REG - Tissue Regenix Group - Interim results
05/09/2023 07:00
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RNS Number : 3411L Tissue Regenix Group PLC 05 September 2023
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 2023
Tissue Regenix Group plc (AIM: TRX), the regenerative medical devices company,
reports its unaudited interim results for the six months ended 30 June 2023
('H1 2023'). This was a period of continued growth particularly within Tissue
Regenix's BioRinse® and dCELL® businesses, positioning the Group favourably
for growth in H2 2023.
Financial highlights
· Group revenues increased by 19% to USD14.1 million (H1 2022: USD11.8
million), driven by the strong performance of BioRinse and dCELL
· Gross profit for the period increased to 49% (H1 2022: 46%) driven
primarily by efficiencies from the Phase 1 expansion
· Adjusted EBITDA profit* of USD0.4 million against an adjusted EBITDA
loss of USD0.5 million in H1 2022. This is a significant achievement and the
Group has now been profitable on an adjusted EBITDA basis for the last twelve
months
· Cash position as at 30 June 2023 of USD4.1 million (30 June 2022:
USD6.2 million), sufficient to support current business growth plan
· BioRinse portfolio returned sales of USD9.4 million (H1 2022: USD7.8
million); a 20% increase against the comparative period
· Sales for the dCELL portfolio, including DermaPure® products and
OrthoPure® XT, up 29% to USD3.1 million (H1 2022: USD2.4 million)
· Sixth consecutive reporting period of growth and the fifth
consecutive period of double-digit half-on-half growth compares favourably to
our markets which have grown in the mid-single digits
*Adjusted EBITDA profit: profit before interest, taxes, depreciation,
amortisation, and share-based payments
Commercial and operational highlights
· 15% year-on-year increase in processing throughput during H1 2023, as
a result of the Phase 1 capacity expansion
· 37% increase in finished product availability for the OrthoPure XT
product in H1 2023
· The reorganisation of the Group's US commercial operation for the
dCELL business continued to show growth across the regions. In H1 2023, 25 new
distributors were added for the dCELL line. The benefits of this were seen in
the 29% revenue growth which was accompanied by an overall 24% increase in
unit distribution. Sales growth in the period was aided by contributions
from OrthoPure XT
· Addition of a UK distributor for OrthoPure XT and distribution
agreements for China and Australia
Daniel Lee, Chief Executive Officer of Tissue Regenix Group plc, said: "We
are extremely pleased with the growth seen by the Company in H1 2023, which is
our sixth consecutive reporting period of growth. We retain a strong cash
position to support our current business growth plans and we continue to reap
the benefits and efficiencies of the Phase 1 capacity expansion at our San
Antonio facility.
"We continue to see increased sales for our dCELL and BioRinse product
families which have contributed to our first 12 months of profitability on an
adjusted EBITDA basis. It has been a strong period for Tissue Regenix, having
outperformed the market in respect of growth in our key businesses and in H2
2023 we look forward to continuing our successes through additional
partnerships and product lines. We continue to build on our momentum and
expect 2023 to be another year of above market growth."
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 4.30 p.m. BST 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)
A copy of the interim results report will be made available on the Company's
website later today at www.tissueregenix.com (https://www.tissueregenix.com)
For more information:
Tissue Regenix Group plc www.tissueregenix.com (http://www.tissueregenix.com)
David Cocke, Chief Financial Officer Via Walbrook PR
FinnCap Group (Nominated Adviser and Broker) Tel: +44(0)20 7220 500
Emily Watts/Geoff Nash/George Dollemore - Corporate finance
Nigel Birks/Harriet Ward - ECM
Walbrook PR Ltd Tel: +44 (0)20 7933 8780
Alice Woodings /Lianne Applegarth 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 is headquartered in the UK with its principal
operations in the US.
In August 2017, Tissue Regenix acquired CellRight Technologies®. This
biotech company specialises in regenerative medicine and is dedicated to
developing high-quality, innovative tissue scaffolds to enhance healing
opportunities in defects created by trauma and disease. CellRight's human
tissue products may be used in spine, trauma, general orthopaedic, dental and
ophthalmological surgical procedures.
