LONDON (Alliance News) - Collagen Solutions PLC on Tuesday said it expects its full-year revenue to be below market expectations due to contract delays, though the company still thinks its earnings will meet the market view.
Collagen said it has seen some "slippage" in revenue for the year to the end of March, with the company to take a GBP360,000 hit from contract delays.
Due to these issues, the company expects its revenue for its financial year will be around GBP1 million, below the GBP1.4 million forecast by market analysts, according to Collagen. But it expects is underlying earnings before interest, taxation, depreciation and amortisation to be around GBP0.75 million, compared to a market consensus estimate for GBP0.6 million.
"Whilst the slippage in revenue would have preferably been avoided, the vast bulk of this is due to timing differences, and we expect this revenue to fall into the next financial year. The fact that we are investing in new capacity is a clear indication of the direction of travel," said Chairman David Evans.
In a separate statement, Collagen said its customer NovaBone Products LLC has received approval from the US Food and Drug Administration for its biomedical products. The products made by NovaBone use Collagen's medical-grade collagen.
Collagen shares were untraded on Tuesday, having last traded at 9.20 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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