Interim results for the six months ended 30 June
10/09/2024 07:00
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RNS Number : 4792D Tissue Regenix Group PLC 10 September 2024
Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information as stipulated under the
UK Market Abuse Regulation. With the publication of this announcement, this
information is now considered to be in the public domain.
Tissue Regenix Group plc
('Tissue Regenix', the 'Group' or the 'Company')
Interim results for the six months ended 30 June 2024
Tissue Regenix Group plc (AIM: TRX), the regenerative medical devices company,
reports its unaudited interim results for the six months ended 30 June 2024
('H1 2024'), delivering continued progress across many areas of the business
and marking the Group's eighth consecutive reporting period of growth.
Financial highlights
· Group revenues increased by 16% to USD16.4 million (H1 2023: USD14.1
million), driven by strong performance in the key technology platforms
BioRinse® and dCELL®
o BioRinse sales increased 12% to USD10.5 million (H1 2023: USD9.4 million)
o dCELL sales were up 34% to USD4.2 million (H1 2023: USD3.1 million),
driven by the Group's DermaPure® products
o The Group's joint venture, GBM-V, generated revenues of USD1.7 million (H1
2023: USD1.6 million), an increase of 6%
· Adjusted EBITDA* profit more than doubled to USD1.1 million (H1 2023:
USD0.4 million)
· Profit before taxation of USD0.1 million (H1 2023: USD0.9 million
loss)
· Gross profit increased to 53% (H1 2023: 49%; 31 December 2023: 48%)
due to greater efficiencies and a favourable product mix
· Cash position of USD3.5 million (H1 2023: USD4.1 million; 31 December
2023: USD4.7 million)
· Eighth consecutive reporting period of growth and the seventh
consecutive period of double-digit, half-on-half growth
Commercial and operational highlights
· A 29% year-on-year increase in tissue processing throughout H1 2024
· OrthoPure XT® sales initiated in the Swiss market with the Group's
distribution partner, Geistlich Pharma
· Impressive growth for the dCELL division (34% H1 2024 vs H1 2023) due
in part to the addition of 24 new distributors and shipping of 17% more units
in H1 2024 versus the same period in 2023
· In June 2024, acquired the building in San Antonio that the Company
has occupied since 2021 as part of the Phase 1 and 2 expansion plans
o The Phase 2 expansion plans to provide additional operational capacity are
fully funded by the current business plan, with completion anticipated in 2025
· Demineralised bone products ('DBM'), the major revenue contributor in
the base BioRinse business, grew 26% during H1 2024
· Continued execution of the Group's 4S strategy and growth pillars
Jonathan Glenn, Chair of Tissue Regenix Group plc, said: "It has been
another impressive half for the Group and I am pleased to report continued
success through the execution of the Group's 4S strategy. The management team
has done a stellar job of driving the business forward through headwinds in
certain segments and continues to identify expansion opportunities
geographically as well as through new surgical indications. During H1 2024,
there has been continued growth across all business segments and an
improvement in profitability from H1 2023. We retain a strong cash position to
see us through our current business plans, including the Phase 2 capacity
expansion of the Group's facility in San Antonio, which is expected to
complete in 2025."
* Adjusted EBITDA: profit before interest, taxes, depreciation, amortisation
and share-based payments
Investor Briefing
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, Tuesday 10 September 2024.
The presentation is open to all existing and potential shareholders.
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)
For more information:
Tissue Regenix Group plc www.tissueregenix.com (http://www.tissueregenix.com)
Daniel Lee, Chief Executive Officer via Walbrook PR
David Cocke, Chief Financial Officer
Cavendish Capital Markets Limited (Nominated Adviser and Broker)
Geoff Nash/Giles Balleny/Edward Whiley - Corporate Finance
Nigel Birks - Life Science Specialist Sales
Harriet Ward - ECM
Walbrook PR (Financial PR and IR) Tel: +44 (0)20 7933 8780
Charlotte Edgar / Alice Woodings TissueRegenix@walbrookpr.com
About Tissue Regenix (www.tissueregenix.com (http://www.tissueregenix.com) )
Tissue Regenix is a leading medical device company in regenerative medicine.