Tissue Regenix Group plc
Chair's Statement
Introduction
In 2021, we introduced our 4S strategy consisting of Supply, Sales revenue,
Sustainability and Scale. These pillars have remained the key performance
indicators by which we measure the business, and it is extremely pleasing to
see the results that the Group is now delivering. Led by the executive
management, the entire team at Tissue Regenix has shown what can be achieved
when all the different elements of the business are driving towards one goal.
While we are pleased with our achievements to date there remains a lot of
opportunities ahead of us.
We have created a commercially focussed global regenerative medtech company in
a high-growth sector focused on soft tissues and bone, with a
multi-billion-dollar addressable market opportunity in the United States
('US') alone.
Our core product portfolio has two technology platforms:
• dCELL: used to produce allograft (DermaPure) and xenograft (OrthoPure XT)
soft tissue products to promote healing and regeneration; and
• BioRinse: natural bone filler solutions verified to be osteoinductive to
stimulate and regenerate native bone growth.
These technologies have been used to create regenerative products with
applications in biosurgery, orthopaedics and dentistry. In addition, we have
broadened our range of services to include distributing allograft tissue
products outside of the US and to utilise any excess tissue supply and provide
value-added services in offering tissue to other tissue processors.
Continued momentum in H1 2023
In this set of interim figures, we present our maiden adjusted EBITDA profit
for a six-month period, and we look forward to continuing to build on this. In
fact, the Group has been profitable on an adjusted EBITDA basis for the last
twelve months. This has been achieved despite the continued investment into
the Group, which is critical for sustained and long-term growth.
Trading in the period has again been strong, with total revenues up by 19% to
USD14.1 million (H1 2022: USD11.8 million), driven by the strong performance
of both BioRinse and dCELL. Gross profit for the period has increased to 49%
(H1 2022: 46%) as the planned efficiencies from the Phase 1 expansion flowed
through. The cash position of the Group as at 30 June 2023 of USD4.1 million
(30 June 2022: USD6.2 million; 31 December 2022: USD5.9 million) supports our
current business growth plan. Combined with the revolving credit facility that
was increased to USD10.0 million in January 2023 (which is not required
according to our business plan) the Company's liquidity is strong.
Outlook for H2 2023
We have had a strong start to 2023 and the second half has continued in the
same vein. There are lingering issues in the supply chain, with labour
disruptions and the wider economic uncertainties but the Company is managing
these headwinds well. The Board remains confident about the future as the
product portfolio continues to grow, the management team continue to deliver
improved performance, and the additional investment we made in the facilities
in 2021 ensures we are operationally geared to deliver on our strategic plan.
As we make strides in our regulatory and commercial efforts outside of the US
('OUS'), we anticipate future growth potential from these approvals and
distribution agreements. We continue to build on our momentum and expect 2023
to be our first full year of profitability on an adjusted EBITDA basis.
Jonathan Glenn
Chair
Tissue Regenix Group plc
Business Review
As Chief Executive Officer it is always gratifying to say that we have
delivered upon a promise. At the 2022 year-end we stated in our Annual Report,
"we remain firmly on track for significant growth in 2023." I am pleased to
report that in H1 2023 we have continued to make progress across all areas of
the business but the growth in our BioRinse and dCELL businesses has been
particularly pleasing. Our first half achievements position us favourably for
continued growth in H2 2023, which has already started well, and the Board
remains confident in meeting market expectations.
Based on the feedback from our customers, distributors and partners, business
pace is returning to levels last seen in 2019. Supply chain delivery times,
regulatory review delays and personnel shortages continue to impact growth for
all participants in the healthcare market, but we are navigating our way
through these obstacles and showing growth ahead of industry comparators. Our
BioRinse business continues to expand with both existing and new customers,
driven mainly by our demineralised bone matrix ('DBM') family, AmnioWorks®
product line, and released donor tissue ('RDT').
Revenue
We ended H1 2023 with year-on-year sales up 19% at USD14.1 million (H1 2022:
USD11.8 million) driven by strong performances in both of our technology
platforms; BioRinse and dCELL. The majority of this revenue growth has been
driven by the strength of our products and our US distribution partners. We
anticipate that our international distribution partnerships for our allograft
and xenograft tissue products to contribute to revenue in 2024 and beyond.
Furthermore, this performance marks the sixth consecutive reporting period of
growth for the Group and the fifth consecutive period of double-digit
half-on-half growth.
