Wound expert has seen sales go up

Tissue Regenix sees gross profit and revenues go up

BUSINESS: Wound specialist Tissue Regenix has seen its sales rise after it invested in its US operations.

Leeds-based Tissue Regenix, which uses animal and human tissue to replace damaged human body parts, has also secured a partnership with a major healthcare company to help it keep growing.

WOUND SPECIALIST Tissue Regenix revealed that its sales rose last year as it invested in its US operations.

Leeds-based Tissue Regenix, which uses animal and human tissue to replace damaged human body parts, has also secured a partnership with a major healthcare company to help it keep growing.

Over the year the company increased its revenues by 12 per cent to £13.03m and its gross profit rose to £6.02m, from £5.92m the previous year.

The operating loss narrowed to £7.20m from £8.69m the year before.

Over the year, the company strengthened its management team in San Antonio, in the US, and outsourced some product lines to increase manufacturing capacity.

Over the first quarter of this financial year, revenue increased by 18 per cent year-on-year, despite a cyber attack at the San Antonio facility.

A conditional fundraising raised gross proceeds of £14.62m in May and the company has also secured a new strategic collaboration with a top 10 global healthcare company.

US Government backed loans of $1m were secured in April 2020 to help with the US cost base during Covid-19 pandemic.

Gareth Jones, the interim CEO of Tissue Regenix Group, said: “During 2019, recognising the need to optimise our supply chain and processes to address various operational challenges and support the growing demand for our products, we concentrated efforts on implementing a number of efficiency improvements which manifested in donor throughput more than doubling between Q1-Q4 2019 at the facility in San Antonio.”

Tissue Regenix also implemented a number of cost control measures in the fourth quarter of 2019 which will provide annualised savings of around £1m, Mr Jones said.

He added: “We remain committed to assessing our ongoing operational cost base to ensure that funds are deployed in the most efficient manner and efficiencies maximised, as we work towards a position of break-even. We remain confident in our longterm strategy.

“However, while sales were not materially impacted during Q1 2020, where we delivered 18 per cent year-on-year growth, the board is unable to provide clarity on the financial outlook for 2020 until there is greater visibility around the impact of the Covid-19 pandemic in the market.”

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Last year, the firm increased its revenues by 12 per cent to £13.03m and its gross profit rose to £6.02m.