Half-year Report
07/09/2022 07:00
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RNS Number : 5048Y Tissue Regenix Group PLC 07 September 2022
Tissue Regenix Group plc
('Tissue Regenix' or 'the Group')
Half-year Report
Interim results for the six months to 30 June 2022
Leeds, 7 September 2022 - Tissue Regenix Group (AIM:TRX), the regenerative
medical devices company, announces its unaudited interim results for the six
months to 30 June 2022.
With effect from 1 January 2021, the Group's presentation currency changed from pounds sterling (GBP or £) to United States dollars ($ or USD) as the directors considered the USD to be more representative of the geography in which the Group primarily operates.
Financial highlights:
· Group revenues increased by 25% to $11.8m (H1 2021: $9.4m; 27% at
constant currency).
§ BioRinse® division recorded a 32% increase in revenues to $7.8m (H1 2021:
$5.9m), driven by strong underlying performance in the USA market.
§ dCELL® division recorded a 14% increase in revenues to $2.4m (H1 2021:
$2.1m).
§ GBM-V, the joint venture, recorded a 13% increase to $1.6m (H1 2021: $1.4m;
24% at constant currency).
· Gross profit was $5.4m (H1 2021: $4.3m), delivered at a 46% gross
margin (H1 2021: 46%; Full year 2021 43%).
· Adjusted EBITDA loss* was reduced 67% to $0.5m (H1 2021 loss: $1.5m)
due to sales growth and tight expense management.
· The cash position as at 30 June 2022 of $6.2m (H1 2021: $9.1m;
year-end 2021 $7.7m) supports the current business growth plan.
*Adjusted EBITDA loss: loss before interest, taxes, depreciation,
amortisation, and share-based payments
Commercial and operational highlights:
· US product unit shipments increased by 34% in H1 2022 compared to the
same period in 2021.
· Commercial reorganisation of dCELL® division has begun to show
benefits with renewed sales growth.
· Increased efficiencies in donor processing provide for a c. $10m or
c. 33% additional sales revenue potential from the existing footprint,
allowing Phase 2 expansion and associated capital expenditure to be pushed
further out.
Daniel Lee, Chief Executive Officer of Tissue Regenix Group plc, said: "We
are extremely pleased with the Group's H1 2022 commercial performance and how
we are positioned for the second half of 2022. Our increased capacity and
efficiency improvements have given us much more operational flexibility. The
commercial growth seen in our BioRinse® business and especially the growth in
our reorganised dCELL® business are fundamental in delivering the financial
performance expected by our Board for 2022. The markets are still rebounding
to pre-COVID-19 levels, but our business is well positioned to meet these
challenges. The 4S strategy continues to drive the Group in accomplishing each
pillar: Supply, Sales Revenue, Sustainability and Scale."
Investor Presentation
Daniel Lee, Chief Executive Officer, and David Cocke, Chief Financial Officer,
will host a live online presentation relating to the interim results via the
Investor Meet Company platform at 4.30pm today. The presentation is open to
all existing and potential investors.
Investors can sign up to Investor Meet Company for free and register for the
presentation here:
https://www.investormeetcompany.com/tissue-regenix-group-plc/register-investor
(https://www.investormeetcompany.com/tissue-regenix-group-plc/register-investor)
This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) 596/2014. The person responsible for the release of this
announcement on behalf of the company is David Cocke (Chief Financial
Officer).
For more information:
Tissue Regenix Group plc www.tissueregenix.com (http://www.tissueregenix.com)
David Cocke, Chief Financial Officer Via Walbrook PR
Stifel Nicolaus Europe Limited (Nominated Adviser and Broker) Tel: +44(0)20 7710 7600
Ben Maddison / Nicholas Harland / Will Palmer-Brown
Walbrook PR Ltd Tel: +44 (0)20 7933 8780
Alice Woodings / Lianne Applegarth TissueRegenix@walbrookpr.com
About Tissue Regenix (www.tissueregenix.com (https://www.tissueregenix.com) )
Tissue Regenix is a leading medical device 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 worn-out body parts.
Current applications address many critical clinical needs such as sports
medicine, urogynaecology and wound care.
