SkinBioTherapeutics reports better-than-expected full-year trading

29th Jul 2024 11:53

(Sharecast News) - Skin health-focussed life science company SkinBioTherapeutics reported better-than-expected trading results for the 12 months ended 30 June on Monday, boosted by the acquisition of Dermatonics and the continued growth of its AxisBiotix-Ps product.

The AIM-traded firm said it achieved total revenue of £1.2m, a significant increase from £0.1m in 2023.

That growth was driven by AxisBiotix-Ps, which saw revenue rise to £0.25m from £0.13m in the prior year, supported by an increase in subscriber numbers and expansion into new markets.

The acquisition of Dermatonics contributed around £1.9m in sales for the full year, further strengthening the company's revenue base.

SkinBioTherapeutics said the acquisition of Dermatonics in January was followed by a substantial marketing and distribution agreement with the Umesh Modi Group, covering Asia, the Middle East, and Africa.

That partnership was expected to enhance the company's market reach and revenue potential.

The company reported positive feedback from a visit to the Sederma manufacturing site in Paris, with commercialisation plans on track for the end of the year.

Additionally, results from an acne consumer study were encouraging, with 84% of participants noting an improvement in the appearance of their spots, 77% reporting reduced pain, and 62% experiencing decreased anxiety related to their condition.

Despite a net loss of £2.9m, widening from £2.8m in 2023, SkinBioTherapeutics said it maintained a solid cash position with £0.8m as of 30 June.

That included a £0.5m earn-out payment related to the Dermatonics acquisition.

The company's cash reserves were projected to last into the first quarter of 2025, with an expected extension due to additional revenues and planned acquisitions.

For the upcoming financial year ending 30 June 2025, AxisBiotix-Ps revenues were expected to increase to £0.4m, driven by further expansion into European and US markets through a partnership with World Products on Amazon.

Dermatonics was expected to continue its growth trajectory with projected revenues of £2.91m and an EBITDA of £0.71m, reflecting the success of the Umesh Modi partnership.

In January, SkinBioTherapeutics entered a £5m convertible bond facility to support its acquisition strategy.

Following a review, the company closed the facility after drawing down £1.6m, with the remaining shares purchased by existing and new institutional investors.

"We are now seeing the early signs of the transformation we were expecting through both organic growth and our acquisition strategy," said chief executive officer Stuart Ashman.

"Dermatonics is already demonstrating its worth, with revenues which are exceeding our original expectations and signing value-creating deals with international partners such as the Umesh Modi Group.

"We are very pleased with its progress and seeing how we can use this commercial platform for our own home-grown products such as AxisBiotix-Ps which is growing steadily, and our future products, such as the Acne product, which reported such positive data recently."

Ashman said the company's relationship with Sederma/Croda continued strongly, as evidenced by its "very positive" Paris meeting in the early summer.

"We are now in the industrialisation and commercialisation stages which is exciting; we hope to report more on this at the full-year results.

"Finally, as announced recently, we are most grateful for the support from investors and welcome new institutions that enabled us to close the convertible bond facility.

"It served its purpose to enable us to acquire Dermatonics which is already generating significant value; however, it was imperative that we acted in response to shareholder sentiment."

At 1132 BST, shares in SkinBioTherapeutics were up 8.39% at 13.44p.

Reporting by Josh White for Sharecast.com.