LONDON (Alliance News) - Collagen Solutions PLC on Wednesday warned that revenue in its soon-to-be completed financial year will miss expectations due to project cancellations and the poor timing of contracts.
Shares in Collagen were trading down 19% at 7.03 pence on Wednesday morning following the announcement.
Collagen, which manufactures medical grade collagen components for use in regenerative medicine, said total revenue will be hit by around GBP800,000 in the year ending March 31 as a result of customer project cancellations, lower-than-predicted order volumes, customer takeovers and customer delays.
Revenue will therefore be around GBP2.8 million for the full year, compared with the market consensus estimation of GBP3.6 million.
Its loss before interest, tax, depreciation and amortisation is also now expected to widen to GBP750,000 compared with the GBP602,000 consensus estimate.
Collagen said that its new Chief Operating Officer Tom Hyland and Chief Business Officer Jamal Rushdy will improve commercial operations and manufacturing processes in order to mitigate future uncertainties around revenue recognition and increase operational capability.
"I remain very confident about the future based on the recent strengthening of our commercial team in the US and Europe and this will be strengthened further in Asia in this quarter. Additionally, our pipeline is the strongest it has been during my tenure as chairman," Non-Executive Chairman David Evans said in a statement, adding that he intends to increase his holding in the company over the coming days.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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