17th Oct 2019 09:43
(Alliance News) - Tissue Regenix Group PLC said Thursday it expects annual revenue and margins to disappoint after planned manufacturing output increases were set to come on line later than hoped.
Shares in Tissue Regenix were 13% lower at 2.80 pence in London on Thursday.
In 2019, Tissue Regenix anticipates revenue to be between 15% and 20% lower than the current market consensus figures. In 2018, the company recorded revenue of GBP11.6 million.
In addition, earnings before interest, taxes, depreciation & amortisation margins are also expected to be 15% and 20% lower than analyst forecasts. Tissue Regenix's operating loss in 2018 was GBP8.7 million. Its gross profit was GBP5.9 million, with a gross margin of 51%.
In June, the Leeds-based business said its annual revenue would be "significantly" weighted towards the second half of the year. The company had warned this was reliant on the ability of the company to bring its increased manufacturing capacity online during the period.
On Thursday, Tissue said it now expects the additional throughput to become available in the fourth quarter of 2019.
Despite this, Tissue emphasised demand for its products remains "strong" and it does not expect a longer term impact beyond the three months delay experienced.
In the US, Tissue confirmed it received a USD300,000 grant from Universal City to support the initial phase of the build up programme at its newly-leased facility in San Antonio, Texas.
"We have excellent products for which demand is exceeding our current capacity," Tissue Executive Chair John Samuel said. "Therefore, our current focus is ensuring we can increase our capacity to meet this significant demand."
By Ahren Lester; [email protected]
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