09 April 2019
Collagen Solutions plc (AIM: COS), the developer and manufacturer of biomaterials and regenerative medicines for the enhancement and extension of human life, announces a trading update for the year ended 31 March 2019.
Continuing the growth seen in the first half of the year, revenue for the full year is expected to be ahead of market expectations at £4.15m (2018: £3.50m), reflecting growth for the full year of 18%. Revenue from agreements to develop collagen products on behalf of third parties continued to contribute significantly to the business in the second half and will make up approximately 33% of our revenue for the year.
The Company is anticipated to show a lower than expected loss before tax for the year due to the improved top line as well as the sale of the Company's holding in Jellagen Limited.
The Company continues to await feedback from its Notified Body regarding the status of the CE mark for ChondroMimetic. In preparation for the approval, and as previously announced, the Company has established several distribution partners in select countries in Europe and Asia in anticipation of this.
Group cash balances at the year-end were also better than expected at approximately £1.7m (2018: £5.0m). Since the year-end, the Company has been trading in line with managements' expectations and continues to build on the progress made in FY 2019, supported by the new business gained in the second half of the last financial year and current pipeline of new deals in process.
Jamal Rushdy, CEO of Collagen Solutions, commented: "We are pleased with our delivery of high double-digit growth within our core business representing a substantial turn-around of performance from our prior financial year. In addition, our increased mix of development services is a positive leading indicator of success in our strategy to move up the value chain. We look forward to providing a further update when we announce our preliminary results in July."
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
|Collagen Solutions Plc||Via Walbrook|
|Jamal Rushdy, CEO|
|Hilary Spence, CFO|
|Cenkos Securities Plc (Nominated Adviser and Broker)||Tel: 0207 397 8900|
|Giles Balleny / Stephen Keys|
|Walbrook PR Ltd||Tel: 020 7933 8780 or email@example.com|
|Anna Dunphy||Mob: 07876 741 001|
|Helen Cresswell||Mob: 07841 917 679|