Tissue Regenix Group PLC (AIM:TRX) has insisted it remains confident about its prospects despite reporting weaker revenues and profits in the first half of the year.
Daniel Lee, chief executive of the regenerative medical devices company, said: “Although we have seen a downturn in trading in H1, with a resultant impact on our cash position, we remain confident in the underlying business and market opportunities for our leading products and superior technology.
"We expect both trading and cash to improve in the longer term and our focus is to deliver sustainable revenue generating opportunities that accelerate earnings growth and our long-term profitability goals to increase shareholder value.”
Revenues fell 6% to $13.8 million in the six months to June 30, down from $14.7 million a year earlier. Sales of its BioRinse tissue products slipped 7% to $9.8 million, as delays in regulatory approvals slowed new customer wins.
Its dCELL range, which uses a patented process to remove cellular material from donor tissue, fell 4% to $4 million year on year, although that represented a 16% improvement compared with the second half of 2024.
Margins were squeezed as gross profit fell to 42% from 55% a year earlier, largely because of lower yields in production. Adjusted earnings before interest, tax, depreciation and amortisation dropped to $0.2 million from $0.9 million.
The company ended the period with $1.1 million in cash, down from $1.9 million at the end of last year, and had drawn $10.4 million of its $16 million debt facilities.
There were bright spots in the period, including the granting of a European patent for its dCELL technology and new regulatory approvals in Europe and the UK for OrthoPure XT, a device used in ligament reconstruction.
The company also added 32 new distributors for its dCELL range and saw revenues from its direct sales network increase 10%.
The group acknowledged errors in its 2024 year-end inventory and cost of sales estimates and said it expected to restate those figures next month, though revenue numbers for that year would be unaffected.
Management changes after the reporting period included the appointment of Jay LeCoque as executive chairman and Brandon Largent as interim chief financial officer.