Financial turnaround for Glasgow’s Collagen Solutions

Chief executive Jamal Rushdy is pleased with performance. Picture: Contributed
Chief executive Jamal Rushdy is pleased with performance. Picture: Contributed
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Collagen Solutions, the Glasgow-based life sciences firm, is forecasting a double-digit hike in revenues and narrower-than-expected losses, marking a “substantial” turnaround in its financial fortunes.

In a trading update, the group said revenue for the full year was expected to be ahead of market expectations at £4.15 million, reflecting year-on-year growth of 18 per cent.

Revenue from agreements to develop collagen products on behalf of third parties continued to contribute significantly to the business in the second half, the firm noted, and will make up about a third of its revenues for the year to the end of March.

The company said that it expected to post a lower-than-expected loss before tax due to the improved top line as well as the sale of its holding in Jellagen, a marine biotechnology company.

The firm continues to await feedback regarding the status of the CE mark for ChondroMimetic. In preparation for the approval, and as previously announced, Collagen has put in place several distribution partners in “select countries” in Europe and Asia in anticipation of this.

The group also flagged a better-than-expected cash balance of £1.7m for the year-end, though that is markedly down on the £5m recorded 12 months earlier.

Since the year-end, the business has been trading in line with management expectations, Collagen noted, supported by the new business gained in the second half of the last financial year and current pipeline of deals in process.

Chief executive Jamal Rushdy said: “We are pleased with our delivery of high double-digit growth within our core business representing a substantial turnaround of performance from our prior financial year.

“In addition, our increased mix of development services is a positive leading indicator of success in our strategy to move up the value chain. We look forward to providing a further update when we announce our preliminary results in July.”