The BioRinse portfolio returned sales of USD9.4 million (H1 2022: USD7.8
million); a 20% increase against the comparative period. This growth was the
result of continued and increased demand for our diversified product portfolio
with existing and new customers, and expansion of our ability to provide RDT
to various strategic partners.
Sales for the dCELL portfolio, with our DermaPure products, were up 29% to
USD3.1 million (H1 2022: USD2.4 million) continuing the positive trajectory in
2022. This was due to the increased commercial activity resulting from the
commercial reorganisation efforts in the US as well as contributions from
OrthoPure XT.
In Germany, the joint venture business, GBM-V, remained stable. Donor supply
limited sales revenue in H1 2023, which is expected to be a temporary
situation. The joint venture generated flat revenue of USD1.6 million (H1
2022: USD1.6 million).
We have spoken on several previous occasions of our drive towards
profitability without compromising our growth, our market position, or our
R&D capacity. This is not an easy balance to walk but it is one that we
are managing successfully. In Q4 2022, we reported adjusted EBITDA
profitability, a milestone for the organisation, and in H1 2023, we achieved
an adjusted EBITDA profit of USD0.4 million against an adjusted EBITDA loss of
USD0.5 million in H1 2022. This demonstrates our commitment to profitability
in 2023 and beyond, and illustrates the Company's solid financial position.
Operations: The 4S Strategy
Throughout the first six months of 2023 we continued to focus on our 4S
strategy: driving Supply, Sales revenue, Sustainability and Scale. Our focus
on tissue supply has enabled us to maintain adequate inventories to meet all
our processing needs through the demand ebbs and flows experienced during the
period. To maintain this streamlined process, we decided to utilise any excess
tissue supply with value-added services and offer this tissue to other tissue
processors. This also provides the additional benefit of optimising tissue
sourcing relationships with our recovery partners as well as improving sales
revenue. Consequently, the management of our tissue inventories has become
another growth opportunity for our organisation.
We continue to benefit from our Phase 1 capacity expansion as we identify
additional efficiencies in our San Antonio processing operations. As a result,
we have minimised the impact of staffing issues experienced by ourselves and
others in the industry. We noted a 15% year-on-year increase in processing
throughput during H1 2023, and believe that there are further benefits to
come. One example of an efficiency improvement was moving release testing for
our franchise-leading DBM products to an alternative lab which reduced release
times by 12%. This will enable us to make more products available and be more
responsive to any increases in market demand.
Our UK operation has responded to our increased commercial efforts for the
OrthoPure XT product. In H1 2023, production increases resulted in a 37%
increase in finished product availability. We expect demand to increase as we
work to further increase supply in H2 2023 as well as our need to provide
additional capacity to meet this commercial growth.
Commercial development
Our commercial diversity has been the core of the organic growth in H1 2023.
Participation in multiple disciplines has minimised our reliance on any single
product line or sector whilst broadening our market reach. The ability to
remain responsive and proactive to our customers' and strategic partners'
needs is a cornerstone of providing excellence in service when demand
dictates. The growth pillars of continuing to service our existing customers
and strategic partners, as well as adding new strategic partners in markets
within them, are core to our ongoing success.
The reorganisation of our US commercial operation for the dCELL business
continued to show growth across the regions with direct and focussed
management. In H1 2023, we added 25 new distributors to the dCELL line alone.
The benefits of this were seen in the 29% revenue growth which was accompanied
by an overall 24% increase in unit distribution, especially the premium value
units. ARMS Medical, our urological/gynaecological sales partner, experienced
9% growth in H1 2023 over the same period in 2022.
Yet another growth pillar for our organisation is to begin efforts to more
broadly distribute allograft tissue products OUS. We have been successful in
developing a strong distribution network in the US and we look forward to
replicating this model and growing our market share in other jurisdictions. We
have identified several parties to distribute human tissue products in the
European Union ('EU') and the United Kingdom ('UK'). We anticipate initiating
distribution in H2 2023 pending the completion of regulatory approvals for the
EU and other markets outside the US.
During the first half of 2023 the OrthoPure XT product continued to gain
adoption in our current EU markets. We continued to address the global
interest in the OrthoPure XT, the only non-human biologic option for certain
anterior cruciate ligament reconstruction procedures. In the period, we
announced the signing of an UK distributor and distribution agreements for
China and Australia which will require additional regulatory and clinical
approvals. To support the adoption of this novel product we are preparing a
manuscript on the five-year clinical results from the OrthoPure XT trial which
will be submitted to a noted European orthopaedic journal for publication.
