LONDON (Alliance News) - Shares in Collagen Solutions PLC fell Wednesday, after the company warned that it will record a widened loss and lower revenue for the 2018 financial year due to a delay in contractual discussions with a new customer.
The stock was trading 15% lower at 2.77 pence per share in morning trade.
The bio-materials company expects to report revenue of GBP3.5 million for the year to the end of March, down from GBP3.9 million posted in the year ago period.
The widened loss for the first half was mainly attributed to fall in revenue and increase in New Zealand operations restructuring costs. Collagen Solutions expects the restructuring costs to be partly offset by the reversal of previously accrued earn-out provisions.
The company anticipates to end the first half with GBP5.0 million in cash. The prior year it had GBP9.0 million in cash.
"It is clearly disappointing to have not hit our revised revenue targets for the year," said Chairman David Evans.
"While we have experienced protracted sales cycles across several parts of our business, the size and general nature of those contracts under negotiation is promising," Chief Executive Jamal Rushdy added.
