Collagen Solutions targeting Glasgow growth as full-year losses narrow

Glasgow-based life sciences firm Collagen Solutions is readying for further growth in Scotland after narrowing its full-year losses.

CEO Jamal Rushdy said it was 'all in all a pretty good year'. Picture: contributed.

The Aim-quoted firm, which operates from Nova Business Park, said group revenue and other income for the 12 months to 31 March saw a year-on-year increase of 22 per cent to £4.51 million.

Its core loss before separately identifiable items decreased to £1.22m from £1.71m, and chief executive Jamal Rushdy told The Scotsman that it was “all in all a pretty good year”.

He said the business, which develops and manufactures collagen-based products and biomaterials used by the medical device industry, finished the fiscal year “quite strongly” – and its core business was profitable on an underlying earnings level in the last quarter.

Rushdy also said the firm is now far better placed than 12 months previously, when it reported “disappointing” full-year results.

He flagged achievements in the latest financial year, for example netting 16 customer deals, including four licensing agreements for its ChondroMimetic collagen-based implant. It also consolidated its New Zealand collagen manufacturing into Glasgow, realising £200,000 in annualised cash savings.

The business in June completed a fundraise of about £6m – and has earmarked £1m to invest in manufacturing, including staff and training in Scotland.

Rushdy noted that Collagen Solutions’ biggest employee base is in Glasgow. “We will continue to grow in Glasgow, and in fact one of our major initiatives for this year is to ensure that we have sufficient capacity so we will be looking at capacity expansion in Glasgow.”

In summary, “we’re on the right track,” Rushdy said.

Additionally, chairman David Evans has decided to step down due to the “relentless progression” of his muscle-wasting condition. His successor is Chris Brinsmead.

Chris Donnellan, analyst at house broker Cenkos, said: "We believe there is significant momentum building within Collagen Solutions. We model conservative double-digit revenue growth given the potential to bring new revenue streams on-line."