In August 2017, Tissue Regenix acquired CellRight Technologies®, a biotech
company that specialises in regenerative medicine and is dedicated to the
development of innovative osteoinductive and soft 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 and sports medicine surgical procedures.
CHAIRMAN'S STATEMENT
Jonathan Glenn, Chairman
Introduction
The period for the six months ended 30 June 2022 has been one of growth
centred around the Company's four key areas of focus (Supply, Sales Revenue,
Sustainability and Scale). The Group has accomplished a strong performance
from its two technology platforms BioRinse® and dCELL®, growth in its German
joint venture business and has maintained good relationships with its
commercial partners, all whilst operating against a challenging macroeconomic
backdrop.
We have created a commercially focussed regenerative global medtech company in
a high-growth sector focused on soft tissues and bone, with a
multi-billion-dollar addressable market opportunity in the USA alone. Our core
product portfolio has two technology platforms:
· BioRinse®: natural bone filler solutions verified to be
osteoinductive to stimulate and regenerate native bone growth
· dCELL®: used to produce allograft (DermaPure(®)) and xenograft
(OrthoPure(®) XT) soft tissue products to promote healing and regeneration
These technologies have been used to create regenerative products with
applications in biosurgery, orthopaedics and dentistry.
Continued momentum in H1 2022
Trading in the period has been strong, with total revenues up by 25% (27% at
constant currency) to $11.8m (H1 2021: $9.4m), driven by the strong
performance of both BioRinse® and dCELL®. Growth in the BioRinse® division
was particularly pleasing, driven primarily by our AmnioWorks(TM) product
line. The gross margin remained at 46% (H1 2021: 46%) for the period, with the
cash position for the Group as at 30 June 2022 at $6.2m (H1 2021: $9.1m;
year-end 2021: $7.7m), which supports our current business growth plan.
We are pleased to report that the Phase 1 expansion of our San Antonio
facility has provided the team with more capacity than originally anticipated
and revenue potential for the Group of over c. $40m, c. $10m or c. 33% more
than originally stated and allowing Tissue Regenix to execute a commercial
contract twice as quickly as it has done in the past.
Outlook H1 2022
While the direct impact of COVID-19 has waned, we are mindful of the
continuing follow-on effects: supply chain issues, labour market disruptions
and continued elective-surgery procedure volatility, in addition to a
potential economic recession in the USA. The Board remains optimistic about
the future growth of the business and is encouraged by the increase in sales
in H1 2022 in the face of this adversity, as well as the planned additions to
the Group's product portfolio that are expected to deliver growth and revenue
opportunities in future periods. The additional capacity, realised by the new
processing efficiencies post-completion of the Phase 1 expansion, provides
further flexibility in the timing of the Phase 2 expansion, and the current
cash balance supports the current growth plan.
BUSINESS REVIEW
Daniel Lee, Chief Executive Officer
I am pleased to report that the progress and growth trajectory that we began
in 2021 has continued into H1 2022, and the Group is positioned to continue
this trajectory into H2 2022. The Group continues to develop and incorporate
operational efficiencies and drive commercial growth specifically through our
technology platforms: BioRinse® and dCELL®.
The direct effects of COVID-19 have waned; however, we are still seeing
lingering impacts of the pandemic with respect to supply chain issues, labour
strikes and personnel shortages within healthcare institutions, which have
been experienced across the healthcare market. As a result, attempts at
ramping up elective surgeries have been mixed. In the face of these
challenges, our BioRinse® business nevertheless continues to expand, driven
mainly by our AmnioWorks(TM) product line in this period. We have also seen a
return to growth from our dCELL® business, having implemented our commercial
reorganisation plans at the beginning of 2022.
Revenue
We ended the first half with year-on-year sales up 25% (27% at constant
currency) at $11.8m (H1 2021: $9.4m), driven by strong performances in both
our technology platforms: BioRinse® and dCELL®.
The BioRinse® portfolio returned sales of $7.8m (H1 2021: $5.9m), a 32%
increase versus the comparative period; this growth was the result of
continued and increased demand for our diversified product portfolio and new
customers expanding their distribution base in the United States.