The Company's patented decellularisation technology (dCELL®) removes DNA and
other cellular material from animal and human soft tissue, leaving an
acellular tissue scaffold not rejected by the patient's body that can be used
to repair diseased or damaged body structures. Current applications address
many crucial clinical needs in sports medicine, foot and ankle injuries and
wound care.
Tissue Regenix Group plc
Business Review
Our management team continues to build on the growth we have generated over
the past several years. We are pleased to report that in H1 2024, we made
further progress across many areas of our business as well as executed on our
4S (Supply, Sales Revenue, Sustainability and Scale) strategy and tactical
growth pillars. We have encountered headwinds in H1 2024, but our
diversification and flexibility position us well for further growth in the
second half.
Business pace remains strong based on the feedback from our customers,
distributors and partners, but supply chain issues, regulatory review delays,
reimbursement challenges and personnel shortages have continued to impact all
participants in the healthcare market. We remain focused on our strategy as we
navigate through any obstacles and continue to grow ahead of industry
comparators.
Revenue
We ended H1 2024 with year-on-year sales up 16% at USD16.4 million (H1 2023:
USD14.1 million), driven by strong performance in our key technology platforms
BioRinse and dCELL. Most of this revenue increase has been driven by demand
for our diversified products through our hybrid U.S. distribution (direct and
strategic partners). Our outside the U.S. ('OUS') distribution partnerships
for allograft tissue products have performed ahead of plan. This performance
marks the eighth consecutive reporting period of growth for the Group and the
seventh consecutive period of double-digit, half-on-half growth, a commendable
achievement for our organisation.
The BioRinse portfolio returned sales of USD10.5 million (H1 2023: USD9.4
million), a 12% increase against the comparative period. This was the result
of a large increase in demand for our DBM products as our partners continue to
expand their commercial efforts in the spine and other markets. These
increases require an ongoing and substantial commitment of resources to meet
the demand of our partners. Revenue contributions from the recent expansion of
allograft sales to customers outside the U.S. also saw an improvement above
expectations. Somewhat offsetting the gains in our bone business were the
headwinds encountered in other areas of our diversified product portfolio,
including the AmnioWorks® product line and released donor tissue, as our
partners encountered reimbursement and regulatory challenges, which have
slowed existing and prospective new business opportunities.
Sales for the dCELL portfolio, dominated by our DermaPure products, were up
34% to USD4.2 million (H1 2023: USD3.1 million), building on the momentum from
2023. This was due to increased commercial activity resulting from the
commercial reorganisation and expansion efforts in the U.S. OrthoPure XT also
provided modest contributions to the overall growth of the dCELL portfolio.
Our German joint venture business, GBM-V, also achieved growth and generated
revenue of USD1.7 million (H1 2023: USD1.6 million), an increase of 6%.
Earlier this year, we highlighted that Sales Revenue and Sustainability would
be the priorities of the 4S strategy in 2024. In H1 2024, we achieved an
adjusted EBITDA profit of USD1.1 million against adjusted EBITDA of USD0.4
million in H1 2023. We continue our commitment to maintain the Company's solid
financial position in 2024 and beyond.
The 4S Strategy and Growth Pillars
In 2023, we introduced growth pillars that would be our areas of focus using
the foundation that the 4Ss have provided for the organisation.
Base Business Growth Pillar
Our base business is defined as our core business with our existing and new
partners/distributors through the BioRinse and dCELL products. The base
business also includes existing specialties and geographic markets. Our
allograft tissue business continues to grow but, in some segments, has
encountered commercial headwinds. Demineralised bone products, the major
revenue contributor in our base BioRinse business, grew 26% during H1 2024.
Arthrex, one of our strategic partners and a prime user of bone graft
products, entered the spine market in H2 2023. Our amniotic tissue products
are used primarily in ophthalmology and wound care and are smaller revenue
contributors to our overall BioRinse business. Offsetting our DBM gains were
the dynamic changes in the wound care market, where we experienced a greater
than 50% decrease in sales due in part to the potential U.S. Medicare
reimbursement changes announced in H1 2024. Commercial diversity has been
instrumental in our organic growth over the past several years, so we will
shift our resources into other areas to minimise this disruption.
