Annual Report 2018
Integumen (LSE: SKIN), today announces its final results for the year ended 31 December 2018.
- Total revenue £501k (including discontinued operations) increased 111% (FY 2017: £238k);
- Revenue from continued operations £274k increased 294% (FY 2017: £93k) following Labskin test kit sales move to full skincare product test services;
- EBITDA losses before exceptional items reduced by 13% to £1,221,000 (FY 2017: (£1,398,000);
- Operating loss reduced to £2,082,000 (2017: £5,397,000) after providing for:
- Depreciation of £22,000 (2017: £37,000);
- Amortisation of £172,000 (2017: £439,000);
- Impairment to intangible assets of £423,000 (2017: £3,238,000); and,
- Exceptional costs of £244,000 (2017: £285,000) were one-off transaction costs relating to the disposal of non-performing assets;
- Disposal of TSPro GmbH saving £1.19m in short and long-term liabilities;
- The Company acquired 9.35% of Cellulac plc in exchange for shares in Integumen;
- STOER For Men skin care range at monthly break-even by year-end 2018.
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 (gross); 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
Ross Andrews, Chairman of Integumen
2018 was a pivotal year for Integumen. In August, with a reduced board of directors and new management the Company set about converting the business model from the high volume, low-margin sale of consumer personal and healthcare products, to low-volume, high margin test services for manufacturers of skincare consumer products. The results to year-end were transformational. The increase in revenue per client and the current level of pipeline activity significantly higher than the Company has experienced in the past, provides the Board confidence that the accelerated growth, seen in 2018, will continue throughout the rest of 2019.