Spinnova names new CEO, undertakes strategic review

Spinnova revenues grew to 8,820 thousand euros compared to 7,635 thousand euros in the first half of this fiscal. The company’s operating result was negative 10,994 thousand euros versus negative 5,766 thousand euros.

“Our revenues increased to EUR 8.8 million from EUR 7.6 million, driven mainly by technology sales. The decline in operating result was expected as we were ramping up our and our joint venture operations and had increased personnel costs. During the period our investments of six million euros continued to be primarily into the Woodspin joint venture,” said the company’s interim CEO Ben Selby.

Spinnova said in a release that it has decided to evaluate its current strategy in order to prioritise those parts of its strategy that generate the fastest positive cash flow in the short or medium term and generate the most value for the company's stakeholders.

Spinnova appoints new CEO, evaluates business strategy

Effective today, Tuomas Oijala joined as Spinnova's new CEO and Selby was named deputy CEO.

The company added that a strategic review will be conducted and the results of the review will be communicated in the coming months.

“The review will focus on prioritising areas in the strategy that in the short- to medium-term deliver the fastest time to positive cash flow generation and that create the most value for the company's stakeholders,” added Selby.

The company said that the long-term demand for sustainable textile fibres and materials remains strong and Spinnova expects to see increased interest when Woodspin ramps up production and more wood-based fibre volumes become available.

In 2023, revenues are estimated to be lower than in 2022, impacted by expected phasing of technology sales fees and the loss will increase during the year as the company is ramping up operations.

Key developments at Spinnova in H1

Spinnova completed the technology handover of the first factory producing wood-based Spinnova fibre to the joint venture Woodspin during the period under review. The company also entered into a yarn development co-operation agreement with Tearfil.

Santeri Heinonen was appointed chief human resources officer and management team member.

After the end of the six month period, the company received a R&D grant of 1.9 million euros in July from Business Finland for developing Spinnova fibre from new raw materials.

In August, Spinnova Plc's transition to IFRS reporting was published.