Participation in multiple disciplines has reduced our reliance on any single
product line or sector whilst broadening our market reach.
We continue to invest in the reorganisation of our U.S. commercial operation
for the dCELL business through expansion of our direct U.S. geographic
representation. We experienced impressive growth (34% H1 2024 vs H1 2023) for
this division due in part to the addition of 24 new distributors and shipped
17% more units in H1 2024 versus the same period in 2023. Our
urological/gynaecological sales partner, ARMS Medical, experienced 19% growth
in H1 2024 over the same period in 2023.
We noted a 29% year-on-year increase in tissue processing throughout H1 2024.
In adjusting to market demands and commercial headwinds, we shifted resources
towards musculoskeletal donor processing and recorded a 52% increase in
processing throughout in H1 2024. We believe that there are further benefits
to come as we implement our regulatory growth pillar.
In June 2024, we closed on the acquisition of the building we have occupied
since 2021, which is central to our Phase 1 and 2 expansion plans. The initial
lease, signed in 2019, gave us the option to purchase the building at a
pre-set price up to November 2024. The fair market value of the property was
appraised higher than the pre-set purchase price, and we were able to arrange
attractive fixed-rate financing with no cash down payment. The mortgage
payments are on par with our current lease payments and will result in cost
savings going forward, as the lease included standard yearly increases. The
Phase 2 expansion plans to provide additional operational capacity are
sufficiently funded by the current business plan with anticipated completion
in 2025.
Tissue Partnerships Growth Pillar
Efforts to maintain a supply of donor tissue for our operational needs
continue to be a priority and have enabled us to be flexible in meeting our
processing needs through the dynamic demand cycles of H1 2024. Maintaining
this balance has been challenging due to the rapid shifts we have seen in
various market segments. These challenges have impacted the management of our
tissue inventories and our relationships with our recovery partners, so in H1
2024 we added two additional recovery partners. To help us manage our tissue
inventories, we utilise excess tissue supply with value-added services and
offer this tissue to other domestic and OUS tissue processors.
Our domestic relationships remain steady, and we continue to identify
additional opportunities. Opportunities OUS have encountered delays due to the
backlogs seen in both domestic and OUS regulatory agencies. Once these
approvals are granted, we expect to see the volumes we anticipated resume.
New Markets Growth Pillar
Another growth pillar for our organisation was to distribute our tissue-based
products into new markets - geographic as well as surgical indications.
Opportunities to expand into other surgical specialties will initially be
realised with our dCELL products in the U.S. where allografts are regulated as
Human Cell and Tissue Products ('HCTPs').
The goal has been to develop a market awareness amongst clinicians that may
utilize the dCELL products and their unique attributes to see how they can be
beneficial in procedures commonly performed today. Developing this market
awareness has been a team effort between clinicians, clinical affairs staff,
and our direct and distributor representatives. This effort is ongoing and
will have longer term benefits. Initially, we have developed new case studies
to document novel uses of our DermaPure products.
The Group is continually looking for new areas to expand market distribution
and will be well positioned for additional global growth opportunities with
both our allograft and xenograft products. In late 2023, we announced our
approval to distribute allograft tissue from our logistics hub in Ireland, and
in February 2024, we announced the first shipments from this logistics hub to
a customer in the EU. We are pleased to report that in H1 2024, shipments
exceeded expectations for this young business. We have added additional
markets but have encountered delays due to the need for local regulatory
approvals. We will continue to add additional markets in the Europe, Middle
East and Africa region based on market demand and local regulatory
requirements.
