Continued strong growth towards profitability
Integumen (LSE: SKIN), the vertically integrated skin product test services company, today announces its interim results for the six months ended 30 June 2019
Financial Highlights
- Revenues for period from continuing operations increased 540% to £346,697 (H1 2018: £54,149), excluding:
- RinoCloud revenues of £178,000 from January 2019 – April 2019;
- H2 contracted recurring revenues of £134,785;
- EBITDA loss for period from continuing operations reduced by 32% to £370,102 (H1 2018: £544,278):
- Amortisation and depreciation of assets of £145,993;
- Exceptional items of £445,860
- Loss for the period reduced by 28% to £925,063 (H1 2018: £1,291,892);
- £2.52m raised (before expenses) through a share placing and subscription
- £3m all-share acquisition of Rinocloud
- Warrant share exercises raised £254,000
- Additional strategic reduction of the indebtedness of the business:
- Disposal of Visible Youth Group – saving £244,865 of future contractual liabilities;
- Debt conversions to equity – Venn £421,000 carried over since April 2017 IPO;
- Cellulac debt conversion to equity – £400,000 for hi-tech laboratory equipment;
- Litigation issues settled – saving £250,150 of future liabilities.
Performance Highlights
- LabskinAI (through Rinocloud acquisition) profitable by period end
- 4 Blue-Chip (US and EU) client agreements signed for test services on household name soap and cosmetic brands
- 6 CBD test contracts signed, with further contracts in the pipeline
- STOER For Men skin products, used as a control for client testing within Labskin laboratories, remains at break-even
- Labskin York, UK laboratory increased by 40% in H1 with a further 50% increase set for Q3 2019
- Investment of £400,000 for hi-tech laboratory equipment
- New offices and digital hub opened in Cork, Ireland for IT, AI infrastructure support and global sales
- External development facility, at the DHEZ within the University of Bradford and the Centre of Skin Science
- Senior staff appointments of Paul Ryan as Head of Enterprise sales and Colin O’Sullivan as AI Architect, IT infrastructure for digital growth across the US, EU and Asia
Post-Period
- Labskin human volunteer skin-bacteria and disease cloning service enters clinical trial and medical device sector;
- Wound pHase CBD development agreement for new range of medical device wound care products for chronic diabetic wounds in collaboration with Cellulac plc and supported by EU Interreg grants and Irish Government state supported research facility tcbb Resource
- Additional warrant share exercises after period end raised a further £119,796
- Breakthrough Labskin cloning study in which 16 human skin swabs created 54 living microbiome test subjects demonstrates Labskin’s ability to test multiple skincare products or topical medical treatments on the same subject and de-risks each stage of the traditional drug and skincare product development process
Gerard Brandon, CEO of Integumen
We have seen a transformational 12 months from when I joined as CEO. Since the strategic review announced in August 2018, a fundamental restructuring of the Group and business model has taken place. Having initiated the disposal of underperforming subsidiaries in December 2018, we have now disposed of the final underperforming subsidiaries and this, along with other cost reduction measures has eliminated short-, medium- and long-term debts in excess of £2m. In addition, we have completed our first acquisition of Rinocloud, enabling Integumen to offer an automated, real-time, real-world skin-testing digital data platform service, brought in 4 new LabskinAI clients, announced development of our own Cannabidiol (CBD)-infused diabetic wound product range, as well as ramped up our facilities and senior management team, and, we have raised sufficient funding to enable this accelerated growth to continue. We very much look forward to building on this momentum in the coming months and to building Integumen’s reputation as the the skin testing partner of choice..