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Name | Symbol | Market | Type |
---|---|---|---|
Trinity Biotech PLC | NASDAQ:TRIB | NASDAQ | Depository Receipt |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1.58 | 0.632 | 1.70 | 82 | 09:09:51 |
Exhibit
|
|
Description
|
|
|
|
TRINITY BIOTECH PLC
|
|||
Trinity Biotech plc
|
|||
(Registrant)
|
|||
By:
|
/s/ Des Fitzgerald
|
||
Des Fitzgerald
|
|||
Interim Chief Financial Officer
|
|
Contact:
|
Trinity Biotech plc
Des Fitzgerald (353)-1-2769800 |
LifeSci Partners, LLC
Eric Ribner
(1)-646-751-4363
E-mail: investorrelations@trinitybiotech.com
|
• |
The Company has today announced the acquisition of the biosensor assets of Waveform Technologies Inc. (“Waveform”) for $12.5 million in cash and 9 million American Depositary Shares (“ADS”) plus contingent consideration.
|
• |
Driven by this transaction, the Company intends to use its newly acquired biosensor platform to build a range of wearable biosensors together with an analytical engine that can deliver useful and actionable health & wellness insights
based upon what is happening in, on and around the body.
|
• |
We will begin that journey by launching a next generation Continuous Glucose Monitoring (“CGM”) device with an “engineered in” lower cost of care when compared with the current main CGM market participants.
|
• |
We believe that this can be a business of true scale and significant profitability. Further details of this transaction and our plans can be found here.
|
• |
The Company also today announced it has entered into a non-binding Letter of Intent with Bayer for a joint partnership to launch a CGM biosensor device into China and India – further details can be found here.
|
• |
We are working to scale and optimise our rapid HIV testing manufacturing capacity in light of the successful launch of our TrinScreen HIV product in Kenya.
|
• |
As previously announced, in December 2023 we began shipments of our HIV screening test, TrinScreen, to Kenya as part of the receipt of an initial purchase order for 2.5 million tests. We expect to receive additional orders throughout
FY2024 for Kenya, as the Kenyan Ministry of Health has received commitments from all relevant sponsors (including Global Fund and USAID) to fund the procurement from the Company of at least 10 million rapid screening HIV tests required by
Kenya for 2024.
|
• |
The additional volumes arising from these orders is expected to at least triple our annual rapid HIV test manufacturing volumes in 2024 compared to 2023. These additional volumes should commercially facilitate us changing the location
of certain aspects of our manufacturing process of our rapid HIV products Uni-Gold and TrinScreen. We expect significant margin, EBITDA and cash flow generation accretion benefits from this manufacturing location change, which we plan to
have in place by the end of 2024.
|
• |
We aim to significantly improve the cost structure of our existing Diabetes HbA1c testing business, which we expect will improve the profitability, cash generation and ultimately the value of that business.
|
• |
These initiatives should facilitate a lower price point solution into the Diabetes HbA1c testing market which we expect will deliver renewed growth from our Premier 9210 system, which continues to be widely regarded as the gold standard
for interference-free Diabetes HbA1c testing globally. As a management team, we are focused on the execution of the following initiatives, which we believe will allow us to successfully meet our growth and profitability goals for our
Diabetes HbA1c business:
|
o |
In-house manufacturing process: Our revised in-house manufacturing process of our key Diabetes HbA1c consumable began in Q4 2023 as planned, and we expect to end external production by the end of Q1 2024.
|
o |
Launch of the Improved Column System: Our programme to develop an improved, backward compatible column system is expected to be completed in the coming weeks with a subsequent commercial launch in Q2, 2024.
|
o |
Supply Chain Optimisation: We continue to optimise our supply chain for our Diabetes HbA1c testing instrument. In Q4 2023 and so far in Q1 2024 we have secured additional savings and we remain on target to deliver a lower cost of
instrument which supports our strategy of driving renewed growth by increasing the competitive positioning of our product.
|
o |
We remain on track to deliver approximately $4m of annualised recurring cost savings from these initiatives, based on expected production volumes, and we believe that these changes will allow us to deliver an increasingly cost
competitive Diabetes HbA1c solution, putting us in a stronger position to grow market share over time.
|
o |
We also continue to critically examine other aspects of the manufacturing structure of our overall Haemoglobins business with a view to further reducing the cost of operations.
|
• |
We are seeking ways to identify the most value accretive use for our other smaller businesses. We have engaged external consultants to support our examination of the optimal path to value accretion for these businesses, with each
business being examined across the following criteria:
|
o |
Its ability to scale in a meaningful manner.