Sales for the dCELL® portfolio with our DermaPure® products were up 14% to
$2.4m (H1 2021: $2.1m), returning sales revenue to a positive trajectory in H1
2022. This was due to the increased commercial activity resulting from the
commercial reorganisation efforts.
In Germany, the joint venture business GBM-V also realised improvements in H1
2022 despite headwinds experienced in parts of the German market due to
hospital labour strikes. The joint venture grew in revenue to $1.6m (H1 2021:
$1.4m), a 13% increase (24% at constant currency).
During the first half of 2022, all our businesses demonstrated growth, and we
continue to meet customer demands as they experience different levels of
normalisation. Post COVID-19, our 2021 Phase 1 expansion has provided
additional capacity and options for us to meet customer demands and
accommodate any new opportunities.
Operations
Throughout the first six months of 2022, we were able to fully maintain
operations at our facilities in the USA, United Kingdom and Germany. As stated
previously in our 4S strategy, the process for additional capacity required a
focus on Supply, especially on tissue and processing. The Phase 1 capacity
expansion in our San Antonio facility has yielded benefits beyond
expectations. We are now able to access and store many more donors in
anticipation of meeting processing or other demands. The additional clean
rooms and resources addressed the immediate needs of processing and
production, but the combination of implementing processing efficiencies,
scheduling flexibility, and management additions provide longer-term benefits.
As anticipated, we noted a 55% year-on-year increase in donor throughput in
our processing operations during H1 2022. We are now also able to respond more
quickly to shifts or spikes in market demand and provide a higher level of
service to our customers, which in turn grows the sales objective of our 4S
strategy.
In January 2022, we completed the initial reorganisation of our USA commercial
operation for the dCELL® business. Our goal was to reduce the commercial
management layers and create a more efficient sales team who were closer to
our sales channel partners and customers. The return to double-digit growth
now places this division on the same trajectory as our other USA business, and
we expect continued growth for the balance of 2022. To augment our dCELL®
team's
efforts, our Uro-Gyn sales partner, ARMS Medical, also continues to experience
parallel growth in their urological/gynaecological tissue business.
The Phase 1 expansion of our San Antonio facility has provided our team with
more capacity than originally anticipated. During the first half of 2022, we
reassessed our capacity and resources and now estimate that with the facility,
scheduling optimisation, additional shifts and cross-training, our San Antonio
facility has the revenue potential for over c. $40m which is c. $10m or c. 33%
more than previously stated. As a result, the need to begin construction in
2023 of the Phase 2 expansion has been moved to a later date as we continue to
monitor our growth and our customer demand. Our need for the Phase 2
expansion, which will include an additional ten clean rooms, has now been
pushed out to 2025.
Commercial development
Our commercial diversity continued to play a beneficial role in achieving our
growth during the period. Our participation in multiple disciplines has
minimised our reliance on any single sector. The recovery of work with our
strategic partners has proceeded at different rates, so we remain flexible and
proactive in responding to and addressing their needs. During H1 2022, one of
our birth tissue strategic partners demonstrated growth above expectations due
to the addition of several large distribution groups. We met these spikes
within 30 days. Before we successfully completed Phase 1 of the expansion of
our facility, this would have required nearly double the time. Several
partners faced challenges such as labour shortages that constrained the return
of elective surgeries at healthcare institutions, supply chain challenges that
affected the availability of components complementary to our tissue products
and patient availability, which delayed surgeries. This has tempered growth in
some areas of our BioRinse® business and may continue into H2 2022. In
addition to our existing partners, we continued our negotiations with new
strategic partners in the USA and outside the USA markets. Overall, our unit
product shipments in the USA increased by 34% in H1 2022 versus the same
period in 2021.
During the latter half of 2021 and H1 2022, we also participated in the growth
of demand for wholesale donor tissue. During the pandemic, we transferred
wholesale donor tissue to or from other tissue processors to manage our
inventories. This now has evolved into the transfer of medically reviewed
whole donor tissue where the value provided by our Donor Services team
provides benefits to other tissue processors. We expect this opportunity to
continue throughout 2022.
