ReNeuron Group PLC on Friday said its loss narrowed in the first half of its financial year, following lower costs, increased revenue and foreign exchange gains.

The Bridgend, Wales-based stem cell and exosomes technology company reported a pretax loss of £3.8 million in the six months ended September 30, narrowed from a loss of £6.0 million the year before.

ReNeuron’s revenue multiplied to £438,000 from £58,000 the year before. ReNeuron said this follows income from partner-funded development activities of £393,000 from nil the year prior, and royalty income of £45,000 from £58,000.

The company reported reduced operating costs in the period of £4.7 million from £6.1 million. ReNeuron said this is due to a reduction in clinical trial related costs following a strategic review in January 2022, partly offset by additional investment made in the exosome technology platform.

Foreign exchange gains increased to £429,000 from £112,000.

ReNeuron said that it has been investigating an equity raise with investors, but ‘unfavourable conditions’ in small-cap equity markets meant this was not possible.

‘However, through a review of the cost base and planned initiatives, savings have been identified in order to extend our cash runway to ensure the continued development of our technology platform and maximise partnering opportunities,’ Chief Executive Officer Catherine Isted explained.

Looking ahead, ReNeuron said it is targeting several larger scale exosome collaborations from existing and new partners, and to develop further collaboration agreements with its induced pluripotent stem cell platform.

ReNeuron shares were down 18% to 18.48 pence on Friday morning in London.

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