Polynovo Ltd (ASX: PNV) shares have returned from a short trading halt with a bang.
In early afternoon trade, the medical device company's shares are up 12% to $1.37.
Why are Polynovo shares racing higher?
Investors have been fighting to get hold of the company's shares today after it released a very positive trading update.
According to the release, total revenue for August came in at $7.7 million, which is up 118.7% over the prior corresponding period.
This means that Polynovo's FY 2024 year to date revenue is now $14.9 million. This represents a 92.7% increase over the same period last year.
A key driver of this growth has been its US business. It achieved sales of $10.6 million for the first two months of the financial year. This is an increase of 85.3% on the prior corresponding period.
This has been supported by a 78% lift in rest of the world sales, with Australia and the UK outperforming. These two regions reported year to date growth of 128% and 154.9%, respectively.
'Breathtaking'
Polynovo's chair, David Williams, didn't hold back when talking about the company's sales growth. He said:
The increase in sales albeit lumpy and off a low base is at once breathtaking but at the same time more of the same of what we have seen in the last three years. Looking forward the future is bright. The 150+% increase in the UK and other significant geographic growth, hides the new hospitals and new staff that commenced recently and are yet to show their full potential.
The company's CEO, Swami Raote, was equally pleased with its sales performance. He adds:
We are pleased with our results and especially grateful to our rapidly expanding clinician base. Our Surgeons are expressing their satisfaction with patient outcomes, by adopting BTM and actively championing its use across different specialties and driving momentum for our trials. We are humbled to be able to provide better outcomes for patients, while being cost-effective for health systems.
While Polynovo shares were trading within touching distance of a 52-week low this morning and in dire need of a boost, that wasn't the reason for the out of cycle update according to its chair. He explains:
In a high growth company like PolyNovo, we want shareholders to see the extraordinary growth that we as a board are seeing and not have to wait for the usual reporting cycle. This growth is price sensitive and shareholders should see it more regularly than every six months.
