TruScreen Group Limited Analysis

Overview

TruScreen's development began in the late 1980s under the guidance of leading medical academics from Sydney University.

TruScreen offers the latest technology in cervical screening, providing real-time, accurate detection of pre-cancerous and cancerous cervical cells to help improve the health and wellbeing of women around the world.

Professor Coppleson, an international leader in colposcopy and cervical cancer, sought to establish objective technology that could improve on the conventional Pap test, which has limitations in population based screening due to its subjective nature and its need of laboratory facilities and qualified personnel. Dr. Reid believed that it should be possible to distinguish between normal and abnormal tissue by measuring changes in physical properties, such as electrical potential.

After almost 15 years of intensive R&D, the TruScreen 'Opto Electrical' Technology for the detection of cancerous cells is now being made commercially available to global markets. As the TruScreen technology is at the forefront of the development of objective opto-electric tissue differentiation it enjoys significant patent protection which is of great interest throughout the globe.

Following the restructuring of the business, TruScreen Pty Ltd, a subsidiary company of TruScreen Group Ltd (NZ), was formed in October 2013 to hold all TruScreen assets, including IP, and to act as the operations heart of the TruScreen business. The board and executive team combine experience and commercial ideas and strategies which we believe are both essential to and sufficient for the success of TruScreen globally.

TruScreen is a compliance listing there will be no new shares issued upon listing.

TruScreen is expected to commence trading on the NZX Alternative Board on 12 November 2014.

Performance

The following information was extracted from TruScreen Group Limited's Full Year Results, released on 26 May 2025

Highlights

• Key market China, accounted for more than 85% of global sales exceeded budget and is poised for further expansion in 6 key provinces
• Memorandum of Understanding signed with Hangzhou Dalton Bioscience (DaltonBio) in February 2025 to form a strategic alliance for expanding product portfolio and distribution channels
• TruScreen re-enters India with appointment of Renovate Biologicals Pvt Ltd in April 2025
• 5-year program to screen 260,000 women for cervical cancer in Ho Chi Minh City, Vietnam launched April, 2025
• Indonesia product registration completed and distributor appointed, with commercial activity commenced in May 2025
• TruScreen clinical trial results confirm suitability for large scale screening in emerging markets
• Truscreen continues to be validated by independent studies and the World Health Organization

TruScreen generated product sales of $1.7m (2024: $2.1m) for the year. This lower result was largely due to delays in roll-out programs in Vietnam (launched April 2025), and Zimbabwe (delayed until FY2026) and delayed product registrations in Indonesia and Uzbekistan. Revenues from these delayed commercial activities are expected to be realised in FY2026.

TruScreen Group Ltd expects FY2026 sales to exceed NZ$ 2.8m.

Gross margin in FY2025 was 30.1% (2024: 32.7%) with the lower margin attributable to variances in the country sales mix due to delays in programs and product registrations. Other income was lower than the prior year at $0.4m (2024: $0.5m) attributable to a lower research and development Australian tax offset refund.

Total overhead expenses were $3.1m (2024: $3.24m) and have reduced in the latter part of the year with further cost saving measures. The result for the year was a loss of $2.2m (2024: $2.0m) being adversely impacted by the shortfall in margin as a result of deferred product sales and a lower research and development Australian tax offset refund, foreign exchange translation loss and increased costs in: regulatory product registrations; facility relocation costs; and increased travel to support existing markets and open new markets.

Operating cash outflow for the year $2.3 million (2024: $2.0 million) was in line with the profit and loss result for the year. Cash at the end of the year was $0.4 million (2024: 2.7 million). The cash balance reflected completion of a 2024 capital raise prior to 31 March 2024.