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SYGNIS AG: SYGNIS AG reports financial results for fiscal year 2017 – financial guidance achieved (news with additional features)
DGAP-News: SYGNIS AG / Key word(s): Final Results PRESS RELEASE SYGNIS AG reports financial results for fiscal year 2017 – financial guidance achieved Conference call to be held today, 25 April 2018, 1:00pm CET/12:00pm BST
– SYGNIS meets full year financial guidance: – Revenues for 2017 of EUR7.8 million ahead of original forecast, more than tripling in comparison to 2016 – Q4 EBITDA and operational cash flow break-even secured as expected – Results achieved through successful integration of Expedeon, Innova Biosciences and C.B.S. Scientific acquisitions and like for like organic growth of 24% – Ongoing development in innovative and cutting edge technologies including TruePrime(TM) and Lateral Flow to drive growth – 2018 financial guidance of revenues between EUR11-12 million and overall EBITDA positive for the year Heidelberg, Germany and Cambridge, UK, 25 April 2018 – SYGNIS AG (Frankfurt: LIO1; ISIN: DE000A1RFM03; Prime Standard) today reported results for the fiscal year ending December 31, 2017. “2017 was another transformative year for SYGNIS with substantial growth both organically and through strategic acquisitions. We have successfully implemented our ‘Grow, Buy and Build’ strategy and made substantial investments in developing and expanding our direct sales and marketing reach and capabilities,” said Dr. Heikki Lanckriet, CEO and CSO of SYGNIS. “One core focus was on the acquisition of the profitable Innova Biosciences which brings a highly complementary cutting-edge labelling technology, market knowledge, innovation and creativity to the SYGNIS Group. Additionally, we added four new products to our portfolio: TrueHelix, TrueAdvance, TruePrime(TM) and the Universal Lateral Flow Assay kit. In 2018, we will further concentrate on our main objective to obtain a market leading position in the life sciences research and diagnostics market segment to further build SYGNIS as a strong and profitable tools and reagents company.” 2017 operational highlights: – March 2017: Financial executive, David Roth, appointed as new CFO, strengthening the management team – April 2017: Integration of acquired profitable tools company C.B.S. Scientific, deal successfully completed within three months – April 2017: Second OEM deal with TANON signed, expanding access to Chinese market from one to three product lines; expected annual revenue contribution more than EUR1 million – May 2017: Oversubscribed rights offering and private placement with gross proceeds of EUR10 million – June 2017: Appointment of Dr. Heikki Lanckriet as sole CEO; Pilar de la Huerta resigned from the Management Board to transition to the Supervisory Board; Peter Llewellyn-Davies joined the Supervisory Board – July 2017: Successful acquisition of profitable Innova Biosciences Ltd. for EUR8 million in cash and up to 3.5 million shares successfully completed – October 2017: Completion of relocation of operational and R&D activities of Innova Biosciences to allow for expansion – November 2017: Partnership deal with Abingdon Health to provide full service custom lateral flow assay design and supply – November 2017: Supply agreement with US Biological for the Lightning-Link(R) antibody labelling technology – New services, tools and kits successfully launched: – February 2017: TrueHelix bioinformatics service platform – March 2017: TrueAdvance amplification service to address quality needs in next-generation sequencing – October 2017: Universal Lateral Flow Assay kit and associated patent filing – December 2017: TruePrime(TM) apoptotic cell free DNA amplification kit for the liquid biopsy market
Operational highlights after the reporting period: – 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 – Completion of Sales and Marketing team restructuring to support continued strong revenue growth – EUR4.2 million raised in a private placement to acquire Australian research reagents company TGR Biosciences; SYGNIS is currently in discussions to secure additional funds to complete the acquisition of TGR Biosciences in the first half of 2018.
David Roth, Chief Financial Officer, said: “During the course of 2017, we have seen sustained revenue growth, through a combination of acquisition and organic development and have met our revenue guidance at the upper end of our forecast. This enabled us to achieve our goal set in 2017 to reach a break-even position during Q4 2017, with an EBITDA of EUR11 thousand for Q4 2017 and positive operating cash flow of EUR137 thousand. This is a highly significant milestone for SYGNIS and creates a strong baseline for 2018. We anticipate continued strong revenue growth during 2018 and expect an overall positive EBITDA result for the 2018 fiscal year.”
