27th May 2015 10:28
LONDON (Alliance News) - Iofina PLC Wednesday reported a widened pretax loss in 2014 despite reaching record sales, as it was hit by declining iodine prices and impairment charges on plants and projects it intends to dispose of.
The company, which specialises in the production of iodine and chemical derivatives, reported a pretax loss of USD6.7 million in 2014, wider than the USD3.8 million loss reported in 2013, even though revenue hit a record high at USD25.8 million from USD18.9 million.
Iofina said it booked an impairment charge of USD1.2 million on the IOsorb #1 plant, which it is planning to shut down due to being hit by a reduced water supply and low iodine prices, as well as a USD1.3 million charge on the Atlantis Iodine/Natural Gas Development Project, which it said has no future value to the company.
"The future price of iodine is not certain, however we expect iodine demand to continue to grow worldwide, resulting in stabilised prices near the middle of 2015. Despite this optimism we must be prudent to protect our interests and assets in this declining market and take advantage of the opportunities this environment presents," Non-Executive Chairman Lance Baller said in a statement.
However, production of crystalline iodine was up 92% in the year, reaching a record 327.7 metric tonnes, and the company said it is on track to meet its production target of 220 to 260 metric tonnes in the first half of 2015.
Iofina also noted that earnings before interest, tax, depreciation and amortisation were positive in the first quarter of 2015.
"The group is continually focused on the operational turnaround that it began at the end of H1 2014, which solely focuses on bottom line profitable and managed growth. While turning around operations has been challenging, moving forward the group has already realised greater production efficiencies and is well positioned to improve on its performance," Baller said.
Iofina said it does not recommend payment of a dividend.
Shares in Iofina were down 7.5% to 31.00 pence on Wednesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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