Collagen Solutions's losses narrow on improved top line performance

Biomaterials and regenerative medicines outfit Collagen Solutions expects to report narrowed pre-tax losses for the year ended 31 March, thanks to an improvement in revenues.

Collagen anticipates revenues for the full year will come to £4.15m, ahead of market expectations and the previous year's £3.5m figure by 18%.

The AIM-listed outfit said revenues from agreements to develop collagen products on behalf of third parties continued to "contribute significantly" to the business in the second half and will make up approximately 33% of its revenue for the year.

Management also expected the sale of its holding in Jellagen to help it reduce its red ink.

Trading had been in line with expectations since year-end, with the company continuing to build on the progress seen in its last trading year, supported by the new business gained in the second half of the last financial year and new deals.

Chief executive Jamal Rushdy said: "We are pleased with our delivery of high double-digit growth within our core business representing a substantial turn-around 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."

As of 1150 BST, Collagen Solutions shares had dipped 1.47% to 3.35p.