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Group revenue and other income at Glasgow-based Collagen Solutions plc (AIM: COS), the developer and manufacturer of biomaterials and regenerative medicines for the enhancement and extension of human life, have decreased by 6% to £3.83 million (2017: £4.09 million).
Adjusted LBITDA (before separately identifiable items) increased to £1.58 million from the 2017 figure of £1.26 million.
The decline on prior year was due to a number of customer issues: a temporary withdrawal of one customer’s tissue product, suspension of two customer projects, and one customer’s adjustment of inventory levels.
These losses in 4 customers contributed over £800k of year over year decline and gains in new customers and growth in existing ones were not sufficient to offset the scale of their, albeit largely temporary, decline. Further, market expectations had assumed the signing of a major customer contract in FY2018 which in fact was signed last month.
Jamal Rushdy, Chief Executive Officer of Collagen Solutions, commented: “On the one hand, we experienced a difficult year in terms of our sales performance and the necessity to mitigate several unexpected challenges in our core business, which is disappointing both to ourselves and shareholders. However, I am pleased that our global team, and highly supportive Board, faced these challenges head-on and achieved several positive outcomes during the year. I am confident the operational improvements and new organisational appointments we have made has put the Company in a much stronger position. Furthermore, our core business has strengthened with new contracted business moving us further up the value chain, while we achieved critical proprietary product milestones including successful clinical results from our ChondroMimetic® regenerative cartilage scaffold. As we are better positioned than last year and have set ourselves meaningful yet realistic goals for this year, I believe we will deliver improved execution and results.”