We continue to address the global interest in OrthoPure XT, the only non-human
biologic option for certain anterior cruciate ligament reconstruction
procedures. In May 2024, during the 21(st) European Society for Sports
Traumatology, Knee Surgery and Arthroscopy congress in Milan, Geistlich Italia
featured the OrthoPure XT during their lunch symposium. The presentation by
Professor Stefano Zaffagnini of the Rizzoli Istituto on the positive one-year
clinical impressions from this Italian study were well received. We added the
Swiss market in H1 2024, with Geistlich as our distribution partner and plan
to continue to evaluate our new and existing OrthoPure XT distribution
partners. Regulatory approvals for the OrthoPure XT have been impacted by the
overall slowdown in regulatory reviews and approvals, specifically our efforts
in Australia and China.
Regulatory Evolution Growth Pillar
As mentioned in the full year 2023 results, we are evolving our U.S. operation
from an allograft tissue processor of Section 361 HCTPs to one that meets
medical device requirements. This will give us the opportunity to innovate
with human tissue and broaden opportunities for Tissue Regenix to distribute
tissue into markets that regulate human tissue allografts as devices.
During H1 2024, our quality group has been steadily executing on our plans to
be an ISO 13485 compliant medical device manufacturer by 2025. A limited
number of Section 361 allograft tissue processors have achieved this level in
their quality systems, and ISO is a globally recognised standard. Our progress
has already given us the opportunity to meet U.S. Food and Drug Administration
(FDA) requirements for medical devices should we choose to obtain that
certification.
Outlook
Our strong growth in H1 2024 is the result of the dedication of our global
teams in the U.S., UK and Europe. We are pleased to demonstrate another period
of above market growth despite the headwinds mentioned previously. The
performance of the group over the last three years gives us confidence in
moving forward, and the Board will continue to explore additional
opportunities for expansion in each of our growth pillars.
Daniel Lee
Chief Executive Officer
Tissue Regenix Group plc
Financial Review
Revenue
During H1 2024 revenue increased 16% to USD16.4 million (H1 2023: USD14.1
million) due to continued strong performance seen across both technology
platforms. The BioRinse division recorded a 12% increase in revenues at
USD10.5 million (H1 2023: USD9.4 million), driven by strength in our core
demineralised bone grafts. The dCELL division recorded a 34% increase in
revenues to USD4.2 million (H1 2023: USD3.1 million) as the effects of the
commercial reorganisation that started in late 2021 continued to show positive
results, in addition to sales of OrthoPure XT. Our German joint venture,
GBM-V, reported a 6% increase in revenues at USD1.7 million (H1 2023: USD1.6
million).
Gross profit
Gross profit for H1 2024 increased to 53% (H1 2023: 49%) as the processing
efficiencies realised in the Phase 1 expansion flowed through to the gross
profit line, in addition to favourable product mix shifts. Gross profits are
also up from the full year-ended, 31 December 2023 level of 48%.
Profit for the year
The Group showed a maiden profit before taxation for H1 2024 of USD0.1 million
(H1 2023 loss: USD0.9 million). Adjusted EBITDA for the period was USD1.1
million (H1 2023 USD0.4 million).
Finance charges for the period were USD0.4 million (H1 2023: USD0.7 million).
The H1 2023 finance charge included USD0.25 million, which represented an exit
fee on a portion of the 2019 term loan financing with MidCap that became due
and payable when the facility was refinanced in January 2023. The H1 2024
finance charges were reduced by USD0.06 million as part of the accounting
adjustments relating to the settlement of the lease liability for the purchase
of the right of use asset comprising our 1740 Universal City Boulevard
processing location in San Antonio (the '1740' location).
Taxation charges for the period were USD0.3 million (H1 2023 credit: USD0.06
million). Profits from U.S. operations are subject to income tax in those
jurisdictions that are not shielded by losses in the UK. Research and
development tax credits have decreased from historical levels, which was
expected as more resources are directed away from the development phase and
the business looks to commercialise more products.
Cash position
The cash position of the Group as at 30 June 2024 was USD3.5 million (H1 2023:
USD4.1 million; 31 December 2023: USD4.7 million). As previously disclosed, in
January 2023, the Group elected to increase its current revolving credit
facility from USD5.0 million to USD10.0 million and extend the maturity term
to 2028. In conjunction with the approval from MidCap to release its
collateral claim on 1740, in June 2024, the Group exercised its option to
increase the revolving line of credit by USD1.0 million to USD6.0 million.
