Portfolio news 0

Tissue Regenix Group (AIM:TRX) ("Tissue Regenix", the "Company" or the "Group"), the regenerative medical devices company, today announces its annual results for the year ended 31 December 2019.

 

Revenue up 12% year-on-year (8% constant currency)

 

Fundraising of gross proceeds of £14.62m subject to shareholder approval at a General Meeting

Financial highlights

· Increased revenues by 12% (8% constant currency) to £13.03m (2018: £11.62m)

                 • BioSurgery sales of dCELL® products sales increased by 25% to £4.23m (2018: £3.38m)
                 • Orthopaedics and Dental sales of BioRinse products grew by 5% to £6.72m (2018: £6.40m)
                 • Joint venture GBM-v sales grew by13% to £2.08m (2018: £1.84m)

· Gross profit increased to £6.02m (2018: £5.92m)

· Operating loss narrowed to £7.20m (2018: £8.69m)

· Drawdown of $2m of the MidCap Financial Term Loan, with access to a $3m Revolving Credit Facility as at  31 December 2019

· Net cash at 31 December 2019 of £2.38m (2018: £7.82m), including £1m of the MidCap Revolving Credit Facility

 

Operational highlights

· Strengthened the San Antonio management team, including establishing a specialist Donor Services team

· Orthopaedic donor throughput more than doubled between Q1-Q4 2019

· Commenced a second shift in the San Antonio facility

· Outsourced certain product lines to increase manufacturing capacity

· Lease signed on additional 21,000sq ft manufacturing facility in San Antonio, which subject to securing financing is ready to commence clean room fit out

· Soft launch of DermaPure non-oriented product for surgical and urogynaecology applications

· Further Group Purchasing Organisation (GPO) approvals for DermaPure, increasing coverage to c.95% of US GPO hospitals

 

Post period highlights

· Q1 revenue increased by 18% year-on-year, despite cyberattack experienced at San Antonio facility

· Conditional fundraising raised gross proceeds of £14.62m announced on 22 May, subject to shareholder approval at a General Meeting on 9 June and admission of shares to AIM

· New strategic collaboration with a top 10 global healthcare company for a newly developed product line was announced on 11 May 2020

· US Government backed loans of $1m secured in April 2020 to assist with US cost base during COVID-19 pandemic

· Award of CE Mark for OrthoPure XT announced on 1 June 2020

 

Gareth Jones, Interim CEO of Tissue Regenix Group, commented:  

 

"During  2019, recognising the need to optimise our supply chain and processes to address various operational challenges and support the growing demand for our products, we concentrated efforts on implementing a number of efficiency improvements which manifested in donor throughput more than doubling between Q1-Q4 2019 at the facility in San Antonio. Despite experiencing manufacturing capacity constraints and operational challenges, these initiatives meant we were able to increase our top-line revenue by 12% year-on-year (8% constant currency). In conjunction with this we implemented a number of cost control measures in Q4 2019 which will provide annualised savings of circa. £1m.  We remain committed to assessing our ongoing operational cost base to ensure that funds are deployed in the most efficient manner and efficiencies maximised, as we work towards a position of break-even. In May 2020, we undertook a fundraise of £14.62m, subject to approval by shareholders at a General Meeting and admission of shares on AIM, to invest in our manufacturing infrastructure to increase this capacity further which will allow us to unlock additional revenues and new partnership opportunities.

 

As an example of the exciting growth potential of the business and testament to the strong underlying demand for our portfolio of regenerative biologic products, following the year-end, we announced a strategic partnership with a top 10 global healthcare company for a new product launch. Additionally, the receipt of CE Mark approval for OrthoPure XT is a significant milestone in the evolution of our product portfolio and corporate objectives.

 

We remain confident in our long-term strategy to grow the business. However, whilst sales were not materially impacted during Q1 2020, where we delivered 18% year-on-year growth, the Board is unable to provide clarity on the financial outlook for 2020 until there is greater visibility around the impact of the COVID-19 pandemic in the market."

 

 

Posting of Report and Accounts and Notice of AGM

The Company announces that the Annual Report and Accounts will be posted to shareholders today together with a notice of Annual General Meeting (the "AGM") and accompanying form of proxy.

 

The AGM will be held at the offices of Squire Patton Boggs (UK) LLP, 6 Wellington Place, Leeds at 10am on 30 June 2020.

 

The UK Government passed into law mandatory measures in order to reduce the transmission of COVID-19. These mandatory measures prohibit, amongst other things, individuals engaging in non-essential travel and public gatherings of more than two people, save where the gathering is essential for work purposes (the "Stay at Home Measures").

 

The Company is required to hold the AGM in order to implement the planned fundraise. However the Stay at Home Measures will significantly restrict our ability to follow a standard shareholder meeting format. In order to ensure shareholders can comply with the Stay at Home Measures the Board has concluded that shareholders should not plan to attend the AGM in person. It is currently intended that the AGM will be held with only the minimum number of shareholders present as required to form a quorum under the Company's Articles of Association, and who are essential for the business of the AGM to be conducted.

 

The results of the votes on the proposed resolutions will be announced in the normal way as soon as practicable after the conclusion of the AGM.

 

Having regard to their own safety and that of others, shareholders are respectfully asked to comply with the Stay at Home Measures and not make plans to attend the AGM. To ensure the safety of the limited number of people whose attendance is essential, the Company will not be able to allow other shareholders to gain access to the AGM on the day. Given the restrictions on travel and as to how the meeting itself may be conducted, shareholders are strongly encouraged to exercise their right to vote and to submit a proxy as early as possible.

 

The Annual Report and Accounts, notice of AGM and accompanying form of proxy, will be available from later on this morning on the Company's website, www.tissueregenix.com, in accordance with AIM Rule 20.

 

 

For more Information:

 

Tissue Regenix Group plc

Caitlin Pearson, Head of Communications  

 

Tel: 0330 430 3073

 



Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)

Jonathan Senior / Alex Price / Ben Maddison

Tel:  0207 710 7600

 


 

FTI Consulting 

Simon Conway / Victoria Foster Mitchell / Mary Whittow

Tel: 0203 727 1000