Collagen Solutions sees good uptick in revenue

23rd Oct 2018 15:22

(Sharecast News) - Medical grade collagen-based biomaterials manufacturer Collagen Solutions updated the market on its trading for the six months ended 30 September on Tuesday, reporting that revenue and other income was expected to be £2.10m.The AIM-traded company said that would represent a 13% increase on the prior year.Revenue performance had been buoyed by new development agreements closed in the first quarter of the financial year, which the board said had more than offset previously-announced delays in customer projects and inventory adjustments.As it had anticipated, its development business would comprise nearly half of the firm's overall business in the full financial year.New customer acquisition continued, with nine new customer deals representing an increase in the number of new customers over the same period last year, which was eight.Collagen Solutions said the average expected value of those customer acquisitions also increased.In addition, the tissue business unit had several pending agreements, which typically take three to six months to negotiate, with supply agreements expected to follow within a further 12 to 18 months."We remain on track to meet our key initiatives for the year including achieving our commercial execution plans and financial performance objectives in line with market expectations," said chief executive officer Jamal Rushdy."We are also continuing our planned rolling submission of data to support our goal of obtaining the CE Mark for 'ChondroMimetic' this financial year."We are in negotiations with multiple distributors which we expect to conclude ahead of the limited user release planned to follow the ChondroMimetic CE Mark."Operationally, Rushdy said the firm's New Zealand restructuring initiative was delivering the expected synergies and benefits according to plan, with the New Zealand team now "fully focused" on the tissue business."We are pleased with our progress so far."Finally, we will continue to deliver more visibility and metrics to our investors relating to the value and progress within our core business."Collagen Solutions said it would announce its interim results for the six months ended 30 September on 4 December.