Tissue Regenix Group PLC (LON:TRX) has reported significantly reduced losses in the first half of its current year as the company highlighted continued “strong” demand for its products despite market disruption caused by the coronavirus pandemic.
For the six months ended June 30, 2020, the regenerative medicine group reported an underlying EBITDA loss of £2.1mln, narrowed from a £3.6mln loss in the prior year, while revenues were maintained at the same level as a year ago at £6.1mln.
The company also highlighted a reduction in its overhead cost base to £5.5mln from £7.1mln in the first half, adding that it has also secured additional distribution agreements in the period for its Matrix OI, DentalFix and AmnioWorks products to diversify its sales portfolio.
Tissue Regenix noted that its facility in San Antonio has also remained fully operational after implementing initiatives to reduce disruption caused by the pandemic.
Post-period, the firm said it has commenced phase one of a capacity expansion project at its US facility, as well as relocating its UK facility to Garforth in Leeds and signing a distribution agreement with a speciality supplier of orthopaedic and biologic products for its OrthoPure XT product.
"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. Delivering revenues for the first half of the year comparable to the same 2019 period demonstrates that, despite [coronavirus] related market disruption, demand for our products remains strong”, Tissue Regenix interim chief executive Gareth Jones said in a statement.
Jones noted that the firm's recent £13.8mln fundraise in June has positioned the company well to capitalise on opportunities, while the launch of new products provided the firm with “greater access to new markets and opportunities in the future”.
“Due to the ongoing uncertainty around the [coronavirus] restrictions, it remains 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", the CEO concluded.
Tissue Regenix shares were 8.4% lower at 0.32p in late-morning trading on Wednesday.
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