REG - Belluscura PLC - Trading Update

BelluscuraAnnouncement

28/10/2024 07:00

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RNS Number : 7710J  Belluscura PLC  28 October 2024

28 October 2024

 

BELLUSCURA PLC

("Belluscura" or the "Company" or "Group")

 

Trading Update

 

Belluscura plc (AIM: BELL), a leading medical device developer focused on
lightweight and portable oxygen enrichment technology, today provides a
trading update.

 

Further to the Interim Results announcement ("Interims") on 26 September 2024,
which stated that Group revenue has continued to grow through 2024, revenue in
the first nine months of the year was better than expected at $3.3m
(unaudited) (Q1: $0.1m. Q2: $1.2m, Q3: $2.0m).

 

The Group also stated that prospects for FY24 Q4 were enhanced by the
forthcoming release of the new DISCOV-R device, with FY24 Q4 sales of $4m
expected, dependent upon two key factors:

·    Timely receipt of Pricing Data Analysis and Coding ("PDAC") codes
that allow Durable Medical Equipment distributers to claim reimbursement from
Medicare for sales of DISCOV-R to patients; and

·    Finalising further funding facilities to meet the significant
increase in working capital requirements resulting from the anticipated strong
Q4 sales demand in order for DISCOV-R.

 

Although later than anticipated at the time of issuing the Interims, the Board
is pleased to confirm that the Company has now received confirmation that the
PDAC Codes have been issued.  This is a significant milestone for the
Company.

 

The issuance of the PDAC Codes e1390 and e1392 means that for the first time
the DISCOV-R unit will be eligible for reimbursement under Medicare and also
under private health insurance.  Medicare is the $800bn US federal health
insurance program that provides coverage for most Americans aged over 65, and
for many with qualifying conditions under the age of 65.  There are over 65m
people enrolled in Medicare in the US.  A recent report published in the
American Thoracic Society estimates that over 1.5m Americans currently receive
supplemental oxygen through Medicare for a variety of respiratory disorders to
improve their quality of life and prolong survival.

 

The need for further funding facilities to meet the anticipated increased
working capital requirement due to strong Q4 sales demand for the DISCOV-R is
driven by interest from three nationwide durable medical equipment
distributors and numerous regional distributors who collectively serve several
million respiratory customers in the US.

 

As stated previously the Company has received several debt funding proposals.
Although the process has also taken longer than the Board anticipated at the
time of the Interims, negotiation of the terms of new funding facilities with
a prospective lender are at an advanced stage.  The facilities are expected
to be a combination of debt and invoice discounting together with credit
insurance.  The Company continues to evaluate whether additional funding,
including debt and/or equity, may be required alongside the proposed new
funding facility.

 

As at 25 October 2024 the Group had cash reserves of $0.3 and receivables of
$1.1m.

 

Having now received the PDAC Codes in late October and with the delay in
completion of the new funding facilities, the Group's ability to fund the
working capital for sales of DISCOV-R has been curtailed.  Accordingly,
revenue in FY24 Q4, is now expected to be lower, in the range of $1.0m to
$1.5m, producing expected revenue for 2024 of between $4.3m and $4.8m (2023:
$0.8m), an increase of over 430%.

 

Notwithstanding the funding challenges referred to above, the Board continues
to have a real sense of confidence that in 2025 the Company will build on the
strong revenue growth achieved in 2024 to date.

 

The Company will issue a further statement once the new funding facilities
have been finalised.

 

 

-Ends-

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

For further information please contact:

 

 Belluscura plc                             Tel: +44 (0)20 3128 8100
 Adam Reynolds, Chairman

 Robert Rauker, CEO

 Simon Neicheril, Chief Financial Officer

 SPARK Advisory Partners Limited            Tel: +44 (0)20 3368 3550

 Nominated Adviser
 Neil Baldwin / Jade Bayat

 Dowgate Capital Limited                    Tel: +44 (0)20 3903 7715

 Broker
 Russell Cook / Nicholas Chambers

 MHP                                        Tel: +44 (0)20 3128 8100

 Financial PR & Investor Relations          email: Belluscura@mhpgroup.com (about:blank)
 Katie Hunt/Matthew Taylor

 

About Belluscura plc (https://belluscura.com/)

Belluscura is a UK medical device company focused on developing oxygen
enrichment technology spanning broad industries and therapies. Our innovative
oxygen technologies are designed with a global purpose: to create improved
health and economic outcomes for the patients, healthcare providers and
insurance organisations.

 

 

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