28 Mar 2018 07:00
28 March 2018
Collagen Solutions plc
("Collagen Solutions" or the "Company")
Collagen Solutions Proposed Restructuring of New Zealand Operations to Pursue Tissue Opportunities
Collagen Solutions Plc (AIM: COS), the developer and manufacturer of biomaterials for the enhancement and extension of human life today announces the proposed restructuring of its New Zealand operations.
The Board of Directors having undertaken an in-depth strategic review of its overall operations and capabilities has decided to explore a re-structure of its New Zealand operations for it to focus its activities in the area of Tissue collection and processing a segment the Board believe to be valued in excess of $100m. A key component will remain the sourcing of both New Zealand and Australian collagen exclusively for both our customers' and proprietary products.
As well as positioning the New Zealand operations for significant growth over the medium term the proposed restructuring will enable the existing collagen production to be consolidated into Glasgow and for our current disparate R&D resource to be more focused. The proposed restructuring is subject to an employee consultation process expected to be concluded before the end of April.
It is anticipated that by undertaking these plans the Company should be able to reach a profitable state more quickly than previously planned. The annual cash cost savings are estimated to be £200,000 with one-off cash costs estimated to be £150,000. There will be associated non-cash asset write-downs that are yet to be determined but will widen the loss for the year beyond current market expectation.
The Company will provide a trading update on the 12th April.
Commenting on the restructure, Jamal Rushdy, CEO says: "There are two sides to making this change, firstly there is the human side, and the potential loss of valued and dedicated employees in New Zealand who through no fault of their own may no longer have a job with Collagen Solutions. The other side is our responsibility to our stakeholders as a whole, and this change will help our key objectives of building a sustainable, profitable and cash-generative company in the near to medium term."
For further information, please contact:
Collagen Solutions Plc |
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David Evans, Chairman |
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Jamal Rushdy, CEO / Hilary Spence, CFO
Lisa Baderoon, Investor Relations lisa.baderoon@collagensolutions.com | Via Walbrook
Mob: 07721 413 496 | |||
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Cenkos Securities Plc (Nominated Adviser and Broker) |
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Steve Cox (Corporate Finance) | Tel: 0207 397 8900 | |||
Stephen Keys |
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Walbrook PR Ltd | Tel: 020 7933 8780 or collagen@walbrookpr.com | |||
Anna Dunphy | Mob: 07876 741 001 | |||
Helen Cresswell | Mob: 07841 917 679 | |||
About Collagen Solutions:
Collagen Solutions Plc is a global supplier, developer, and manufacturer of medical grade collagen, tissues, and related medical devices and components for use in regenerative medicine, medical devices and in-vitro diagnostics and research. The Company is also expanding its range of biomaterials-based finished medical devices based on its internal and acquired intellectual property for commercialisation with partners via licensing and distribution arrangements, including ChondroMimetic®. The Company's products are used in a wide variety of applications including orthopaedics, cardiovascular, dental, plastic surgery, wound healing, neurology and urology.
For more information go to: www.collagensolutions.com.