|
o |
Is there existing intellectual property or can we create new intellectual property that creates true points of differentiation to drive meaningful operating margin and cash generation.
|
o |
The identification of alternative uses for the assets and capabilities of each business.
|
• |
These reviews remain ongoing, and we will update shareholders in due course as we solidify plans for these businesses.
|
• |
Overlaying each of our business segments is a key focus on profitability through optimizing our revenue and cost cycles.
|
o |
In late Q4, 2023 we notified a large number of customers of pending price increases where contractual and commercial conditions allowed, reflecting significant input cost increases we incurred in 2023. We expect this to deliver margin
accretion in late Q1, 2024 for some of our business lines.
|
o |
We also continue to be focused on reducing ongoing costs. In addition to the previously communicated headcount reductions, management executed on additional headcount reductions in early 2024 in senior management and back-office
functions, as we continue to simplify and optimise our operations. Although financial benefits of our headcount reductions started to be realised in Q3, 2023, the full financial impact of these is expected to be seen in the first half of
2024, with an annualised cashflow saving of over $4m expected, excluding the incremental hiring for Trinscreen HIV and our new wearable biosensor business.
|
• |
Today the Company also announced it has entered into an amended credit agreement with its existing main lender, Perceptive Advisors (“Perceptive”) (the “Amended Term Loan”).
|
• |
Under the Amended Term Loan, an additional $22 million of funding has been made available to the Company, with $12.5 million being used to acquire the Waveform assets. The remaining $9.5 million is available for general corporate
purposes including for the further development of the CGM and biosensor technologies. In addition, the Amended Term Loan provides for additional liquidity of up to $6.5 million, that may be drawn down by the Company between April and
December, 2024, and can be used for general corporate purposes, thereby providing further liquidity to fund the development of the CGM and biosensor technologies.
|
• |
The Amended Term Loan immediately reduces the annual rate of interest on the loan by 2.5% to 8.75% (the “Base Rate”) plus the greater of (a) Term Secured Overnight Financing Rate (SOFR) or (b) 4.0% per annum and allows for a further 2.5%
reduction in the Base Rate to 6.25% once the outstanding principal under the Amended Term Loan falls below $35 million. Additionally, the Amended Term Loan halves the early prepayment penalty from 8% to 4.0% and 7% to 3.5%, dependent on
timing of prepayment. Furthermore, the Amended Term loan significantly reduces the Company’s revenue covenants which will enable the new management team to place increased focus on customer and product profitability, in line with its
renewed focus on profitability. The Amended Term Loan matures in January 2026.
|
• |
In connection with the Amended Term Loan, Perceptive will receive new warrants to purchase an additional 2.5 million ADSs and the Company has agreed to price these additional warrants and reprice the existing warrants to purchase 2.5
million ADSs that were issued to Perceptive under the original term loan, with an exercise price of $0.44 per ADS.
|
• |
We expect Q4, 2023 revenue to be between $13 million and $14 million with Gross Margin percentage expected to be broadly in line with the reported Gross Margin percentage for Q3, 2023.
|
• |
We expect that Q4, 2023 revenues will be broadly in line with Q3, 2023 in the majority of our product lines, with expected reductions in our Haemoglobins and HIV businesses:
|
o |
Reported revenues from our Haemoglobins business are expected to be lower than Q3, 2023 as year-end shipments of products at sub-optimal pricing were deferred as we renegotiate contract terms with a key customer in line with the new
management team’s focus on profitability.
|
o |
In our HIV business, shipments of Uni-Gold are expected to be lower than Q3, 2023 due to the typical irregular quarter on quarter ordering patterns in that business.
|
2023
Quarter 3
|
2022
Quarter 3
|
Increase/
(decrease)
|
|
US$’000
|
US$’000
|
%
|
|
Clinical laboratory
|
11,981
|
13,168
|
(9.0%)
|
Point-of-care
|
2,696
|
2,536
|
6.3%
|
Total
|
14,677
|
15,704
|
(6.5%)
|
• |
An elevated level of advisory and professional services costs which increased by $0.5 million,
|
• |
Higher non-cash share-based compensation accounting charges of $0.6 million due to options granted since Q3, 2022,
|
• |
Lower foreign exchange gains of $0.4 million, and
|
• |
Restructuring costs of $0.2 million associated with our previously announced headcount reductions.
