(Alliance News) - Collagen Solutions PLC on Tuesday announced the departure of its chair as well as a substantially narrowed annual loss, driven by North American sales growth and product development revenue.
The biomaterials and regenerative medicines firm posted a GBP1.8 million pretax loss for its financial year that ended March 31, significantly narrowed from its GBP2.7 million loss the year before.
A key factor in this was revenue, which jumped 20% to GBP4.2 million from GBP3.5 million, with revenue and other income up 22% to GBP4.5 million from GBP3.7 million.
Chief Executive Jamal Rushdy said the improved performance was due to "18% sales growth, driven largely by increases in North America and product development revenue".
In June, following the end of its year, Collagen raised GBP6.0 million from a strategic investment, placing, and open offer.
Rushdy said: "On behalf of the board and management team, we are pleased to report a successful year, delivering on the priorities we set out to accomplish. With a substantial increase in our contract product development business, which will lead to higher value contract manufacturing, we have demonstrated progress moving up the value chain. We also successfully consolidated our collagen operations into Scotland and enabled our New Zealand team to focus on a new, exciting tissue business opportunity.
"Furthermore, we made good progress preparing for the launch of ChondroMimetic with new distributors and recent feedback from our notified body has given us a clearer path to approval, subject to further dialogue with the notified body and advisors as to scope and timing of next steps. Finally, we are pleased to welcome our newest strategic investor, Rosen's Diversified Inc, anchoring our successful GBP6 million fundraise last month"
Less positively, the company also announced on Tuesday that Chair David Evans has stepped down "due to the continued progression of his muscle-wasting condition", sporadic inclusion body-myositis. Non-Executive Director Chris Brinsmead will succeed Evans as chair.
"I would like to thank David Evans for his trust, support and guidance over the last several years. On behalf of the company we wish him well and will miss him greatly," Rushdy said.
Shares in Collagen Solutions were up 0.3% at 3.81 pence on Tuesday morning.