Shares in Itaconix PLC jumped on Monday, on the back of new clients and regulatory approvals, though the company stood by its forecast of a decline in annual revenue.

Itaconix is a New Hampshire-based manufacturer of plant-based polymers. Shares in the company were up 11% at 155.00 pence each in London on Monday morning.

According to a statement from Non-executive Chair Peter Nieuwenhuizen, set to be given at the company’s general meeting on Monday, Itaconix’s performance is in line with the company’s previous expectations for the current financial year.

In April, Itaconix said that revenue for 2024 will be in the range of $6.0 million to $6.5 million, compared to $7.9 million in 2023.

The company said that this was due to the failure to reach satisfactory commercial terms with a ‘major existing merchandising customer’ in North America.

However, Itaconix said that it has made progress in 2024 so far, with ‘new products launched, new accounts won, uses in new applications, higher gross profit margins, new studies on the biodegradability of our products, and an expanding global footprint of regulatory approvals for our products.’

Initial orders have been received from ‘important new accounts in Europe and North America,’ the company added, which are expected to generate revenue and ‘meaningful volume growth’ in the second half of the year and beyond.

Itaconix said that its gross profit margin in the year to date is over 35%, compared to 31% for the whole of 2023.

Nieuwenhuizen’s statement continued: ‘We have advanced the global regulatory acceptance of our major products with new approvals in China, Australia, and New Zealand. These approvals are expected to generate new revenue opportunities for current European and North American accounts to sell their products into this region and for new prospective customers in these countries.’

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