09 July 2019
Notice of AGM
Collagen Solutions plc (AIM: COS), the developer and manufacturer of biomaterials and regenerative medicines for the enhancement and extension of human life, announces its final results for the year ended 31 March 2019.
- Group revenue and other income increased by 22% to £4.51 million (2018: £3.71 million)*
- Revenue excluding other income grew 18% to £4.15 million (2018: £3.50 million)
- Adjusted LBITDA (before separately identifiable items): £1.22 million (2018: £1.71 million)*
- Cash balances at 31 March 2019: £1.68 million (2018: £5.02 million)
*prior year reclassification – see note below
Operational Highlights during FY 2019
- Secured 29 customers and 16 new customer agreements
- Grew our North American business by 72% and our development business globally by 76%
- Our development business accounted for 33% of total revenue
- Signed two blue chip development customers
- Completed CE Mark submission for ChondroMimetic ®
- Signed four ChondroMimetic® licence and distribution agreements
- Established our tissue business unit in New Zealand and four new tissue customers secured
- Consolidated our New Zealand collagen manufacturing into our plant in Glasgow, realising c£0.20 million in annualised cash savings
- Transitioned fully our former Chinese JV and established two new channel partners, both of which have commenced first sales
Post Period End
- Fundraise: On 5 June 2019 the Company completed a fundraise of £5.96m gross of costs made up of a strategic investment by Rosen's Diversified Inc of £4.18 million, a placing with existing and new investors of £1.25 million and an open offer totalling £0.53 million.
- ChondroMimetic® update: during the last week of the first financial quarter, the Company’s Notified Body informed the Company it has completed an initial review of the ChondroMimetic® CE mark application and submitted its first round of questions. The Company has reviewed the questions and is preparing a response in due course. While the Company believes the questions are addressable, with the goal to receive approval in the current financial year, the timing of any additional data that may be required and the response time or additional questions by the notified body is not certain.
- David Evans announced his intention to resign as Chairman effective 9 July due to the progression of his muscle-wasting condition. He will be succeeded by Chris Brinsmead, an existing Non-executive director.
Annual General Meeting
The Company’s AGM will be held at 3 Robroyston Oval, Nova Business Park, Glasgow, G33 1AP on 28 August 2019 at 11:00am.
*A disclosure restatement has been made to the 2018 prior year figures reducing other income by £0.12 million relating to R&D tax credits from the UK SME Scheme and includes these as a credit within taxation rather than other income. The current year equivalent amount is £0.15 million.
Jamal Rushdy, Chief Executive Officer of Collagen Solutions, commented: “On behalf of the Board and management team, we are pleased to report a successful year, delivering on the priorities we set out to accomplish. With a substantial increase in our contract product development business, which will lead to higher value contract manufacturing, we have demonstrated progress moving up the value chain. We also successfully consolidated our collagen operations into Scotland and enabled our New Zealand team to focus on a new, exciting tissue business opportunity. Furthermore, we made good progress preparing for the launch of ChondroMimetic® with new distributors and recent feedback from our notified body has given us a clearer path to approval, subject to further dialogue with the Notified Body and advisors as to scope and timing of next steps. Finally, we are pleased to welcome our newest strategic investor, Rosen’s Diversified Inc, anchoring our successful £6m fundraise last month.
“Lastly I would like to thank David Evans for his trust, support and guidance over the last several years. On behalf of the Company we wish him well and will miss him greatly.”
|Collagen Solutions Plc
Jamal Rushdy, CEO
Hilary Spence, CFO
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