2020 1st semester turnover and prospects - Seite 2

Sequential recovery
Currently, the lack of visibility as to when hospital surgeries around the world will return to normal means that the Group cannot anticipate being able to make up for the second quarter during the 2020 financial year. Indeed, the health crisis also delayed the implementation of partnerships the Group entered into before the crisis, such as the distribution agreement with the Muranaka group in Japan, which should nevertheless begin contributing to revenue starting in the fall of 2020. Likewise, in Latin America, the public-health and geopolitical situations also make the upcoming months unclear and impede the development that had been expected in this area for 2020.

Nonetheless, the return to activity in Europe should steadily increase over the second half of the year and have a positive impact on the Group’s overall revenue. Likewise, Asia, which has continued to maintain its level of activity despite the delay with Muranaka, should contribute more to the 2020 revenue.

Spineway continues to be well-positioned in its core areas and benefits from a growing reputation for innovation. Its Mont-Blanc 3D+ line, in particular, was written up in a recent issue of an international scientific magazine specializing in the spine that will be presented in further detail in a future press release. Furthermore, Spineway is pursuing the development and approval of its high-added-value product lines such as its minimally invasive line, Mont-Blanc MIS, which has been very well-received by surgeons who use the products.

The Spineway teams also focused on the goal of certification under the New EU MDR and, to this end, worked with surgical groups in several countries to analyze the clinical data required for such certification.

A solid financial base
Expecting a return to standard-setting activity in 2021, Spineway set up the necessary financing to allow it to calmly weather the crisis and adapted its cost structure to limit its losses during the first half of the year. In particular, Spineway obtained the entire amount possible in a government-backed loan amounting to €1 270K, thereby confirming its banking partners’ confidence in the Groups prospects. This loan, in conjunction with the internal measures taken and aid packages, in particular for salaries, resulted in a cash position for the Group of over €3.2M at the end of June. Negma’s support also contributes to securing the financial position while still preparing for the future by giving Spineway the means necessary to continue its development.