Tissue Regenix Group PLC is expected to become profitable on an underlying (EBITDA) basis in the fourth quarter of the current financial year.
That, at least, is the conclusion of Hardman & Co, the independent financial research house, which took a deep dive into TRX’s interim numbers.
They showed that sales rose 27% to US$11.8mln in the six months to June 30, while the loss was ‘much reduced’ at US$650,000. It exited the first half with cash of US$6.2mln.
“Strong sales growth was seen in all three divisions, and is expected to continue through 2H’22 [the second half],” Hardman said in a research note.
“With increased operating efficiencies and close control of corporate costs, the sales growth is providing leverage towards profitability, and TRX is now expected to become EBITDA-positive during 4Q’22 [fourth quarter].”
It said a sector-average enterprise value/sales multiple of four times would give Tissue Regenix a market capitalisation of £110mln. With the shares currently changing hands for 0.48p, the market worth stands at £35mln.