RNS Number : 1821T
13 November 2019
AIM share code: SKIN
13 November 2019
("Integumen" or "Company")
Integumen shares revenue to deliver AI data solutions across Parity plc UK NHS clients
Trading update provides 2020 guidance of £4m prior to Parity Agreement
Integumen announces that it has signed Heads of Terms with Parity plc to enter a multi-year Framework Agreement ("Agreement") to be completed on or before the 18 December 2019 for the supply of Artificial Intelligent ("AI") software across Parity's National Health Service ("NHS"), Central Government and Private Institutional clients.
This Agreement creates an opportunity to cross-sell intelligent data management, extracting value using analytics, with a focus on proving return on investment, to Parity's 150+ institutional clients. The software includes full GDPR compliance with secure cloud data migration from existing legacy systems to a digital workplace through the military grade encryption "Drive4Growth" AI platform powered by Integumen's Rinodrive.
· Recurring shared revenue streams for both Parity and Integumen in 2020
· Value-added proposition in demand from Parity clients with c. 3 to 5-year annual contracts
· Immediate access to 150 public and private institutional clients
· Trusted approved vendor for Government and private sectors for over 45 years
· 1,000+ data experts and 100+ enterprise sales and office professionals
· Existing cross-over access to educational institutional research facilities
· Access to multiple industry, public and private sector distribution routes to market
· Well defined roadmap to next level business growth for both Parity and Integumen
Six-month trading update:
In May 2019, Integumen acquired Rinocloud Limited for £3m to enable LabskinAI to uses the Rinodrive AI platform to provide cloud-based data services to Integumen's Top 20 global skincare clients. By the end of June 2019, Rinocloud reached monthly profitability, and over the last six months (May to October) exceeds revenue from Labskin this financial year.
Since 2018, the Company has seen average sales grow from £5k for consumable, one-off sales to 2019 average sales of £50k as a service contract. Heading into 2020, Integumen is engaging with multiple top 20 global skin and personal care companies and believes average sales are likely to range between £100k to £500k for data as a service to skincare R&D framework multi-year agreements, providing good visibility of revenue. Therefore, excluding developments that may arise from Integumen entering into the agreement with Parity Group plc, the Company is guiding 2020 revenues of £4m.
Gerard Brandon, CEO of Integumen plc, comments:
"We are delighted to be able to roll-out the Drive4Growth AI platform in partnership with the credibility and reputation that Parity data experts hold, with an extensive, if not exhaustive, list of public and private institutions. We look forward to working alongside Parity to extract greater value for their clients and contribute to the transformation of the UK's National Health Service, public and private institution data over the next few years."
Matthew Bayfield, CEO of Parity Group plc, comments:
"Parity is pleased to be partnering with Integumen and rolling out the Drive4Growth AI platform to our client base. We have been working with many of the same clients for 45 years, so we understand their needs. With healthcare sector data growth in 2020 expected to double every 73 days, our clients need to securely manage and extract greater value using analytics and AI in order to make important decisions. The Drive4Growth AI platform delivers on those requirements, increases revenue per client, increases client contract term and generates a higher margin, leading to greater profitability."
Gerard Brandon, CEO
+44 (0) 7340 055 648
SPARK Advisory Partners Limited
Neil Baldwin/Andrew Emmott
+44 (0) 113 370 8974
Turner Pope Investments (TPI) Limited (Broker)
Andy Thacker/Zoe Alexander
+44 (0) 20 3657 0050
About Integumen: www.integumen.com
Integumen is a vertically integrated product and services company for skin related diseases, treatments and therapies with four business units:
· Labskin AI's technology platform incorporates artificial intelligence within clinical research for medical device, pharmaceuticals, cosmeceuticals and related life science test services. Labskin allows skincare, healthcare, pharmaceutical manufacturers and cosmetic companies to test their products on human-like skin in a real-world environment with full access to multiple state-of-the-art partner technologies.
· Rinodrive is a data aggregation, refining and AI analysis open-source eco-system designed to provide third-party service providers the ability to offer their clients valuable insights that support clinical, operational and financial decisions in healthcare services, third-level education, government departments and the financial sector.
· Wound pHase is developing skin and wound care products using its proprietary wound dressing technology. Working in collaboration with CBD providers creating a CBD infused diabetic wound care product range.
· Stoer-for-men skin products e-commerce division offers a range of skincare products derived from 5 natural super-ingredient plant extracts specifically for men to reduce the signs of ageing and is also used as a control for client testing within Labskin laboratories.
About Parity Group: www.parity.net
Parity helps organisations find the right people, skills and data to support data-led business decisions. Providing advice on data and with access to qualified personnel with skills offered, either as a managed service, through resourcing in the contract or permanent market or as part of a learning and development programme.
Income derives from a mix of long-term contracts with public and private sector organisations as well as expanded projects with existing clients as a result of strong relationships and a track record of high client satisfaction. Key highlights comprising of:
· Over 45 years of expertise in public and private recruitment and service contract sector
· More than 100 employees across the UK
· Client numbers exceed 150 in both UK and Ireland
· Associate numbers supporting client services exceeds 1,000
RinoDrive "Drive4Growth": www.rinodrive.com
A fully integrated set of software tools that can ingest data, in any volume, from any source in any format, interact with it, learn from it and enrich it to unlock insights and discoveries.
This data management solution was developed by scientists and engineers with experience in software, sensors, AI, optofluidic research, fintech, green-tech, travel and healthcare.
It was designed to allow interaction, in a cyber-secure environment, with commercially sensitive data, and to share insights across multi-disciplinary teams, generating different data formats, from multiple sources, located in different countries.
RinoDrive delivers big data, AI functionality and world class infrastructure to large companies with big data problems. These include financial services, education and life science companies. Most recently completing the automation of laboratories and application of AI to unearth more knowledge about the skin microbiome. This led to the acquisition in May 2019 by Integumen PLC, to secure access to, and the exploitation of data from some of the largest cosmetic, pharmaceutical and medical companies in the world.
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