The Group is continually looking for new areas to expand distribution and
intends to be well positioned for additional global growth opportunities with
both our allograft and xenograft products in H2 2023 and beyond.
Share consolidation
In late April 2023, we implemented a 100:1 share consolidation. The Board
believed that a consolidation of the Company's Ordinary Share Capital would
result in a more appropriate number of shares in issue for the Company.
Further detail on the share consolidation can be found in Note 4 of the
interim statements.
Outlook
The growth we have seen in H1 2023 is a testament to the dedication and
passion of the entire team at Tissue Regenix. We have had a strong start to H2
2023 and we expect this performance to continue allowing us to deliver a
profitable year on an adjusted EBITDA basis. Our growth strategies revolve
around building opportunities with existing and new customers and broadening
our distribution opportunities wherever we see opportunities, both within the
US and across the globe. After the years of reorganisation and rationalisation
that we have gone through, the recent periods have been immensely pleasing and
I am hugely excited about the future for Tissue Regenix.
Daniel Lee
Chief Executive Officer
Tissue Regenix Group plc
Financial Review
Revenue
During H1 2023, revenue increased 19% to USD14.1 million (H1 2022: USD11.8
million) due to a continued strong performance seen across both technology
platforms. The BioRinse division recorded a 20% increase in revenues at USD9.4
million (H1 2022: USD7.8 million), driven by strength in our core
demineralised bone grafts and increases in transfers of released donor tissue.
The dCELL division recorded a 29% increase in revenues to USD3.1 million (H1
2022: USD2.4 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, was stable to the prior
period at USD1.6 million (H1 2022: USD1.6 million), due to temporarily reduced
donor tissue availability which we believe to be a temporary issue.
Gross profit
Gross profit for H1 2023 increased to 49% (H1 2022: 46%) as the efficiencies
realised in the Phase 1 expansion flowed through to the gross profit line.
Gross profits are also up from the full year ended 31 December 2022 level of
46%.
Loss for the year
The operating loss for H1 2023 reduced to USD0.2 million (H1 2022: USD1.2
million). As forecasted, the Group has become profitable on an adjusted EBITDA
basis for the period; an adjusted EBITDA profit of USD0.4 million against an
adjusted EBITDA loss of USD0.5 million in H1 2022.
Finance charges for the period include USD0.25 million which represents an
exit fee on a portion of the 2019 term loan financing with MidCap which became
due and payable when the facility was refinanced in January 2023.
R&D 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 2023 was USD4.1 million (30 June
2022: USD6. 2 million; 31 December 2022: USD5.9 million). 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. Repayment of
the term loan will be made in equal instalments commencing in 2024. Although
this financing is not dictated by the current business plan, which is fully
funded by the Group's current cash position, the additional liquidity was
considered to be a prudent measure.
Tissue Regenix Group plc
Condensed Consolidated Statement of Income
For the six months ended 30 June 2023
Unaudited Unaudited Audited
six months six months year ended
ended 30 June ended 30 June 31 December
2023 2022 2022
Notes USD'000 USD'000 USD'000
Revenue 2 14,098 11,836 24,476
Cost of sales (7,174) (6,415) (13,218)
Gross profit 6,924 5,421 11,258
Administrative expenses (7,158) (6,669) (13,268)
Operating loss (234) (1,248) (2,010)
Finance income 16 2 8
Finance charges (704) (401) (826)
Loss on ordinary activities before taxation (922) (1,647) (2,828)
Taxation 61 60 232
Loss for the period (861) (1,587) (2,596)
Loss for the period attributable to:
Owners of the parent company (893) (1,604) (2,695)
Non-controlling interest 32 17 99
(861) (1,587) (2,596)
Loss per Ordinary Share
Basic and diluted, cents per share 3 (1.27) (2.28) (3.83)
Tissue Regenix Group plc
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2023
Unaudited Unaudited Audited
six months six months year ended
ended 30 June ended 30 June 31 December
2023 2022 2022
USD'000 USD'000 USD'000
Loss for the period (861) (1,587) (2,596)
Other comprehensive income
Items that may be subsequently reclassified to profit or loss:
Foreign currency translation differences 186 (896) (653)
Total comprehensive loss for the period (675) (2,483) (3,249)
Total comprehensive loss for the period attributable to:
Owners of the parent company (707) (2,500) (3,348)
Non-controlling interest 32 17 99
(675) (2,483) (3,249)
Tissue Regenix Group plc
Condensed Consolidated Statement of Financial Position
As at 30 June 2023
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
2023 2022 2022
