logo-loader
viewCollagen Solutions PLC

Collagen Solutions says it is investing in "people, capabilities and technology”

“Our product development teams remain focused on development projects for customers, providing a solid platform for future contract manufacturing business,” said chief executive Jamal Rushdy

Collagen Solutions PLC -

Collagen Solutions PLC (LON:COS) said it was investing in "people, capabilities and technology” as it delivered its third consecutive half of double-digit top-line growth.

Presenting its interim results, it explained it had been affected by capacity constraints within the collagen manufacturing operation. It was also held back by the timing of delivery of development contract milestones.

Against this backdrop, the biomaterials specialist grew revenues by 14% to £2.23mln in the six months ended September 30. Tissue sales more than doubled.

During the period the company landed four new contracts and began supplying 10 customers with average contract size rising versus the prior year.

The investment mentioned above included the expansion of Collagen’s Glasgow facility.

It also secured an investigational medical product licence to support manufacturing for a development customer moving into phase I clinical trial next year.

In the update, the group said it remained in talks with the regulatory authorities as it bids to gain European health and safety sign-off in the form of a CE Mark for its ChondroMimetic cartilage repair technology. However, it said it remains “cautious over the timing for approval”.

The impact of investment growing the business meant Collagen Solutions was loss-making – to the tune of £1.19mln at the pre-tax level.

More importantly, it exited the first half with just over £5mln on the bank.

“Our product development teams remain focused on development projects for customers, providing a solid platform for future contract manufacturing business,” said chief executive Jamal Rushdy.

“Finally, we are investing in our manufacturing capacity to ensure we can continue to support future growth and we look forward to a successful remainder of the year."

Quick facts: Collagen Solutions PLC

Price: 3.35 GBX

LSE:COS
Market: LSE
Market Cap: £14.86 m
Follow

Add related topics to MyProactive

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...

In exchange for publishing services rendered by the Company on behalf of Collagen Solutions PLC named herein, including the promotion by the Company of Collagen Solutions PLC in any Content on the Site, the Company...

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

2 min read