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."