Notes USD'000 USD'000 USD'000
Assets
Non-current assets
Property, plant and equipment 5,755 5,701 5,740
Right-of-use assets 3,144 3,232 3,203
Intangible assets 15,129 15,001 15,061
24,028 23,934 24,004
Current assets
Inventory 11,358 10,066 10,882
Trade and other receivables 5,343 4,020 4,803
Corporation tax receivable 145 294 401
Cash and cash equivalents 4,064 6,172 5,949
20,910 20,552 22,035
Total assets 44,938 44,486 46,039
Liabilities
Non-current liabilities
Loans and borrowings (5,958) (5,154) (5,258)
Deferred tax (460) (580) (520)
Lease liability (3,147) (3,287) (3,216)
(9,565) (9,021) (8,994)
Current liabilities
Trade and other payables (5,148) (4,315) (5,510)
Loans and borrowings (250) - (1,000)
Lease liability (143) (123) (134)
(5,541) (4,438) (6,644)
Total liabilities (15,106) (13,459) (15,638)
Net assets 29,832 31,027 30,401
Equity
Share capital 4 15,950 15,950 15,950
Share premium 134,179 134,179 134,179
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 930 1,682 824
Cumulative translation reserve (1,772) (2,201) (1,958)
Retained deficit (123,022) (122,036) (122,129)
Equity attributable to owners of the parent company 30,651 31,960 31,252
Non-controlling interest (819) (933) (851)
Total equity 29,832 31,027 30,401
Tissue Regenix Group plc
Condensed Consolidated Statement of Changes in Equity
As at 30 June 2023
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 2021 (audited) 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:
Exercise of share options 3 6 - - - - - - 9 - 9
Share-based payments - - - - - 109 - - 109 - 109
Total transactions with owners in their capacity as owners 3 6 - - - 109 - - 118 - 118
Loss for the period - - - - - - - (1,604) (1,604) 17 (1,587)
Other comprehensive income: - - - - - - (896) - (896) - (896)
Currency translation differences
Total other comprehensive income for the period - - - - - - (896) - (896) - (896)
Total comprehensive income for the period - - - - - - (896) (1,604) (2,500) 17 2,483
At 30 June 2022 (unaudited) 15,950 134,179 16,441 (10,798) (1,257) 1,682 (2,201) (122,036) 31,960 (933) 31,027
Transactions with owners in their capacity as owners:
Transfer to retained deficit In respect of lapsed, expired and exercised - - - - - (998) - 998 - - -
options
Share-based payments - - - - - 140 - - 140 - 140
Total transactions with owners in their capacity as owners - - - - - (858) - 998 140 - 140
Loss for the period - - - - - - - (1,091) (1,091) 82 (1,009)
Other comprehensive income: - - - - - - 243 - 243 - 243
Currency translation differences
Total other comprehensive income for the period - - - - - - 243 - 243 - 243
Total comprehensive income for the period - - - - - - 243 (1,091) (848) 82 (766)
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 income 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
Tissue Regenix Group plc
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2023
Unaudited Unaudited Audited
six months six months year ended
ended 30 June ended 30 June 31 December
2023 2022 2022
USD'000 USD'000 USD'000
Operating activities
Loss on ordinary activities before taxation (922) (1,647) (2,828)
Adjustments for:
Finance income (16) (2) (8)
Finance charges 704 401 826
Depreciation of property, plant and equipment 191 179 353
Depreciation of right-of-use assets 64 51 164
Amortisation of intangible assets 225 402 618
Share-based payments 106 109 249
Unrealised foreign exchange loss/(gain) 57 (315) (239)
Operating cash inflow/(outflow) before movements in working capital
409 (822) (865)
Increase in inventory (476) (347) (1,163)
(Increase)/decrease in trade and other receivables (540) 81 (702)
(Decrease)/increase in trade and other payables (371) 71 1,249
Net cash used in operations (978) (1,017) (1,481)
Research and development tax credits received 278 188 187
Net cash used in operating activities (700) (829) (1,294)
Investing activities
Interest received 16 2 8
Purchase of property, plant and equipment (217) (172) (381)
Capitalised development expenditure (224) (339) (709)
Net cash used in investing activities (425) (509) (1,082)
Financing activities
Proceeds from exercise of share options - 9 9
Proceeds from loans and borrowings - 661 1,708
Repayment of loans and borrowings (62) - -
Interest and fees paid on loans and borrowings (522) (231) (450)
Lease liability payments (66) (53) (66)
Lease interest payments (143) (152) (291)
Net cash (used in)/generated from financing activities (793) 234 910
Net decrease in cash and cash equivalents (1,918) (1,104) (1,466)
Cash and cash equivalents at beginning of period 5,949 7,709 7,709
Effect of movements in exchange rates on cash held 33 (433) (294)
Cash and cash equivalents at end of period 4,064 6,172 5,949
Tissue Regenix Group plc
Notes to the Condensed Consolidated Financial Statements
For the six months ended 30 June 2023
1. Basis of preparation
This report was approved by the Directors on 4 September 2023.
