25 April 2017
Preliminary FY 2017 revenue and other income of £4.1 Million
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 preliminary revenue, including other income, of £4.1 million for the year ending 31 March 2017 (£3.2m in 2016), of which approximately £3.95 million was trading revenue, representing 26% growth.
This growth has been driven by an increase in the number of customers, higher volumes from key customers and an increase in new development agreements. In particular, the Company has seen its pericardium tissue business grow by 30% resulting in a specific initiative to diversify and increase its tissue supply base in Australia and New Zealand to meet the additional demand.
Investments in the Company's commercial organisation have also begun to show results, with the team delivering nine new supply, development and distribution agreements during the financial year, including the recently announced Smart Matrix deal. These should provide future recurring revenues, as customers transition from development to full launch supply. Due to long sales cycles and timing of appointments to the new sales team, the majority of these agreements were closed in the second half of the year. Consequently, these agreements did not contribute materially to the 2016 revenue growth.
Jamal Rushdy, CEO of Collagen Solutions commented: "We are on track with the commercial plans for our core business. The investment that we have made in the commercial team is showing results and we are starting to see improved volume, value, and pace of origination in our pipeline of opportunities. We are also seeking to capitalise on the greater demand for pericardium that we are seeing and have implemented the appropriate operational focus to ensure we can support expected growth in this segment as well. Following the successful fundraising last month, we have also continued to make progress with our product development pipeline and I will update you on this over the coming months."
The Company will announce its financial results for the year ending 31 March 2017 on 11 July 2017.
About Collagen Solutions:
Collagen Solutions Plc is a global supplier, developer, and manufacturer of medical grade collagen, tissues, and related medical devices and components for use in regenerative medicine, medical devices and in-vitro diagnostics and research. The Company is also expanding its range of biomaterials-based finished medical devices based on its internal and acquired intellectual property for commercialisation with partners via licensing and distribution arrangements, including ChondroMimetic®, an osteochondral scaffold for repairing cartilage defects in the knee. The Company's products are used in a wide variety of applications including orthopedics, cardiovascular, dental, plastic surgery, wound healing, neurology and urology.
For more information, visit www.collagensolutions.com
|Collagen Solutions Plc||Contact via Walbrook|
|Jamal Rushdy, Chief Executive Officer
Gill Black, Chief Financial Officer
|Cenkos Securities plc (Nominated Adviser and Broker)
|Tel: 0207 397 8900|
|Tel: 020 7933 8780 or firstname.lastname@example.org
Mob: 07900 608 002
Mob: 07876 741 001