A segment of our growth initiative is to begin efforts to distribute allograft
tissue products more broadly outside the USA. We identified and are in the
process of establishing a third-party logistics provider to provide
distribution services to the European Union and the UK. In parallel, we have
engaged a third party to aid in the identification of our initial target
markets and distribution agents in each of those select markets.
In early 2022, we signed an exclusive distribution agreement with Geistlich
Biomaterials Italia for the OrthoPure® XT, the only non-human biologic option
for certain anterior cruciate ligament reconstruction procedures. The initial
clinical commercial experience has been positive. We look forward to continued
growth in this market and additional European markets as we sign up more
distributors. We also have interest in this product line from outside the EU,
but this is a longer-term opportunity as additional regulatory approvals will
be required. To support the adoption of this novel product, the four-year
clinical results from the OrthoPure® XT trial were presented at the 2022
European Society of Sports Traumatology, Knee Surgery & Arthroscopy
Congress in Paris.
The Group is well positioned for additional global growth opportunities with
our allograft and xenograft products in H2 2022 and beyond.
Product development
In the near term, we expect to launch at least three new products which have
been in development for existing strategic partners and that reflect market
expectations. VNEW continues to garner attention for ARMS Medical in the
urogynaecological market.
Outlook
We are pleased with the Group's H1 2022 commercial performance and how we are
positioned for the second half of 2022. Our increased capacity and
improvements in efficiency have given us much more operational flexibility.
The commercial growth seen in our BioRinse® business and especially the
growth in our reorganised dCELL® business are fundamental in delivering the
financial performance expected by our Board for 2022. The markets are still
rebounding to pre-COVID-19 levels, but our business is well positioned to meet
these challenges. The 4S strategy continues to drive the group in
accomplishing each of the pillars: Supply, Sales Revenue, Sustainability and
Scale.
FINANCE REVIEW
David Cocke, Chief Financial Officer
Revenue
During the first six months of 2022, revenue increased 25% (27% at constant
currency) to $11.8m (H1 2021: $9.4m) due to a strong performance seen across
both technology platforms. The BioRinse® division recorded a 32% increase in
revenues at $7.8m (H1 2021: $5.9m), driven primarily by new markets for our
AmnioWorks(TM) product line. The dCELL® division recorded a 14% increase in
revenues to $2.4m (H1 2021: $2.1m) as the effects of the commercial
reorganisation in 2021 began to come into effect. Our German joint venture,
GBM-V, also experienced growth with revenues up 13% (24% increase at constant
currency) at $1.6m (H1 2021: $1.4m), driven by increased donor tissue
availability.
Gross Margin
The gross margin remained at 46% (H1 2021: 46%) for the period but is up from
the full-year levels ending 31 December 2021 (2021: 43%), as the price
increase in the BioRinse® division went into full effect in March 2022.
Loss for the year
The operating loss for the six months ending 30 June 2022 reduced to $1.3m (H1
2021: $2.2m). The adjusted EBITDA loss for the period reduced to $0.5m (H1
2021: $1.5m). R&D tax credits of $0.2m (H1 2021: $0.6m) represent the
estimated tax credit receivable, together with a premium of 40% on development
costs. This decrease from historic levels was expected as more resources are
directed away from the development phase, and the business looks to
commercialise more products. There were no exceptional costs for H1 2022 (H1
2021 $0.3m).
Cash position
The cash position for the Group as at 30 June 2022 was $6.2m (H1 2021: $9.1m;
year-end 2021: $7.7m). The cash position as at 30 June 2022 is net of an
unrealised foreign currency translation loss of $0.4m. As the Group now
reports its accounts in USD but holds the majority of its deposits in GBP,
when the GBP depreciates relative to the USD, an accounting loss is booked.