|
$m
|
|
Operating loss
|
(4.5)
|
Depreciation
|
0.2
|
Amortisation
|
0.1
|
EBITDA for continuing operations
|
(4.2)
|
Share option expense
|
0.7
|
EBITDASO for continuing operations
|
(3.5)
|
Three
Months Ended
September 30, 2023
US$’000
(unaudited)
|
Three
Months Ended
September 30, 2022
US$’000
(unaudited)
|
Nine
Months Ended
September 30, 2023
US$’000
(unaudited)
|
Nine
Months Ended
September 30, 2022
US$’000
(unaudited)
|
|||||||||||||
Revenues
|
14,677
|
15,704
|
43,404
|
46,795
|
||||||||||||
Cost of sales
|
(10,397
|
)
|
(15,375
|
)
|
(28,521
|
)
|
(34,902
|
)
|
||||||||
Gross profit
|
4,280
|
329
|
14,883
|
11,893
|
||||||||||||
Gross margin %
|
29.2
|
%
|
2.1
|
%
|
34.3
|
%
|
25.4
|
%
|
||||||||
Other operating income
|
70
|
1
|
141
|
2
|
||||||||||||
Research & development expenses
|
(1,169
|
)
|
(1,023
|
)
|
(3,262
|
)
|
(2,972
|
)
|
||||||||
Selling, general and administrative expenses
|
(7,681
|
)
|
(5,150
|
)
|
(24,217
|
)
|
(17,311
|
)
|
||||||||
Impairment charges
|
-
|
(2,288
|
)
|
(10,815
|
)
|
(2,808
|
)
|
|||||||||
Operating Loss
|
(4,500
|
)
|
(8,131
|
)
|
(23,270
|
)
|
(11,196
|
)
|
||||||||
Financial income
|
389
|
329
|
605
|
329
|
||||||||||||
Financial expenses
|
(2,387
|
)
|
(2,184
|
)
|
(8,761
|
)
|
(22,488
|
)
|
||||||||
Net financial expense
|
(1,998
|
)
|
(1,855
|
)
|
(8,156
|
)
|
(22,159
|
)
|
||||||||
Loss before tax
|
(6,498
|
)
|
(9,986
|
)
|
(31,426
|
)
|
(33,355
|
)
|
||||||||
Income tax (expense)/credit
|
(222
|
)
|
(2
|
)
|
56
|
181
|
||||||||||
Loss for the period on continuing operations
|
(6,720
|
)
|
(9,988
|
)
|
(31,370
|
)
|
(33,174
|
)
|
||||||||
(Loss)/profit for the period on discontinued operations
|
(1
|
)
|
1,043
|
12,853
|
2,244
|
|||||||||||
Loss for the period (all attributable to owners of the parent)
|
(6,721
|
)
|
(8,945
|
)
|
(18,517
|
)
|
(30,930
|
)
|
||||||||
Loss per ADS (US cents)
|
(17.5
|
)
|
(23.5
|
)
|
(48.4
|
)
|
(95.9
|
)
|
||||||||
Diluted loss per ADS (US cents)
|
(17.5
|
)
|
(23.5
|
)
|
(48.4
|
)
|
(95.9
|
)
|
||||||||
Weighted average no. of ADSs used in computing basic earnings per ADS
|
38,327,571
|
38,107,571
|
38,257,085
|
32,261,235
|
||||||||||||
Weighted average no. of ADSs used in computing diluted earnings per ADS
|
38,327,571
|
38,107,571
|
38,257,085
|
32,261,235
|
September 30,
2023
US$ ‘000
(unaudited)
|
June 30,
2023
US$ ‘000
(unaudited)
|
March 31,
2023
US$ ‘000
(unaudited)
|
December 31,
2022
US$ ‘000
|
|||||||||||||
ASSETS
|
||||||||||||||||
Non-current assets
|
||||||||||||||||
Property, plant and equipment
|
1,804
|
1,869
|
5,496
|
5,682
|
||||||||||||
Goodwill and intangible assets
|
16,164
|
15,756
|
21,330
|
35,269
|
||||||||||||
Financial asset
|
-
|
-
|
1,500
|
-
|
||||||||||||
Deferred tax assets
|
1,507
|
1,125
|
4,297
|
4,218
|
||||||||||||
Derivative financial asset
|
196
|
214
|
152
|
128
|
||||||||||||
Other assets
|
98
|
108
|
120
|
139
|
||||||||||||
Total non-current assets
|
19,769
|
19,072
|
32,895
|
45,436
|
||||||||||||
Current assets
|
||||||||||||||||
Assets included in disposal group held for sale
|
-
|
-
|
17,746
|
-
|
||||||||||||
Inventories
|
20,880
|
22,584
|
21,532
|
22,503
|
||||||||||||
