Revenues up 12% at listed life sciences firm
Life sciences business Tissue Regenix has reported revenues of £13.03m (2018: £11.62m) in its annual results for the year ended 31 December 2019, a rise of 12%.
The company, which is based in Leeds, also saw its gross profit increase to £6.02m (2018: £5.92m), while its operating loss narrowed to £7.20m (2018: £8.69m).
Tissue Regenix renegotiated the terms of its MidCap Financial funding, secured in June 2019, repaying $5.5m of the initial $7.5m term loan. At the year end the Group recorded a cash position of £2.4m, after drawing down £1m of the MidCap Revolving Credit Facility.
The firm’s latest report on its results, released today, states: “The COVID-19 pandemic has affected most businesses during H1 2020.
“A number of elective surgical procedures that utilise our products have been postponed and there remains ongoing uncertainty around level and duration of the disruption from the pandemic and therefore, the time it will take to perform any delayed surgical procedures thereafter.
“However, the Group has continued to work closely with partners and distributors during this time and we remain confident that, once appropriate, we are well positioned to service the demand for our products and address these clinical requirements.”
Gareth Jones, interim CEO of Tissue Regenix, said: “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.
“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.”