This increase in the revolver supports our decision to increase inventory
levels to support the growth of the business. Accordingly, we remain well
funded to deliver on our growth strategy.
Tissue Regenix Group plc
Condensed Consolidated Statement of Income
For the six months ended 30 June 2024
Unaudited Unaudited Audited
six months six months year ended
ended 30 June ended 30 June 31 December
2024 2023 2023
Notes USD'000 USD'000 USD'000
Revenue 2 16,402 14,098 29,493
Cost of sales (7,784) (7,174) (15,453)
Gross profit 8,618 6,924 14,040
Administrative expenses (8,095) (7,158) (14,434)
Operating profit/(loss) 523 (234) (394)
Finance income 5 16 26
Finance charges (395) (704) (1,301)
Profit/(loss) on ordinary activities before taxation 133 (922) (1,669)
Taxation (316) 61 12
Loss for the period (183) (861) (1,657)
Loss for the period attributable to:
Owners of the parent company (281) (893) (1,713)
Non-controlling interest 98 32 56
(183) (861) (1,657)
Loss per Ordinary Share
Basic and diluted, cents per share 3 (0.40) (1.27) (2.43)
Tissue Regenix Group plc
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2024
Unaudited Unaudited Audited
six months six months year ended
ended 30 June ended 30 June 31 December
2024 2023 2023
USD'000 USD'000 USD'000
Loss for the period (183) (861) (1,657)
Other comprehensive (loss)/income
Items that may be subsequently reclassified to profit or loss:
Foreign currency translation differences (36) 186 195
Total comprehensive loss for the period (219) (675) (1,462)
Total comprehensive loss for the period attributable to:
Owners of the parent company (317) (707) (1,518)
Non-controlling interest 98 32 56
(219) (675) (1,462)
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
2024 2023 2023
Notes USD'000 USD'000 USD'000
Assets
Non-current assets
Property, plant and equipment 8,753 5,755 5,748
Right-of-use assets 230 3,144 3,270
Intangible assets 15,207 15,129 15,135
24,190 24,028 24,153
Current assets
Inventory 12,712 11,358 10,358
Trade and other receivables 4,582 5,343 3,730
Corporation tax receivable 178 145 352
Cash and cash equivalents 3,461 4,064 4,650
20,933 20,910 19,090
Total assets 45,123 44,938 43,243
Liabilities
Non-current liabilities
Loans and borrowings (9,702) (5,958) (5,527)
Deferred tax (340) (460) (400)
Lease liability (144) (3,147) (3,226)
(10,186) (9,565) (9,153)
Current liabilities
Trade and other payables (4,569) (5,148) (3,783)
Taxation payable (400) - (310)
Loans and borrowings (543) (250) (458)
Lease liability (83) (143) (184)
(5,595) (5,541) (4,735)
Total liabilities (15,781) (15,106) (13,888)
Net assets 29,342 29,832 29,355
Equity
Share capital 4 15,951 15,950 15,950
Share premium 134,356 134,179 134,253
Merger reserve 16,441 16,441 16,441
Reverse acquisition reserve (10,798) (10,798) (10,798)
Reserve for own shares (1,257) (1,257) (1,257)
Share-based payment reserve 808 930 1,088
Cumulative translation reserve (1,799) (1,772) (1,763)
Retained deficit (123,663) (123,022) (123,764)
Equity attributable to owners of the parent company 30,039 30,651 30,150
Non-controlling interest (697) (819) (795)
Total equity 29,342 29,832 29,355
Tissue Regenix Group plc
Condensed Consolidated Statement of Financial Position
As at 30 June
2024
Tissue Regenix Group plc
Condensed Consolidated Statement of Changes in Equity
As at 30 June
2024
Share capital Share premium Merger reserve Reverse acquisition reserve Reserve for own shares Share-based payment reserve Cumulative translation reserve Retained deficit Total Non-controlling interest Total
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 equity
USD'000
At 31 December 2022(audited) 15,950 134,179 16,441 (10,798) (1,257) 824 (1,958) (122,129) 31,252 (851) 30,401
Transactions with owners in their capacity as owners:
Share-based payments - - - - - 106 - - 106 - 106
Total transactions with owners in their capacity as owners - - - - - 106 - - 106 - 106
Loss for the period - - - - - - - (893) (893) 32 (861)
Other comprehensive income: - - - - - - 186 - 186 - 186
