------------
- $8,928,571 -
--------------- ----------- ---------------
The First Financial Bank facilities are fully secured, and the
principal terms are:
a) The $10 million term loan drawn down in September 2020 is
repayable in full by equal monthly instalments over the 7 years to
30 September 2027. There are accelerated repayments based on 25% of
2021 and 2022 surpluses of EBITDA over the total of capital
expenditure and debt payments of principal and interest, payments
to be made on 30 June 2022 and 2023 respectively. 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 LIBOR, subject to a minimum LIBOR rate of
1.00%, and is currently 3.50%. Repayment of all or part of the loan
may be made at any time, subject to the cost or benefit of
unwinding the swap contract.
b) The revolving credit facility is for $8 million over a
two-year term, and may be drawn and repaid in variable amounts at
the Group's discretion, with the amount advanced at closing having
been $3 million. 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 2.25% above LIBOR, subject to a minimum LIBOR rate of
1.00%, and is currently 3.25%. Interest charges are reduced to the
extent funds are deposited into this account and reduce the balance
outstanding. At 30 June 2021 $3 million funds had been deposited
and therefore the net balance was Nil.
6. Share capital
Unaudited Unaudited Audited
30 June 30 June 31 December
2021 2020 2020
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. Income tax
No income tax expense was recognised for the period due to
accumulated US tax losses of the Group that are expected to be
deductible from the taxable profits of the current period. A
deferred tax asset has not been recognised due to uncertainty over
the timing of the recovery of these tax losses.
8. Post balance sheet events
There were no post balance sheet events.
9. 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.
This information is provided by RNS, the news service of the
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END
IR QXLFLFKLLBBE
(END) Dow Jones Newswires
September 24, 2021 01:59 ET (05:59 GMT)
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