(Alliance News) - Collagen Solutions PLC on Tuesday reported a widened loss in its first half of its financial year, resulting from higher marketing costs, as well as amortisation & depreciation.
Shares in Collagen Solutions were down 7.0% at 3.30 pence in London shortly before midday.
For the six months ended September 30, the biomaterials and regenerative medicines firm posted a GBP1.2 million pretax loss, widened from GBP1.1 million the year before.
Although revenue increased 16% to GBP2.2 million from GBP1.9 million, this was offset by a 14% increase in selling & marketing costs to GBP562,313 from GBP491,324 and a rise in amortisation & depreciation of 47% to GBP352,086 from GBP238,981.
During the period, Collagen Solutions said it invested further in resources, while the second half will involve "delivery of additional technical capacity and space" to enable the firm to meet its anticipated financial 2021 demand both from its existing and from new supply customers, as well as to fulfil manufacturing contracts.
Chief Executive Jamal Rushdy said: "As we previously announced, we are pleased to report the third consecutive six-month period of double-digit sales growth. We have shown particularly strong growth from our tissue business and also are continuing to bring on new customers and contracts from our global sales team. Our product development teams remain focused on development projects for customers, providing a solid platform for future contract manufacturing business. Finally, we are investing in our manufacturing capacity to ensure we can continue to support future growth and we look forward to a successful remainder of the year."
By Anna Farley; annafarley@alliancenews.com
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