Currency translation differences
Total other comprehensive income for the period - - - - - - 186 - 186 - 186
Total comprehensive loss for the period - - - - - - 186 (893) (707) 32 (675)
At 30 June 2023 (unaudited) 15,950 134,179 16,441 (10,798) (1,257) 930 (1,772) (123,022) 30,651 (819) 29,832
Transactions with owners in their capacity as owners:
Exercise of share options - 74 - - - - - - 74 - 74
Transfer to retained deficit in respect of exercised and expired options - - - - - (78) - 78 - - -
Share-based payments - - - - - 236 - - 236 - 236
Total transactions with owners in their capacity as owners - 74 - - - 158 - 78 310 - 310
Loss for the period - - - - - - - (820) (820) 24 (796)
Other comprehensive income: - - - - - - 9 - 9 - 9
Currency translation differences
Total other comprehensive income for the period - - - - - - 9 - 9 - 9
Total comprehensive loss for the period - - - - - - 9 (820) (811) 24 (787)
At 31 December 2023 (audited) 15,950 134,253 16,441 (10,798) (1,257) 1,088 (1,763) (123,764) 30,150 (795) 29,355
Transactions with owners in their capacity as owners:
Exercise of share options 1 103 - - - - - - 104 - 104
Transfer to retained deficit in respect of exercised options - - - - - (382) - 382 - - -
Share-based payments - - - - - 102 - - 102 - 102
Total transactions with owners in their capacity as owners 1 103 - - - (280) - 382 206 - 206
Loss for the period - - - - - - - (281) (281) 98 (183)
Other comprehensive loss: - - - - - - (36) - (36) - (36)
Currency translation differences
Total other comprehensive loss for the period - - - - - - (36) - (36) - (36)
Total comprehensive loss for the period - - - - - - (36) (281) (317) 98 (219)
At 30 June 2024 (unaudited) 15,951 134,356 16,441 (10,798) (1,257) 808 (1,799) (123,663) 30,039 (697) 29,342
Unaudited Unaudited Audited
six months six months year ended
ended 30 June ended 30 June 31 December
2024 2023 2023
USD'000 USD'000 USD'000
Operating activities
Profit/(loss) on ordinary activities before taxation 133 (922) (1,669)
Adjustments for:
Finance income (5) (16) (26)
Finance charges 395 704 1,301
Depreciation of property, plant and equipment 224 191 395
Depreciation of right-of-use assets 71 64 132
Amortisation of intangible assets 225 225 450
Share-based payments 102 106 342
Unrealised foreign exchange (gain)/loss (31) 57 84
Operating cash inflow before movements in working capital 1,114 409 1,009
Increase in inventory (2,354) (476) 524
(Increase)/decrease in trade and other receivables (852) (540) 1,073
Increase/(decrease) in trade and other payables 823 (371) (1,836)
Net cash (used in)/generated from operations (1,269) (978) 770
Taxation paid (286) - -
Research and development tax credits received 173 278 270
Net cash (used in)/generated from operating activities (1,382) (700) 1,040
Investing activities
Interest received 5 16 26
Purchase of property, plant and equipment (261) (217) (413)
Capitalised development expenditure (309) (224) (450)
Net cash used in investing activities (565) (425) (837)
Financing activities
Proceeds from exercise of share options 104 - 74
Proceeds from/(repayment of) loans and borrowings 4,239 (62) (238)
Interest paid on loans and borrowings (351) (275) (567)
Fees paid on loans and borrowings - (247) (355)
Lease liability payments (3,183) (66) (140)
Lease interest payments (59) (143) (284)
Other interest payments - - (2)
Net cash generated from/(used in) financing activities 750 (793) (1,512)
Net decrease in cash and cash equivalents (1,197) (1,918) (1,309)
Cash and cash equivalents at beginning of period 4,650 5,949 5,949
Effect of movements in exchange rates on cash held 8 33 10
Cash and cash equivalents at end of period 3,461 4,064 4,650
Tissue Regenix Group plc
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2024
Tissue Regenix Group plc
Notes to the Condensed Consolidated Financial Statements
For the six months ended 30 June 2024
1. Basis of preparation
This report was approved by the Directors on 9 September 2024.
