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To be honest
Isn’t this exactly was Morrison
Are doing reducing middle management
To focus on the shop floor and turn over
Admittedly the production team wages are a lot higher at trx but by shaving down in areas that could be overbearing
And focusing on generating new employees to expand towards a third shift
By July that’s my thoughts the Bod
In trx are and seem very sharp keen forward looking individuals
As always dyor ...
Yes to some extent Mike, it creates additional tension in the workplace. It places the balance of power into the hands of the employer. The only silver lining from the employees perspective with 'at will employment' it means you can quit and leave the job without the typical notice period you might be obliged to provide in a similar role in the UK (normally a month in most salaried jobs). Its capitalist ultra based use of human resources, thankfully I now work in a UK based company
Sharesaplenty, thanks for that information, I must admit I was never aware of that. Probably keeps everyone on their toes over there knowing they can lose their job without explained grounds.
Yes I did read it. Whilst you’re confident, and maybe you are right who knows, if that was the case they could have easily put that into the Rns to at least allay any fears investors may have. Also on the numbers of employees that is not clear, as you say on 8.10.19 they state 41 employees. The Rns states restructuring took place in Q4, so if that was finished within 8 days then the number should be 59 - 18, if it was finished after 8.10.19 the number would be 41 - 18. Again a bit unclear, but as some have stated the funding is the key to this moving on.
Mike, - Just checking you read the below post.
RE: Fear
24 Jan 2020 09:58
I'm confident that the redundancies were because Arthrex are pretty much taking all the tissue that CellRight can process, so what do the sales and marketing staff do now?
Dermapure use ARMS and have a separate bunch of Sales and marketers.
Confident the redundant are the said CellRight S&M staff.
A good distribution agreement saves on staff as well as sells all your product.
further info of your interested https://en.m.wikipedia.org/wiki/At-will_employment
Mike cost of redundancies will be zero here I expect. US employment law somewhat different than in the UK. Having worked for previously fora US biotech firm they employment terms for termination is 'at will' which means they can fire with no notice period of explained grounds. Its the corporate way US companies treat staff, it sucks but that's the way it is in the land of the free. I expect those employed by TRX in the US have similar terms on their employment contracts.
A. There's no need to shout and B. Stop spamming various BB's with the same message.
Essentially current debt is manageable. That's all we need to know really.
I did!
Try looking at my posting history for more on this subject.
Mike most companies would be able to streamline there headcount by at least 25% with little impact on day to day running and is also possible that some of the new recruits that are now fully trained our more productive than some of the old staff, also with the refurbishment not expected to be completely finished yet, if they can save on 18 wages for another 3 or 4 months and just gradually employ the bare minimum, until more space comes online in the refurbished block, it will help there cash burn dramatically and also help becoming cash positive, as long as all this doesn’t effect current levels of production, will see the company in a very healthy position by the 3rd quartet in 2021. All only my personal opinion, out with the old and in with the new, can have a dramatic effect on any business, while retaining a few wise old heads
B2HS2L, I bought in here only a few weeks ago at 1p. I knew there was some uncertainty about future funding plans, but I was attracted by the business’s products, FDA approval and seeing there should be potentially massive growth.
The last Rns tbh was expected in regards to funding going forward. I feel once that is sorted and everyone knows where we then stand then the sp will recover also with the expected TR1’s.
What I was totally baffled by and it hasn’t really been discussed much on here, is the 18 redundancies. Firstly there must have been costs associated with letting these people go, either redundancy payments if they have over 2 years service, or a weeks or months notice etc. Now if this was done with the intention of having an extra months cash it doesn’t match up with the fact that the company is bursting at the seams, can’t keep up with demand, putting extra shifts on etc etc. Why would they do that ? What would their customers think if in one instant they can’t keep up with demand then turn round and tell them 18 people have gone. If it was entirely to preserve the cash for an extra month surely would it not have made more sense to start exploring their funding issues one month earlier.
None of us know what departments these people were actually in, but regardless of that they must have been adding some value to the business. After all 18 out if 41 or 59 is a big chunk. I for one would like a bit more clarity on this because to me it just doesn’t add up that a company as busy as this fighting to keep up would do this. Be interested to see other people’s thoughts on this.
Smokin, - Good sleuthing, hoping this encourages more to research.
To compare financial performance year on year, RNS's refer to Percentage change (GBP), and Percentage change (constant currency), see columns in table of 22 January 2020 RNS.
If my assumption is correct and 18 people were redundant before 08.10.2019, the 30% saving in wages was made at least 3 months ago.
B2HS21. I suppose the only way forward is telephoning or emailing and asking about staff numbers.
Coming in with the funding issue, I believe as you mentioned previously that the board will stretch out capital as long as they can. Sometimes money isn't always the answer if that makes sense. I do not believe we are going to have a problem with capital after April and I am sure the board will squeeze every penny out of the pound to succeed.
https://www.expressnews.com/business/health-care/article/Tissue-Regenix-to-expand-San-Antonio-area-medical-14504344.php
This story dated 08.10.2019 states 41 people work at the plant.
Was that 41 before or after the redundancy's?
41 - 18 = 23. This doesn't seem enough for both Dermapure processing and two shifts of CellRight processing, (and they need different training).
Also for CellRight, "..the average number of orthopaedic donors processed monthly at our San Antonio facility has more than doubled from Q1 to Q4". - taken from RNS this week.
I will assume 59 worked at the plant before redundancies, and now 41 work there, so the wage bill has very roughly been reduced (18 / 59) * 100 = 30%, and the 41 working were headcounted in early October.
No mention of overtime working, but I assume some.
Also from the expressnews story, "British company Tissue Regenix is expanding in San Antonio, with plans to more than double its workforce at its Universal City manufacturing facility."
So they are looking to employ at least 82 staff, many of whom will be recruited well before the new facility is ready, due to training needs.
The above assumptions and calcs might give a flavour of how many staff are needed present and future.
Just my thoughts on shift sizes and present makeup.