Results round-up

Veterinary medicine supplier Animalcare Group’s revenue rose while it remains cautious over the uncertainty arisen since the Brexit vote as it took measures to hedge against currency fluctuations.

For the year ended 30 June, revenue increased 8.6% to £14.7m, compared to the previous year due to the company increasing sales of licensed veterinary medicines in the UK and export markets by over £650,000 combined.

This resulted in a 2.5% rise in pre-tax profit to £3.09m with export sales rising 23%.

Chief executive Iain Menneer said the Brexit result the EU referendum would “inevitably have an impact on our business”, although the extent is unclear but the timing of the result allowed it to put plans in place to incorporate the currency instability for the new financial year.

He said that the “encouraging” early progress of sales outside Europe will diversify its markets in the short-term, while subsequent changes to the European pharmaceutical regulatory framework are currently unknown.

During the year there was a “robust” increase in sales from the licensed veterinary medicines product group which reported a 7.7% rise in revenue to £9.2m.

In the companion animal identification product, revenue was up 16.1% to £2.7m, which included £300,000 from, the passing of a law in April which made it compulsory for dogs to be microchipped in England, Scotland and Wales.

Revenues from the animal welfare products range increased 5.1% to £2.78m.

Underlying operating profit climbed 2.6% to £3.2m and underlying basic earnings per share was up 3.2% to 13p.

The York-based company is debt free and reported a balance sheet with net cash of £7.1m, a 22.4% increase while cash generated from operations rose 2.2% to £4.6m.

There is a pipeline of products in development as planned investment increased 100% to £1.6m.

AIM-listed regenerative medical devices company Tissue Regenix Group’s saw operating losses widen at the interim stage even as its revenues nudged higher, although it did gain regulatory approval for its products in Europe and the US.

For the six months ended 31 July, revenue increased by 150% to £631,000 when compared to the same period the previous year, while its operating losses widened by about 34% to £5.52m in line with its expectations.

With finance income of £81,000, which was down 30% from last year, and a research and development tax credit of £280,000 the loss after tax was £5.16m, which was up 40%. Of this, £5.08m was credited to the equity holders of the parent company.

Revenue from the wound care business rose to £631,000 from £244,000 while commission costs were rose to $290,000 from $100,000, which was 32.5% of sales. Guidance for full-years margin and commission percentage remained at about 80% and 37.5%, respectively.

For the orthopedics business, costs increased 23% to £1.3m due to clinical trial expenditure, while overall costs for the company remained flat at £1.4m.

The company was debt free and had a cash balance at the end of July of £13.51m, down 46%.

AIM-listed Tissue Regenix , which was spun out from the University of Leeds in 2006, signed its first group purchasing order contract in the US for wound care product DermaPure and gained Medicare approvals for the product with 93% now covered.

The firm gained a premarket notification, known as a 510k market clearance, for SurgiPure XD, a reconstructive tissue matrix, which was the first US Food and Drug Administration approved product, with an expected launch in the second half of 2017.

During the first half of the year, the process of the company’s patented decellularisation technology called dCELL, which removes DNA and other cellular material from animal and human tissue leaving tissue scaffold, was also approved by the FDA.

The regulatory process for the OrthoPure XT, an orthopedic product, was shortened and the company expects to launch it in Europe in the first half 2017 as CE European approval anticipated six months ahead of schedule.

Tissue Regenix’s GBM-V tissue bank joint-venture in Rostock, Germany carved out a path for human tissue applications in mainland Europe, with initial focus on CardioPure, dCELL heart valves, and DermaPure.

The company said the next twelve months promised significant milestones including the launch of the first orthopaedic application in Europe, the launch of its second wound care product, SurgiPure XD in the US and the ongoing regulatory submissions to the German authorities for decellurised tissues to be treated at GBM-V.