The loss of contracts with four key customers – valued at over £800,000 a year – meant revenue slipped 6% to £3.83mln in the 12 months ended March 31 (2017: £4.09mln).
Underlying losses (LBITDA) widened slightly as well to £1.58mln (2017: £1.26mln). Collagen closed the period with just over £5mln of cash in the bank (2017: £9.0mln).
In response to the challenges, the AIM-quoted firm set about restructuring its business to bolster cash, improve margins and solidify the trajectory to profitability. Collagen also strengthened its board and executive team to help boost its commercial expertise.
The company still managed to bring on board 16 new customers and signed 14 new customer agreements during the year, while last month it signed a “major” contract which will help the top line this time around.
‘Significant year of growth ahead’
“On the one hand, we experienced a difficult year in terms of our sales performance and the necessity to mitigate several unexpected challenges in our core business,” said CEO Rushdy.
“However, I am pleased that our global team, and highly supportive board, faced these challenges head-on and achieved several positive outcomes during the year.
“I am confident the operational improvements and new organisational appointments we have made has put the Company in a much stronger position.”
Chairman David Evans added: “We anticipate that we will have a significant year of growth and change, and it will be a transitional year in terms of new product development and revenue generation.”