LONDON (ShareCast) - (Sharecast News) - Regenerative medical devices company Tissue Regenix reported first-half revenues of £6.1m on Wednesday, in line with its revenues in the first half of last year.
The AIM-traded firm said it reduced its overhead cost base by £1.6m over the prior year to £5.5m, as its EBITDA loss narrowed to £2.1m for the six months ended 30 June, from £3.6ma year earlier.

Its cash position at period end was £13.7m, up from £10.1m year-on-year, following its successful equity fundraise of £13.8m in June.

On the commercial front, it entered a collaboration with an unnamed "top 10 global healthcare company" during the half-year, for the white label manufacture of a new soft tissue orthopaedic product.

It also secured additional distribution agreements for 'Matrix OI', 'DentalFix' and 'AmnioWorks', in a bid to diversify its sales portfolio, and achieved CE-mark certification for 'OrthoPure XT'.

Operationally, it also successfully implemented initiatives to allow minimal disruption to processing at its facility in San Antonio throughout Covid-19, enabling the facility to remain open.

Since the end of the first half, Tissue Regenix said the first phase of the capacity expansion project had started at its US facility, which was expected to come on-stream in the first half of 2021.

It also announced the relocation of its UK facility to Garforth, Leeds, as part of its ongoing overhead cost saving initiatives.

Finally, it entered into a UK distribution agreement with a specialty supplier of orthopaedic and biologic products for 'OrthoPure XT'.

"The first half of 2020 presented a number of challenges but, despite this, we achieved a number of milestones which will strengthen our market positioning going forward," said interim chief executive officer Gareth Jones.

"Delivering revenues for the first half of the year comparable to the same 2019 period demonstrates that, despite Covid-19 related market disruption, demand for our products remains strong.

"The recent fundraising has positioned us to capitalise on these opportunities, in particular, enabling us to commence the US facility capacity expansion project and to support our ongoing working capital requirements."

Jones said that moreover, the launch of new products, in conjunction with an ever-increasing customer base, provided the company with greater access to new markets and opportunities in the future.

"Over the past year, we have focused on our programme to streamline our supply chain and operations and to appropriately size our overhead cost base.

"We have continued with this and reduced our overhead spend by a further £1.7m during the first half of the year.

"This, coupled with an anticipated increase in revenue, is expected to drive the Group towards its target of achieving a position of break-even."

Due to the ongoing uncertainty around Covid-19, Jones said it remained difficult for the board to provide forward-looking guidance.

"However, I am pleased with the progress that the company continues to make and remain confident in the future prospects of the business."

At 1325 BST, shares in Tissue Regenix were down 6% at 0.33p.

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