19 December 2016

Half Year Report
Interim Results for the six months ended 30 September 2016

Collagen Solutions plc (AIM: COS), the developer and manufacturer of medical grade collagen components for use in regenerative medicine, medical devices and in-vitro diagnostics, announces results for the six months ended 30 September 2016.

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Financial Highlights

  • Revenue and other income increased by 30% to £1,891,001 (H1 2015: £1,460,218)
  • Adjusted LBITDA* of £418,308 (H1 2015: £79,376)
  • Pre-tax loss of £983,313 (H1 2015: £356,537)
  • Basic and diluted loss per share of 0.60p (H1 2015: 0.26p)
  • Cash and cash equivalents of £1,657,193 at 30 September 2016 (31 March 2016: £2,493,146)

*excluding separately identifiable items

Operational Highlights

  • Appointment of a new CEO, Jamal Rushdy
  • Progress with lead "finished device" (ChondroMimetic) towards initiating 6-year retrospective study and re-establishing manufacturing and European approvals
  • Initiated two additional "finished device" projects for wound repair and bone healing, addressing significant commercial opportunities in the orthopaedic and wound care markets
  • Global commercial team has been strengthened with new hires in sales and marketing
  • Commercial offices have been opened in Seoul, South Korea and Minneapolis, USA
  • Completed several strategic initiatives to build sustainability and scalability in sales, marketing, OEM process and supply chain, including a Global branding launch
  • Continued progress with our distribution channels in Asia and in China via our Cre8ive JV
  • Invited to participate in a second Horizon 2020 grant funded research programme worth c. €500k to the Company over five years

Post Period End

  • The management team has been strengthened by appointment of Kevin Darling as New Zealand General Manager.
  • Distribution agreements have been signed for research markets in South Korea and Japan.

Jamal Rushdy, Chief Executive Officer of Collagen Solutions, commented: "I am pleased to report on the continued momentum in our core biomaterials contract development, supply, and manufacturing business. Recent investment in sales and marketing, and in particular talent, systems and processes, has resulted in improved operational efficiency. In addition, our integration of R&D 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. We are on track to initiate a six-year retrospective study for ChondroMimetic with new data to demonstrate long-term tissue regeneration with 3D MRI analysis as well as sustainability of the early positive functional results, and in parallel obtain the CE mark in 2017. Together, 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 5x within 5 years."

About Collagen Solutions:

Collagen Solutions Plc is a global provider of medical grade collagen formulations and components for use in regenerative medicine, medical devices and in-vitro diagnostics and research. The capabilities of the Company include the provision of native, soluble and powdered collagen formulations, processed and semi-processed tissues such as pericardium, bone, and blood vessels, and expertise in the development and contract manufacture of collagen components for use as engineered tissue scaffolds and other medical devices. These products are used in a wide variety of applications including orthopaedics, cardiovascular, dental, plastic surgery, wound healing, neurology and urology. Collagen Solutions' unique offering extends beyond material supply and contract services through the highly skilled staff who support customers through the various stages of development and regulatory approval. For additional information, please visit www.collagensolutions.com.

 

Enquiries:

Collagen Solutions Plc  
David Evans, Chairman
Jamal Rushdy, CEO / Gill Black, CFO via Walbrook
   
Cenkos Securities plc (Nominated Adviser & Broker)  
Steve Cox (Corporate Finance) Tel: 0207 397 8900
Stephen Keys  
   
Walbrook PR Ltd Tel: 020 7933 8780 or collagen@walbrookpr.com
Mike Wort Mob: 07900 608 002
Anna Dunphy Mob: 07876 741 001