Trade and other receivables
|
15,095
|
13,866
|
13,594
|
15,753
|
||||||||||||
Income tax receivable
|
1,592
|
2,240
|
1,858
|
1,834
|
||||||||||||
Cash, cash equivalents and deposits
|
6,261
|
14,228
|
3,532
|
6,578
|
||||||||||||
Total current assets
|
43,828
|
52,918
|
58,262
|
46,668
|
||||||||||||
TOTAL ASSETS
|
63,597
|
71,990
|
91,157
|
92,104
|
||||||||||||
EQUITY AND LIABILITIES
|
||||||||||||||||
Equity attributable to the equity holders of the parent
|
||||||||||||||||
Share capital
|
1,972
|
1,972
|
1,967
|
1,963
|
||||||||||||
Share premium
|
46,619
|
46,619
|
46,532
|
46,458
|
||||||||||||
Treasury shares
|
(24,922
|
)
|
(24,922
|
)
|
(24,922
|
)
|
(24,922
|
)
|
||||||||
Accumulated deficit
|
(42,135
|
)
|
(36,153
|
)
|
(31,140
|
)
|
(26,695
|
)
|
||||||||
Translation reserve
|
(5,753
|
)
|
(5,628
|
)
|
(5,787
|
)
|
(5,775
|
)
|
||||||||
Equity component of convertible note
|
6,709
|
6,709
|
6,709
|
6,709
|
||||||||||||
Other reserves
|
23
|
23
|
23
|
86
|
||||||||||||
Total deficit
|
(17,487
|
)
|
(11,380
|
)
|
(6,618
|
)
|
(2,176
|
)
|
||||||||
Current liabilities
|
||||||||||||||||
Liabilities included in disposal group held for sale
|
-
|
-
|
1,386
|
-
|
||||||||||||
Income tax payable
|
252
|
287
|
33
|
28
|
||||||||||||
Trade and other payables
|
10,626
|
12,570
|
12,910
|
15,375
|
||||||||||||
Exchangeable senior note payable
|
210
|
210
|
210
|
210
|
||||||||||||
Provisions
|
50
|
50
|
50
|
50
|
||||||||||||
Lease liabilities
|
1,600
|
1,643
|
1,561
|
1,676
|
||||||||||||
Total current liabilities
|
12,738
|
14,760
|
16,150
|
17,339
|
||||||||||||
Non-current liabilities
|
||||||||||||||||
Senior secured term loan
|
39,947
|
39,791
|
49,199
|
44,301
|
||||||||||||
Derivative financial liability
|
1,138
|
1,526
|
1,517
|
1,569
|
||||||||||||
Convertible note
|
14,337
|
14,137
|
13,936
|
13,746
|
||||||||||||
Lease liabilities
|
10,921
|
11,547
|
12,026
|
12,267
|
||||||||||||
Deferred tax liabilities
|
2,003
|
1,609
|
4,947
|
5,058
|
||||||||||||
Total non-current liabilities
|
68,346
|
68,610
|
81,625
|
76,941
|
||||||||||||
TOTAL LIABILITIES
|
81,084
|
83,370
|
97,775
|
94,280
|
||||||||||||
TOTAL EQUITY AND LIABILITIES
|
63,597
|
71,990
|
91,157
|
92,104
|
|
Three Months Ended September 30, 2023
US$ ‘000
(unaudited)
|
Three Months Ended September 30, 2022
US$ ‘000
(unaudited)
|
Nine
Months
Ended September 30, 2023
US$ ‘000
(unaudited)
|
Nine
Months
Ended September 30, 2022
US$ ‘000
(unaudited)
|
||||||||||||
Cash flows from operating activities
|
||||||||||||||||
Loss for the period
|
(6,721
|
)
|
(8,945
|
)
|
(18,517
|
)
|
(30,930
|
)
|
||||||||
Adjustments to reconcile loss to cash used in operating activities:
|
||||||||||||||||
Depreciation
|
173
|
478
|
829
|
957
|
||||||||||||
Amortisation
|
56
|
266
|
486
|
708
|
||||||||||||
Income tax expense/(credit)
|
222
|
3
|
(56
|
)
|
(177
|
)
|
||||||||||
Financial income
|
(389
|
)
|
(329
|
)
|
(605
|
)
|
(329
|
)
|
||||||||
Financial expense
|
2,387
|
2,184
|
8,761
|
22,488
|
||||||||||||
Share-based payments
|
738
|
119
|
3,078
|
438
|
||||||||||||
Foreign exchange gains on operating cash flows
|
40
|
163
|
(147
|
)
|
15
|
|||||||||||
Impairment charges
