logo-loader
viewCollagen Solutions PLC

Collagen Sol PLC - Trading update

RNS Number : 5391G
Collagen Solutions PLC
18 March 2020
 

18 March 2020

 

Collagen Solutions Plc

(the "Company" or the "Group")

 

Trading Update

 

Collagen Solutions Plc (AIM: COS), the developer and manufacturer of biomaterials for the enhancement and extension of human life, announces a trading update for the year ended 31 March 2020 and a statement regarding the COVID-19 outbreak.

 

The Company expects the loss for the year will be materially greater than anticipated due to increased costs from a development and manufacturing contract which has taken longer than originally anticipated. The related accounting treatment requires a one-time write-down of c.£900k recognising the full loss over the life of the development portion of the contract only. The accounting treatment does not reflect a change in the Company's commercial view of the full value of this contract inclusive of the contract manufacturing portion.

 

The Company is facing multiple uncertainties that may also impact year-end revenue, pushing some sales into the next financial year.  These include:

·      closing certain contracts in late-stage discussions, and

·      delivery of collagen and tissue products for which the Company has already received orders.

 

The contract closure referred to above is uncertain because some customers have recently communicated that they are delaying their investment decisions because of economic and business uncertainty due to the COVID-19 outbreak. The delivery of collagen and tissue products is at risk due to evolving government travel and transport restrictions and potential reduced capacity of import and export offices, testing services, and other aspects of the supply chain.

 

The Company has put in place health and safety measures aligned with the latest government and industry recommendations and policies related to the COVID-19 outbreak. This includes a suspension of all non-essential travel, flexibility for employees faced with indirect effects of these measures, and of course a requirement to remain at home for any sick employees.

 

The Company is expected to provide a trading update with preliminary year-end revenue and cash balances by mid-April.

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

Collagen Solutions Plc


Chris Brinsmead, Chairman               


Jamal Rushdy, CEO / Hilary Spence, CFO

Via Walbrook



Cenkos Securities Plc (Nominated Adviser and Broker)


Giles Balleny (Corporate Finance)

Tel: 0207 397 8900

Stephen Keys




Walbrook PR Ltd

Tel: 020 7933 8780 or [email protected] 

Anna Dunphy

Mob: 07876 741 001

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
TSTJRMBTMTIBTBM

Quick facts: Collagen Solutions PLC

Price: 3.4

Market: LSE
Market Cap: £15.09 m
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Collagen Solutions reports strong growth in its tissue business in first half

Collagen Solutions PLC's (LON:COS) Jamal Rushdy and Hilary Spence update Proactive London's Andrew Scott on first half performance - their third consecutive six-month period of double-digit sales growth. Revenues increased by 14% to £2.23mln in the period ended September 30. Tissue sales more...

on 3/12/19