Press release
Ecully, February 7, 2024 - 6 p.m.
SPINEWAY
2023 annual results
- 2023 revenue of €10.5 million (+42%)
- Gross margin steady at 69%
- Net income heavily impacted by exceptional items
- Implementation in 2024 of a streamlining plan to achieve operating breakeven in the medium term1
| In thousands of euros Consolidated accounts | 2023 | 2022 |
| Revenue | 10,519 | 7,432 |
| Cost of sales | (3,309) | (2,320) |
| Gross margin | 7,210 | 5,112 |
| % of revenue | 69% | 69% |
| Net operating expenses | (11,727) | (8,322) |
| Of which running costs | (5,424) | (3,770) |
| Of which personnel expenses | (5,659) | (4,875) |
| Operating income/(loss) | (4,517) | (3,210) |
| Financial income/(expense) | (1,035) | 184 |
| Non-recurring income/(expenses) | (957) | (112) |
| Net income/(loss) | (6,510) | (3,137) |
The Board of Directors of Spineway, meeting on February 6, 2024 under the chairmanship of Stéphane Le Roux, approved the financial statements for the year ended December 31, 2023.
Spineway recorded revenue of €10.5 million in 2023, an increase of 42% compared with 2022. This growth was driven by the strong sales performance of Distimp products and the consolidation of revenue from Spine Innovations, acquired in July 2022. Over the full year, the Group posted growth of more than 20% in each of its three main operating regions (Europe, Asia and Latin America).
Results marked by the increase in operating expenses
Although the gross margin was steady at 69% of revenue, the increase in revenue is not reflected in the Group's results, which were impacted by increased spending on R&D, sales, marketing and practitioner training, as well as the necessary regulatory investments (MDR regulatory requirements, product export approvals, etc.), which will continue in 2024.
In addition, the increase in headcount over the year following the strengthening of Spineway management team and the integration of Spine Innovations employees, pushed personnel expenses up to €5.7 million (from €4.9 million). As a result, the operating loss for 2023 was €4.5 million.
Over the period, Spineway recorded a financial expense of €963 thousand linked to the implementation of the Negma financing contract arranged in May 20232 (commitment fee and compensation mechanism), and exceptional expenses of €957 thousand (reorganization of the Spine Innovations subsidiary and exceptional consulting fees). These items had a negative impact on the net loss, which was €6.5 million in 2023.
Financing to secure cash flow and support the Group's developments
As mentioned in the press release of May 25, 2023, the Group has entered into an agreement for the issue and subscription of bonds convertible into shares (OCA) in a total maximum nominal amount of €10,990,000 for a duration of 24 months. As of December 31, 2023, 1,231 OCAs (excluding commitment fees) had been converted into 135,015,642 shares. As a result, Spineway's share capital at the end of December 2023 was €286,059.11, made up of 143,029,563 shares with a par value of €0.002 each. A reverse share split was completed on 4 January 2024 on the basis of 1 new share for 2,000 existing shares. Exchanges are currently underway and will end on February 26, 2024.
In addition to this financing, Spineway obtained a €1.5 million Prêt Participatif Relance (PPR, Participatory Stimulus Loan) at the beginning of 2023, in its capacity as an innovative company.
As announced,2 the purpose of these funds is to finance the Group's operations, in particular the intensification of regulatory and clinical expenditure associated with the new MDR requirements, and to support the Group's developments.
At the end of December 2023, Spineway's cash position was €1.8 million, and its net debt was under control at €0.8 million on €19.1 million in shareholders' equity, putting gearing3 at 4.2%.
Launch of a streamlining plan
In view of the situation, the Group's management has decided to take cost-cutting measures, which will result in a tighter operating budget and the reduction of around 10 positions in the workforce. It has also been decided to postpone investments dedicated to very costly projects for which financing has not yet been secured.
Development prospects
The company is pursuing its strategic roadmap, whose main objectives are the export approval of the ranges acquired in 2021 and 2022 in order to open up new markets, commercial efforts to benefit from synergies between Spineway customers, Distimp customers and Spine Innovations customers, and the rollout of clinical data collection to maintain and obtain CE/Medical Device Regulation (MDR) certifications.
At the same time, the company plans to allocate R&D resources for the development of new generations of its Distimp Premium and Spine Innovations product lines.
These measures, combined with a robust business base and a good gross margin, should enable the Group to return to operating breakeven in the medium term and keep it on the path to the profitability needed to sustain cash requirements and roll out its strategic plan for innovation and commercial growth.
The Spineway Group is therefore confident in its prospects for revenue growth in 2024. This should enable it to finance its growth and innovation through non-dilutive resources over the medium term.
1 In terms of EBITDA, i.e. earnings before interest, tax, depreciation and amortization, which was negative €3.3m in the year ended
December 31, 2023
2 Press release of May 25, 2023
3 Ratio of net debt to equity
Next events:
February 8, 2024 - Presentation meeting (video)- Click here to register
March 25, 2024 - Annual General Meeting
April 16, 2024 - Q1 2024 revenue
SPINEWAY IS ELIGIBLE FOR PEA-SME (EQUITY SAVINGS PLANS FOR SMES)
Find out all about Spineway at www.spineway.com
This press release has been prepared in both English and French. In case of discrepancies, the French version shall prevail.
Contacts :
SPINEWAY Shareholder - services line Available Tuesday through Thursday +33 (0)806 70 60 60 | AELIUM Investor relations Solène Kennis spineway@aelium.fr |