2017 Financial Results: Revenues in fiscal year 2017 amounted to EUR7.8 million (2016: EUR1.8 million) ahead of the original forecast for the year and in line with the forecast prepared at the time of the Innova Biosciences acquisition. The growth in revenues arose from a combination of acquisitive and organic growth and includes the revenues of C.B.S. Scientific and Innova Biosciences from the date of acquisition. Revenues included in the 2017 results grew organically by 24% on a like for like basis from 2016. Total operating expenses doubled to EUR11.9 million in 2017 (2017: EUR5.8 million) with the expansion of the Group. The increase was mainly driven by higher sales and administrative costs and also reflected EUR1.6 million of Purchase Price Allocation non-cash amortisation. Loss before taxes (EBT) in 2017 was EUR(4.2) million (2016: EUR(4.1) million). The reported net loss for 2017 was EUR3.3 million (previous year: EUR4.4 million). Non-current assets at EUR44.0 million were significantly higher than in the previous year (EUR31.7 million) and reflect goodwill and other intangible assets recognised following the acquisitions of C.B.S. Scientific and Innova Biosciences. Current assets stood at EUR6.0 million compared with EUR6.3 million in 2016. This comprises a EUR1.8 million decrease in cash balances offset by increases in trade receivables and other current assets, driven primarily by the increase in group size. Underlying net cash outflows from operating activities improved from EUR3.2 million in 2016 to EUR2.9 million in 2017. Cash outflow from investing activities amounted to EUR9.3 million, compared to EUR1.8 million in the previous year. Cash inflow from financing activities amounts to EUR10.4 million, compared to EUR4.2 million in the year 2016. The Company’s cash and cash equivalents at the 2017 year end amounted to EUR2.0 million (2016: EUR3.8 million). This number does not include proceeds of EUR4.2 million from the capital increase in April of 2018. Outlook 2018 Revenues are expected to continue growing during 2018 as a result of continued organic growth supported by new product launches and increased investment in sales and marketing. The ongoing financial management of SYGNIS AG is focussed on improving the Q4 2017 outcome during the course of 2018 and for the Group to become cash generative during the course of 2018. The Management Board considers the Group in a strong position to achieve its financial objectives of revenue between EUR11-12 million and positive EBITDA for the year. Continuing to upscale the now vertically integrated SYGNIS Group will enable sustained development, manufacturing and commercialisation of innovative high margin products. The objective is to continue developing and marketing innovative, high added value products for life science and diagnostic research. The Company’s products target lucrative markets such as Next Generation Sequencing (NGS), single cell DNA analysis liquid biopsy and immunology. These are rapidly growing market segments where the Company’s products are poised to take a central role. It is therefore reasonable to expect the Company’s profile to benefit on the capital markets and alongside the associated shareholder value. The Company continues to invest in R&D as innovation is a key differentiator for SYGNIS. A main focus is the ground-breaking TruePrime(TM) technology for high value applications such as single cell DNA analysis and liquid biopsy for early detection and monitoring of cancer. The patented technology expands the Company’s range of TruePrime(TM) kits, further strengthening its offering within the growing liquid biopsy market, which is forecast to increase at a CAGR of 23% by 2022. TruePrime(TM) is expected to have utility in the field of precise medicine and has the potential to take up a pivotal role in the diagnosis and monitoring of cancer.
Conference call details: SYGNIS will host a conference call (conducted in English) today, 25 April 2018, at 1:00pm CET/12:00pm BST to discuss the consolidated financial statements and important developments during the reporting period and to provide a strategic update and financial outlook. Interested parties can access the conference call via the following telephone numbers: – From Germany: +49 (0) 69 7104 45598 – From Spain: +34 91 787 0777 – From the US: +1 646 843 4608 – From the UK and other countries: +44 (0) 20 3003 2666 When prompted, please provide the password, “SYGNIS”. The conference call, which is also being webcast, will be accompanied by a slide presentation which can be accessed during the call here. Please dial in 5 minutes before the beginning of the event. A conference call recording will be available in the “Investors” section of the Company’s website at www.sygnis.com.
The Company’s 2017 Annual Report will be available online in the SYGNIS website investors’ section from April 30, 2018.
SYGNIS AG 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. ### Additional features: Document: http://n.eqs.com/c/fncls.ssp?u=AGDTTCKILF Document title: FY17_Eng
25.04.2018 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | SYGNIS AG |
Waldhofer Str. 104 | |
69123 Heidelberg | |
Germany | |
Phone: | +49 (0) 6221 3540 125 |
Fax: | +49 (0) 6221 3540 127 |
E-mail: | investors@sygnis.com |
Internet: | www.sygnis.com |
ISIN: | DE000A1RFM03 |
WKN: | A1RFM0 |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
End of News | DGAP News Service |