Last checked at 27 Jan 2022 07:00
Tissue Regenix Group plc
("Tissue Regenix" or "the Group")
Full Year Trading update
Return to double digit growth in 2021
Tissue Regenix Group (AIM:TRX), the regenerative medical devices company, provides a trading update for the year ended 31 December 2021.
Highlights
· Total revenue of £14.4m (£15.3m at constant currency), 13% increase on prior year (20% at constant currency)
· Cash position of £5.7m at year end, supports current business growth plan
· Particularly strong growth in BioRinse®, 24% increase on prior year (34% at constant currency) aided by the completion of Phase 1 of expansion project in the year
· Presentational currency in annual accounts to change to USD, from GBP
Trading in the year was robust with a return to double digit growth and in line with management expectations despite the challenges of the COVID-19 pandemic and FX headwinds, with total Group sales revenue of £14.4m, a 13% increase (20% at constant currency) on 2020 results of £12.8m.
The BioRinse® (CellRight) division performed strongly in 2021, aided by the completion of the first phase of the expansion of the Group's manufacturing capacity in San Antonio, Texas. Overall growth in that division was 24% (34% constant currency) thanks primarily to a strong underlying performance in the US market.
Although the Delta variant adversely affected sales revenue in Q3 2021 and early Q4, trading in November and December rebounded positively from these temporarily reduced levels. The Omicron variant has subsequently caused disruptions to the US healthcare system and supply chains worldwide. The potential impact of this on the Group remains unknown, but management is hopeful that any potential effects will be short-term.
Cash and cash equivalents at year end were £5.7m (2020: £9.5m; H1 2021: £6.6m). Cash burn in H1 2021 included £0.9m relating to the Phase 1 capacity expansion. Post period end the Group exercised its option to increase the current US Dollar (USD) denominated revolving credit facility from $3.0m to $5.0m. Although this financing is not dictated by the current business plan, which is fully funded by the Group's year end cash position, the additional liquidity is a prudent measure to provide additional cash resources in the face of future risks posed by COVID-19. Due to processing efficiencies and the additional capacity of the Phase 1 expansion completed in 2021, the current business plan does not require the capacity of the Phase 2 expansion through 2023.
As the majority of the Group's sales revenue, expenses, assets, and liabilities are now denominated in USD, the Group will change the presentation currency in its financial statements to USD effective with the issuance of the 2022 Annual Accounts. This presentation will provide a clearer picture of the Group's performance to investors.
Daniel Lee, Chief Executive Officer, Tissue Regenix, commented: "2021 was another challenging year for healthcare due to the COVID variants. Despite these obstacles, Tissue Regenix performed admirably as it manoeuvred around the delay of elective surgeries, fluid healthcare guidance and directives, supply chain disruptions and personnel shortages. By continuing to expand its product portfolio and increasing its processing efficiency and donor storage capacity, the Company has delivered robust financial and operational performance in 2021. While we recognise the ongoing challenges of COVID-19, we continue to see strong demand for our products and are optimistic that this demand will continue to deliver sales revenue growth as we drive towards profitability."
For more information:
Tissue Regenix Group plc David Cocke, Chief Financial Officer | www.tissueregenix.com Via Walbrook PR |
Stifel Nicolaus Europe Limited (Nominated Adviser and Broker) Ben Maddison / Alex Price | Tel: +44(0)20 7710 7600 |
Walbrook PR Ltd Alice Woodings / Stephanie Cuthbert /Megan Boxall | Tel: +44 (0)20 7933 8780 TissueRegenix@walbrookpr.com |
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About Tissue Regenix (www.tissuergenix.com)
Tissue Regenix is a leading medical devices company in the field of regenerative medicine. The company's patented decellularisation ('dCELL®') technology removes DNA and other cellular material from animal and human soft tissue leaving an acellular tissue scaffold which is not rejected by the patient's body and can then be used to repair diseased or damaged body parts. Current applications address many critical clinical needs such as sports medicine, urological-gynaecological repair and wound care.
In August 2017 Tissue Regenix acquired CellRight Technologies®, a biotech company that specializes in regenerative medicine and is dedicated to the development of innovative osteoinductive and tissue scaffolds that enhance healing opportunities of defects created by trauma and disease. CellRight's human osteobiologics may be used in spine, trauma, general orthopaedic, foot & ankle, dental, ophthalmic and sports medicine surgical procedures.