(Sharecast News) - Biomaterials and regenerative medicines developer and manufacturer Collagen Solutions updated the market on its trading for the six months ended 30 September on Tuesday, reporting that revenue for the period was expected to rise to £2.23m from £1.95m year-on-year.
The AIM-traded firm said that 14.4% increase was primarily driven by continuing momentum in its newly-established tissue business, adding that new customer acquisition had continued, with four new customer contracts and 10 new customers in the half-year.
In June, it completed a fundraise of £5.96m gross of costs, made up of a strategic investment by Rosen's Diversified of £4.18m, a placing with existing and new investors of £1.25m, and an open offer totalling £0.53m.
The board said the funds were being used to further customer and proprietary product development, expand contract manufacturing activities and capabilities, and for working capital, including the repayment of the Norgine Ventures Bond Facility.
It added that it was continuing to execute on its customer product development milestones, having signed new development customers, which represented additional future contract manufacturing opportunities, once those products are approved and launched.
In addition, the company said it remained "engaged in the process" to address questions from its notified body for the 'ChondroMimetic' CE mark consistent with its previously-stated plans.
"We are pleased to report the third consecutive six-month period of double-digit sales growth demonstrating consistent performance to our expectations by the Collagen Solutions global team," said chief executive officer Jamal Rushdy.
"Our core business remains strong and our initiative to increase capacity is on track to meet the anticipated higher demand for both collagen and tissue products."
As at 1044 BST, shares in Collagen Solutions were down 1.43% at 3.45p.
26 Aug 2014 15:16