Strong H1 2019 Revenue Growth Continues
The positive results of major restructuring in H2 2018 has delivered accelerated growth in product sales and service contract services across the Group into H1 2019 with a continuation of strong growth expected in H2.
Revenues from continued operations grew by 890% to £477,000 (unaudited), and when combined with revenues in the first quarter for RinoCloud, prior to their acquisition, pro forma revenues jumped 1,213% over the same period in 2018 to £655,000 for the Group. As the RinoCloud acquisition concluded on 2 May, only two months of Rinocloud’s digital revenues will be accounted for in the Group’s H1-2019 interim accounts.
The implemented changes to our strategy have led to an improvement in quality of sales, clients and services provided. We added agreements with two blue chip household names to the three recently announced full skincare product test service contracts. Contract order price ranges have increased from £1,500-£12,000 in H1 2018 to £35,000-£210,000 in the period.
The transformational RinoCloud acquisition is enabling scale-up of the business as it moves from a physical laboratory to an automated, real-time, digital data platform complementing real-world test environments with physical laboratory grown human skin. We expect full digitisation of our services to be complete in H2 2019.
To support the continued pace of growth seen over the last few months, we have, as previously announced, secured an additional 50% of laboratory space and made two senior management appointments, Paul Ryan as Head of Enterprise sales to increase major client contracts and Colin O’Sullivan as Chief Information Officer to ramp up the IT infrastructure to accommodate the LabskinAI eco-system growth across the US, EU and Asia.
The meeting will take place at 12:00 noon on Wednesday 31 July 2019 at the First-Floor offices of Jeffreys Henry LLP at Finsgate, 5-7 Cranwood Street, London EC1V 9EE.
Gerard Brandon (Chief Executive Officer) commented:
We are delighted to see that the major changes made to our strategy are bearing fruit already. This rapid growth stems from the hard work of Integumen employees and their willingness to drive change in the business to create not only a sustainable business going forward, but also one at the forefront of AI digital skin testing. In addition to a growing customer base and accelerated high-margin sales, we have taken steps to reduce Company indebtedness by eliminating more than £2m short- and long-term debt, disposing of multiple under-performing assets and completed placing, subscription and warrant exercises that have brought in in excess of £3m in H1 2019. The Board expects that we will continue to see this strong growth in the second half of the year, and we view the future with confidence.