Glasgow life sciences firm Collagen Solutions bullish as demand remains buoyant

Glasgow-based life sciences firm Collagen Solutions has reported no drop in demand for its products and services, despite a reduction in activity among its key end markets of orthopaedics, cardiovascular, wound care, and dental surgery.

Rushdy is confident that the firm can generate value to shareholders over the medium term. Picture: Sarah Pierce Photography.
Rushdy is confident that the firm can generate value to shareholders over the medium term. Picture: Sarah Pierce Photography.

The Aim-quoted firm said that since its previous trading update announcement on 23 April, it is performing in line with its expectations in the current environment, and customers have “continued to place orders in the normal course of business”.

The firm added that its order book across its entire business continues to be robust, and as of 8 June, it has orders or contracted development milestones for its 2021 financial year, together with revenue already recognised through the first two months of the financial year, worth about £3.3 million – equivalent to 82 per cent of 2020 full-year revenue.

It has also completed a £500,000 investment in its Glasgow facility, upping the manufacturing capacity by at least 85 per cent, and helping it work through its backlog and order book. Additionally, it has been granted an extension to the timeline for filing its consolidated accounts for the year ending 31 March.

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Chief executive Jamal Rushdy said: “While we have started the year positively, we are prepared that the current financial year might have challenges driven by external events.”

He also said the company – which is looking to grow its presence and economic contribution to Scotland’s life sciences sector – is confident that it can generate value to shareholders over the medium term.

The board remains “confident that it is well-positioned to take advantage of the attractive long-term market fundamentals in order to achieve its ambitious growth plans”.

The firm in March warned over widening full-year losses due to supply delays and the hesitancy of customers to commit to new orders as a result of the coronavirus outbreak.

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