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Tissue Regenix Group (AIM:TRX) ("Tissue Regenix" or the "Group") the regenerative medical devices company today announces its unaudited interim results for the six months to 30 June 2020.

Financial highlights

• Group revenues of £6.1m (H1 2019: £6.1m, at constant currency £6.2m)
• Reduction in overhead cost base of £1.6m (£1.7m excluding exceptionals) to £5.5m (H1 2019: £7.1m, at constant currency £7.3m)
• Significantly reduced Group EBITDA* loss of £2.1m (H1 2019: £3.6m, at constant currency £3.7m)
• Cash position of £13.7m (H1 2019: £10.1m) following successful equity fundraise of £13.8m (net) completed in June 2020.

*EBITDA is a non-IFRS measure that the Group uses to assess its performance. It is defined as earnings before interest, taxation, depreciation and amortization.

Commercial highlights

Entered a collaboration with a top 10 global healthcare company for white label manufacturing of a new soft tissue orthopaedic product

Secured additional distribution agreements for Matrix OI, DentalFix and AmnioWorks to diversify sales portfolio

Achieved CE mark certification for OrthoPure® XT.

Operational highlights  

• Successfully implemented initiatives to allow minimal disruption to processing at the facility in San Antonio throughout COVID-19, enabling the facility to remain fully operational.
• Post balance sheet events
• Phase one of the capacity expansion project commenced at the US facility, expected to come on-stream in H1 2021
• Announced relocation of UK facility to Garforth, Leeds as part of the ongoing overhead cost saving initiatives
• Entered into a UK distribution agreement with a specialty supplier of orthopaedic and biologic products for OrthoPure® XT.

Gareth Jones, interim Chief Executive Officer, Tissue Regenix Group plc, commented: "The first half of 2020 presented a number of challenges but, despite this, we achieved a number of milestones which will strengthen our market positioning going forward.

"Delivering revenues for the first half of the year comparable to the same 2019 period demonstrates that, despite COVID-19 related market disruption, demand for our products remains strong. The recent fundraising has positioned us to capitalise on these opportunities, in particular, enabling us to commence the US facility capacity expansion project and to support our ongoing working capital requirements. Moreover, the launch of new products, in conjunction with an ever-increasing customer base, provides us with greater access to new markets and opportunities in the future.

"Over the past year, we have focused on our programme to streamline our supply chain and operations and to appropriately size our overhead cost base. We have continued with this and reduced our overhead spend by a further £1.7m (excluding exceptionals) during the first half of the year. This, coupled with an anticipated increase in revenue, is expected to drive the Group towards its target of achieving a position of break-even.

"Due to the ongoing uncertainty around the COVID-19 restrictions, it remains difficult for the Board to provide forward looking guidance however, I am pleased with the progress that the Company continues to make and remain confident in the future prospects of the business."

 

For more Information

Tissue Regenix Group plc	Tel: 0330 430 3073 / Tel: 07920 272 441
Caitlin Pearson   Head of Communications
Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)	Tel: 0207 710 7600
Ben Maddison / Alex Price

 

About Tissue Regenix

Tissue Regenix is a leading medical devices company in the field of regenerative medicine. Tissue Regenix was formed in 2006 when it was spun-out from the University of Leeds, UK. The Company's patented decellularisation ('dCELL®') technology removes DNA and other cellular material from animal and human soft tissue leaving an acellular tissue scaffold which is not rejected by the patient's body and can then be used to repair diseased or worn out body parts. Current applications address many critical clinical needs such as sports medicine, heart valve replacement and wound care.

In November 2012 Tissue Regenix Group plc set up a subsidiary company in the United States - 'Tissue Regenix Wound Care Inc.', January 2016 saw the establishment of joint venture GBM-V, a multi- tissue bank based in Rostock, Germany.

In August 2017 Tissue Regenix acquired CellRight Technologies®, a biotech company that specializes in regenerative medicine and is dedicated to the development of innovative osteoinductive and wound care scaffolds that enhance healing opportunities of defects created by trauma and disease. CellRight's human osteobiologics may be used in spine, trauma, general orthopaedic, foot & ankle, dental, and sports medicine surgical procedures.