Losses narrow at listed life sciences company
Leeds-based life sciences business, Tissue Regenix Group, has reported pre-tax losses of £2.7m for the six months to 30 June 2020, compared with £4.4m for the previous period in 2019.
The company, which has released unaudited interim results today, records Group revenues of £6.1m (H1 2019: £6.1m, at constant currency £6.2m).
It has also reported a significantly reduced Group EBITDA* loss of £2.1m (H1 2019: £3.6m, at constant currency £3.7m)
And its cash position is £13.7m (H1 2019: £10.1m), following a successful equity fundraise of £13.8m (net) completed in June 2020.
Gareth Jones, interim chief executive officer, said: “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.
“I am pleased with the progress that the company continues to make and remain confident in the future prospects of the business.”
Tissue Regenix specialises in medical devices for the field of regenerative medicine.
Last month it announced its UK head office and manufacturing facility will be relocated to Garforth, Leeds in November 2020 from its current site in Swillington, Leeds.
This move is expected to cut the Group’s overhead costs by over £0.4m on an annualised basis from 2021.
