In its trading update, Tissue Regenix Group announced that it anticipates revenue for 2019 to be below the current market consensus by nearly 15–20%, with a corresponding reduction in margin-impacting EBITDA. The company expects the increase in throughput to become available during Q4 2019.
Demand for the company’s products remained strong, and the board does not expect any longer-term impact over and above the approximate three-month delay to the manufacturing capacity increase. The company received confirmation of a $0.3m grant from Universal City to support the commencement of the initial phase of the build-out programme on its newly leased 21,000 sq. ft. facility in San Antonio.
Previously, the company expected sales in the current year to be significantly weighted towards H2 2019. The expectation was due to the company’s ability to bring onstream increased manufacturing capabilities during H2, which would be key to determining the year-end outcome.
John Samuel, Tissue Regenix’s Executive Chairman, commented: “We have excellent products for which demand is exceeding our current capacity. Therefore, our current focus is ensuring we can increase our capacity to meet this significant demand.”