The Company is domiciled in England and the Company's shares are admitted to
trading on the AIM market in the UK.
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 2022, and with those
expected to be adopted in the Group's financial statements for the year ending
31 December 2023.
Comparative figures for the year ended 31 December 2022 have been extracted
from the statutory financial statements for that period which 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 2022. 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 2022
2023 2022 USD'000
USD'000 USD'000
US 12,134 10,228 20,711
Rest of World 1,964 1,608 3,765
14,098 11,836 24,476
Segmental information is presented below.
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)
Unaudited
total
six months
dCELL BioRinse GBM-V Central ended 30 June
2022 2022 2022 2022 2022
USD'000 USD'000 USD'000 USD'000 USD'000
Income Statement
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)/profit (243) 50 85 (1,177) (1,285)
Net finance charges - (358) - (4) (362)
(Loss)/profit before taxation (243) (308) 85 (1,181) (1,647)
Taxation - - - 60 60
(Loss)/profit for the period (243) (308) 85 (1,121) (1,587)
Audited
total
year ended
dCELL BioRinse GBM-V Central 31 December
2022 2022 2022 2022 2022
USD'000 USD'000 USD'000 USD'000 USD'000
Income Statement
Revenue 5,301 16,049 3,126 - 24,476
Gross profit 1,829 8,258 1,171 - 11,258
Depreciation (10) (394) - (113) (517)
Amortisation - (618) - - (618)
Operating (loss)/profit (994) 678 409 (2,103) (2,010)
Net finance charges - (818) - - (818)
(Loss)/profit before taxation (994) (140) 409 (2,103) (2,828)
Taxation 112 120 - - 232
(Loss)/profit for the period (882) (20) 409 (2,103) (2,596)
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
2023 2022 2022
USD'000 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
(893) (1,604) (2,695)
Number Number Number
Number of shares
Weighted average number of Ordinary Shares for the purpose of basic and
diluted loss per Ordinary Share
70,357,949 70,335,304 70,345,218
Basic and diluted, cents per share (1.27) (2.28) (3.83)
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.
The information shown above has been restated to reflect the share
consolidation in all periods presented, which became effective on 28 April
2023. See note 4.
4. Share capital
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
2023 2022 2022
USD'000 USD'000 USD'000
Allotted issued and fully paid
Ordinary Shares of 0.1 pence 91 9,167 9,167
Deferred Shares of 0.4 pence 6,783 6,783 6,783
Class 2 Deferred Shares of 9.9 pence 9,076 - -
15,950 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 have
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 sub-divided into one New Ordinary
Share and one New Class 2 Deferred Share. The sub-division was structured in
such a way that each of the New Ordinary Shares retained the nominal value of
0.1p 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
On 21 June 2022, the Company issued 2,717,391 Ordinary Shares of 0.1 pence
each at a price of 0.0276 pence per share, raising gross proceeds of USD9,203
(£7,500), in respect of the exercise of share options.
Movements in share capital during the period were as follows:
Class 2 Deferred shares
Ordinary shares Number Deferred shares
Number Number
At 1 January 2022 7,033,077,499 - 1,171,971,322
Allotment of shares 2,717,391 - -
At 30 June 2022 and 31 December 2022 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
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. END IR BCGDCUBGDGXSRecent news on Tissue Regenix
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