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(Alliance News) - Tissue Regenix Group PLC said Wednesday annual earnings will be in line with expectations, though the medical devices maker warned sufficient funding beyond April this year is not guaranteed.
Shares in the company were 19% lower at 1.41 pence each in London on Wednesday morning.
The Leeds-based firm said its cash position of GBP2.4 million, which includes a GBP1 million revolving credit facility from lenders Midcap Financial Trust, is enough to support working capital needs until April.
Thereafter however Tissue Regenix said it would need extra funding.
The firm explained: "The company continues to experience significant constraints on its working capital however the board believes the available cash runway will continue to support the working capital requirement of the company until the end of April. As a result of this, as previously announced, the board is seeking to secure alternative funding in the near future which may or may not be forthcoming."
During the fourth quarter of the year to December 31, the company laid off 18 employees as part of a restructuring.
Tissue added: "These changes along with other cash management initiatives have allowed the cash runway of the business to be extended."
For 2019, the company expects revenue to grow 12% to GBP13 million from GBP11.6 million the year before, in line with expectations.
Earnings before interest, taxes, depreciation and amortisation are also expected to be in line with expectations.
By Eric Cunha; ericcunha@alliancenews.com
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