Collagen Solutions plc (AIM: COS), the developer and manufacturer of medical grade collagen-based biomaterials for use in research, diagnostics, medical devices, and regenerative medicine, provides an update on trading for the six months to 30 September 2018.
Revenue and other income is expected to be £2.10m (H1 2017: £1.86m), representing a 13% increase on the prior year. Revenue performance has been buoyed by new development agreements closed in the first quarter of this financial year, more than offsetting previously announced delays in customer projects and inventory adjustments. As anticipated, our development business will comprise nearly half of our overall business this financial year.
New customer acquisition continues with nine new customer deals, representing an increase in the number of new customers over the same period last year (H1 2017: eight). The average expected value of those customer acquisitions also increased. In addition, the tissue business unit has several pending agreements. These agreements typically take three to six months to negotiate, with supply agreements expected to follow within a further twelve to eighteen months.
Commenting on outlook, Jamal Rushdy, CEO says: “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. 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, our New Zealand restructuring initiative is delivering the expected synergies and benefits according to plan and the New Zealand team is now fully focused on the tissue business and 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-sol