Trading update – board changes
Integumen announces the resignation of Tony Richardson as Chairman and a director of the Company and Ross Andrews has been appointed as Chairman, with immediate effect. The Company expects to announce an additional non-executive director to the Board in due course.
In addition, the following trading update is based on unaudited management accounts for the year ended 31 December 2018. The Company has delivered a strong financial performance for the year, with revenues ahead of previous expectations.
- FY 2018 total revenue £502k increased 111% (FY 2017 : £238k);
- FY 2018 revenue from continued operations £274k increased 294% (FY 2017 : £93k) following Labskin test kit sales move to full skin-care product test services;
- FY 2018 EBITDA losses reduced by 12% to (£1.25m) (FY 2017: (£1.40m)) cost savings achieved under new management in the last 4 months of 2018;
- Disposal of TSPro GmbH saving £1.19m in current and future liabilities;
- Stoer For Men skin care range at monthly break-even by year-end 2018
- Combined debt and equity funding of over £900,000 completed
Post-Year-End 2018 Events:
- Transformational £3m all-share Acquisition of Rinocloud Limited enabling scale-up of the business as it moves from a physical laboratory to an automated, real-time, real-world digital data platform;
- Successful fundraising of £2.75m (total); of which £232k was Vendor sale to allow 100% of Rinocloud to be acquired;
- Additional strategic reduction of the indebtedness of the business:
- Disposal of Visible Youth Group – saving £245k of future contractual liabilities;
- Debt conversions – Venn £421k carried over since April 2017 IPO;
- Cellulac debt conversion – £400k for hi-tech laboratory equipment;
- Litigation issues settled – saving £250k of future liabilities.
Publication of Accounts
Integumen’s Final Results and Annual Report will be published in June 2019.
Gerard Brandon (Chief Executive Officer) commented:
It is with regret that the board has accepted the resignation of Tony Richardson as Chairman and director of the Company. Tony, as CEO of Venn Life Sciences, had the foresight to identify the potential of Labskin as early as 2014, when it was acquired by Venn and has nurtured it from an early stage technology company, through a spin-out and IPO in 2017. As Chairman of Integumen, he was instrumental in securing funding and recently oversaw management changes that has moved Integumen into the clinical trials sector. His resignation removes any competitive conflict of interest with Venn.
Integumen continues its strong momentum well into 2019. With a more focused business, and in line with our strategy, we have now been able to demonstrate our ability to grow, both organically and through the successful post year-end transactions. Our digital and physical team members, across all subsidiaries, continue to deliver consistent reliable revenue growth as we scale-up our new digital platform.