Integumen sees decent results from digitisation strategy
Deepverge Plc
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17:30 19/12/23
Integumen updated the market on its post-first half trading on Monday, reporting that the positive results of its major restructuring in the second half of 2018 had delivered accelerated growth in product sales and service contract services across the group into the first half of 2019, with a continuation of that growth expected in the second half.
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The AIM-traded firm said revenues from its continued operations grew 890% to £0.48m on an unaudited basis, and when combined with revenues in the first quarter for RinoCloud prior to its acquisition, pro forma revenues jumped 1,213% over the same period in 2018 to £0.66m.
As the RinoCloud acquisition concluded on 2 May, only two months of its digital revenues would be accounted for in the group's first half interim accounts.
The implemented changes to the company’s strategy had led to an improvement in quality of sales, clients and services provided, the board explained.
It said it added agreements with two blue-chip household names to the three recently-announced full skincare product test service contracts.
Contract order price ranges had increased from between £1,500 and £12,000 in the first half of 2018 to between £35,000 and £210,000 in the period.
The “transformational” RinoCloud acquisition was enabling a scale-up of the business as it moved from a physical laboratory to an automated, real-time, digital data platform complementing real-world test environments with physical laboratory-grown human skin, the board said.
It added that it expected “full digitisation” of its services to be complete in the second half of 2019.
To support the continued pace of growth seen over the last few months, the company noted that it had 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, the EU and Asia.
“We are delighted to see that the major changes made to our strategy are bearing fruit already,” said Integumen chief executive officer Gerard Brandon.
“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.”
Brandon said that, in addition to a growing customer base and accelerated high-margin sales, the company had taken steps to reduce indebtedness by eliminating more than £2m short- and long-term debt, disposing of multiple under-performing assets and completing placing, subscription and warrant exercises that had brought in more than £3m in the first half of 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.”