The Company is domiciled in England, and the Company's shares are admitted to
trading on the Alternative Investment Market ('AIM') of the London Stock
Exchange.
The Company has chosen not to adopt IAS 34 Interim financial statements in the
preparation of the condensed consolidated interim financial statements.
The financial statements are presented in United States Dollar ('USD'). All
amounts have been rounded to the nearest thousand unless otherwise indicated.
The current and comparative periods to June have been prepared using the
accounting policies and practices consistent with those adopted in the annual
financial statements for the year ended 31 December 2023 and with those
expected to be adopted in the Group's financial statements for the year ending
31 December 2024.
Comparative figures for the year ended 31 December 2023 have been extracted
from the statutory financial statements for that period that carried an
unqualified audit report, did not contain a statement under section 498(2) or
(3) of the Companies Act 2006 and have been delivered to the Registrar of
Companies.
The financial information contained in this report does not constitute
statutory financial statements as defined by section 434 of the Companies Act
2006 and should be read in conjunction with the Group's financial statements
for the year ended 31 December 2023. This report has not been audited or
reviewed by the Group's auditors.
2. Segmental information
The following table provides disclosure of the Group's revenue by geographical
market based on the location of the customer:
Unaudited Unaudited Audited
six months six months year ended
ended 30 June ended 30 June 31 December 2023
2024 2023 USD'000
USD'000 USD'000
US 14,015 12,134 25,327
Rest of World 2,387 1,964 4,166
16,402 14,098 29,493
The Board of Directors has determined that the Group has three operating
segments for internal management, reporting and decision-making purposes,
namely dCELL, BioRinse and GBM-V.
Central overheads, which primarily relate to operations of the Group function,
are not allocated to an operating segment.
Segmental information is presented below.
Unaudited
total
six months
dCELL BioRinse GBM-V Central ended 30 June
2024 2024 2024 2024 2024
USD'000 USD'000 USD'000 USD'000 USD'000
Income Statement
Revenue 4,174 10,515 1,713 - 16,402
Gross profit 2,365 5,654 599 - 8,618
Depreciation (2) (227) (3) (63) (295)
Amortisation - (225) - - (225)
Operating profit/(loss) 685 1,146 197 (1,505) 523
Net finance income/(charges) 3 (393) - - (390)
Profit/(loss) before taxation 688 753 197 (1,505) 133
Taxation (95) (221) - - (316)
Profit/(loss) for the period 593 532 197 (1,505) (183)
Unaudited
total
six months
dCELL BioRinse GBM-V Central ended 30 June
2023 2023 2023 2023 2023
USD'000 USD'000 USD'000 USD'000 USD'000
Income Statement
Revenue 3,114 9,373 1,611 - 14,098
Gross profit 1,572 4,822 530 - 6,924
Depreciation (3) (210) - (42) (255)
Amortisation - (225) - - (225)
Operating profit/(loss) 116 839 64 (1,253) (234)
Net finance income/(charges) 2 (701) - 11 (688)
Profit/(loss) before taxation 118 138 64 (1,242) (922)
Taxation 1 60 - - 61
Profit/(loss) for the period 119 198 64 (1,242) (861)
Audited
total
year ended
dCELL BioRinse GBM-V Central 31 December
2023 2023 2023 2023 2023
USD'000 USD'000 USD'000 USD'000 USD'000
Income Statement
Revenue 6,183 20,133 3,177 - 29,493
Gross profit 2,839 10,141 1,060 - 14,040
Depreciation (4) (423) (16) (84) (527)
Amortisation - (450) - - (450)
Operating profit/(loss) 340 1,838 220 (2,792) (394)
Net finance income/(charges) 4 (1,296) - 17 (1,275)
Profit/(loss) before taxation 344 542 220 (2,775) (1,669)
Taxation 202 (190) - - 12
Profit/(loss) for the period 546 352 220 (2,775) (1,657)
3. Loss per Ordinary Share
Basic loss per Ordinary Share is calculated by dividing the net loss for the
period attributable to owners of the parent company 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 Ordinary Share is calculated by dividing the net loss for the
period attributable to owners of the parent company by the weighted average
number of Ordinary Shares in issue during the period adjusted for the dilutive
effect of potential Ordinary Shares arising from the Company's share options
and jointly owned shares.