|
-
|
2,288
|
10,815
|
2,808
|
||||||||||||
Gain on sale of business
|
-
|
-
|
(12,718
|
)
|
-
|
|||||||||||
Excess inventory obsolescence charges
|
932
|
4,697
|
932
|
4,697
|
||||||||||||
Other non-cash items
|
(178
|
)
|
(398
|
)
|
(50
|
)
|
(96
|
)
|
||||||||
|
||||||||||||||||
Operating cash (outflows)/inflows before changes in working capital
|
(2,740
|
)
|
526
|
(7,192
|
)
|
579
|
||||||||||
Net movement on working capital
|
(2,327
|
)
|
153
|
(4,984
|
)
|
(3,328
|
)
|
|||||||||
|
||||||||||||||||
Cash (used in)/generated by operations before income taxes
|
(5,067
|
)
|
679
|
(12,176
|
)
|
(2,749
|
)
|
|||||||||
Interest paid
|
-
|
(1
|
)
|
-
|
(4
|
)
|
||||||||||
Interest received
|
-
|
-
|
-
|
2
|
||||||||||||
Income taxes received/(paid)
|
403
|
(2
|
)
|
377
|
(1
|
)
|
||||||||||
Net cash (used in)/generated by operating activities
|
(4,664
|
)
|
676
|
(11,799
|
)
|
(2,752
|
)
|
|||||||||
|
||||||||||||||||
Cash flows from investing activities
|
||||||||||||||||
Payments to acquire intangible assets
|
(492
|
)
|
(1,003
|
)
|
(1,260
|
)
|
(4,214
|
)
|
||||||||
Acquisition of financial asset
|
-
|
-
|
(700
|
)
|
-
|
|||||||||||
Proceeds from sale of business (net of transaction costs)
|
(266
|
)
|
-
|
28,160
|
-
|
|||||||||||
Acquisition of property, plant and equipment
|
(128
|
)
|
(321
|
)
|
(553
|
)
|
(626
|
)
|
||||||||
Net cash (used in)/generated by investing activities
|
(886
|
)
|
(1,324
|
)
|
25,647
|
(4,840
|
)
|
|||||||||
|
||||||||||||||||
Cash flows from financing activities
|
||||||||||||||||
Issue of ordinary share capital including share premium (net of issuance costs)
|
-
|
-
|
-
|
25,019
|
||||||||||||
Net proceeds from new senior secured term loan
|
-
|
-
|
5,000
|
80,014
|
||||||||||||
Proceeds for convertible note issued
|
-
|
-
|
-
|
20,000
|
||||||||||||
Expenses paid in connection with debt financing
|
-
|
-
|
(147
|
)
|
(2,356
|
)
|
||||||||||
Repayment of senior secured term loan
|
-
|
-
|
(10,050
|
)
|
(34,500
|
)
|
||||||||||
Penalty for early settlement of term loan
|
-
|
-
|
(905
|
)
|
(3,450
|
)
|
||||||||||
Purchase of exchangeable notes
|
-
|
-
|
-
|
(86,730
|
)
|
|||||||||||
Interest paid on senior secured term loan
|
(1,781
|
)
|
(1,609
|
)
|
(6,181
|
)
|
(5,315
|
)
|
||||||||
Interest paid on convertible note
|
(75
|
)
|
(75
|
)
|
(225
|
)
|
(124
|
)
|
||||||||
Interest paid on exchangeable notes
|
(4
|
)
|
(4
|
)
|
(8
|
)
|
(1,293
|
)
|
||||||||
Payment of lease liabilities
|
(571
|
)
|
(684
|
)
|
(1,763
|
)
|
(2,184
|
)
|
||||||||
Net cash used in financing activities
|
(2,431
|
)
|
(2,372
|
)
|
(14,279
|
)
|
(10,919
|
)
|
||||||||
|
||||||||||||||||
Decrease in cash and cash equivalents
|
(7,981
|
)
|
(3,020
|
)
|
(431
|
)
|
(18,511
|
)
|
||||||||
Effects of exchange rate movements on cash held
|
14
|
(179
|
)
|
114
|
(145
|
)
|
||||||||||
Cash and cash equivalents and short-term investments at beginning of period
|
14,228
|
10,453
|
6,578
|
25,910
|
||||||||||||
|
||||||||||||||||
Cash and cash equivalents at end of period
|
6,261
|
7,254
|
6,261
|
7,254
|
1 Year Trinity Biotech Chart |
1 Month Trinity Biotech Chart |
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