LONDON (Alliance News) - Collagen Solutions PLC on Tuesday said it annual revenue is likely to have beaten market expectations with strong contributions from agreements on behalf of third parties.
Revenue for its year ended March 31 is expected to have been GBP4.2 million, up 20% from GBP3.5 million. Revenue from agreements to develop collagen products on behalf of third parties was particularly robust in the second half of the company's year, making up around a third of revenue for its year as a whole.
The company, which develops and manufactures biomaterials and regenerative medicines, is still expecting to post a loss before tax, but this is expected to be "lower than expected" after an improvement to its top line and the sale of its holding in Jellagen Ltd, which also makes collagen but uses jellyfish.
Collagen Solutions is presently awaiting feedback as it seeks a CE mark for its ChondroMimetic cartilage repair product, for which "several distribution partners" have been selected.
As at March 31, Collagen Solutions' cash balances stood at GBP1.7 million, down from GBP5.0 million the years.
Following the end of its financial year, Collagen Solutions has traded in line with management expectations.
Collagen Solutions Chief Executive Jamal Rushdy said: "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."
Shares in Collagen Solutions were up 2.9% at 3.50 pence on Tuesday afternoon.