Tissue Regenix achieves milestones despite challenges

The Leeds-based firm announced flat revenues of £6.1m for the first half of 2020.

The group said this demonstrates that, despite Covid-19 related market disruption, demand for its products remains strong.

Gareth Jones, interim CEO of Tissue Regenix Group plc, said: "The first half of 2020 presented a number of challenges but, despite this, we achieved a number of milestones which will strengthen our market positioning going forward.

"Delivering revenues for the first half of the year comparable to the same 2019 period demonstrates that, despite Covid-19 related market disruption, demand for our products remains strong.

"The recent fundraising has positioned us to capitalise on these opportunities, in particular, enabling us to commence the US facility capacity expansion project and to support our ongoing working capital requirements.

"Moreover, the launch of new products, in conjunction with an ever-increasing customer base, provides us with greater access to new markets and opportunities in the future.

"Over the past year, we have focused on our programme to streamline our supply chain and operations and to appropriately size our overhead cost base.

"We have continued with this and reduced our overhead spend by a further £1.7m, excluding exceptionals, during the first half of the year. This, coupled with an anticipated increase in revenue, is expected to drive the Group towards its target of achieving a position of break-even.

"Due to the ongoing uncertainty around the Covid-19 restrictions, it remains difficult for the board to provide forward looking guidance however, I am pleased with the progress that the company continues to make and remain confident in the future prospects of the business."