The bouncing share price at Tissue Regenix (TRX) seems to suggest that investors have had a hard time deciding whether the good news outweighs the bad. Unfortunately these interim results still fail to provide clarity. On the positive side, wound care product DermaPure delivered a 140 per cent sales increase at constant currencies to $891,000 (now equivalent to £726,000 at current exchange rates), which drove up group reported revenues.
DermaPure also secured its first group purchasing order (GPO), which will facilitate greater hospital sales, and upped its Medicare coverage to 93 per cent of the US. But full-year guidance has been narrowed from $2.5m-$4.5m to $2.5m-$3.5m as further GPOs have been delayed.
There has also been a setback for meniscus repairer OrthoPure XM after clinical trial feedback reported that the product's shape needed adjusting. As a result, European launch before 2018 is likely to be challenging. But it’s full steam ahead for tendon repairer OrthoPure XT which has been granted CE approval six months ahead of previous guidance. Commercial launch is expected in the first half of 2017.
As previously announced, Tissue Regenix is changing its year end meaning the next results announcement will report the 11 months to 31 December 2016. In that period, broker Jefferies expects a loss per share of 1.6p, compared with a loss of 1.3p in the financial year ended January 2016.
TISSUE REGENIX (TRX) | ||||
|---|---|---|---|---|
| ORD PRICE: | 18.3p | MARKET VALUE: | £139m | |
| TOUCH: | 18-18.5p | 12-MONTH HIGH: | 23p | LOW: 13p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 2.2p | NET CASH: | £13.5m | |
| Half-year to 31 Jul | Turnover (£'000) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 252 | -4.0 | -0.5 | nil |
| 2016 | 631 | -5.4 | -0.7 | nil |
| % change | +150 | - | - | - |
Ex-div: na Payment: na £1=$1.22 | ||||