The Group attempts to match the domicile of its deposits to its cash needs to
minimise the need for the realisation of these losses.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS TO 30 JUNE 2022
6 months 6 months Year
30 Jun 2022 30 Jun 2021 31 Dec 2021
Notes (Unaudited) (Unaudited) Audited
$'000 $'000 $'000
Revenue 2 11,836 9,434 19,746
Cost of sales (6,415) (5,122) (11,270)
Gross profit 5,421 4,312 8,476
Administrative expenses before exceptional items (6,706) (6,165) (12,574)
Exceptional items - (304) (355)
Total administrative expenses (6,706) (6,469) (12,929)
Operating loss (1,285) (2,157) (4,453)
Finance income 2 3 3
Finance charges (364) (318) (692)
Loss before tax (1,647) (2,472) (5,142)
Taxation 60 60 157
Loss after tax (1,587) (2,412) (4,985)
Attributable to:
Equity holders of the parent (1,604) (2,318) (4,792)
Non-controlling interest 17 (94) (193)
(1,587) (2,412) (4,985)
Other comprehensive income/(expense):
Foreign currency translation differences -foreign operations (897) 244 (4)
TOTAL COMPREHENSIVE EXPENSE FOR THE PERIOD (2,484) (2,168) (4,989)
Attributable to:
Equity holders of the parent (2,501) (2,074) (4,796)
Non-controlling interests 17 (94) (193)
(2,484) (2,168) (4,989)
Loss per share
Basic and diluted on loss attributable to equity holders of the parent, cents (0.02) (0.03) (0.07)
per share
3
The loss for the period arises from the Group's continuing operations.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
FOR THE SIX MONTHS TO 30 JUNE 2022
Attributable to equity holders of parent
Share Capital Share Premium Merger Reserve Reverse Acquisition Reserve Reserve For Own Shares Share-Based Payment Reserve Cumulative translation reserve Retained Earnings Deficit Total Non-controlling Interests Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Equity
$000
At 31 December 2020 15,947 134,173 16,441 (10,798) (1,257) 1,463 (1,301) (115,640) 39,028 (757) 38,271
Transactions with owners in their capacity as owners:
Share-based payments - - - - - 26 - - 26 - 26
Total transactions with owners in their capacity as owners - - - - - 26 - - 26 - 26
Loss for the period - - - - - - - (2,318) (2,318) (94) (2,412)
Other comprehensive expense: - - - - - - 244 - 244 - 244
Currency translation differences
Total other comprehensive expense for the period - - - - - - 244 - 244 - 244
Total comprehensive expense for the period - - - - - - 244 (2,318) (2,074) (94) (2,168)
At 30 June 2021 15,947 134,173 16,441 (10,798) (1,257) 1,489 (1,057) (117,958) 36,980 (851) 36,129
Transactions with owners in their capacity as owners:
Share-based payments - - - - - 85 - - 85 - 85
Total transactions with owners in their capacity as owners - - - - - 85 - - 85 - 85
Loss for the period - - - - - - - (2,474) (2,474) (99) (2,573)
Other comprehensive expense: - - - - - - (248) - (248) - (248)
Currency translation differences
Total other comprehensive expense for the period - - - - - - (248) - (248) - (248)
Total comprehensive expense for the period - - - - - - (248) (2,474) (2,722) (99) (2,821)
At 31 December 2021 15,947 134,173 16,441 (10,798) (1,257) 1,573 (1,305) (120,432) 34,342 (950) 33,392
Transactions with owners in their capacity as owners:
Share-based payments - - - - - 109 - - 109 - 109
Exercise of share options 4 6 - - - - - - 10 - 10
Total transactions with owners in their capacity as owners 4 6 - - - 109 - - 10 - 10
Loss for the period - - - - - - - (1,604) (1,604) 17 (1,587)
Other comprehensive expense: - - - - - - (897) - (897) - (897)
Currency translation differences
Total other comprehensive expense for the period - - - - - - (897) - (897) - (897)
Total comprehensive expense for the period - - - - - - (897) (1,604) (2,501) 17 2,484
At 30 June 2022 15,951 134,179 16,441 (10,798) (1,257) 1,682 (2,202) (122,036) 31,960 (933) 31,027
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
AS AT 30 JUNE 2022
30 June 2022 30 June 2021 31 Dec 2021
Notes $'000 $'000 $'000
Non-current assets
Property, plant and equipment 5,701 5,590 5,708
Right of use assets 3,232 3,341 3,388
