Regenerative MedTech business focused on recovery
Tissue Regenix Group has said that its financial performance for 2020 is expected to be in line with market expectations.
The spin out of the University of Leeds has reported a group revenue of £12.8m which it states is in line with the previous year (2019:£13m) “despite the impact of Covid-19”.
According to its latest trading update the firm’s Orhopaedic and Dental division aw growth in 2020 despite the pandemic, although much of this is believed to be driven by a strong Q1 performance.
In contracts its BioSurgery division was heavily impacted by the restrictions including postponement of elective surgical procedures. As a result revenues fell over a fifth (21%).
Despite this the business is in a “strong cash position” following the successful fundraise in June 2020. It is also continuing to restructure in order to “rationalise resources” and reduce overheads. As a result it of this in the US it expects to save c.$700,000 on an annualised basis.
In the UK, it moved production to a smaller premises in Garforth in October, which will be come operational in Q1 2021 following regulatory audits and inspections. The firm has also outsourced many aspects of the Orthopure XT production, delivering annualised cost savings of c.£400,000.
Daniel Lee, chief executive officer, Tissue Regenix, commented: “The Group returned a strong performance for 2020 against the challenging backdrop of the ongoing Covid-19 pandemic.
“We were successful in maintaining a sales line consistent with previous years and additionally securing further strategic partners and private label agreements in an industry where many companies experienced a downturn in demand as hospital resources were redirected.”
Looking ahead the firm is continuing its expansion programme in San Antonio, where capacity constraints have impinged on the growth of the business. With the expanded premises expected to launch during the first half of 2021.
Lee added: “With two new products launched during the year and the commencement of our capacity expansion programme following the fundraise completed in June 2020, the Group is well positioned to address market demand and new opportunities as market conditions normalise.”
Shares in Tissue Regenix closed on Friday up 15.5% to 0.7450p per share, which is still almost a third lower than the firm’s 2020 high of 1.1p a share.