The calculation of the basic and diluted loss per Ordinary Share is based on
the following data:
Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 30 June 31 December
2024 2023 USD'000 2023
USD'000 USD'000
Losses
Losses for the purpose of basic and diluted loss per Ordinary Share being net
loss for the period attributable to owners of the parent company
(281) (893) (1,713)
Number Number Number
Number of shares
Weighted average number of Ordinary Shares for the purpose of basic and
diluted loss per Ordinary Share
70,592,615 70,357,949 70,426,760
Basic and diluted, cents per share (0.40) (1.27) (2.43)
Due to the losses incurred from continuing operations in the periods reported,
there is no dilutive effect from the existing share options and jointly owned
shares.
4. Share capital
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
2024 2023 USD'000 2023
USD'000 USD'000
Allotted issued and fully paid
Ordinary Shares of 0.1 pence 92 91 91
Deferred Shares of 0.4 pence 6,783 6,783 6,783
Deferred Shares of 9.9 pence 9,076 9,076 9,076
15,951 15,950 15,950
The Ordinary Shares are fully paid and entitle the holder to full voting
rights, to full participation and to distribution of dividends.
The Deferred Shares are not listed on AIM, do not give the holders any right
to receive notice of, or to attend or vote at any general meetings and gives
no entitlement to receive a dividend or other distribution other than to a
return of capital in the event of a winding up (and only after the holders of
the Ordinary Shares have received the sum of £1 million per share).
On 28 April 2023, the Company consolidated every 100 Ordinary Shares of 0.1
pence each into one Consolidated Share. Immediately following the
consolidation, each Consolidated Share was subdivided into one New Ordinary
Share and one New Class 2 Deferred Share. The subdivision was structured in
such a way that each of the New Ordinary Shares retained the nominal value of
0.1 pence each. The New Ordinary and Class 2 Deferred Shares have the same
rights as the existing Ordinary and Deferred Shares, respectively.
Issued Ordinary Share capital
Immediately prior to the share consolidation on 28 April 2023, the Company
issued 10 Ordinary Shares of 0.1 pence each at nil consideration to allow for
an exact consolidation of 100:1.
On 6 September 2023, the Company issued 216,519 Ordinary Shares of 0.1 pence
each at a price of 27.6 pence per share, raising gross proceeds of USD74,693
(£59,759), in respect of the exercise of share options.
On 27 June 2024, the Company issued 821,167 Ordinary Shares of 0.1 pence each
at a price of 10 pence per share, raising gross proceeds of USD103,889
(£82,117), in respect of the exercise of share options.
Movements in Share capital during the period were as follows:
Deferred shares of 9.9p Deferred shares of 0.4p
Ordinary shares Number Number
Number
At 1 January 2023 7,035,794,890 - 1,171,971,322
Share issue 10 - -
Immediately prior to share consolidation 7,035,794,900 - 1,171,971,322
Share consolidation 70,357,949 70,357,949 -
At 30 June 2023 70,357,949 70,357,949 1,171,971,322
Allotment of shares 216,519 - -
At 31 December 2023 70,574,468 70,357,949 1,171,971,322
Allotment of shares 821,167 - -
At 30 June 2024 71,395,635 70,357,949 1,171,971,322
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