Life sciences company Collagen Solutions has set itself the ambitious target of delivering a five-fold increase in revenues within the next five years.
The goal was unveiled as the Glasgow-based firm, which develops collagen components for use in regenerative medicine and medical devices, reported revenues and other income of £1.9 million for the six months to the end of September, an increase of 30 per cent on the same period last year.
Analysts at house broker Cenkos Securities said the target for a five-fold sales increase suggests revenues of about £15.5m by 2021, representing a compound annual growth rate of 38 per cent.
Collagen Solutions chief executive Jamal Rushdy hailed “continued momentum” with the Aim-quoted company’s development, supply and manufacturing businesses, pointing to increased investment in sales and marketing.
“In addition, our integration of research and development efforts globally has resulted in a more focused pipeline of near-term finished device projects that will address major markets in orthopaedics and wound care, including our flagship ChondroMimetic programme,” he added.
“We believe that the progress made during the period set the strategic foundations on which we will base our objective to grow our revenue by five times within five years.”
His comments came as Collagen Solutions reported a sharp increase in pre-tax losses for the first half of its financial year – swelling to £983,313, from £356,537 a year ago – reflecting an increase in its headcount and higher costs linked to extra office and production space.
Chairman David Evans said: “Over the coming years, these initiatives will build upon the strong foundation of customers, people and technologies we have developed since the inception of the group.
“While we are still early in the transformation and acceleration of the company, I believe we have made prudent investments in our core business and the management team is focused on the right priorities for sustainable growth towards our goals for this fiscal year.”