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(Sharecast News) - Iofina reported record interim revenues and iodine production on Thursday, as it posted a sharp rise in first-half profit, and said it remained on track to meet full-year expectations as it ramped up output from its newest plant.
The AIM-traded iodine producer and specialty chemicals maker said revenue for the six months ended 30 June rose 12% year on year to $29.2m, driven by strong demand, higher production and sustained iodine prices above $70 per kilogram.
Gross profit increased 21% to $6.3m, while adjusted EBITDA climbed 44% to $3.3m.
Pre-tax profit more than tripled to $3.5m from $1.1m, helped by $1.8m of tax credit income.
Iofina produced 305.5 tonnes of crystalline iodine in the period, up 10.6%, with sales volumes rising 9% and average realised prices increasing 11% to $74.27 per kilogram.
It said it expected to produce 400 to 440 tonnes in the second half, now that its eighth IOsorb plant, IO 11, had come online, contributing to record monthly production of 74.3 tonnes in August.
"The group delivered a strong first half performance, despite the impact of the extreme weather in the first quarter affecting the flow of brine water to our IOsorb plants," said chief executive Tom Becker.
"Crystalline iodine production grew by 11% and total sales by 12%, supported by the ongoing demand for our products and higher iodine prices.
"The group remains well positioned to continue its expansion plans, utilising its strong cash generation and banking facilities to invest for growth."
He added that IO 11, completed on time and budget in July, was expected to add 100 tonnes of iodine annually, and that talks over a further plant, IO#12, are progressing well.
At 1536 BST, shares in Iofina were up 4.21% at 24.49p.
Reporting by Josh White for Sharecast.com.