Regenerative medical technology specialist Collagen Solutions PLC (LON:COS) saw its revenue more than triple last year, comfortably ahead of market expectations.
Group revenue and other income in the year to the end of March rose to £3.24mln, ahead of market guidance of £2.8mln issued in January of this year, and up from £1.04mln the year before.
The top line got a significant boost from Southern Light Biomaterials, which the company acquired in December 2014.
The adjusted loss before interest, tax, depreciation and amortisation (LBITDA) narrowed to £410,016 from £689,816 the previous year. The loss per share halved to 0.57p from 1.17p in the previous year.
The net cash balance at the end of March stood at £2.49mln, versus £3.39mln a year earlier.
“We strengthened and grew our core biomaterials supply and manufacturing business resulting in a full year of solid results from our acquired Southern Lights Biomaterials business, and we have also executed new customer agreements and continue to establish a global commercial organisation focused on core business growth,” said Jamal Rushdy, who took over as chief executive officer last month, having previously been the company’s chief business officer.
“The past year was transformational for the company in terms of a step change in scale, product and technology breadth, and organisational development. This has given us a strong foundation as we continue to make progress in the current financial year, with clear and specific strategic initiatives, an engaged management team and a shared vision: to become the industry's first choice for regenerative biomaterials," he added.
Chairman David Evans said the company had made a positive start to the current financial knowledge.
“I am emboldened by the knowledge that the positive benefits of having ‘sticky’ revenues from embedded products will ensure about 70% of the group's ongoing revenues are already, in effect, secured. Our challenges are to win new customers and execute our pipeline in a timely manner; we have invested in personnel to achieve this. Additionally, we are looking to successfully execute our R&D [research & development] pipeline where the investment that we have made, and continue to make, begins to produce cash flow,” Evans said.
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Shares in Collagen were up 4.8% at 5.5p in mid-morning trading.