Intangible assets 15,001 15,155 15,064
Total non-current assets 23,934 24,086 24,160
Current assets
Inventory 10,066 10,300 9,719
Trade and other receivables 4,020 3,539 4,101
Corporation tax receivable 294 511 534
Cash and cash equivalent 6,172 9,081 7,709
Total current assets 20,552 23,431 22,063
Total assets 44,486 47,517 46,223
Non-current liabilities
Borrowings (5,154) (4,030) (4,465)
Deferred tax (580) (699) (640)
Lease liability (3,287) (3,062) (3,364)
Total non-current liabilities (9,021) (7,791) (8,469)
Current liabilities
Trade and other payables (4,315) (3,252) (4,244)
Lease liability (123) (345) (118)
Total current liabilities (4,438) (3,597) (4,362)
Total liabilities (13,459) (11,388) (12,831)
Net assets 31,027 36,129 33,392
Equity
Share capital 4 15,951 15,947 15,947
Share premium 4 134,179 134,173 134,173
Merger reserve 4 16,441 16,441 16,441
Reverse acquisition reserve 4 (10,798) (10,798) (10,798)
Reserve for own shares (1,257) (1,257) (1,257)
Share-based payment reserve 1,682 1,489 1,573
Cumulative translation reserve (2,202) (1,057) (1,305)
Retained earnings deficit (122,036) (117,958) (120,432)
Equity attributable to equity holders of parent 31,960 36,980 34,342
Non-controlling interests (933) (851) (950)
Total equity 31,027 36,129 33,392
Approved by the Board and authorised for issue on 7 September 2022
Daniel Lee (Chief Executive
Officer)
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2022
6 months to 6 months to 12 months to
30 June 2022 30 June 2021 31 Dec 2021
$'000 $'000 $'000
Operating Activities (1,647) (2,472) (5,142)
Loss before tax
Adjustments for:
Finance income (2) (3) (3)
Finance charges 364 318 692
Depreciation of property, plant & equipment 179 127 258
Depreciation of right of use assets 51 49 103
Amortisation of intangible assets 402 403 730
Share-based payments 109 25 110
Amortisation of debt cost 37 37 75
Unrealised foreign exchange loss (315) 141 55
Operating cash outflow before working capital movements (822) (1,375) (3,122)
(Increase) in inventory (347) (696) (115)
Decrease/(increase) in trade & other receivables 81 50 (512)
Increase/(decrease) in trade & other payables 71 (832) 159
Cash used in operations (1,017) (2,853) (3,590)
Research and development tax credits received 188 615 615
Net cash used in operating activities (829) (2,238) (2,975)
Investing activities
Interest received 2 3 3
Purchase of property, plant & equipment (172) (1,349) (1,550)
Capitalised development expenditure (339) (259) (497)
Net cash used in investing activities (509) (1,605) (2,044)
Financing activities
Proceeds from exercised share options 9 - -
Proceeds from new borrowings 661 153 602
Interest paid on loans and borrowings (231) (178) (391)
Lease liability payments (53) (31) (102)
Lease interest payment (152) (145) (301)
Net cash inflow from financing activities 234 (201) (192)
Net (decrease) in cash and cash equivalents (1,104) (4,044) (5,211)
Cash and cash equivalents at start of period 7,709 12,968 12,968
Effects of movement in exchange rates on cash held (433) 157 (48)
Cash and cash equivalents at end of period 6,172 9,081 7,709
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2022
1. Basis of preparation
The unaudited condensed consolidated interim financial information does not
constitute statutory accounts within the meaning of section 434 of the
Companies Act 2006. The interim financial statements, which are unaudited and
have not been reviewed by the company's auditors, have been prepared in
accordance with the policies set out in the 2021 Annual Report and Accounts.
The comparative figures for the year ended 31 December 2021 do not constitute
full financial statements and have been abridged from the full accounts for
the year ended on that date, on which the auditors gave an unqualified report.
They did not contain any statement under section 498 of the Companies Act
2006. The 2021 accounts have been delivered to the Registrar of Companies. The
Company has chosen not to adopt IAS 34 'Interim Financial Statements'.
