Collagen Solutions sees no decrease in demand despite Covid-19

15th Jun 2020 08:07

(Sharecast News) - Regenerative medicines maker Collagen Solutions said on Monday that while it has not seen any decrease in demand for its services or biomaterials products so far in this year, the group was wary of the potential external headwinds.
Collagen stated that it was performing in line with expectations in the current environment and said its board was "encouraged" about the year ahead despite Covid-19 resulting in "certain operational challenges" in Australia and New Zealand.

The AIM-listed group's order book, which it was confident that it would be able to fulfil, was also described as strong.

"The company has orders or contracted development milestones for FY 2021, together with revenue already recognised through the first two months of the financial year, worth approximately £3.3m (i.e. 82% of FY 2020 revenue) and have further visibility on contracted development milestones which should further add to its order book," said Collagen.

Despite the challenging market dynamics created by Covid-19, Collagen highlighted that it was "well positioned" to take advantage of the attractive long-term market fundamentals in order to achieve its ambitious growth plans.

As of 1100 BST, Collagen Solutions shares were up 3.24% at 3.25p.