DGAP-News: SYGNIS AG / Key word(s): Quarterly / Interim Statement
11.05.2018 / 07:30
The issuer is solely responsible for the content of this announcement.
Interim quarterly statement
SYGNIS AG reports strong financial results for first quarter of 2018
– Revenue reported at EUR 2.3 million; 69% higher than prior year and in line with reported full year 2018 revenue guidance of EUR 11-12 million
– EBITDA positive in Q1 2018 for the second period running
– Successful capital increase and debt financing
– Acquisition of TGR Biosciences completed 8 May 2018
Heidelberg, Germany and Cambridge, UK, 11 May 2018 – SYGNIS AG (Frankfurt: LIO1; ISIN: DE000A1RFM03; Prime Standard) today reported results for the first quarter of 2018 ending March 31, 2018.
“Our overall results for the first quarter build upon the break-even EBITDA position of Q4 2017 and provide a strong basis for the rest of the year. We are very positive about 2018 and we expect the Group to report EBITDA profitability and drive continued revenue growth,” said Dr. Heikki Lanckriet, CEO and CSO of SYGNIS. “During Q1, we reorganised our sales and marketing team in preparation for sales growth over the course of the year. We also announced the acquisition of the profitable reagents company TGR Biosciences, which we completed in May 2018, with the support of our shareholders through the March capital increase and the recent debt financing. SYGNIS is well placed for another strong year of growth, both organically and through acquisition.”
2018 year-to-date operational highlights:
– Extended OEM agreement with leading global research tools supplier to provide customers with improved access to research tools through worldwide sales and distribution channels
– Successful integration of products and services of the acquired companies Innova Biosciences, Expedeon Holdings and C.B.S. Scientific under one brand name, Expedeon
– Reorganisation of sales and marketing team; with the creation of a separate business development team.
– Announcement of intention to acquire TGR Biosciences, a profitable Australian reagents company, since completed in May 2018.
– Capital increase closed in March 2018, with gross proceeds of EUR 4.2 million; debt financing closed in April 2018, with gross proceeds of EUR 2 million, thereby enabling SYGNIS to conclude the TGR Biosciences acquisition.
David Roth, Chief Financial Officer, said: “The combination of organic revenue growth and the acquisitions during 2017 have significantly improved SYGNIS’ underlying financial performance, with positive EBITDA reported for Q1 following EBITDA break-even in Q4 2017.”
First quarter of 2018 financial results:
Revenues increased 69% to EUR 2.3 million for the first quarter of 2018 (Q1 2017: EUR 1.4 million) and were primarily attributable to the sale of SYGNIS’ own kits and devices.
Operating expenses were EUR 2.7 million for the first quarter of 2018 unchanged from 2017.
EBITDA in the first quarter of 2018 was positive EUR 50 thousand (Q1 2017 negative: EUR 605 thousand).
Net loss for the first quarter of 2018 was EUR 322 thousand compared to EUR 1.2 million for the first quarter of 2017. The net loss result for 2018 included depreciation and amortisation of tangible and intangible assets (including customer lists and patents capitalised on the acquisitions of Expedeon group and Innova Biosciences) of EUR 425 thousand.
At March 31, 2018, total assets were EUR 52.7 million including goodwill of EUR 30.7 million and other intangibles of EUR 11 million. Cash and cash equivalents were EUR 5.1 million, compared to EUR 2.0 million at December 31, 2017, reflecting the capital increase in March 2018.
During the quarter, cash outflows from operating activities were EUR 0.4 million (Q1 2017: EUR 0.8 million), affected by seasonal timings. Outflows from investing activities were EUR 0.3 million (Q1 2017: EUR 0.9 million) and include the final payment due to C.B.S. Scientific shareholders of EUR 76 thousand as well as investment in development projects and tangible assets.
Following the close of the quarter, SYGNIS announced on April 30, 2018 that the Company had closed a financing arrangement for EUR 2 million on which the acquisition of TGR Biosciences was conditional. Following that, on 8 May 2018, SYGNIS announced the completion of the acquisition of TGR Biosciences.
For the fiscal year 2018, SYGNIS expects revenues to be in the range of EUR 11 to EUR 12 million without considering the impact of TGR Biosciences. The Management Board is assessing the impact of the acquisition on full year market guidance and will announce this as soon as the review is complete but expect that the acquisition of TGR Biosciences will be both revenue and earnings enhancing from the outset.
This current revenue forecast is based on continued strong organic growth of the product sales in line with the previous year. The Management Board continues to expect a strong result for 2018 with a positive EBITDA result for the year as well as the Group becoming overall cash generative during the course of 2018.
Please find the tables of the consolidated financial statements on the company’s website www.sygnis.com
For further information, please contact:
MC Services AG (Investor Relations and International Media Relations)
About SYGNIS AG: www.sygnis.com
SYGNIS develops and commercialises value-added, easy-to-use, reliable products for genomics and proteomics research based on its proprietary technologies, offering a wide range of solutions that address key challenges in molecular biology. With applications spanning the entire molecular biology workflow, the Group’s cutting-edge offerings include easy-to-use off-the-shelf products as well as custom services, supporting scientists from academia through to commercial manufacturing. SYGNIS’ products are sold through a direct sales force and several distribution partners in Europe, the USA and Asia. SYGNIS AG has offices in Germany, Spain, UK, USA and Singapore which trade under the Expedeon brand. The Company is listed on the Prime Standard segment of the Frankfurt Stock Exchange (Ticker: LIO1; ISIN: DE000A1RFM03).
### This publication is intended for information only and constitutes neither an offer to sell nor an invitation to buy securities. Some statements included in this press release, relating neither to proven financial results nor other historical data, should be viewed as forward-looking, i.e. not definite. Such statements are mainly predictions of future results, trends, plans or goals. These statements should not be considered to be total guarantees since given their very nature they are subject to known and unknown risks and imponderability and can be affected by other factors as a consequence of which the actual results, plans and goals of SYGNIS AG may deviate greatly from the established conclusions or implied predictions contained in such statements. SYGNIS does not undertake to publicly update or revise these statements in the light of new information or future results or for any other reason. ###
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