Tissue Regenix Group PLC (LON:TRX) has highlighted a strong performance for 2020 despite the challenges of the coronavirus (COVID-19) pandemic.
In a trading update for the year to December 31, the regenerative medical devices specialist said revenues for the year will be £12.8mln, in line with the prior-year figure of £13mln despite the impact of the pandemic, adding that it also ended the period with a “strong cash position” of £9.5mln following a fundraising in June.
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Meanwhile, the company said its capacity expansion is continuing on schedule and that additional commercial partnerships and product launches have been undertaken throughout the period.
During the year, Tissue Regenix highlighted 10% growth in sales in its Orthopaedics and Dental division despite the effects of the pandemic, although it said revenues from its DermaPure biosurgery division had been more significantly impacted as US hospitals postponed elective surgical procedures, resulting in a 21% revenue decline for the division. However, the company said it is beginning to see a “slight uptick” in the recommencement of these procedures as the US vaccine roll-out continued.
Looking ahead, the company said its board and executive management team have undergone a number of changes to “provide the leadership and experience required to guide the group through the next stages of its commercial development” and that following the June fundraise it has “a strong balance sheet to support both working capital requirements and allow for future investment into the capacity expansion project when required”.
The firm also said new strategic partnerships and distribution agreements secured throughout 2020, as well as its maintenance of a comparative revenue performance year-on-year despite the pandemic, allowed it to have “every confidence in the future prospects of the group”.
"The group returned a strong performance for 2020 against the challenging backdrop of the ongoing COVID-19 pandemic. We were successful in maintaining a sales line consistent with previous years and additionally securing further strategic partners and private label agreements in an industry where many companies experienced a downturn in demand as hospital resources were redirected”, Tissue Regenix chief executive Daniel Lee said in a statement.
“With two new products launched during the year and the commencement of our capacity expansion programme following the fundraise completed in June 2020, the group is well positioned to address market demand and new opportunities as market conditions normalise," he added.
The company’s shares were 1.9% lower at 0.7p in early deals on Monday.