2. Segmental reporting
The following table provides disclosure of the Group's revenue by geographical
market based on the location of the customer:
6 months to 6 months to 12 months to
30 June 2022 30 June 2021 31 Dec 2021
Notes $'000 $'000 $'000
USA 10,228 8,007 16,883
Rest of world 1,608 1,427 2,863
11,836 9,434 19,746
6 months to 30 June 2022 dCELL BioRinse GBM-v Central Total
$'000 $'000 $'000 $'000 $'000
Revenue 2,413 7,825 1,598 - 11,836
Gross profit 1,074 3,738 609 - 5,421
Depreciation (5) (194) (2) (29) (230)
Amortisation - (402) - - (402)
Operating loss (243) 50 85 (1,177) (1,285)
Net finance charges - (358) - (4) (362)
Loss before taxation (243) (308) 85 (1,181) (1,647)
Taxation - - - 60 60
Profit/(Loss) for the period (243) (308) 85 (1,121) (1,587)
6 months to 30 June 2021 dCELL BioRinse GBM-v Central Total
$'000 $'000 $'000 $'000 $'000
Revenue 2,112 5,906 1,416 - 9,434
Gross profit 1,138 2,730 445 - 4,313
Exceptional Items (183) (121) - - (304)
Depreciation (10) (149) (6) (11) (176)
Amortisation - (403) - - (403)
Operating loss (372) (555) (223) (1,007) (2,157)
Net finance charges - (309) - (6) (315)
Loss before taxation (372) (864) (223) (1,013) (2,472)
Taxation - - - 60 60
Loss for the period (372) (864) (223) (953) (2,412)
12 months to 31 December 2021 dCELL BioRinse GBM-v Central Total
$'000 $'000 $'000 $'000 $'000
Revenue 4,246 12,711 2,789 - 19,746
Gross profit 1,720 5,852 904 - 8,476
Exceptional Items (183) (120) - (52) (355)
Depreciation (18) (305) (3) (35) (361)
Amortisation - (730) - - (730)
Operating loss (1,236) (1,118) (154) (1,945) (4,453)
Net finance charges 1 (682) - (8) (689)
Loss before taxation (1,235) (1,800) (154) (1,953) (5,142)
Taxation 37 120 - - 157
Loss for the period (1,198) (1,680) (154) (1,953) (4,985)
3. Loss per share (basic and diluted)
Basic loss per share is calculated by dividing the loss attributable to equity
holders of the parent by the weighted average number of ordinary shares in
issue during the period, excluding own shares held jointly by the Tissue
Regenix Employee Share Trust and certain employees. Diluted loss per share is
calculated by adjusting the weighted average number of ordinary shares in
issue during the period to assume conversion of all dilutive potential
ordinary shares.
6 months to 6 months to 12 months to
30 June 2022 30 June 2021 31 Dec 2021
$'000 $'000 $'000
Total loss attributable to the equity holders of the parent (1,604) (2,318) (4,792)
No. No. No.
Weighted average number of ordinary shares in issue during the period
7,033,530,398 7,033,077,499 7,033,077,499
Loss per ordinary share
Basic and diluted, cents per share 0.02 0.03 0.07
The company has issued employees options over 218,171,648 ordinary shares, and
there are 16,112,800 jointly owned shares which are potentially dilutive.
There is, however, no dilutive effect of these issued options, as there is a
loss for each of the periods concerned.
4. Share capital
30 June 2022 30 June 2021 31 Dec 2021
$'000 $'000 $'000
Ordinary shares of 0.1 pence 9,168 9,164 9,164
Deferred shares of 0.4 pence 6,783 6,783 6,783
15,951 15,947 15,947
Movements on share capital during the period were as follows:
Ordinary shares Deferred shares
Number $'000 Number $'000
At 31 December 2020 7,033,077,499 9,164 1,171,971,322 6,783
At 30 June 2021 7,033,077,499 9,164 1,171,971,322 6,783
At 31 December 2021 7,033,077,499 9,164 1,171,971,322 6,783
At 30 June 2022 7,035,794,890 9,168 1,171,971,322 6,783
5. Interim financial report
A copy of this interim report is available on the company's website at
www.tissueregenix.com
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