Expedeon AG (formerly SYGNIS AG) reports financial results for the first six months of 2018 and successful execution of name change
Published: Aug 09, 2018
Heidelberg, Germany and Cambridge, UK, 9 August 2018 – Expedeon AG (Frankfurt: EXN; ISIN: DE000A1RFM03; Prime Standard) today reported results for the second quarter of 2018 and six-month period ended 30 June 2018. In addition, the Company has officially completed the change of name to Expedeon AG from SYGNIS AG.
“Changing the Company’s name to Expedeon AG completes the full integration of the recently acquired companies, as well as our corporate rebranding, which combines the new structure with our customer focused brands in the genomics, proteomics and immunology markets,” said Dr. Heikki Lanckriet, CEO and CSO of Expedeon. “We have already demonstrated our success with our ‘Grow, Buy and Build’ strategy through the expansion of our product portfolio with new cutting-edge products, services and technologies, by acquiring profitable and innovative companies, and by further increasing our strong organic growth and profitability. We are excited to move forward on our growth path, now as Expedeon AG.”
2018 year-to-date operational highlights:
- February 2018: Extended OEM agreement with leading global research tools supplier to provide customers with improved access to research tools through worldwide sales and distribution channels
- March 2018: Successful integration of products and services of the acquired companies Innova Biosciences, Expedeon Holdings and C.B.S. Scientific under one brand name, Expedeon
- March 2018: Reorganisation of sales and marketing team; with the creation of a separate business development team
- March 2018: Announcement of intention to acquire TGR Biosciences, a profitable Australian reagents company
- March/April 2018: Capital increase closed in March 2018, with gross proceeds of € 4.2 million; debt financing closed in April 2018, with gross proceeds of € 2.0 million, thereby enabling Expedeon to conclude the TGR Biosciences acquisition
- May 2018: Completion of the acquisition of TGR Biosciences, priced in Australian Dollars at approximately € 10.2 million (gross of cash acquired with the business of € 1.1 million)
- May 2018: Introduction of 2view™, a unique detection method optimised for Western blotting
- May 2018: Adjustment of revenue guidance for the financial year 2018 to € 13-14 million (previous guidance: € 11-12 million) after closing the acquisition of TGR Biosciences
- August 2018: Successful change of name to Expedeon AG, defining corporate strategy as united company with broad international sales and distribution networks
David Roth, CFO of Expedeon, commented: “We are pleased with the progress made in our financial performance during the first half of 2018. The strong financial results build on the successful execution of our ‘Grow, Buy and Build’ strategy. We are on track for reaching our full year revenue guidance and for being overall EBITDA positive for the full year.”
SYGNIS AG becomes Expedeon AG
The Company has officially completed the change of name to Expedeon AG from SYGNIS AG with the entry in the Mannheim commercial register on 6 August 2018. The Company's shares continue to be listed on the Regulated Market of the Frankfurt Stock Exchange's Prime Standard under the existing ISIN and German securities identification code (WKN). The ticker symbol has been changed to EXN. The name change reflects the new structure and positioning of the enlarged company and the approval of the Annual General Meeting held on 5 July 2018.
Expedeon will continue to build on its reputation as a leading and fully integrated solutions provider, spanning the complete customer workflow in the genomics, proteomics and immunology markets. Under the “Grow, Buy and Build” strategy, the Company has acquired Expedeon Holdings, Innova Biosciences, C.B.S. Scientific and most recently TGR Biosciences, which has significantly grown the Group’s existing product portfolio, along with sales and marketing capacities.
Expedeon is planning to continue its strong growth path in the coming years, under its Expedeon brand, in line with the corporate vision to further establish a global brand for innovative reagents and services serving the life sciences research and diagnostics industry markets. Expedeon has laboratory facilities and commercial sites in the UK, USA, Singapore, Germany and Spain, and a highly experienced workforce of about 110 employees, worldwide.
Second quarter of 2018 financial results:
In Q2 2018, Expedeon successfully concluded the acquisition of TGR Biosciences. Revenues more than doubled to € 3.3 million in the second quarter of 2018 (Q2 2017: € 1.6 million).
Total operating expenses were € 3.9 million (Q2 2017: € 2.5 million).
Expedeon reported a negative EBITDA for Q2 2018, amounting to € 27 thousand as a result of transaction costs of € 71 thousand associated with the TGR Biosciences transaction, against a loss of € 384 thousand in Q2 2017 (including transaction costs of € 120 thousand in that period for Innova Biosciences). Reported net loss for the second quarter of 2018 summed to € (0.5) million compared to € (0.8) million in the same period of the previous year.
First half of 2018 financial results:
Total Group revenues strongly increased by 89% to € 5.6 million for the first six months of 2018 (H1 2017: € 3.0 million) and were primarily attributable to the sale of Expedeon’s kits and devices.
Total operating expenses were € 6.6 million (H1 2017: € 5.2 million) for the first half of 2018.
Reported net loss for the first half of 2018 significantly improved and was € 0.9 million compared to € 2.0 million for the first half of 2017. The net loss result for H1 2018 included depreciation and amortisation of tangible and intangible assets (including customer lists and patents capitalised on the acquisitions of Expedeon Group, Innova Biosciences and TGR Biosciences) of € 1.0 million (H1 2017: € 541 thousand).
In the first half of 2018, the cash and cash equivalent levels decreased by € 0.9 million to € 1.1 million (31 December 2017: cash and cash equivalents of € 2.0 million). At 30 June 2018, total assets were € 60.7 million including goodwill of € 34.8 million and other intangibles of € 16.6 million.
During the first half of 2018, cash outflows from operating activities were € 0.7 million (H1 2017: € 1.6 million), affected by seasonal timings.
Cash outflows from investing activities were € 6.2 million (H1 2017: € 8.6 million) and related primarily to the acquisition of TGR Biosciences in 2018 and Innova Biosciences and C.B.S. Scientific in 2017.
Following the close of the second quarter and first six months of 2018, Expedeon announced on 6 July 2018 that the Annual General Meeting held in Heidelberg, Germany, on 5 July 2018 approved all management proposals and resolved the change of the Company name to Expedeon AG.
The Company has officially completed the change of name to Expedeon AG from SYGNIS AG with the entry in the Mannheim commercial register on 6 August 2018. The Company's shares continue to be listed on the Regulated Market of the Frankfurt Stock Exchange's Prime Standard under the existing ISIN and German securities identification code (WKN). The ticker symbol has been changed to EXN.
The Company continues to invest in R&D with a focus on launching new products and further development of high-value applications across the areas of genomics, proteomics and immunology. With the increased marketing and sales activities and a broader but targeted product offering, Expedeon intends to further strengthen and expand its sales and customer base across the globe.
Following the acquisition of TGR Biosciences in May 2018, the Expedeon Group has increased its full year revenue targets and expects revenues to be in the range of € 13-14 million for the fiscal year 2018 against a previous range of € 11-12 million. This current revenue forecast is also 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.
The Company’s 2018 half-year report will be available online on the Company’s investors website by 9 August 2018.
Conference call details:
Expedeon will host a conference call (conducted in English) today, 9 August 2018, at 3 p.m. Central European Time (CET) to discuss the consolidated financial statements for the half year ended 30 June 2018 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 “Expedeon”.
The conference call, which is also being a 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 on the Company’s investors website at https://investors.expedeon.com.
For further information, please contact:
About Expedeon AG: www.expedeon.com
### 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 Expedeon AG may deviate greatly from the established conclusions or implied predictions contained in such statements. Expedeon does not undertake to publicly update or revise these statements in the light of new information or future results or for any other reason. ###